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Does paying off old debt increase my credit score? I have been working on getting some old stuff out of the way, I am trying to keep caught up or current on present bills. I am probably better off trying to keep present bills current right?
Hi Goodnatured,
Yes, absolutely keep the present bills current as that will help you more at this point I would think than worrying about old bills. I learned the hard way that the old stuff will always be there and all you can do is try to pay what you can on the old debts. As far as increasing your credit score, i paid some old debts in full and it does help some. depends how old these debts are and if they are in collections, are charge offs, etc. good luck
Well, most of them are already paid. I have one more that I am currently dealing with, but trying to pay the past and keep up with the present is sometimes a balancing act that is just impossible to handle. I appreciate your comments, as you see I finally found this site, thanks for inviting me, I should have came here alot sooner. Good folks with good advice.
Hey! good to see you here for sure. You have so much knowledge good, and I have read some of your other posts here, you'll be a very valued member here. I'm very happy to hear that most of your debts are paid, that's a big relief i'm sure. I know when i finally paid all my consolidation debts off it felt soooooo good! balancing act it is and it is far from easy but it's comforting to know that other folks have gone through similar situations.
These forums are great for that, don't feel like your being judged or that someone will throw rocks at you, LOL. Did you get my PM?
Morning, sure did and answered you back. You really have some good questions on here, especially about the arbitration process. really wish i could give you some insight on that and am hoping that someone comes along to help you out as i'm curious too. going through some stuff with a CA, gosh they just keep calling me like there's no tomorrow.
yeah no rocks here ;) i havne't seen one flamer yet which is great!!
I guess I will have to come on after it is all said and done and post what happened. Maybe my experience will help someone else out. I am going to check out my pm's did not want to put that one out on the board, thanks for responding.
sure, wish you well through that experience. i hope everything works out for your better good and not theirs!
I am hoping that way too, I will gain one thing from it, knowledge to pass on to others so experience is never a bad thing to me, I have to take one good thing away from everything even if it is a hard lesson learned.
Look at the bright side, I will be able to help others with or warn others I should say with my vast knowledge about the process as it happens here in Pennsylvania. LOL
Don't mean to make light of it, but there is no sense in dwelling or worrying I have enough on my plate as it is.
Hey I don't blame you for your frame of mind, LOL. you either laugh or cry reading your other posts you've been dealing with this particular company for quite some time, they finally 'got their act' together and went after you. I am interested to see how this turns out for you.
I will just be happy to have some kind of result, it has been so time consuming. I need an end to this one way or another.
Well
Rome was not built in a day
...this is repeated by sdchargers. I am saying this because I feel when it comes to financial matters it takes time to settle. You have to build with patience :) All the best.
Oh Laura you are so right, if you look up patience in the dictionary, my picture is beside it, lol, just kidding. I am just getting a little anxious because of the upcoming aribitration, I don't have a date yet. I think it takes about 30 days after I recieve the letter, hope they wait till after the holidays.
I am thinking I should see some positive results on my credit report over the next year. I have been working at it. we shall see, I am not gonna pull it for a few months yet.
Good you will do just fine, understandable you're nervous about arbitration and again i hope you keep in touch with us regarding that because we can learn from your experiences, but reading many of your posts you're strong and resourceful and it's obvious to all the forum members that you are sincere in rebuilding your credit and keeping it strong!
Keep up the spirit good. You will do fine. Hope you have been answered on the arbitration question that you put. I am researching on it. Will tell you once I find anything useful that has not been mentioned.
Justin, anything you find on arbitration in Pennsylvania would be great, I have not been able to find much at all. I really appreciate your efforts in helping me here.
Yes I will try to gather info related to PA.
Remember paying on an old debt can start the 7 year clock over
Does paying off liens & collections improve my credit?
In the long run yes, but in the short term it doesn’t have much of an effect at all, unless the amounts have a balance listed in the “past due” section of the report. In that case I suggest to pay the balance in the past due column if it is less than two years old, but remember; whenever you make a payment on a collection or a charge off, the seven year clock starts all over again and the item will be reported for seven more years from the date of payment. If you never pay a collection then it will disappear seven years after the time you last made payment on the credit card that resulted in the collection.
Guest, I paid these old debts completely off one by one, so the amount due is zero. So the SOL is not an issue.
Thank you Justin, appreciate your time and efforts on this.
So the old debt accounts are still on the report right? Do they show positive or have negative implications?
I haven't look yet Laura, I want to get some other things straightened out before I pull it? I posted a question on the other posting, guess I can ask it here to. How long does it take with being current does it take to reflect a difference in your score, I know it will reflect current right away at the end of that month, but when can I expect to see a change in my score?
Maybe Rome wasnt built in a day....but Phoenix sure seems like it!!!
Well guest debt is not Phoenix for sure. It cannot be a myth. Rome is reality and so is your debt. So building requires time. :)
Wow, not sure how to take that one guest, but as usual I will take it, I will take it as a good gesture, LOL.
Things will start looking up soon for you if you are making an honest attempt to clean up your credit. Paying off old debt will show a zero balance in the balance column on your credit report, some lenders may look favorably on this versus owing a balance and ignoring it completely. Try to stay current on your present bills that will make a bigger impact.
I hope paying these old debts off helps my credibility, I don't plan on borrowing any money for a long time, but would like a better rate If I decide too. I guess this can't hurt. I am trying to keep my current bills current.
Good taking a new loan will only do harm
* if you are applying for too many loans at the same time. The hard inquiries run your credit score berserk.
* if you are not keeping up with the payments
What carol says is true, any hard inquires on your credit report will lower the score that you have been working on to raise. This will also alert bill collectors that have ticklers on your file as to what activity you are up too, your address and such, as soon as you apply they will start calling. I have a sister that this happened to. She did not hear from collectors until she applied for a loan.
Guess they figured that she would borrow enough to pay them as well, you have less of a chance of them cutting you a break at this point also. Forgot to add this to the post, sorry.
I don't plan on taking out a loan anytime in the near future or the next couple of years. I just want my credit report to be better next time around so I can get a shot at a competitive rate.
Thats a better way to approach. I am still building so not going to take any card for the time being. If I need credit I will ask my credit card company to give me a higher credit limit. My scores might work that way.
That's a very good idea Good...looking to the future is always a great thing especially when dealing with credit. many people i know only look to the present and don't think of the potential consequences or rewards for that matter. I have a venting issue/question. I have 2 credit cards that i keep up with very well, thank God wehave the ability to do so. So like the ditz that I can be i signed up recently or applied I should say for a card that offers better rates and perks than one of my current cards with the idea being that i can cancel and shred one of my current cards should i be approved. I'm thinking that 'ok my current company is allowing me another chance to have a another credit line with them with better terms and conditions' well to my surprise i was denied because of my credit scores...
stupid stupid stupid,,, the only good thing here is that WAMU the company I currently have and applied for a second line of credit with, said that while they regret denying me, they will not report it to the credit bureaus! talk about a close one, i'm still going to watch and make sure that they are true to thier word on this....i get so many countless invitations from various credit card companies and i'm thinking why on earth are they sending me these stupid soliciatations if i weren't eligible even though they say pre qualified!!! i know i can opt out and i will but still the principal is still there.
thanks for listening all, happy almost thanksgiving
Debt I dint get that. You have already closed one account even before another one was opened? Was the closed account in good shape?
I think with the bills that I currently have, keeping them current will be a good way to rebuild my credit, as negatives drop off and these one build a positive rating. Am I thinking right here?
I think you are on the right track, things can only get better as long as you stick to your plan, it will take discipline, you can do it, we are here to be your cheerleaders.
I am getting ready to deal with the one old debt that I have left, I have to review all laws of admitting evidence and civil procedure, should be fun, look forward to learning alot. After this one all my old debt will be history, will be so glad to have this off my plate and done with.
Oh i'm sure, Good. to your credit you're learning and trying to gather all the information you can. we can learn from you, please let us know how things are going...long process it seems