I paid some charged off debt as requested by a mortgage lender, will this increase ny credit score?

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In applying for a mortgage the lender requested that I pay some specific debt. One an installment loan and a few other small ones. I have done that, will my credit score increase? I also have some charged off credit card debt listed but it is also listed with a collection agency. In reviewing my application, are they NOT looking at that and should I contact the ORIGINAL creditor that charged off and negociate the ORIGINAL amount which is considerably lower because interest has accrued with the collection agency. Doing so would that increase my credit score and can I have the debt collection reporting removed if I do contact the original creditor?

  1. Reply
    May 16, 2011 at 11:32 pm

    The short answers are: no, no, no.

    If you attempt to contact the originator of the debt, they will just refer you to their collection agent. They cannot negotiate with you once they have given the debt to a collection agency because most collection agencies bind the companies to a non-circumvent contract.

    Paying off a debt that has been charged off or sent to collections will not significantly increase your credit score. After it has aged for a while, then it’s weight on your credit score won’t be so heavy and your score will improve slightly.

    The original creditor is unlikely to remove the item from your report.

    Now the good news is that you can have the information removed from your credit report any time you wish. There is no law that says you are required to live with bad credit. If you don’t like the credit you have, change your lifestyle and have the negative stuff removed. (Yes, it is legal and yes it is moral).

    If you have any questions about your credit issues, you may email me at nebula7693@yahoo.com

  2. Reply
    Brandon G
    May 16, 2011 at 11:55 pm

    No one should advise you to remove negative items if they are correct, especially someone claiming to be in the business.

    Disputing items on your credit report you know is accurate is illegal and can be considered a crime in some states. Any business that advises you to dispute correct items just because they are negative should not be in business.

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