Want to pay off debts and improve credit…just a couple questions…?

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On my credit report i have 2 credit cards, a lot of hospital bills, and a few utility bills…what is best to pay off first in order to improve credit? And how can i make a deal with collection agencies if they don’t try to contact me any more. (i.e. haven’t heard from credit card collection agency in years, want to try to make a deal with them to pay off credit card) also, how long after paying off debts does it show as a positive account on your credit report?

2 Comments
  1. Reply
    Jeremy Kitching
    July 21, 2011 at 12:09 am

    Paying off the debts (if they are charged off or in collections) really won’t improve your credit score. The fact that they are past due is what is causing the poor score. Also, the older the accounts become the less impact they actually have on your FICO score.

    If you have accounts that are negative that haven’t contact you in a while, and you want to actually pay them, then you could dispute them with the credit bureaus. If the accounts are verified then you will receive contact information for the account and you can pay them.

    If the accounts are old (i.e. 3-4+ years) I wouldn’t bother with them unless you are looking for a loan in the near future. The items will fall off of your account after 7 years. Also, check out the following web site as it has excellent information on credit scores and reports:

    http://www.allaboutthebenjamins.org/CreditScoringFAQ.html

  2. Reply
    pigskinpicks
    July 21, 2011 at 12:52 am

    Check out http://www.ineedrates.com find a low interest loan and cosolidate everything. Having everything paid off and 1 monthly payment wil be much easier.

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