Does your credit score go down if you pay off a years-old debt?
admin | Oct 08, 2010 | Comments 5
I sent a letter to Equifaxc asking about a 5 year ancient debt I owe. Sought after to know when it would fall off. I make a phone call about 3 times a year about this account, so I’m not sleepless at night.
The letter said that the account would be deleted 7 years after I paid it off from the last activity date. Which is sort of confusing. Last date of activity was 10/02. If I reach a settlement and pay it off, last date of activity will be 9/07. Does that initiation the timer again? is it worth it?
And if my credit score does go down, why would it?
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Filed Under: Your Credit Score
If you pay it your score should improve! your showing that debt paid not charged off! a charged off debt hurts you worse than one apid off!
The score represents your skill and willingness to pay back debts; unpaid, late debt is dragging your score down, so the sooner you pay it off the better! It may take credit companies some time to reflect this in your score, but your score can only improve if you show the lending world that you will make excellent on your debts.
How would you feel, as a lender, about a person with outstanding debts? Would paying it off improve your opinion?
it’s a lie.
it will be removed 7yrs from the 1st delinquency date
that’s a federal law.
IF YOU PAY IT…..IT WILL BRING A CURRENT ACTIVITY TO A COLLECTION. basically, it’s if the collection is strain new.
but
it will still fall off 7yrs from 1st late payment
Ancient debts make written off and removed from your account after 7 years, which starts when the creditor initially reports your account — but some shady companies use whatever information or payments you send them to change the date of your account on your credit reports so that it prolongs the time it takes to make them written off — this way they can have leverage over you which improves their chances of getting their money. place on’t fret, you can easily write to any of the credit reporting agencies if this happens and have them remove inaccurate entries, but of course you have to continue to track your credit score and credit reports until they are completely cleaned up. It’s pun but most people reckon that paying off charged-off accounts is going to aid them, and really all it does is show lenders that you are responsible to pay even your late accounts.. but in the world of money timeliness is more valuable. Even if you pay your ancient collections such information is not removed until the 7-year time period ends and the detail that you paid late still negatively impacts your overall score no matter if you pay it off or not. So in some cases it may be better to just wait and do other things to boost your score while the other items expire.
Here are my 10 steps you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year — :
1. Know and Track Your Credit Score (be sure to sign up for the emancipated trial of your credit score monitoring programmed on the article below. It really helped my make my score up.)
2. Never Miss a Payment, Starting Today
3. Never use more than 20% of your Available Credit
4. Keep Credit Cards that Have No Annual Fees Open For as Long as Doable
5. Extend Your Credit Limit on Cards You Already Have before You Make New Ones
6. Make Credit Cards that Have CashBack Rewards to Contribute to your Balance
7. Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
8. If You Reckon You Are Going to be FORCED to Pay a Bill Late Question for an Extension or Payment Plot
9. Take out a Small Personal Loan and Repay it Over a Year
10. Question Someone With Excellent Credit if They will Account Shadow you
When you’re trying to build a solid credit score it’s valuable to make a comprehensive view of what is really effecting it…
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% – Payment Description
* 30% – Credit to Debt Ratio
* 15% – Credit Description
* 10% – New Credit
* 10% – Credit Types in Use
If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.
I’ve got a lot of information on my blog about credit scores, and I make a lot of questions so feel emancipated to check out any of my posts on millionster.com; I believe my articles here address many of your concerns but if they don’t and you still have any specific questions feel emancipated to house a comment and I’ll answer.
How Can I Boost My Credit Score
http://millionster.com/articles/debt/question-1mil-how-can-i-boost-my-credit-score/
have a question if you robbed a small ancient lady would you still be sleepless at night — you robbed someone to make the debt so quit playing numbe games and pay it off!!!