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caroline
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Subject: Credit score does not increase
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Mon Jun 08, 2009 11:33 am
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| I have recently been able to pay off five accounts in collections and one judgment. They have been recently updated on the report, but the credit score is very low. I paid all by checks and debit card, can that be the reason, my credit score is low. Someone said paying by money orders helped to improve the score faster, is it true? I want to buy a house very soon, can someone help me with it. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Mon Jun 08, 2009 11:52 am
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When you paid these accounts off did you ask for a pay for delete? This is an arrangement between you and the collection agency/creditor to remove the listing from your report after it is paid. Some will do this and others will not. You have to ask before paying though.
Now your score will probaly not increase much if those marks are on your credit regardless of whether they read paid or not. Also if the accounts were turned over to collection agencies and not paid to the original creditor then the original creditors listing will still be there looking unpaid or sold off.
Do not get discouraged though. Through time your score will increase as these accounts get older. Also when a new creditor is looking at your report later on they will be more apt to give you credit with all the collections on your account showing settled. Hope this helped. |
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rachael
Joined: 11 May 2009
rachael's page
Posts: 234
6581 Magic Points
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Mon Jun 08, 2009 12:17 pm
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Hi caroline,
Your credit score is calculated by considering various factors. Your payment history amounts to 35% of your credit score. Once the charge-offs and judgment are listed on your credit report, paying them off will not help to increase your score immediately. To improve your score, you will have to build a good credit record by making timely payments on all your current bills.
Apart from making timely payments, you can take the following 3 steps to improve your score quickly:
1) You can ask a friend or relative to add you as an authorized user, to any of their old credit accounts. Increasing the length of your credit history, will increase your score.
2) You can ask your credit card company to increase your credit limit. Increasing your limit will lower your debt-to-credit ratio, which helps to raise your score.
3) You can get a secured credit card and use it for all your purchases. You must make timely repayments for the secured credit card, to improve your credit records.
_________________
Looking forward to a debt-free life. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Tue Jun 09, 2009 10:43 am
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| Secured credit cards are a very good way to go and there are alot out there but do your homework to find the one that works best for you. Another good thing about secured cards it keeps you from overcharging. At this time you may have problems getting any credit card company to increase your limit. One reason is because of recent deliquencies and the second is the economy. I heard on the news that alot of companies are actulle even cutting good standing card holders limits. Remember though, hang in there and once you get your credit rebuilt try hard to keep it in good shape. |
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KarmaQueen
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Subject: paying a judgement
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Wed Feb 03, 2010 5:18 pm
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I was out of work and could not pay a bill..so the collector received a judgment from court..OK I made a paymetn arrangement asap..but now the colletor wants MORE than what is court ordered!! Like Filing fee. Admins fee..Am I obligated to pay this extra stuff? I want to pay off the judgemetn now so can I also ask for a pay for delet..it's a judgement..?? so IDK..??
State of Wisc. |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
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