2006-06-18 07:18:04 · 4 answers · asked by oandl31 2 in Business & Finance ➔ Credit
No it will not increase your score, in fact it will actually drop the score, because paying it will update it to a newer status. Though the reporting period will remain the same.
If this account is with a collection agency, send the collection agency a debt validation letter. You need proof of the "true" amount due. Collection agency's often add amounts to the debt. They also pay 50% more or less when purchasing the debt. (If a junk debt buyer has the debt, they probably have paid pennies on the dollar or on the $100.00 for the account.)
If it is still with the original creditor, send a debt verification letter.
After you receive the response and are satisfied that the debt was properly validated/verified then send a letter requesting pay for deletion.
Include in the letter that you are requesting to pay a percentage of the amount, that they will delete from your reports upon payment, that they will not continue collection on the account, that they will not sell the debt (which they may do even though it is paid if you do not have anything in writing with them) and that they will not sell the remaining portion of the debt.
I would also suggest doing a google or yahoo search for credit repair boards. There are many self help credit boards on the net with "many" people going through the same thing you are. They share their experiences and what has worked or not worked for them.
2006-06-18 11:03:42 · answer #1 · answered by echo 7 · 1⤊ 0⤋
Not immediately. All information stays on your credit report for a few years, charged off debt for 7. When you pay it off, make sure it gets reported to the three credit bureaus. If it doesn't, you can contact the bureaus and request they take it off your report on the grounds of payment.
It will definitely help you obtain credit in the future (if there are no other problems on your credit report).
I had to pay a charged off account before I was granted mortgage, for example, because had I not, the credit grantor from the charged off account could have put a lien on the house.
2006-06-18 08:12:02 · answer #2 · answered by smiling_nonstop 4 · 0⤊ 0⤋
Not by much, however it will help for you to gain other credit from other souces.
It is best to pay it off.
2006-06-18 07:47:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, it doesn't increase your score.
However, potential lenders will note when they look at your report that you did eventually pay it off.
2006-06-18 07:55:44 · answer #4 · answered by Jess Wundring 4 · 0⤊ 0⤋