2006-09-14 15:27:04 · 12 answers · asked by Mary L. T 1 in Business & Finance ➔ Credit
If you pay off all of your credit cards and not close the accounts, yes it will help your credit.
If you close the accounts, your credit will drop.
As for the collections, a paid collection is just as bad as an unpaid collection.
2006-09-14 18:30:22 · answer #1 · answered by echo 7 · 0⤊ 0⤋
Yes, but don't pay off the whole balance at one time, do it in increments. (say you owe 600.00 on one card and 400.00 on another, pay 200.00 on one and 150.00 on the other and continue to do that each month until they are paid off). the payment history is what brings up your credit score. I was also told to never completely pay them off if you are going to keep them open, spend a little but then that month pay most but not all off. What the creditors like to see is that you are paying bills on a monthly basis and keep up with the`payments, not just making lump sum payments. I would start with the collection debts first, pay them off to a 0 balance. Then work the credit cards as I stated above. I hope this information helps you out!
2006-09-14 15:45:17 · answer #2 · answered by WILDFIREJOANN 3 · 0⤊ 0⤋
It will definitely help.
The amount of credit you have will not hurt you if your debt/credit ratio is low. If you've paid them off, leave the accounts open and use them once in a while to keep them open. You average account age is positively correlated with your FICO score.
Get a free credit report from all 3 credit reporting agencies and check for errors.
Good luck.
2006-09-14 17:10:26 · answer #3 · answered by inpoetry1 3 · 0⤊ 0⤋
Paying collections accounts is the best thing you can do.
2006-09-18 12:44:33 · answer #4 · answered by Dwight D J 5 · 0⤊ 0⤋
Yep it will raise your credit score by 100% with them paid off.Good Luck
2006-09-14 15:35:00 · answer #5 · answered by sugarbdp1 6 · 0⤊ 1⤋
Im sure it would help. Remember the amount of available credit you have could be viewed as a lialibility
2006-09-14 15:35:43 · answer #6 · answered by eric H 2 · 0⤊ 1⤋
Most definitely
2006-09-14 15:37:08 · answer #7 · answered by Luckys Charm 4 · 0⤊ 1⤋
yes, your credit score will go up
2006-09-14 15:35:20 · answer #8 · answered by xjoizey 7 · 1⤊ 1⤋
It will definitely help and clean up your score showing that you're responsible.
2006-09-14 15:36:11 · answer #9 · answered by Link of Hyrule 3 · 0⤊ 1⤋
not if some have been listed as a bad debt
2006-09-14 15:30:53 · answer #10 · answered by jo j 2 · 1⤊ 1⤋