To make credit better should we go back 5 years and pay charge offs or would it make a difference?

Question

We have a bankruptcy, repossession, and several charge offs 5 years ago. We are making payments on time now. Would it make the credit any better to go back 5 years and try to pay some charge offs? or should we just concentrate on keeping our present credit good? What else is there that we can do?

Answer 1

GOSH! What a load of terrible answers!!!!

Thank you LOGAN for being the only person with a decent response!

And Diesel Weasel gets the Studly "Daily Moronic Answer Award". It's no surprise that a mortgage lender would recommend you pay off your old debts.

For starters, why are you not discussing this with your lawyer! That is why you paid him, isn't it? Advice?

Were these debts included in your bankruptcy? Then why on earth would you want to pay them now? You are already paying a terrible price to your credit history when you file for bankruptcy! Why compound it!

When you file for bankruptcy and your debts are discharged, your creditors are required to update your credit reports to show a zero balance. True, it will still show charge off's and bad information, but the fact that the bankruptcy is being listed is going to kill you anyway.

Here is what you do. If you are in chapter 13 keep paying those trustee payments. Any bills that you are still paying (those you reaffirmed) be sure to pay on time.

Visit the two sites below. The first is a very good site for people trying to recover their credit after bankruptcy. The second is a great forum for people with credit problems. Both will give you good advice on how to fix your credit.

Note that if you pay off those old debts, it will actually HURT your credit. Any surprise why Mr. Loan Officer didn't mention this?

Your credit report puts more emphasis on newer debts. Once they are around 5 years old they do not play that large of a role on your report. But once you begin making payments on them, they now become a 'recent debt' all over again, and there goes your credit score!

Debts can only be reported on your credit history for 7 years, starting on the date of the delinquency. So just hang on a couple of years and let them drop off by themselves.

In the meantime, use the money you were going to pay and start establishing some new lines of credit. Get a credit card and keep it paid off! Get a small loan and pay it off.

There are no instant fixes to bad credit. No "magic bullets". It's going to take time. But don't compound it by making a lot of dumb mistakes! Talk to your lawyer!

Answer 2

Keep doing what you are doing. The charge offs are 5 years old and will drop off in 2 more. If you pay them now it only brings them to the front of your report and makes them look new again. Which in turn hurts you not helps you. As it stands now they are old enough that they are hurting you less and less. If you keep working on your current situation and build your credit back up by the time you are in a good spot to make a large purchase most of those will drop off. 7 years is the mark for almost all except bankruptcy.

Answer 3

Stay current. There is no need to go back 5 years due this being included on your bankruptcy. You can try to start re-building your credit, best advice to this is with a credit card even if it is a secured credit card. You charge a little on it ONLY WHAT YOU CAN PAY IN FULL WHEN THE BILL COMES DUE. Its sad but credit cards are the best way to re-build credit and the ones that ruin your credit just as fast. I hope this helps.

Answer 4

The charge offs are going to fall off of your credit reports in two years. If you pay them, they will stay on for an additional 7 years. I made that mistake, trying to be honest.

Keep doing what you are doing (paying everything on time and extra payments) and that will benefit you a lot more.

Answer 5

It can help to go back and pay off the old debts, depending on when they were last reported to the credit bureaus. If they are still being reported on a monthly basis, you will want to get them paid ASAP. Don't assume that the collection/charge off accounts will automatically be reported as a paid balance on your credit report. Make sure to get paid receipts and send them as proof of payment to the 3 credit bureaus. There are credit dispute letter forms on the internet that you can use. (Trans Union, Equifax, and Experian)

Another thing you can do is concentrate on getting, and keeping, your credit card balances below 30% of the available credit limit. Even if there are no late payments on these accounts, a higher balance can hurt your credit scores.

Do not close old credit card accounts, even if you are no longer planning on using them. When determining your score, the bureaus factor in the average age of the sum total of your accounts. Longevity is the key. When you close accounts, it lowers the average age, and in turn lowers your scores.

Opening new accounts can temporarily lower your score. Once you have demonstrated to the bureaus that you are using the credit wisely, the score will rise back up.

Make it a challenge, of sorts, and have fun with it. Best of luck to you.

Answer 6

A charge off is just that - even if you pay it, it is still a charge off. If they are not calling you, I would not go back and pay it. It should fall off in the next couple of years. Just keep going good with what you have now.

Answer 7

ok a million-if she would be able to not marry you because of the fact of your credit record...then come on there is something incorrect with the girl. each thing in this country runs off credit comments, do permit your marriage be based upon it. it fairly is like asserting "i could marry you yet you come again up a lil short interior the pants. Sorry i won't be able to! Please...Come on get some experience!!! 2- as some distance because of the fact the credit record is going deliver out debt validation letters, not VERIFICATION!!! they are going to the two replace your credit record in 30 days to declare PAID or Paid exchange into value off or will ought to do away with it out of your credit record instantaneous. you may communicate to an attourney approximately your rights under the federal regulation for debt collections and credit reporting.

Answer 8

A charge-off cna't be paid-- the company took a tax write-off to charge off your account.

In 2 years it will be off your report. Just sit tight and keep the current bills going and the balances low.

Answer 9

Stay good on what you have now and you will be fine. Legally they probably can not collect on the debts anymore through the courts because it is to old. If you pay it off it will bring it current and show it as a current chargeoff and will hurt your score. Your credit score does not take into consideration if it is a paid chargeoff or unpaid.