how are points determined on your credt report?

Question

I recently disputed and begin to settle and pay off things on my credit report how can i find out how much my score will go up?

Answer 1

First, Fair Isaac Company, better known as FICO, calculates the industry standard credit scores. Their formula is secret, so you can't calculate by hand what your credit score will be. But they DO publish articles that will give you many hints about what affects your score.

Go to the following link and read the article, "What's In Your Credit Score"

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

Other articles there will reveal even more info to you.

Second, you wrote, "begin to settle". Be careful when settling with a creditor. Settling means that you will be paying them less than the original bill. Any money you save (that is, the difference between your settlement balance and what you originally owed) is considered taxable income by the federal Internal Revenue Service (IRS) and possibly by tax authorities in the state you live in. You will need to pay taxes on the savings. The creditor that settles with you must report the savings to tax authorities. So make sure you pay enough estimated taxes to the IRS and your state to cover this taxable income. Act now, and you'll save future penalties and interest. Many people who settle forget to pay estimated taxes, so they get punished by tax authorities.

Third, get that settlement from the creditor in writing! I've read too many stories of debtors who settled over the phone, and the Collection Agency turned around and sued them for the full amount, saying in court that they never said anything about a settlement. If your balance gets sold to another Collection Agency, a written settlement agreement is an important part of your defense.

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Answer 2

It will take is up to 6 months for your FICO score to go up if you just paid off all your bills. Now if you been staying on top of your bills and paid them when you was suppose, then your score will go up in 3 months.