How does negative credit history appear on your credit report once it's settled or paid off?

Question

How does negative credit history appear on your credit report once it's settled or paid off?
I have 4 negative accounts. One I settled in November, and should already be updated to "Paid in Full, 0 balance". Another is, as of last month, "Settled in Full", and I have 4 more payments one one and a few more on a judgement. They are supposed to be updated as paid in full once final payment is sent.

After that, even though they will remain on my report, how much will my credit score go up, because with them as they are my score is currently around 613-632.

Will they still be reported under the "negative account" category on my credit report(s)? How do they appear?

Answer 1

A lot depends on exactly how the data furnisher (creditor) reports.

If they show it as a zero amount, paid as agreed, never late etc., it would probably show up in your positive section of your reports.

If they report it as a paid negative account - paid charge off, settled charge off, settled in full, late, etc., etc. it normally will still report as a negative. Plus the account will be updated (updating is not re-aging) to make the account appear newer than it actually is.

How much your scores would go up, or down, depends on how they report and what else is on your reports - positive, negative.

If they show it as a positive paid, your scores may go up.

If they show it as a negative paid, your scores may remain the same, go down or possibly go up.
Much has to do with utilization (since it would be paid, the account would show 0 utilization), the account still showing negative and being updated to appear newer, the account simply being shown as a negative, etc.

Answer 2

Even though they are paid in full your credit report will still show that you were, 30 days, 60, 90 in arrears or that they were charged off, in collection.

Unfortunately they will still show as 'negative accounts' for years.

Your credit will increase over the years, but how much? is anybodies guess and depends on you.

* How your other credit cards are

* Paying on time & at least the minumum payment

many other things too. For a better and clearer explaination you can go to http://www.how-is-your-credit.info/

Good luck