what is the best way to build ur credit score?

Question

I have minor stuff in collection and ive been told that it doesnt effect me much. should i pay it off? would that improve my credit score after its been in collection?

Answer 1

Here are my 10 steps you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year -- :

# Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring listed on the article below. It really helped my get my score up.)
# Never Miss a Payment, Starting Today
# Never use more than 20% of your Available Credit
# Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
# Extend Your Credit Limit on Cards You Already Have before You Get New Ones
# Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
# Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
# If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
# Take out a Small Personal Loan and Repay it Over a Year
# Ask Someone With Good Credit if They will Account Shadow you

Answer 2

Well, it would help to know what makes up your score, here's a breakdown:

35%- Payment history
30%- Total amount of debt owed vs. available credit
15%- Length of credit history
10%- Types of credit
10% Inquiries and new accounts

Now having said that, this is what's going on:

Although you may have "minor stuff" in collection, while it might be small in amount, the fact that it's even in collection is what's hurting you. That's more than a 1/3 of your score affected, which can make the rest of it practically meaningless. What you can do is this:

Contact the collector to negoatiate a "payment for deletion", which is a payoff amount that will permanently remove the item from your report. They may or may not do it. If you're able to get them to agree to doing it, have them send you something on their company letterhead by mail and by fax stating the terms before agreeing to send them payment. Also do NOT give your checking account information to them for any reason. Get a cashiers check and send it certified mail to them. Have them send a Universal deletion letter not only to all 3 credit agencies but to you as well for you records. It's a lot of work, but if done correctly, it can get you well on your way back to getting good credit again.

Answer 3

Paying off a bill that is in collection will improve your score. It will move the collection history further to the past, even though the report stays on your account. The further in the past the collection is, the better your score. Note that until it is paid, it is a current collection account so your score does not improve.

Answer 4

who ever told you that anything going to collections doesn't' affect you much is wrong. My husband make $100,000/yr and we were turned down for a mortgage b/c 2 bills under $500 went to collections and he has paid them off, but it has damaged his credit score.

So never let anything go to collections even if you have to pay $10 a month companies usually look at that as an effort to pay and won't send to collections.

Answer 5

Yes paying your debt that is in collections will improve your score. My suggestion is that you begin to think of your credit history as your good name. Defend your honor and good name by building good communication skills with the accounts that you have as well as making your payments on time. Never take on any additional credit if you can not afford to make the payments.

Answer 6

Yes, I think it is a good idea to pay it off. All of it.
Because, when you go to borrow money from a
lender in the future, it will be hard to get the money you borrow. They have ways to check your credit and if it's bad, you won't get any money from them. I know, because I have been down that
road before and I still have bad credit that needs
to be payed off. Good Luck!

Answer 7

IF u have the money I think u should pay it off and make sure u pay off your bills each month and this should help your credit report

Answer 8

what will improve your credit is good payment history
no collections
no repos and no charge offs
no court records and plenty of I-1 and R-1 accounts on your credit
little stuuf like unpaid cell phone contracts and unpaid ER visit and unpaid utility bills and broken leases tend to mess up your credit also

Answer 9

yes pay it off first thing. Take out secured loans (Low interest, but its on your own money) Pay them off early and do this several times.

Answer 10

Pay your bills on time.