Will paying a delinquent account from 2004 in full help my credit score? Some people say no?

Question

Its $1045 and its been closed since 2005. I want to buy a car but my credit is too low... even w/ a cosigner.

Answer 1

Paying off this collection/charge-off account the normal way will NOT help your credit score!!! The reason for this is because of two reasons. The first reason is; even if you pay off this account, the negative item will remain on your credit report still damaging your credit. The second reason is; negative items on your report lower your credit score less as they get older. Paying this account will make this collection/charge-off account appear to be more recent, and your credit score will DROP!

Let the creditor know you will only pay off this account if they completely remove it from your credit report. Many creditors will agree to this, as they are mainly interested in your money. Make sure you get this agreement in writing before sending in any payment!

Answer 2

It depends upon the obstacle, however total it'll have a confined have an effect on for your rating in comparison to the period and fine of your fee historical past. Two of the relevent elements integrated within the rating are the stability in comparison to the credit score prohibit, and the whole quantity of credit score to be had. The first is involved with whether or not you've got maxed out or close maxed out playing cards, you should not. The moment watches the whole quantity of credit score to be had, and it on the whole should not be greater than you want. Don't signal up for a card at each and every retailer you keep at simply due to the fact that it will get you 10% off your acquire. But additionally do not panic and cancel playing cards or lessen limits, it is helping to have the ones ancient bills (longer historical past), and it would have an effect on your awesome stability to restrict (the primary aspect recounted). The total to be had credit score has a confined have an effect on for your rating, however it's foremost to maintain in brain and a well purpose to not open promotional playing cards. I am now not definite if this straight responded your query, however my recommendation is to repay the cardboard as you're. You would possibly not pay needless curiosity or expenses, and it continues you from entering credit score challenge (it's unexpected how convenient it may occur). You don't have anything significant to reap by means of keeping a stability at the card. As a ways as different approaches to upgrade your rating, the important factor is staying present and maintain your bills open long run. Since that is your first card, I anticipate you're youngerish, get extra of your bills to your title if viable, utilities, mobile telephone, automobile mortgage. I am now not definite what different credit score you've got, however having simply gotten your first card you're good for your manner. Stay on most sensible of it for a few years and you're going to have a good credit score rating (say 720 - 750), then you will be watching so as to add a automobile mortgage, loan, and so forth. and can have the danger to get an fine rating very quickly.

Answer 3

Pay it. A paid negative is much better than an upaid one.

Some people mistakenly believe that paying bad debt re-starts the 7 year reporting period. That's not true. Negatives fall off your credit report 7 years from the default.

If you have credit cards, paying the balances down below 30% will help your score.

The most important thing is a consistent, on time payment history of at least 6 months -- the longer the better.

Answer 4

Not sure. You should do some online research. I would think that if you make pymts on your delinquent bills and let the credit bureaus know of your pymt things will look better. You definitely have to stay on the credit bureau because they surely won't pay close attention to your account to see if you paid. Good luck to you.

Answer 5

Dont pay it, do you think you should reward them for putting it on your credit report in the first place, Im sure you tried to resolve it with them but they were being stubborn in working something out, werent they. People need to realize that companies take advantage of consumers, and the only way to fight back is to not pay them, if enough people did it, they would stop taking advantage of people. Your credit will not get better, despite what they tell you, they just want their money.

Answer 6

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Answer 7

Having a paid debt no matter what the date, is better than having an owing debt.

Answer 8

it want hurt it but neither will be increase your credit score.
good luck