I have tried everything to get my credit score to go up. What else can I do?

Question

Right now my credit scores are 591, 594, and 602. I have worked hard to get them this high, but I feel like they are not moving. I have 3 negative collections on me. 2 I paid, because I was paying on them and they turned them over to collections. Both were medical. Other one was medical that I just found out about. It is 891 dollars and according to the credit report it was scheduled to stay on until June 2010. I can't afford to pay it off right now. I have other medical bills from the last few months that I am trying to get paid off from where I didn't have health insurance. I also have some credit cards. One is paid off with a 0 balance. All of my credit cards are put up. Out of sight out of mind. The other 3 I am paying as much as I can a month. I have a car payment which is never late. Always on time. I have had it since June of last year. I also have a small personal loan which I am paying on every month. I also have a few personal loans that are a couple years old that were paid

off early. I am wondering is it better to pay these medical bills I have now that I am paying the 50 dollars a month to. Would it be better to just pay the minium to the credit cards till I can get the medical bills paid off? I want to get the credit cards to a 0 balance, but I don't want the medical bills to get put on my credit either. They are threatening to do it if I don't pay the bills in full. I can't afford to pay all the bills in full at one time. I can afford to pay one medical bill off a pay period and still pay 50 dollars a month to the other ones. Would that be a better solution?

What else can I do to get my credit score to go up. I would like to get it around 700 or better. Any tips on how to do it fast or within the next year?

Do I have to wait till the collections that are paid to fall off before my credit score will improve?

Answer 1

Pay off the current medical bills before they are sent to collections. Typically medical providers will only give you 3 months to pay off bills.

When you get those paid off, work on your current credit cards. Get them all paid off. This will help your score and save you all that interest.

Then take on the negatives on your credit report. Pay off the newest and work back to the oldest. Paid negatives are better than unpaid ones but they still hurt your score. The older they get, the less impact on your score.

The only way to improve your credit score is consistent on time payment history of at least 2 years.

NOTE: The above poster is incorrect. A collection agency cannot re-start the reporting period. 7-1/2 years after the delinquency, the item must be removed per the FCRA.

Answer 2

Something that will negatively affect your credit score is the debt ratio on your credit cards. Say your credit limit is $3K and your balance is $2K. This is worse for you than a late payment believe it or not. If you could consolidate your cc and medical payments (ie: get a fixed rate loan from your bank and pay them all off). You would be paying a lower interest rate and a fixed amount per month. It may be slightly more, depending on your monthly minimum payments, but at least you have a definite "pay off" point. If you have a balance of $10K and you only make the minimum payment, you will finally have it paid off in 30 years. More if you have a higher interest rate. Also, I may be wrong, but from what I understand, most people don't look at the medical stuff as hard when evaluating credit b/c there are SO many mixups in medical billing.

Good Luck!!

Answer 3

Pay the collections because they might never go away. Even after 7 years the collection agency can "sell" your account and will be on your report for another 7 years.

Increases in your score will happen, but it might take some time so be paitent.

A couple things to remember:
1. Pay on time! If you can't pay by the due date, you need to call the creditor to make arrangements. One late payment can decrease your score dramatically.
2. Try to keep your credit card balnaces at 50% of your credit limit (if you credit limit is $1000, don't go over $500).
3. Once your collections are paid off, get a PIF (paid in full) letter. Send a copy of this letter with a brief explaniation to the each of the 3 credit bueras with a request to get these "deleted". Or, request a "deletion" from the collection agency. Most likey, it will not be deleted, but worth a chance. Make sure to hold on to the PIF letter because you may need it later to prove it's been paid.
4. You want to keep 2 or 3 active tradelines in good standing. It sounds like you already have done than (car loan, credit card, etc).
5. Don't let your credit be pulled by too many souces. In other words, don't apply for credit at every store that offers you a 10% discount for opening a charge card. The more inquires to your credit in a short period of time, the lower you score can drop.
6. You goal should be to get your credit over 680

Good luck!

***regarding the post below...the collection agency that is servicing the debt can sell that debt once their 7 year term is up; they can sell to another collection agency who then can have it for 7 years. I work in a businsess where I see credit reports all day long and have seen this happen. It didn't make sense to me so I called the collection agency and that is what they told me. Just because 7 years have past, doesn't mean it will always go away 100% of the time

Answer 4

Paid or unpaid collections have almost the same impact on your score. Any fresh record or reporting on collection (for example, you have just paid it) hurts the score. If you have medical bills, that you could not afford, try to negotiate with the provider for small but regular monthly payment. You can handle collections smarter too. Never ever ignore their letter or phone call. Do not argue with them, because they are not paid for it, just ask fax #, account #, collection company name and address. Once you hang up the phone, take a piece of paper and question the charge. Fax it over and mail at the same time to assure the delivery of your dispute. If it is disputed from the beginning, they will not report you. But if it has been already reported, any new attempts to clear the record (dispute, pay, etc) in most cases only hurts, except when you do have an absolute proof that the record is wrong and credit agency will take it out. Keep in mind that the same record may appear in you report several time if it have been sold. After any letter or call from collection do the same: take piece of paper... Keep it ready on the computer. Just change the date and other factual data. By the way, most of your credit records will stay at least for 7 or 8 years.
Other helpful tips to boost your score: keep using your cards but not more than 40% of the credit limit; do not apply for a credit too often.
Good luck,

Answer 5

Unfortunately credit scores are like weight gain. I know from experience about both. It takes time to gain points just like it takes time to lose pounds. Scores are easy to drop, but take time to gain again. Looking at your situation, I would think the problem is that you have a high debt to income ratio, although I don't know how much you make. If the medical bill is a negative, it is going to stay on your credit score until June 2010 so paying that debt off now won't help your credit. If you continue to pay the items you have that are positives off, or in bigger chunks, your debt to income ratio will be much better and that should help your score. I don't know how you can raise your score quickly, I don't know if it can be done. But with all the debts you currently have, why do you need to raise the score quickly? It takes time to gain points just like it takes time to lose pounds. Just do what you are supposed to making sure you pay off all the accounts in good standing, and unless the medical people are going to take you to court, I wouldn't be focused on trying to pay off that bill. Its already negative and is going to count against your report until it is removed. Good Luck.

Answer 6

Dont jump to conclusions they may just not accept your payment method or have an error on account, You need to phone the credit card company in regards to use of your cards not a credit agency they will only give you details on the searches carried out on your credit score(i.e. requested your details) it will also show your previous addresses and anyone you have shared accounts or debt with. Good luck

Answer 7

Pay off all debts, never pay late, dont max out credit cards, and maybe take out a small loan with low interest and then pay it all back soon

Answer 8

You can get one loan to pay everything off and just pay that...or pay the minimums and pay the med. bills...but anything in collections will ruin your credit.