Tuesday, May 25th, 2010

Credit history and trying to repair it?

repair credit history
Robert asked:


I have a credit card that was turned over to collections. How can i repiar my credit, and will paying it off at least help y credit? Is paying car payments and other cards on time good as well to help repair it?

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5 Responses to “Credit history and trying to repair it?”

Dixie Darlin' Says:
May 27th, 2010 at 4:50 pm

Paying your bills on time is the best thing you can do for your credit. In time your credit will improve.

For the collection negotiate a “pay for deletion” agreement with the debt collector. This is the only way to improve your credit. This is an agreement that in exchange for payment, the debt collector will delete the account from your credit history.

If they agree, get it in writing BEFORE you mail them a money order, never allow access to your bank account.

If they will not then a collection account marked “paid” looks better to a lender than a “unpaid” collection.

bdancer222 Says:
May 30th, 2010 at 6:25 pm

Paying a derogatory item will not improve your credit score. The damage is done and will remain on your credit file for the balance of the 7 year reporting period whether paid, settled, or unpaid. However, creditors look at your whole credit report, not just the score. Paid old debt always looks better than unpaid.

You won’t be able to get a pay for delete agreement for a regularly reported item like a credit card. The collection agency can only remove what they report. The original creditor’s charge off will remain.

With this in mind, try to negotiate the smallest settlement you can. If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2 years, offer 75%. Lump sum gets the best deals. Payment plans need to be short term.

Get any settlement agreement in writing before you pay and do not give collectors direct access to your bank account.

You will need at least 24 months of consistent, on-time payment history to see improvement in your credit score.

samta Says:
June 1st, 2010 at 7:22 pm

Check it out here. It’s an excellent site with some wonderful options for you. It will definitely help you. Have a look.

Wing Says:
June 3rd, 2010 at 12:45 pm

Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – freecreditreport.sinfree.net

Julianne W Says:
June 5th, 2010 at 6:23 am

Financial agencies use a variety of analysis tools in determining your credit score, but making payments on time ranks high on the list. Paying off the balance of the card won’t help you at this time, but making a commitment with the collection agency for a payment schedule and then making the payments on time will help.

Only time and responsible behavior improves credit scores. Make a commitment now to reduce your spending and use of credit and make all payments on time. There are many benefits to having a high credit score!

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