How do you get positive scores on your credit

Question

I have two negative things on my credit, but I'll finally be able to pay those two things off next month due to this great job I've just gotten. These things have been on my credit for a couple of years now, so I was wondering if I pay the off will they turn into positive accounts or will they still be negative?The reason I'm so anxious to know is because the apartments I am applying for are asking me to have two positive things on my credit. How will paying these two things off help me. I'm looking to move by Jan 2009. Thanks for all your answers

And also any ideas on how to pay these things off, shall I pay the full amount or how can I settle? Thanks again

Answer 1

Your rating will go up if you make payments regularly while showing a willingness to pay interest.  That means paying at least the minimum amount per month, the amount each billing statement asks for.

But paying the minimum amount greatly increases the final total cost of the loan because it takes you longer to pay the whole loan back.

You should pay back what you owe in say, 3  payments of roughly equal amounts.  THis shows consistency and a willingness to pay interest.

You may consider challenging the bad credit rating by getting in touch with the credit card company.  If they put the negative ratings in they may take them out once you establish record of consistent payment.

Answer 2

What do you mean by negative? Just credit loans where you've missed payments, or defaulted accounts, or CCJs?

If it's late payments, then that late payment notice stays with you for 12 months after you've sorted them out. You can't do much about the history.

Positive things will be having loans that you've settled and paid on time each month (or at least in the last 12 months of the loan). Having a good mortgage payment history is also positive. Also make sure you are registered on the Electoral roll at your home address.

Pay off bad debt as soon as you can and as fully. However, it's sometimes easy to negotiate with any debtors to pay off less than the full amount you owe, if you'll pay of a substantial amount right away - they are keen for cash right now. So have a word with them, as this might help.

Get a copy of your credit report (sign up to one of the online deals, as you get 30 days free), and see any nasties that are there.

HTH.

Answer 3

It will help to pay them off, in a lump sum if you can afford it, but it won't reverse the way they show up.  You're credit score is determined by your debt to income ratio and your late payment history.  Even if you pay off your debt, the late payments will still reduce your score.

Answer 4

If you are getting close to 7 years on the accounts don't worry about paying them.  If they call you and you agree that you owe the debt, guess what your SEVEN years starts over again.  I never heard about an agreement to delete before but it sounds like a good thing to do if it is accurate.

Answer 5

Paying old collection accounts without getting a pay for delete agreement in writing first will actually lower your score because the accounts will become current rather then old.

If you pay these accounts without this agreement the only thing that will change is they will show as paid with a $0 balance still a negative account.

Call them and offer to pay in full if you have to just be sure to get the pay for delete agreement in writing before you pay them a dime, if they refuse to give it to you just don't pay them and let the accounts age off your report.

There is no reason to pay old accounts unless they are going to work with you, the damage has already been done and without the pay for delete agreement there is no way to undo it.

Now as far as positive accounts that would be credit cards (revolving) or cars, boats, homes, computers, furniture or personal accounts (installment) that you have paid as agreed for at least 12-months.