I have 3 derogatory accounts on my credit-if i pay them in full how long until my credit improves?

Question

-i would still be able to use one of the accounts and pay on time-so i was wondering how long before it improves my score

Answer 1

If these are charged-off accounts, they can stay on your credit report for up to seven years, beginning with the original default date....this is true even if the account is paid....It's unfair, but that's how the system works.

This does not mean that you'll have bad credit the entire seven years. You can expect to have bad credit for two years from each negative event like a charge-off/default, as your credit score is most heavily weighted by what has occurred in the past 24 months.

Answer 2

I think they show about 24 month of history on the reports, but don't hold me to that.  (These grey hairs grow out of my brain).

If you haven't paid off the accounts yet, you should try a "Pay for Deletion" letter like this one http://www.creditliberty.com/credit-repa... .

Pay for deletion is a promise that you will pay the account in full in return for them deleting the derogatory information from you credit history.  They will resist, but it can be done if you push for it.  Be ready to pay off the account, though and make sure you get an agreement from them to delete the bad reports in writing.

I hope this helps.  Please return and select a Best Answer from all of those submitted.

Answer 3

It might take some time, you should read this article on improving your credit, http://www.monitorbankrates.com/how-to-b...

Answer 4

Entirely depends on the nature of your derogatory marks. If one loan or credit card payment is behind, but you can bring it up to date before it is sent off to collections, then generally you will see improvement two years after the last late payment. If you already have accounts in collections then you really won't see any improvement by just paying the collection account. This won't raise your physical score at all. In some scoring models it may lower your score since it shows recent activity on a old bad debt. In some cases it may help. If you see a personal banker that you have done business for a long time with  for a loan they may see your attempts to clean up old debt's favorably. Again your physical score will not increase however. If you want that you will need to get them off your report via pay for delete. As the previous answer stated you will always want to get this deal in writing.  It's difficulty depends on the collection agency, but generally you will have to push persistently for it. If you manage, getting the collections off your report will give you a considerable boost in the shortest time. Best of luck!