I have two bad debts, one I paid off last month, the other I will pay this month. How long will it take bette

Question

Does it take a year to get back into good standing as long as my bills are bad in a timely manner?

Answer 1

The ugly surprise for people like yourself, who want to do the right thing, is that the older the debt is, the less effect it has on your credit.

If you have a bad debt that's been sitting on your report, paying it off will actually HURT your credit score, becase it "activates" that account.

First, you might consider offering them less than you owe as payment in full.

Call them up at the end of the month (preferably at the end of the quarter) and offer them half of what's owed, as long as they agree, in writing, to remove the debt from your credit report.

Even if you pay it in full, you should still insist that they remove the debt from your credit in return for your payment.  

Answer 2

dont kid youself it will stay in your credit file for the rest of you life  

Answer 3

If it's only a few months behind, it may not even have been reported at all.  Technically, they can report it at 30 days late, but many companies I've seen don't do that at all, only if it's past 90 days (and even then it varies).

If it's gone to collections, that's somewhat different.  That will stay on your report for 7 or so years, even after paid off; however, showing good credit history otherwise (debt paid off 4 years ago and 5 years of solid on-time history) and not doing constant inquiries will help.  If it's for something large/important (house, car, etc.), a bank may ask you to write a letter explaining the old debt and take that into account when making a decision.