If im stuck in one bad debt and pay it off in less than 6 months, will it raise my score to an average?

Question

im actually in bad debt becuase my auntie stole my ssn and used it for something and 2 years later i get a collection call saying i owe 2 grand. i didnt wanna file for fraud because i felt like it was my responsiblity to pay it off because i was living with her at the time she was stealing it without me knowing. now i cant even apply for credit cards because im stuck paying off a bad debt. but im paying it off in large amounts by the time my baby arrives.. but aside all that..will my score improve by next year when i need to get a house, etc. ?

Answer 1

Before you start paying back , negotiate for an arrangement that favors you . It does not hurt to ask the creditor .

If you can pay off your obligation and it has not been reported to the credit bureau , Ask them to keep it from the credit bureaus and waive late fees.

If it has been reported to the credit bureaus, Ask them to delete from the credit reports  in return for paying back.

They don't want to delete it ( they usually do it , especially you pay all back ) , Ask them to change a notation " collections , charge offs or past due.." to " PAID AS AGREED " . This means that you didn't pay your debt  " when " you agreed, you did pay the  " amount " agreed.

This is easy enough for the creditor to do .

Get any agreement in writing from the creditor before making the payment.  After the creditor has your money , you have no leverage.

Answer 2

tt is right, and should get the best answer. I just wanted to give you a sample letter to use to help with your negotiations.