Raising credit score?

Question

I currently have $6000 in unpaid debt in collection. Some as small as $100 and some up to $2000. If I repay all my debt in the next 6 months to the agencies will they post on my report that its paid. And if so. will if be off my report that I was ever in collection? Will repaying my debt automaticly raise my credit score or will it stay the same even tho all my debt is paid? Help please. I know there is no instant fix but my score is 504. I need to get in the 700's.

Answer 1

A better option in your situation would be for you to negotiate a deal with your creditors.  The deal you want is you pay in exchange they take the record off your credit report of you ever having owed the debt in the first place.  This would be the fastest way to get a higher score based on your circumstances.  If you can't pay them all pay the lower balances first because then you will be able to remove more delinquent accounts off the report.

Answer 2

Paying off your debt will raise your score, and yes it will say that you were in debt. But since you paid it off some banks wont hold that against you.

Answer 3

The bad thing about accounts that go to collection is that even if you pay them all that changes is they show as paid and your score actually goes down because they become current rather then old accounts.

To make a difference tell your creditors you want a pay for delete agreement, this simply says that in return for your payment they agree to remove the accounts from your credit report. Do not pay a dime until you have this in writing otherwise you are throwing your money away.

Answer 4

I have been in this situation before myself.

1.) Get it paid off. Whether you pay the full balance owed or negotiate a lower pay off, get it gone.

2.) As you get these items paid, make sure that the company sends you a letter STATING that it is paid in full or as agreed. Something showing that its paid off.

3.) Credit Agencys are required to report to the 3 credit agencies,( Experian, Equifax Trans Union) within 60-90 days. It then takes a few more weeks to a month to actively show up.

4.) These things will start falling off about 7 years after payment. But they will remain and will show lates but paid. Thats the key.

5.) Get a free credit report every year and make sure that the accounts showing are actually yours and dispute those that aren't in writing to the 3 agencies.

Also check out http://www.myfico.com This website has been a great help and asset in rebuilding my credit.

Doing all of this should have you around the high 6' low 7's within 2 years once paid.

I hope that my experience has been able to help get you started. Call and talk to the creditors. They will negotiate. They are paid off of what they collect.

And Banks will hold these against you. I work for one. However it always looks better that you did pay it off.

Answer 5

your scores will come up but the collections will still report they should at that point report paid. also pay any revolving credit cards down to 30% of available and scores willgo higher and also opt out from all the offers in the mail by calling 888-567-8688

good luck

Answer 6

pay off the smaller bills first it should raise your score a bit

Answer 7

I just recently paid off my last debt. It's taken me about 4 years just to get into the low-mid 600s (I was in the low-mid 500s). Many little debts is worse than 1 or 2 big ones, it's considered "busy" credit, shows you're untrustworthy financially (I've been there)

So, be patient. Getting to 700 or so will take years. Quite a few in fact. People work on their debt and re-establishing new credit sometimes 10+ years to get that kind of score.