Which would increase my credit score more?

Question

I'm 19 years old, and 10,713 dollars in credit debt. My score is between 450 and 490. Obviously, this all happened within the last 6 months-1.5 years.

I've recently become able to pay off all the debt immediately.

Would I be better off going through a reputable credit counselor and making payments for the next 3 1/2 years, thereby increasing my score in increments over that time, or paying them all off immediately?

I'm in college, and therefore have no need for credit within the next 3-5 years. (Grad school)

Which would leave me off with a better score?

Thanks!

Answer 1

A debt settlement company might be able to get you really low settlements right now so you can keep some of that money in your pocket or invest a small portion in credit repair after the settlements to improve your score.  

Check out the free evaluation form at :  www.totaldebtsolutionsllc.com  Good luck!

Answer 2

If I were you, I'd pay off everything now (do NOT close the cards after they're paid off).  Then use each card once or twice a month for small purchases and pay them in full and on time each month.  Your credit score will improve over the three to five years you're in school because you will have shown years of on-time payments and a low balance-to-credit ratio (the total amount you owe divided by the total amount of credit you have).

Get a free copy of your credit report each year from the three credit reporting bureaus by going to annualcreditreport.com.  I stagger the reports so that I get my Experion report in April, Transunion in August, and Equifax in December.  That way, every four months, I see how I'm doing.  You can add on your credit score to your report for less than $10, and the score comes with tips for improving it.

Good luck.  You're young enough that your credit will be in good shape by the time you're ready to make a major purchase like a house or a car.

Answer 3

Well being 19, you have quite a chance to make a start since you're young. Either way could do you some good, just do your research when dealing with credit counselors. Some are actually out to help you and others not so. Once you've decided what you want to do, get a secured credit card with orchard bank or continental finance or whomever seems to fit the bill best for you and slowly rebuild your credit. I wish you the best of luck!

Answer 4

If any of the accounts have gone to collections contact the agency's and offer to pay only if they give you 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 them a dime until you get this in writing.

Other then that pay everything off as soon as possible and then establish a good long pay history using a couple of credit cards by the time your out of school you will have a great score.

Good luck.