credit score go up?
Question by Giovanna R: credit score go up?
I have to pay 2,654 dollars and the lady said if I pay 1,900 for a settlement she would say it was paid all…but my question is will my credit score go back up once I paid the full amount
Best answer:
Answer by Helen Scott
Not over night…you’re going to have to work at it.
What do you think? Answer below!
Actually, it will be reported on your credit as “settled for less than the full amount” which is very derogatory.
If you negotiate with the creditor, you might get them to report it as “paid in full”. Get it in writing though since creditors rarely will be nice.
No. The ONLY way to help score a lot is if you request in writing that they promise to remove all mention of the debt from your credit report upon you making payment. Once they remove this (get it in writing, fax, whatever) your score will go up that day. If they do not remove it your score will go up slightly but it will take time and a paid “Collection” account will still be listed.
Settlement?Get a lawyer or someone good at legal stuff(wouldnt want you to get gypped). Oh, yea if something is on your credit and you pay it back it will go back up. Always pay your bills w/ an amount above the minimum..my mom’s credit score is an 865(the truth) and my siblings’ own is an 820
Your concern should be more for legality than for a good credit score. If it is a settlement, you are looking at something that will possibly become legal and start to move more into criminal or negligent terms, as opposed to simply paying it and having it increase your credit.
Your credit will go back up only if your credit cards are all within good standing, no late payments on any of your accounts, etc. Not paying the settlement amount will most certainly make it go down.
Yes, paying off a debt will increase your score. Ideally, the less debt you have the better your score will be. Though early, depends on how early. While you may boost your score, you may be shocked to discover that some loans penalize you for paying in advance because that means they make less money off your interest. (Be sure to check the fine print) But in the area of your credit score, you’re sure to get a nice little boost whenever your debt is gone.
It doesn’t take long for short term changes like account balances, payments, and available credit to show up on your credit report and effect your score — likely these are the things to have impact over the short term, and you have a better change of fixing your score if you try to address one of those issues, which you can do easily in a matter of weeks.
$ 1900 is definitely a big chunk to pay off, but dont stop just there — here are 10 steps I bet you didn’t even know about that can help you fix your credit score too. I raised mine to well over 700 points fro 500 using these steps in less than a year:
1. Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring listed below. It really helped my get my score up.)
2. Never Miss a Payment, Starting Today
3. Never use more than 20% of your Available Credit
4. Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
5. Extend Your Credit Limit on Cards You Already Have before You Get New Ones
6. Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
7. Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
8. If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
9. Take out a Small Personal Loan and Repay it Over a Year
10. Ask Someone With Good Credit if They will Account Shadow you
When you’re trying to build a solid credit score it’s important to get a comprehensive view of what is actually effecting it…
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% -> History of Payments
* 30% -> Debt to Credit Ratio (available credit)
* 15% -> Credit History (length of open accounts)
* 10% -> New Credit (are you expanding your credit)
* 10% -> Credit Types in Use (varied credit types from loans to credit cards)
If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.
You can read more about these tips on my blog Millionster; look for the post called How Can I Increase My Credit Score
* http://millionster.com/articles/debt/increase-fico-credit-score/