(Ask a Question) I am in a position of receiving a little unexpected money this week. I would like to pay off as many bills as possible with this money to make it go as far as possible. I contacted one creditor and inquired if they might settle. They agreed to settling the balance at about 55%. The savings is just under $600. Will this affect my credit score in a worse way than continuing paying monthly through a non-profit consumer credit counseling company? (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
|
|
|
Archive for the ‘Credit Scores’ Category
Will paying off debts older than 3 years hurt your credit score?
(Ask a Question) I’ve been told that, paying off 2 small debts I have (one for $70, the other for $200) These are bills that I didn’t know about & have gone into collections (obviously, I rarely check my credit report) & just found out about them.
I was about to call up the collection agencies & pay them off, when my friend informed me not to, that it would only serve to diminish my credit score.
This seems contrary to logic (but then so does credit, to me). Either way, is my friend right? Am I better off, just not paying those two past due bills, since they’re both older than 3 years? (more…)
Will paying an $88 medical bill hurt my credit?
(Christina) I am in the process of buying a house and we are closing in 3 weeks. My lender asked me to explain two negatives on my credit, one being an $88 medical bill from 2009 that I was unaware of. I did not realize this was for underwriting purposes only, so yesterday I called the collector to find out about the account, and paid it in full thinking it would help. My lender then told me this would “dramatically” impact my credit in a negative way. After reading about the “Fair Isaac” decision on no penalty for paying off a debt collection in full, I am doubting what my lender told me. With three weeks until closing, how quickly might this be reported to my credit, and what impact might it have on my closing? We have been approved for FHA and losing this house over paying an $88 debt will be crushing for us. Thank you. (more…)
CreditKarma Provides a Totally Decent Credit Score for Free
There is no shortage of invitations to see your “free” credit score. However, you may have by now realized that there comes a catch in the form of an expensive credit monitoring service that you are automatically enrolled in as a condition of seeing your free score. (more…)
Can I Legally Stop Credit Card Debt from Destroying my Credit?
(Jocelyn from Florida) I am trying to buy a house but my credit cards have big balances. Can I legally stop credit card debt from destroying my credit? (more…)
Do I Need Good Credit to Start a Business
(Cheryl from Pennsylvania) I want to start my own buisness but I have bad credit. Do I need good credit to start a business? (more…)
Will a Debit Card Help Me Build Credit?
(Doug from Georgia) My credit score was low becuase I don’t have any credit cards. I use my debit card frequently and would like to avoid the risks of credit cards. Will a debit card help me build credit or do I also need credit cards? (more…)
Does it hurt my credit score if I close a credit card account?
(Ryan from Pennsylvania) Does it hurt my credit score if I close a credit card account? (more…)
Does a Car Dealer Have to Provide you with the Lowest Interest Rate?
[Mike from California] Does a car dealer have to provide you with the lowest interest rate? (more…)
Should I Remove a Charge-Off from 1990?
(Ben from California): Hi, I have an account that was charged-off in 1990 and that still appears in my credit report. I can easily dispute this item and remove it since it became delinquent 21 years ago. However, this account happens to be my oldest one as well. My next oldest account is from 2005, only 6 years old.
The question is this: Should I go ahead and remove this item from my credit report? Or should I keep it because it provides for a longer credit history and therefore outweighs its negative effect? (more…)
