How do I fix my credit?

K

Karla Kay

New member
If my credit already went into collections, and I Have the money to pay it off, how do I fix it. I am told that paying it off won't fix it, is that true?
 
Paying a debt that has proceeded to collections will not remove it from your credit report, but it will show that that debt is not outstanding and has been paid in full.

That can make a big difference depending on the amount and will always affect the score.
 
i read in an ebook i stole from kazza about how to get good credit scores, one of the ways is to steal the identity of a dead person by going go to a graveyard, pick a name of a person over 18/21 or something, then get their birth certificate and create their identity. It sounds well dodgy, you should try it.
 
Skizo said:
Paying a debt that has proceeded to collections will not remove it from your credit report, but it will show that that debt is not outstanding and has been paid in full.

That can make a big difference depending on the amount and will always affect the score.
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Well I guess the only thing I can do right now is pay it all off in full :dabs:
You think I'd be able to get another credit card after so I can start building it up the right way?
 
asmithz said:
Well I guess the only thing I can do right now is pay it all off in full :dabs:
You think I'd be able to get another credit card after so I can start building it up the right way?
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If you're approved, sure. If not, start out with minor credit cards for department stores and gas stations. I had some credit issues during college and thats what I did to recover.

Also, make sure that every credit card you own gets maxed out at least one time per year - do it on purpose. Simply owning the card does very little. Your credit score will show what the max balance for the card has been in the previous 12 months. If you only own the card an rarely use it and they see that the max balance for any one billing period was $12, it will be obvious that you don't use it. If you have a $2,000 spending limit, max it out once a year.
 
Skizo said:
If you're approved, sure. If not, start out with minor credit cards for department stores and gas stations. I had some credit issues during college and thats what I did to recover.

Also, make sure that every credit card you own gets maxed out at least one time per year - do it on purpose. Simply owning the card does very little. Your credit score will show what the max balance for the card has been in the previous 12 months. If you only own the card an rarely use it and they see that the max balance for any one billing period was $12, it will be obvious that you don't use it. If you have a $2,000 spending limit, max it out once a year.
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Skizo you work the credit card company or something. No offense meant but that is the stupidest idea I have ever heard.

What should be done is this. Tell the collection agency that you are willing to pay what is owed in full if they have the debt removed from your credit report. If they refuse tell them your not going to pay. It is in their interest for you to pay. The more you play the more they make. Removing the information from your report doesnt affect them in the least.
 
I used to be in CC collections.

I'd ask what the principal balance is? That's the amount charged, not interest & fees. Example: acct bal $5,700 & prin bal = $3200. Pay no more than the prin bal if possible.

The more overdue an acct is (timewise) the less $ they'll take to settle it.

When you've settled on a SIF (settled in full) price. I'd make them to send you a letter saying whats agreed to. Part of that is they agree to post to all credit bureaus the acct is closed by way of SIF.
 
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