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Didn't pay credit cards for 2 years and recently settled on all of them will this look better on your credit report?
Wiki User
∙ 8y ago
Paying off collection and charged off accounts does not necessarily raise your credit score.
Credit scores are calculated on ALL the information in your credit report. 35% is based on payment history and this is where you may take a hit when you pay off a collection account.
Example: You have a credit card collection that was last used in 2000 and has not been updated on the bureaus since 2001. Because the UPDATE (the date it was last reported) is over 12 months old, it impacts your credit score less and less. Paying that collection account causes you to have a (now) paid collection as of 09/04, making it fall within that important 12 month time-frame. You might actually take a deduction in this case. Once again, it depends on ALL of the information showing.
If your collection accounts had current reporting dates, then paying them off definitely improved your score. Regardless of which scenario is true for you; your score will ultimately be much better. 12 months from now your score will be higher having old, paid collection account than having old, unpaid ones.
Wiki User
∙ 8y ago
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What does settled mean on your credit report?
A credit report will show that an account is either active or settled. If the account is settled, it means that it has been paid and is closed.
How long does a shortsale show on your credit report?
A shortsale will report as Settled for Less than the Full Balance and will stay on your credit report for 7 years.
How long does a settled judgment stay on your credit report?
7 years
How long does a settled debt stay on credit report?
7 years from the DOFD
How long does a repossed vehicle stay on your credit report?
7 years after the account is settled.
How long does a collector have to report that a collection account has been closed and or settled?
Typically these types of actions can be seen on your credit within 30-60 days. There are no laws or rules that requires a credit reporter to immediately post "closed" or "settled" to an individuals credit. Most just report data to the credit bureaus once monthly.
What do I have to do to get a free annual credit report?
If you have been turned down for credit recently you are entitled by law to get a free credit report from the credit reporting agency that supplied the information. Call or write the agency to make your request.
When paying off a credit card does it hurt to do a settlement exception?
Yes, they will note on your report that this debt was "settled" This does not affect credit score but will catch the eye of any lenders looking at your report.
Do you still have to pay a debt that shows its been settled on your credit report?
Call your credit card company and inquire. If you can not get through, cancel the card.
When paying a settlement is the credit score different if the credit report states 'paid' 'paid in full' or 'settled for less than original amount'?
yes, the credit score is affected. The people pulling your credit look at it this way, they want to know if you paid back what you borrowed with no problems, if there was a problem, or if they settled on a different amount, which means they took a loss. What would you rather see if you pulled a credit report on someone?
How will voluntary repossession of my home in Texas affect my credit?
The effect on your credit will depend on how the lender chooses to report it to the credit bureau. Sometimes a lender will be willing to report it 'paid as agreed' or 'settled' entry on the credit report rather than an actual repossession. If it is reported as an actual repossession or foreclosure it will be on your credit for seven years and negatively effect your rating.
What is the benefit of a good credit report when applying for a Capital One credit card?
A good credit report means that one who applies for a Capital One credit card can get a better deal. First, with a good credit report one can get an unsecured card instead of a secured card. Depending on how good one's credit report is one can get better features, lower interest, and maybe even a platinum card.
