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== == There is no difference in credit score increase if you pay a close or open account off. Paying an account is always a good idea, and eventually it will increase your score.

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โˆ™ 2007-12-26 02:35:03
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Q: Will paying an old closed account raise credit more than paying an old open one?
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How do you raise your credit score after paying a collection company?


Will paying off a credit card account closed by the grantor raise your credit score?

No but if you pay it off before it becomes delinquient it won't hurt it either. WRONG! speaking from experience, yes. if the account is NOT charged-off, but listed as CLOSED, it will raise your score if you lower or pay off the balance. I have a closed (NOT charged-off) CC that had a balance of 2400 and I made a payment of 1700. once posted to my reports, they were raised an average of 37 points. A few weeks later i paid off another closed CC, it was a small payment of 183 which satisfied the account (zero balance). Once posted, 17point increase! I pay close attention to my reports and use several monitoring websites, so i know there were no other changes that contributed to the increase other than the payments mentioned. people on the net are correct about paying off/down a CHARGED-OFF (collections) account will not raise your score. But, a closed account is completely different! Hope this helps

Does paying your car loan on time raise my credit score?

Paying a debt on time improves your credit score if you had previously not been paying on time (or not at all!)

Does paying a secure bank loan early raise your credit score?

Not necessarily

Can a credit card company raise your interest rate after you have closed an account?

If you still owe them money then they can change the interest rate, providing they are changing it for everyone and not as a penalty for leaving.

Do you keep or cancel old credit cards with no balance on them Why?

Keep them. This will raise your credit score. Having an active account that you do not use is an excellent way to raise your credit score.

If a credit card account was closed by the grantor 2 years ago and you were placed on a payment plan and paid on time for those 2 years is it worth reopening the account to imporove credit score?

In a word-nounfortunately, closed accounts will remain AA a negative against yr credit score even though you pay them off on time. after 5 yrs, your credit records should not contain this neg. info., however. Simply opening a new account will not raise your score, only consistent on-time payments of an account will help in that respect. Credit scores are not solely based on cc payments, but also car payments, mortgages, etc. AnswerIf the credit card is in your name and you have been paying on it for the last 2 years on time, it will imorove your score, and could also up your credit limit after it is paid in full. You should check your credit to be sure they are reporting it to your credit as pays as agreed.

How can I get a higher credit score?

You can take steps to improve your credit score. The number of variables that play into an individual score. Tips on how to raise your credit score and manage credit responsibly, including paying bills on time, paying off debt, and managing credit history.

Will paying off your credit cards raise your credit score?

things that raise your credit score are , having major cards open more than 3 years, and showing good standing with that creditor. you dont have to use a credit card to show good standing. yes paying off high dept will raise your score. and having too much on your cards even if you pay on time will lower it.

What kind of credit score to you have to have for a fingerhut account?

Fingerhut will often approve people who can't get approved for other credit, so credit scores as low as 600 or lower might be approved. The amount of credit you get from Fingerhut will depend on your credit score, so if you have a lower credit score, you may not get a lot of credit right off the bat, but if you keep paying on time, they will continue to raise your credit limit.

Will paying off a car loan raise your credit score after a bankruptcy?

The bankruptcy will still be reported on your credit file for up to ten years however, it will denote that the car loan was paid off. So to answer the question wil it raise your credit score. The answer is no.

How will settling credit card debt affect your credit score?

It will raise your score slightly. If you don't settle a delinquent account, the verbage on your credit report may read: "collection account", or "unpaid collection account". However, if you settle, the report may read "settled". By settling with the debt collector, you have made an attempt to fulfill your financial obligation. Therefore, your score will raise slightly.

How do you raise a 510 credit score and have nothing in collections?

By paying your bills on time. Also just waiting bad credit only stays on your report for 7 years

Will canceling your credit card hurt your credit?

Most likely it will. The credit agencies may not know whether you cancelled your account, or if it was taken away from you by the credit card company. If you are concerned about your credit score, then having 2 to 3 credit cards will generally raise your score, as it demonstrates that each credit card company believes you to be capable of paying their credit card bills. Only use those credit cards enough times a year that they will not be canceled due to non-use.

How can one raise their credit score?

The most important factor in a credit score is paying one's bills on time. Any late payment lowers the credit score, but a higher ratio of on-time payments will raise it. Paying down some debt will also raise the ratio of available credit and raise the credit score.

Can I raise my credit score twenty points in thirty days by paying off all my listed charge-off accounts and paying down all my current credit cards?

Unlikely. It will probably take that long for your payments to be processed and balance changes relayed to the credit reporting bureaus.

How many points will your credit score increase if you pay off your student loan?

Probably not very much. Credit scores are built around paying on time, how much you currently owe, and how long you've had credit. Paying off a loan won't raise your score much, but an on-time paying history for that loan will be a real good thing for your score and report once it appears.

Can you refinance a vehicle not included in a bankruptcy but owned by a credit union that had another account discharged?

If the vehicle is owned by someone else (the credit union) then it is not yours to raise finance on.

Does paying off collection balances in full or making consistent payments raise your FICO score quicker?

Consistent payments will raise your FICO faster than payoffs. Banks don't like it when you pay off the ballances in full because they are not making any money when you do that. Folks that pay off their credit cards every month are essentially getting a free 30-day float, which does not help their FICO as much as maintaining a balance and making payments on it. The previous answer applies to making payments on a positive, revolving, account like a credit card. It is not a good answer the question posed, namely: Does paying off a collection account or making payments raise your score quicker? Paying off derogatory accounts does nothing to improve your credit score and can, under certain circumstances, lower your score. The reason this happens is that paying off a defaulted account updates the account to NOW. The NOW causes the scoring software to calculate the account as a default that just occurred, instead of something you are trying to "clean up". This hits the score in the History category, which accounts for up to 35% of the total. Once any account goes into default, the entire balance is due and payable in full. If a creditor chooses to take payments, they do so at their own discretion. Payments at this point does nothing to improve the situation, except make the outlay of funds easier to bear. So, neither action improves your score. If you want to raise your credit score, you need to look to other activities.

You have 2 credit cards that are almost maxed out Will your credit score raise if you pay half of the balance of each of them or should you pay one completely off and still have the balance on the oth?

Your score is like a report card, it takes time. Payment updates, opening a new account or closing an account could cause your score to fluctuate. If you plan on keeping the card after paying it off, this could help increase your score because it will show that you have an available line of credit. Having bank card accounts with a valid credit limit can have a positive impact on your credit score.

How to quickly raise credit scores?

To quickly raise your credit scores you should pay off your credit cards, or get a credit card if you don't already have one.

how to raise credit after bankruptcy?

I would say taking out small loans and paying them off before too much interest has accumulated. Apply for a credit card, buy something, then pay it off on your first statement.

What can i do to raise my credit score?

Paying off bills in a timely manner will help your credit score get better in time. There are websites and guides to help you as well. Here is a website:

With three accounts in collections can you raise your FICO score quicker by paying them off in full one by one or by making payments on all of them?

Paying off collection accounts in no way improves your credit and may, under certain circumstances, HARM it by lowering your scores. Once an account goes into default, it is a derogatory mark against your credit. The derogatory nature, PLUS the "date last reported" combine to cause deductions to the score, even if the account has been paid off. If the date last reported falls within the past 12 months, the deduction can be huge. In the simpliest terms, a credit report is a history of how you have managed debt in the past. So, obviously, the recent past (last 12 months) has the most impact on your scores. Any derogatory mark falling within that time frame is a "score killer". This is the reason that paying off old collection accounts don't help your credit. They often cause the account to (confusingly) appear to be more recent. The only true way to improve your credit is to pay a collection account in exchange for its' REMOVAL from your credit. Unfortunately, this is not easily accomplished. However it is still worth the effort because that is the only way to actually improve your credit by paying defaulted debts.

Can a credit card company raise your APR because you have too much outstanding debt?

They are probably raising it because your credit score is lower due the outstanding debt. This being said, a credit card company can pretty much raise your rate anytime they like just as they can lower it when your credit improves. I would simply close the account and pay it off. Usually when your credit card's rates go up, you have an option of accepting the rate or closing the account and keeping the lower rate on the balance previously accumalated.