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Your credit score is based on several factors, but since you asked a specific question I will answer that one directly. One of the factors that play into a person's score is the date of last activity on an account. Bad credit may stay on your credit report for a total of 7 years for collections, charge offs and late payments. Judgments may stay for up to 10 years. Lets say that you have a charge off or a collection account that has a date of last activity that is 5 years old. This account has a small impact on your credit score because the time that it happened was so long ago. However, if you make a payment or pay off that account, then the date of last activity becomes more of a factor in negatively impacting your credit score because the account has now been changed to the date that you last made ANY form of payment on the account. Now, the computer sees the new date of last activity on the account and assigns a greater weight to the account because it sees it as a recent occurance even though the original debt happened many years prior. I will give on piece of advice. '''Never never never''' pay on an old collection account '''unless''' the person reporting on your credit report will agree to '''remove''' the account '''completely''' from your credit report and they have provided you with a letter on their company letterhead signed by their supervisor. '''Do not''' give them the money before you receive the letter, because once you do that you have just lost the '''only''' bargaining chip you ever had in getting that account removed from your credit report. Most companies will tell you that it is against their policy to remove items from your credit report once it has been put on, but I promise you that I have used this same technique many times for a lot of people with great results. You can clean up your credit regardless of what '''anyone''' tells you. I have done this hundreds of times for my clients. The advice is free, but I promise you that it is well worth heeding. Keep in mind that the American credit system is not designed to reward you for paying collections. Doing so only hurts your credit.
What else can I help you with?
Why does paying off old charge offs lower your credit score?
The only way it can help is that it makes the balances zero. Having constant balances on your cards, especially high ones, hurts your score. Pay them to zero and your score will increase
Will paying an old closed account raise credit more than paying an old open one?
== == 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.
What are some ways to clean up a credit score?
Some ways to clean up a credit score is to start paying bills on time, reduce credit card debt, and open a bank account. Those are the best ways to clean up a credit card score.
Does checking your credit report cause points from your score to be deducted?
Yes it does effect your credit score some how when u check it your score drops alittle. because i check my credit score to take a loan and it was just at the good mark for the loan. but wheni went to get thw loan they denied me because of my credit. and they took out for checkin it. The above reply is correct if you are checking your report. It is incorrect if you are asking about others checking your credit report. How often you have attempted to use credit can lower your credit score. You need to be careful of applying for credit or a mortgage over the internet. Many of these are just "lead factories" who will sell your information to numerous companies. If there are an abnormal number of requests then it is possible that your credit score will be lower. For an in depth discussion of your credit score see
Does updating collection accounts to a bankruptcy lower your credit score?
The fact of filing bankruptcy is already going to lower your credit score, and the point of bankruptcy, part of it anyway, is to resolve unpayable debt such as collection accounts. It is in your best interest to add the collection accounts to your bankruptcy, but if you consult your BK attorney, he is likely to advise you of this. The bankruptcy is the first next step in repairing your credit and improving your credit score.
Will allowing your car to be repossessed when you already have 2 credit card chargeoffs on your credit report have any worse effects?
YES! It will lower your FICO score a lot!!
How can paying down your credit cards lower your credit score?
Paying down your credit cards won't lower your scores-- but paying off and closing the credit cards will lower the scores. You want to show that your cards are not maxed out and you have plenty of room between the credit limit and the balance .
Can closing paying off credit cards hurt your score?
In Some Cases Yes It Can Lower Your Score.
How does paying off a car loan impact my credit score?
Paying off a car loan can positively impact your credit score by showing that you can manage debt responsibly. It can improve your credit mix and lower your overall debt, which can increase your credit score over time.
How do you raise your credit score when it has been lowered due to credit inquiries?
Pay your bills. I don't know that a credit inquiry will lower your credit score. What does affect your credit score is not paying. Even if you pay late, it shows willingness to pay. But as far as someone checking your credit, I don't think that will actually affect your credit score. Pay your bills. I don't know that a credit inquiry will lower your credit score. What does affect your credit score is not paying. Even if you pay late, it shows willingness to pay. But as far as someone checking your credit, I don't think that will actually affect your credit score.
Will paying off loans early give you a lower credit score?
As long as you have had the loan open for 12 months and have been making timely payments it will not lower your credit score. It will actually increase your credit score to pay off early if it is an installment loan.
What if you want to pay your credit card off will they lower your balance?
Usually not. Agreeing on paying offf a lower balance is knowing as a settlement. This will afffect your credit score neg.
What are two ways to lower your credit score?
1. Max out your credit cards. 2. Pay your bills late. (Or stop paying them altogether.)
Can paying off credit cards increase your credit score?
Yes off course. Paying off any debts will increase your credit score.
Do bad credit payday loans further hurt your credit score?
They could further hurt you credit score. You will pay a higher interest rate which makes paying the payment that much harder which puts your credit even lower.
Why does paying off your car hurt your credit?
Paying off your car can hurt your credit because it reduces the variety of credit accounts you have, which can lower your credit score. Additionally, closing a loan account can decrease your credit mix, which is a factor in determining your creditworthiness.
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!)
