higher score

[marty56]

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@jamesdwi wrote:

don't pay off all the loans in full imediately,   pay down the loans, but don't pay them off yet,  having the loans improve your credit score and your appeal to other lenders. get them down to like 10% owed

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IMHO this won't do anything to help the situation except cost you more money.  Perhaps there will be a score drop in PIF'ing the loans but  the age and severity of the lates as well as CC balances are what  drive the OP's credit score.

[MarcinXP]

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@marty56 wrote:

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@jamesdwi wrote:

don't pay off all the loans in full imediately,   pay down the loans, but don't pay them off yet,  having the loans improve your credit score and your appeal to other lenders. get them down to like 10% owed

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IMHO this won't do anything to help the situation except cost you more money.  Perhaps there will be a score drop in PIF'ing the loans but  the age and severity of the lates as well as CC balances are what  drive the OOP's credit score.

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+1

Agreed. If there are any derogs like 30,60,90 day they are already there for 7 years so dragging out the installment loan for little longer makes no sense and it will cost more money anyway. If this was a clear tradeline with possibly a 30 day at least 2 years ago then I would say do it, but if not..pay it off.

Also when reading the original post it seemed like there were some major derogs in mortgage, car loans or cards...we need more info on those and FICO scores..it seems like you might be applying at Chase, Citi or even CapOne and wasting inquiries...if your credit is in mid 500s which it could be - you might have to look into couple secured credit cards (at least 2) with $1000 each and rebuild that way.

[Anonymous]

Yes Marcin   587, I do have some lates on the accounts(house, truck, tahoe)  so if sell the house pay off everything I can would be a smarter idea?  I was thinking keeping some cash in bank by only paying house and truck off (only 11 months left to pay) and paying a little extra on tahoe each month on time.  The cash was to buy land and pay cash for it.

[MarcinXP]

I would encourage your to pay off your loans. at the worst case if you ever have a rough time again..at least your loans are paid off. As soon as you do send some goodwill letters and see if the banks can delete some of those lates from your reports and also open up to 2 secured cards..maybe $500 each. Keep them on time for 12 months and between some GW success and those 2 cards with good utilization no reason you should not be around 650-680 by summer 2013..then you can apply for some easy to get prime cards or at least unsecured product.