So, I'm extremely new to looking at my FICO Score, my credit report, etc. All I know is, I'm trying to rebuild my credit because there are thing I'm unable to do and it's frustrating sometimes. The last time I checked my credit report was about two or three months ago. I can't remember which of the 3 credit bureaus I got the report from, but it had a lot more information on it than the one I pulled up tonight. Does each one have different information? And if so, do I pay off those accounts that didn't show up on every report? Sorry if these are confusing questions, but I'm a little lost at this whole thing... lol
Each credit report will most usually show different info and that's because not every creditor reports to all 3. Even if a given creditor reports to all 3, the reports don't update at the exact same time; there might be up to several days of lag time. And accounts/lates can drop early sometimes too.
I'd suggest reading the following:
Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.
What Steps Do I Take - great for learning the repair process.
and Example letters - PFDs, GWs, DVs, etc.
I can tell you to get your free yearly credit report from all three bureaus. Then check for errors. Paying off collections does not make them go away. But the older the better. Furthermore, not all collection agencies report to all three credit bureaus. So what may show up on one, may not show up on the other. The best place to start is by making payments on time. I know it sounds cliche, but it is the truth. Go through the forum using the search bar. You are not alone, many of us have had similar issues. Just be patient and things will work out. By the way, join the fico fitness challenge, set goals monthly and then reassess as needed. It will feel great to get even the smallest increase. Good luck!
And if so, do I pay off those accounts that didn't show up on every report?
You should really work on clearing up every derog on every report. Try reading up on pay for deletes and giving them a shot. Worst case is that you settle the debt if PFD doesn't work out.
Ok, thank you.
Is it good to pay off EVERY account? Somewhere along the line, I got confused because I read that if you pay off an old account, it basically "resets" it... Then I'm stuck with another account for 7 years. Is that accurate at all? I just made my first payment today on an account, so I'm hoping things work out!
That's not accurate.
All of the credit report exclusion periods for adverse information reported to your CR have specific exclusion dates that run from a clearly specified date, none of which are extended by payment of the debt. See FCRA 605(a) for the period for each type of adverse information.
Monthly delinquencies each become excluded after 7 years from their date of occurence.
Collectins and charge-offs, paid or unpaid, become excluded after 7 years plus 180 days from one date-certain, which is the DOFD on the OC account. See FCRA 605(c).
Judgments expire after 7 years from the date of entry of the judgment, unless they remain unpaid and the statute of limitations on enforceability of the judgment has not expired.
The only reference to date of payment with respect to exclusion of adverse items is for tax liens, The seven year exclusion period for tax liens does not begin until the lien is paid.