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paid off accounts but still have bad credit

Moderator Emeritus

Re: paid off accounts but still have bad credit



masdeocho wrote:
Tuscani - Please correct me if I'm wrong.  I understood that if you paid off a lot of your debt with lump sum payments, you don't get an immediate big score boost. This is because people might use a income tax refund, inheritance, etc. to pay it off.  While you do lower the amounts owed, it doesn't "prove" that you won't run up big balances again and fail to pay them.  It helps to have a good payment history plus low util for some period of time AFTER the big payoff to see the best effect on your score. True?


 
Not really..  what your explaining falls more along the lines of paying off closed charged off debt\collections which rarely gives consumers the boost they are looking for or expecting.
 
Keeping debt\utilization low on CURRENT and OPEN accounts is just as important as payment history.
 

Message 11 of 13
Moderator Emeritus

Re: paid off accounts but still have bad credit

Got it.  Thanks. Smiley Happy
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Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Message 12 of 13
Moderator Emeritus

Re: paid off accounts but still have bad credit



masdeocho wrote:
Got it.  Thanks. Smiley Happy



Sure. I hope you did not think I was attacking you. This forum is here for people to learn! Smiley Happy
Message 13 of 13