Paying off old debts

[Anonymous]

Over the past few months (and especially in Sept of 2010)  I paid off multiple old debts.  I know that this 'starts' the reporting over again on my Credit Report and can hurt it initially, but that the lowered balances (almost all of my bad debts are now down to 0) can help my FICO scores greatly.  I have yet to see any improvement in my scores and was wondering if anyone else has paid off old debts and how long it was before any improvement on your score was seen?  Any help would be greatly appreciated!  Thank you!

Wejo

[JM-AM]

By paying off old debt were you referring to collections, chargeoffs, or just late payments?

Paying off a collection will not improve your score. If you PFD the collection and they agree (you have in writing) that will improve your score.

Paying off charge off will not improve your score. GW the lenders and ask them if they will remove it. Removing it will improve your score.

Paying off late payments will slowly improve your score. GW the lenders and ask if they will remove it. Removing it will improve your score.

Paying off judgements will not improve your score. Having judgement vacated will improve your score.

Paying off old debt does not in general improve your score. Only time will help in improving your score. The more time that passes the less impact it has on your scores. Depending on the negative that is reporting it will stay on your CRA for 7 - 7.5 years. You can search the forum for GW letters and how to proceed with them. 

Paying off old debt does not start new reporting if paid in full or settled. Paying off the old debt in an installment agreement can restart new reporting if you fail to keep your end of the agreement. 

Keep up the good work on getting rid of old debt. 

Good Luck

[MarineVietVet]

---

@JM-AM wrote:

By paying off old debt were you referring to collections, chargeoffs, or just late payments?

Paying off a collection will not improve your score. If you PFD the collection and they agree (you have in writing) that will improve your score.

Paying off charge off will not improve your score. GW the lenders and ask them if they will remove it. Removing it will improve your score.

Paying off late payments will slowly improve your score. GW the lenders and ask if they will remove it. Removing it will improve your score.

Paying off judgements will not improve your score. Having judgement vacated will improve your score.

Paying off old debt does not in general improve your score. Only time will help in improving your score. The more time that passes the less impact it has on your scores. Depending on the negative that is reporting it will stay on your CRA for 7 - 7.5 years. You can search the forum for GW letters and how to proceed with them. 

Paying off old debt does not start new reporting if paid in full or settled. Paying off the old debt in an installment agreement can restart new reporting if you fail to keep your end of the agreement. 

Keep up the good work on getting rid of old debt. 

Good Luck

---

If a CO'ed off account is a credit card with a balance then you are getting dinged not only for the actual CO but the balance is figured into your utilization. Once you pay the balance at least that part stops hurting although the CO itself will remain.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[JM-AM]

Thank you for that clarrification marinevietvet, . 

[Anonymous]

Gw letter