Rebuilding Your Credit

[sgress1533]

I had a GEMB paypalbuyercredit that went into bad debt/collection that charged off on 5/08. No collection agency has been reported on my CRA's and since 5/08 it still says that I am $107 past due even though it's charged off. What should I do? I was thinking about paying off the full amount ($520) to paypal, but we're trying to buy a house and I don't want my score to decrease. Thanks for any advice.

[sidewinder]

Even when a CO, you still owe and are technically past due.

A closed account with a balance being reported by the OC will still be counted in your util....you might see an increase by paying it.

At any rate, I would attempt to take care of the debt with the OC before a CA gets the account and ends up on your report as well, especially if you are in the process of buying a home. The last thing you want is a CA added.

[sgress1533]

Thanks for the info. I went ahead and paid a portion of it to take care of the payment due listed on the credit card. I'm going to pay the rest as soon as I get paid. I figured that even if I take a hit, my Kays credit card just increased my CL and I have a zero balance so it might just be a wash. I have my fingers crossed that it won't decrease my score.