@mtrsprt wrote:
Should I pay off all my past due balances and charge-offs?
This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.
While your score may or may not be afftected is one thing, but when lenders see outstanding past due balances/collections, they usually will not grant you the new loan also.
Not everything is based on score............. Pay off old debt, and be done with it.
I need to respectfully disagree with this. Although it's true that all negatives will continue to lose their impact as time goes by major derogatories such as 90 day+ late payments, charge offs, collections, judgments, tax liens, bankruptcies, etc. will hurt you for the entire reporting period.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
