How long after paid collection will it appear on your credit score?
Question by mbetty27: “how long after paid collection will it appear on your credit score”?
Best answer:
Answer by SCH
If you did not negotiate the removal of the item when you paid it, it will stay on your report for 7 years. You can however negotiate the removal of items at the time you pay them off.
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Categories: Credit Score Questions Tags: after, appear, Collection, Credit, long, paid, Score
Q&A: When you pay an over-due/write-off item, how long does that (lack of a better term) “bad credit” stay on file?
Question by Bronzed: When you pay an over-due/write-off item, how long does that (lack of a better term) “bad credit” stay on file?
When I was 18 I started getting credit cards and loans, and due to youth, ignorance and inexperience I missed several payments and I believe I even have a certain card “written-off” for the amount of $ 3. Now that I make good money, I’ve accessed my credit report to pay off all fees and late items. How long will those negative marks stay on my file? I’ve heard “7 years,” I’ve heard “a few months to one year.” Obviously I am now older and wiser and wish to have- and maintain- good credit. If bad marks are on my credit report for several years, is there any way to expedite the process of having them permanently removed? Thanks!
Best answer:
Answer by TRAC
Generally, 7 years. If you pay on an item, it (according to what I’ve been told) “restarts the clock”. If you can pay something off in one lump sum, that’s best. If it’s going to be on the credit anyway, it’s better to have it paid, albeit late, than not paid at all.
I’m in the process of repairing my credit. I’ve had some charge offs as well, those close to being removed I don’t worry with. However, if something has a ways to go, I’ll pay off one at a time until they are all paid. If nothing else, it shows some effort to repair and while some creditors don’t even care about that, others will.
Good luck.
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Categories: Credit Score Questions Tags: better, Credit, file, item, lack, long, overdue/writeoff, stay, term
Q&A: What exactly is good credit?
Question by Nela: What exactly is good credit?
I’m 18 years old and planing on moving out of my parents house. I have been working for 3 years and saved up almost enough to buy a house, but someone told me its not such a good idea to pay with cash that i should start off with credit, or my credit will never build up. The thing is I have no idea what people mean when they say “good credit”, what exactly is it? How do I get started? Can someone please break it down to where i know what I’m getting my self into.
Best answer:
Answer by sashazur
“Good credit” basically means that you have shown that you can be relied on to pay your debts.
The real world isn’t purely cash-based, and therefore, you will the ability to sometimes take on debt – such as buy things with a credit card, or get a home mortgage, etc.
The better your credit is, the easier it will be for you to get credit, and the cheaper your loans will be.
(It seems weird to say that money can be cheaper or more expensive, but it makes sense when you realize that you have to pay extra to get a loan – if someone loans you $ 1000, they eventually will want more than $ 1000 back; the extra amount is called “interest” and covers their overhead in lending to you).
So… to start getting good credit, you need to get someone to loan you money, and then you need to pay it back.
Some easy ways to start would be with a credit card (maybe a secured card initially – where you pay some $ $ $ up front), or with a charge account at a department store.
From there you can work your way up to things like car loans, mortgages, etc.
Once a year you are entitled to a free credit report that lists your credit score and your credit accounts, to get it go to www.annualcreditreport.com (there are other places that say they are free, but this is the only one that’s really free – the others will try to make you sign up for stuff).
Good luck!
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Categories: Credit Score Questions Tags: Credit, Exactly, Good
Q&A: Anyone have experience “renting out” your good credit?
Question by sal: Anyone have experience “renting out” your good credit?
I wish I understood this concept better. Saw an article in the paper about a way to make money if you have good credit and some credit cards. The company name is ICB credit investors. They hook you up with people who need better credit to buy a house. Somehow you make money at no risk by letting these people with bad credit “rent” your good credit?
Best answer:
Answer by pharmdawgz
Don’t do it. If the people “renting” your credit go bankrupt or stop paying their bills, your credit will get dinged because it’s your credit they bought their stuff on.
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Categories: Credit Score Questions Tags: anyone, Credit, experience, Good, renting
How long does “good credit” accounts stay on your report?
Question by carriezmail@sbcglobal.net: How long does “good credit” accounts stay on your report?
I recently checked my credit report and I don’t see any of my good credit accounts that are over 10 years old? Do all accounts fall off after 7-10 years?
Best answer:
Answer by src50
Seven years once the account is closed.
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Q&A: Are there ways to get “good credit” without owning a credit card?
Question by ssmith: Are there ways to get “good credit” without owning a credit card?
Because people say you need good credit to get loans for houses, etc., but then they say “don’t get a credit card, they are bad news”… so how can you get good credit other than by having a credit card?
P.S. I also already have a debit card, that works as a credit/debit card and I buy a lot of stuff online with it, which is always billed toward the credit feature… so does that mean I already have somewhat of a credit value built up?
Best answer:
Answer by cpaige517
I own a credit repair agency, ( one of the legit ones) The best thing to do is get a credit card and be responsible with the card. You can’t get credit in the future if you can not show lenders how you have handled your credit obligations in the past. The way to help your credit and be able to obtain credit whenever needed is to keep the balance of the credit card or line of credit you use under 30%. Use the card to fill up your car every two weeks. All you really need to do is show activity on the account and keep the balance relatively low. To answer your question, you can always piggy-back or mirror someone else credit. They could add you on as an authorized user to a credit card or line of credit that they already have. Be careful though because with some cards, once you’re on , you’re on and if that person defaults, it will show up on your credit as well. Rumor is that this trick is not going to work much longer because the credit bureaus have caught on and are going to stop including these type of accounts in their credit scoring process. Hope this helps.
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When will my credit score start improving?
Question by xsaraxamx: When will my credit score start improving?
For the most part, I’ve paid my credit cards on time and have had good credit reports. But last month, I was in a bad financial situation was not able to pay my Shell gas card. I was able to pay it a few weeks after it was due, but now it shows that I have a delinquency on my credit report. When will that go away? Also, it made my credit score go down about 50 pts. If I continue to pay all of my credit cards on time each month, when will my credit score improve?
Best answer:
Answer by bdancer222
If you were only a few weeks late, credit card typically don’t report that to the credit bureau. You get hit with a late fee. The payment usually has to be 30 days late before it is reported. Are you sure it was only a few weeks?
You will need at least 24 months of consistent, on time payment history to overcome that late payments. Most of your score is based on the previsou 24 months.
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Categories: Credit Score Questions Tags: Credit, Improving, Score, Start
Q&A: How can I raise my credit score after bankruptcy? I had a bankruptcy discharged, can I rem the accts included?
Question by T.J: How can I raise my credit score after bankruptcy? I had a bankruptcy discharged, can I rem the accts included?
I filed for bankruptcy (chapter 7) a year ago and successfully had it discharged. I’m in the process of rebuilding my credit and I pulled my credit report and all the creditors included in the bankruptcy have my accounts listed as “bankruptcy” which is destroying my credit score. Is there any way I can have those accounts removed since they are all closed and were included with the bankruptcy? Does anyone have any tips on rebuilding my credit? My score is currently 530 and I would like to raise it to the average but it seems like it hasn’t been going anywhere. What can I do?
Best answer:
Answer by KL
The key to increasing your score after bankruptcy is 1.) making sure the debts that were included ARE being shown as IN BANKRUPTCY and have a zero balance and 2.) re-establishing your credit.
The 2nd is tough and you’ll have to take on some pretty high interest rates, but it will be worth it. Start off with secured credit cards and go from there.
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Categories: Credit Score Questions Tags: accts, after, Bankruptcy, Credit, discharged, included, Raise, Score
How much will it lower my credit score if I break my lease?
Question by geewhiz: How much will it lower my credit score if I break my lease?
I have to break my apartment lease. I was living separate from my husband, and we are moving with a job transfer to a different city. My credit score is about 750-800. If I break the apartment lease, it will go on my credit report. How much will this lower my score?
Best answer:
Answer by Lauren F
Breaking the lease itself won’t hurt your credit score. It is what happens to the unpaid rent on the remainder of your lease that could possibly hurt your credit score. For example, if there are 9 months remaining on your lease, and you leave without paying those, and the landlord has two choices. Try to re-rent the place, or sue you in court for violating the terms of your contract. If he does the first, then nothing will happen to your credit report. If he does the second (sues you) and wins a judgment against you, that becomes part of your credit score and will drop your score at least 100 points.
Read your lease carefully and see what the terms are for breaking the lease. Sometimes you can pay a penalty of one month’s rent and get out. Other times it is 60 days, and they only let you out if the place is re-rented in that time. Other times there is no “early out” clause and your only option to reduce the expense is to find someone to sublease it from you.
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What does your credit score start out as?
Question by jane w: What does your credit score start out as?
Wondering…I’m young and just got my first real credit card about 3 months ago. I’ve paid everything off every month so far. What does your credit score start as? Before I got it, I had no credit history whatsoever, but I expect to now or very soon since I now have credit. Anyone know what number I may have started at? Would it just be the national average? Or does it start higher?
Thanks!
I mean…I know I had no score at all, but I guess I am really asking: once you open a line of credit, where does your score immediately fall when it is initially opened?
Best answer:
Answer by spifiman1
Credit scores are made up of the following;
1. Pay history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio 30%
As you can see 1,2&5 are the most important as far as scoe is concerned but you need much more then just a good score you also need a good profile.
You will need 3 credit card accounts (revolving) and at least 2 cars, boats, homes, furniture or personal loan accounts (installment) all with good long pay historys and your CC balances below 30% fo your credit limit every month.
This mix of credit will give you the best profile and score.
Credit scores always start out at 0. Reportable scores run from 300 to 850. Yours after about 3-months should be somewhere in the 600 range.
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Categories: Credit Score Questions Tags: Credit, Score, Start