Don’t Pay Charge Offs That Are Older Than 2 Years Old

I am trying to get a house by the end of the year. I keep hearing people say don’t pay charge offs if they are over 2 yrs old. I want to have them paid off, I don’t want to leave them off. I plan to get a secured card and a secured loan with a bank and I have a car and that is all. Do you have any other suggestions that will boost my score. I am asking an old card member that I am in collections with to reopen my account if I pay the balance off in full. Do you suggest payment arrangements on a settled debt or should we save up the money and pay the settlement in full? My husband is a prior bankruptcy that has been discharged what do you suggest for him to boost scor so that we can buy house by August of this year. Do you think in 6-8 mos our score will be up or should we go the full 10-12?

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I would validate any debt at a collections company
over time having all your bills debts collections paid off will help your score
IF
you have 3 to 6 lines of open and rated (12 months payments) like car loans, credit cards and home loans.
anytime you pay something off it should be reflected on your report with in a 45 day time period
if not
just use my free credit dispute form and the record will get updated

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Should I pay a charge off that is over two years old by negotiating with the company that is collecting on the debt and if so, how will this benefit my score? If no benefit, should I allow myself six months to build up my score? My next question is should I validate the charge off first before paying it? what if I do a restricted money order and make a copy and send certified, is this enough to send to the credit bureau to get this debt showing paid? Please advise

One other question….How is it that people are able to erase charge offs? If this can be done, how does it increase your score or will it increase your score?

they get lucky
by trying
free credit dispute form, validation, negotiation
 
not unless you have current open rated lines of credit — like credit cards — car loans — home loans

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i dont know your score now
i do not know how many open rated lines of credit you have now
 
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if your gonna buy a home you better pay off charges offs
many times they will not apporove folks with outstanding unpaid debts
 
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Make sure they report to bureaus
but
this ideas sounds good to me — especially trying to repoen that past bad card
 
I would think you could raise your score in 6 – 8 months if you have something already open
otherwise your looking at one year for the most part

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Hey Mr. Majors,
I got a questions. I paid off a few collection accounts and established 2 new secured cards 6 mos ago, a jewelry acct and a furniture acct all 6 months ago. I pulled my credit and discovered that my score had dropped and there is a new or maybe two collection accts that I must have over looked or one seems to be a new hospital expense in collection. I don’t recall seeing this one on the report 6 months ago, but it has a balance of $1400.00. My jewelry acct is $1000.00 with a limit of $1400.00, one of my secured cards is at 0 while the other one has a balance of $275.00 with a $300.00 limit. I am paying the furniture bill off today because they are showing 3 diff. balances with the same bureau. I don’t understand that, but I am upset about that and I will be paying them off in full. I need to know why my score went down and what would you suggest I do in order to increase my score to buy a house by June. I need a 620 score and my scores are mid 500s. I dropped quite a bit. My scores were higher before I paid off the collections and before I established the new stuff. Do you think that is enough time for me to increase my score between now and June? Do you think I need to dispute that $1400.00 medical since I don’t know what that is or should I get the collection company to validate it first? How should I do this and what do you advise a person seeking to buy a house, how should they handle charge offs and collections on their credit when they are trying to increase their score? Please advise. I am sorry to write you a book of questions.

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Ok
You Need to make sure you do not CLOSE a credit card if you pay it off
keep them all open
pay the 270/300 down to less than 30% — 79% or higher and it hurts scores
and collection – dispute – validate – then negotiate and pay or settle — try to get agreement to remove — its not easy but sometimes can be done
and dont forget the most important thing Build Your Credit Score

many time you will go back in and buy something else and they say roll it over
but what they do is start a whole new account
dispute the duplicates
 
Certainly should dispute the medical
sometimes insurance doesnt make payments — do you have insurance?

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Yes, got insurance and always had it since day 1 of my work life. I never rec’d a bill about this debt. what would be the most effective way to build my score? or do you have that info as a link if I click on “Build Your Credit Score” I have been told that medical doesn’t effect score..I always thought it did, but are there debts that I should not worry about when trying to buy a house? I read that if I payoff an old collection, I give it a new date and it brings the score down. I just believe in paying stuff, if it is valid. I just want to know what would be effective if I am looking to buy this June. My jewelry acct, should I pay that down or pay it off? I owe $1000.00 on it and my limit…I think is $1400. The girl at the store could not give it to me at the time, she said it was up. This was an old acct that I had paid off years ago and they never closed it, so I just charged something on it because it was old and on the report and I know old credit limits will help my score, but I don’t know whether to pay it off or carry a much smaller balance of say…$700.00 and just keep making monthly payments or what would you suggest?

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EVRYTHING affects your credit score
most 1rst rate loans WILL TURN YOU DOWN FLAT for having unpaid bills, debts, collections on your credit report
everything has to be paid up and in full
if you had the money to blow by all means blow on paying of that jewelry in full
if not pay it down to less than 700 or less than 30% times 1400
you dont have to pay it off

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cool. Thanks I will pay it off. I have paid off that furniture bill. I don’t know why they have reported 3 different balances to the credit bureau in one month. I feel like that has done something to my score. I am hoping that doing this will boost my score. If you have any other suggestions that would help boost my score by June…by all means please share because I am really working hard to get a lower rate and to do what needs to be done. Once I finish, I will have my car, my student loans that are current and being paid faithfully every month, I got a secured card and an unsecured card and my jewelry acct which is an installment. I figure, that should be enough to boost my score. My secured card is the only new debt I have that is less than 6 months old.

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like i said
dispute the duplicate accounts
say duplicate or not mine or incorect
 
i sent you the link for dispute
yes
read build credit fast