|
|
| *Loan,banking and credit>>>credit report |
In what order should I pay off my credit report items? Oldest first? Lowest amt first? To best raise my score? |
Looking for the quickest way to raise my score and improve my credit. What if they won't remove item and only mark as PAID? Will this still help? If I understand your question right, you have a bunch of debts listed as negative items on your report, and you want to fix them? First, understand a couple of things before you even get started. If you don't handle this correctly you are going to not only hurt your score, but you will be spending money that won't help one bit toward fixing it. The credit scoring system gives more attention to accounts with recent activity on them. As time goes by, they are not as important, and the effect on your score goes down a little. So for the first 3-4 years these negative items are killing you, but after that things improve. Also note that when you pay off an old debt, they are only required to show "paid" on your credit report. But all of the information about late payments, charge off's and collection is still there. It is still being listed as a negative item. When you make a payment on an old debt, they will update your credit history as mentioned above, but it now changes the status of your credit item to recent. Even though the debt is paid, this recent negative item will actually hurt your credit scores! Therefore, you must be very carefull how to handle this. Demand that the creditor DELETE the entry from your credit score before you pay them a dime. And get this agreement IN WRITING! That said....when you pay off your debts the only real important order is in recent activities. Pay off the most recent debts (make sure they delete them), then work on the older ones. Note that negative items will automatically be deleted after 7 years, beginning from the date of the delinquency. Therefore, unless you are in a super big hurry to increase your score, don't mess with debts over 6 year old (5 is better). These older debts are not hurting your score to a huge extent. If you are not referring to negative items....then your question is simple. Start by contacting the creditor and negotiate lower interest rates if possible. Then pay off the large interest loans first, putting only minimum payments on the low interest cards. Once the largest is paid, apply more money to the next card. I was just at one of those credit places that give you that advice, I was told, you start with ones that have any 30 day late pays, then high interest, then the highest balance, if the lowest ones are very low, like I had a $89 and a $68 balance, so I paid them both off and they are done, but dont ever close a credit accout, pay it off but dont cancel, if you do you will lose all the credit you built up for yourself. just went through a credit "cleansing" lol from a money management point of view i would start with the one that charges the most interest. but for a confidence builder i would pay off the lowest. but from a credit report view i would pay down the one with highest balance to limit ratio. To raise your score, you want to pay off the accounts that are most delinquent first. Those are the ones reporting as 60,90 days past due. And it does look better on your credit when you pay the account in full. And if a credit card offers you a settlment, dont take it because it reports to the Credit Bureau as settling for less than the balance in full and that is a major bad mark. Almost as bad as bankruptcy. You should pay any of them that are over their limit first. Lenders will typically look at how much you own on a debt compared to the limit, as in a credit card, or the original debt amount. I found a website ( http://www.your-credit-solution.com... ) that offers a free credit repair guide. This guide can give you some good tips to improve your credit. They research and review solutions to help individuals like you and me improve their credit score and reduce debt. The best of luck! :-) Hi, You may get your doubts very well clarified from http://moneytips.bestmoneymatters.info... . Best wishes! |
| Tags |
| credit check credit counseling credit debt credit line credit repair credit report credit score credit card online bad credit loan bank of american |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |