HELP, I need to raise my credit score from old debts!?

Here%26#039;s the deal...when I was 18 I got a few store credit cards. Then I got approved for a REAL credit card from a bank. Next thing I know, I have 3 actual credit cards. I then decided to consolidate my %26quot;store%26quot; credit cards and transferred the bills to one of the bank credit cards and closed the store credit accounts. So I ended up with 3 regular bank cards.

Well, again I was 18 and irresponsible and didn%26#039;t pay them after a while and then they closed the accounts. Of course this went directly on my credit report and with the interest, etc. the balances were now over (almost double) the amount of the max limit of the card!

The only good thing I have on it is my car payment that I have never been late once with and is almost paid off (this year).

But I need to improve my credit. These credit lines are YEARS old! If I pay them off now, will it make ANY improvement?How long after I fully pay off my debt will it start to improve my credit if at all?

ANY help would be great!

HELP, I need to raise my credit score from old debts!?

EDIT: I just saw your additional details. If these are 7 years old they should not be listed on your report. If they are, simply mail a dispute to each of the credit bureaus informing them which items are past the 7 year mark. They should be removed without any hassle.

Anything negative listing over 7 years should not be on there. Dispute it and get the negative removed. After that it can not be re-listed for ANY reason so it would not be on your credit and not affecting your score.

If you have any more questions you are more than welcome to email me. I%26#039;ll be glad to help any way I can. I%26#039;m not a lawyer or credit counselor, just someone who has been doing alot of reading into the credit system so there is no worry about being charged. (I have to include that bit or yahoo spam nazis will get me)

======================================...

Here is the thing. In determining your FICO scores greater emphasis is placed on recent activity, mainly the last 2-4 years. Also note that delinquent items fall off 7 years from the date of the delinquency, and contrary to what you might hear, nothing can change that. It%26#039;s safe to assume that these accounts have been charged off by the credit card companies and the debt bought by collection agencies.

You can pay them, but the trap that alot of people fall into is that they pay these old accounts and it brings the activity current, thus LOWERING their score. This happens because the account is listed as %26quot;paid%26quot; but all of the negative information like charge offs and collections are still there.

If these accounts are 5 years or older I%26#039;d just ignore them. They%26#039;re not having much effect on your credit and will be dropping off soon.

If you%26#039;re intent on paying these off you need to negotiate a pay to delete agreement with the collection agencies. Basically this says that in exchange for your payment they will consider the debt paid in full and completely delete the listing from your credit report, thus preventing it lowering your score. This is 100% legal and can be done! Anyone who tells you different (like Bob in the previous answer) is either lying to you or doesn%26#039;t know the law. You can check the FCRA and FDCPA laws and verify this.

You also have to be careful with these pay to delete agreements, otherwise you can cause yourself more trouble. The main things to remember are to get the agreement in writing before sending them a single cent. In this agreement they need to include that the item will be completely removed from your credit report (not updated to show paid or settled) and the debt considered paid in full.

That last part is important if you settle for an amount less than the original balance, as if it%26#039;s not listed they can turn around and come after you for the remaining balance and/or sell it to another collection agency.

You can check out this link below for some great information on credit rebuilding. It%26#039;ll show you how to add good credit, settle debts and do pay for delete agreements. Just note I am not affiliated with this site in any way so it is not spam.

http://www.creditinfocenter.com/rebuild/

HELP, I need to raise my credit score from old debts!?

Its depends on how long these bills have been in limbo. The current law is that when bills that have been in limbo for at least seven years then the credit reporting agencies are to delete them from your report if they are still there then you need to find a reporting agency and argue that they are over seven years old and that they need to remove them from your credit report from there work backward in paying them off I wouldnt pay any bills over 7 years old

HELP, I need to raise my credit score from old debts!?

Once they have been closed for 7 years, they should just fall off your report. If they are not near that old, you really should try to pay them. Since they are closed, paying them off might not raise your scores instantly. The fact that they were once delinquent will still report for the 7 years. Just make sure that going forward you are never 30 days late on any account.

HELP, I need to raise my credit score from old debts!?

You can%26#039;t get bad stuff off your report that%26#039;s correct. If you could, then everyone would do it and credit reports would be worthless.

The only thing that matters with the credit cards is you made an agreement to pay and then you didn%26#039;t pay. Nobody cares about your story because everybody has a story.

If it%26#039;s any consolation, the point weighting of the derogatory information goes down with the passing of time until it reaches zero after seven years and drops off.

HELP, I need to raise my credit score from old debts!?

And now for the REAL answer. First, this is what makes up your score:

1. Payment history- 35%

2. Total debt owed to available credit ratio-30%

3. Length of time establishing credit-15%

4. Types of credit established-10%

5. Inquiries and New accounts-10%

With that said, there%26#039;s 2 things when it comes to bad debts and collection items that you should be aware of, the FCRA and statute of limitations. These are 2 diffferent things. The FCRA(Fair Credit Reporting Act) is the timeframe that negative items can remain on your report which is 7闄?years from the date it first went deliquent. For example if a debt first became delinquent July 10, 2000 the legal limit that the debt can be reported would be January 10, 2008. Also, there is a seperate statute of limitations that varies by state on how long a debt can be legally enforced. This is different from the FCRA, because depending on which state you live in the statute may or may not expire before the FCRA.

here%26#039;s a link for that

http://www.creditinfocenter.com/rebuild/...

Another important thing to know is that negative items that are less than 2 years old are hurting your score the most. It%26#039;s possible that you can settle much older debts for far less in exchange for getting them removed from your report altogether. This is called a %26quot;pay to delete%26quot;. I posted several links explaining this in detail

http://www.creditinfocenter.com/debt/set...

http://www.creditinfocenter.com/debt/neg...

http://www.creditinfocenter.com/debt/Can...

http://www.creditinfocenter.com/debt/Act...

http://www.creditinfocenter.com/debt/deb...

Keep in mind this is for debts that are 6 years and less. If they%26#039;re 7-7闄?years old, you can file a dispute with the credit bureaus, that the debts are outdated per the fair credit reporting act(FCRA). Once these accounts are removed from your report, your score will go up somewhat, don%26#039;t expect a major jump because it takes continual payment history in order to build credit. Credit cards are a perfect example of this. I would suggest getting a secured credit card for a couple of reasons. Number one, they%26#039;re the easiest credit card to get, mainly because a deposit that%26#039;s used as collateral that%26#039;s required upfront. Number two, although you have to place a deposit, it%26#039;s sometimes linked to a savings account which earns interest, while you%26#039;re building credit. Number three, a secured card allows the most control over the limit, by adding to the deposit, the limit can be increased. Number four, the deposit can double as a start up to an emergency fund when the card upgrades to regular one once you%26#039;ve proved you can pay on time consistently.

It takes roughly a minimum of 2 years of continuous on-time payments to see a difference. Also, what raises your score is the types of credit you have. You already have an installment account with your car loan, and it takes a mixture of accounts in order to really raise your score.

HELP, I need to raise my credit score from old debts!?

If you have not yet established a credit record for yourself or you are in the process of rebuilding your credit, getting a credit card can greatly help you. The fact is, credit cards are one of the best ways to build a credit history and increase your credit worthiness. You can build credit in many ways%26lt;!--such as having a department store credit card, or taking out a small loan at a bank and paying it off, but having a credit card is actually a far more effective way to build your credit. The simple reason for this is that you can use a credit card to pay for all your regular and ordinary expenses for which you might be paying cash, and in the process, you are literally building your credit record.

http://bestcreditcards.freehostia.com/

For example, at the very minimum, you might as well use a card to pay for all your grocery purchases, gas station fill-ups, and clothing purchases. By paying off these purchases in full when you receive your credit card statement each month for as little as two years, you can be taking advantage of hundreds of simple--%26gt;opportunities to build yourself a credit history without any risk or pain. So if you do not yet have a credit history or if are trying to improve your credit, don閳ユ獩 wait any longer to apply for a credit card and begin using it as often as you can on your ordinary daily purchases.

HELP, I need to raise my credit score from old debts!?

It is very important that you understand how the paying of collections will impact your credit score. Let%26#039;s imagine you have a $65 medical collection. You%26#039;re probably thinking -- I should just pay the $65 and get this taken care of. What most consumers don%26#039;t know is that one of the following two scenarios happen when you pay a collection:

1. The collection agency collects your $65 and then just sells the debt to another collection agency.

2. The collection agency collects your $65 and then updates your credit report to a zero balance indicating that you no longer owe this debt.

Now for the bad news--you just lowered your score! When the collection agency updated your credit report to a zero balance it also updated the date of last activity! When a negative item is fresh it carries a higher point value then after it seasons for a while. Bottom line -- You just paid money to lower your credit score !

This is exactly why Credit Education is so important!To learn more, checkout the video and FAQ at www.FreshStart-CreditFix.com. Spend just a few minutes there, and you%26#039;ll learn everything the credit bureaus don%26#039;t want you to know about how to improve your credit, quickly %26amp; legally regardless of the situation....

Give...Grow..Prosper!