What is the best way to fix bad credit with out bankruptcy?
USuck79 asked:
I have a very low credit score with old delinquent accounts. I have heard paying off old accounts is pointless, and will not improve your score. Is there any way to fix credit on your own with out the use of a lawyer etc.
Its not pointless to pay off your old debts…
You owe that money…thats why no one will give you money now….your not trustworthy….your credit score is like your honor…
You need to learn about finances…..bookmark and read this site everyday for help:
Pay off your old accounts; right now they are looking as delinquent and continually aging on your report. Call the creditors and even ask them if they will settle at a certain price if you need to. Do them one by one, and you will get them done. You can do it!
Talking from experience the only way to solve this problem is to pay off your bad credit. They will always be there. It is not pointless to pay old account it may not raise you score by much but you will get so point for paying you delinquent account. No one can fix your credit problem but you and it is FREE….
As the people above have said, you must pay your old debts. However, remember that everything is neotiable! Many will settle for less and small installments as well. Make sure you ask them if the payments will improve your rating and keep up on it.
Pay all the old debts and maintain other accounts current. It will take time (without defaults) to get the score to improve.
Depending on how old the accounts are, it may be a bad idea to pay them off. There is a 7 year limit on credit reporting (10 years for bankruptcy) If you pay the old account off, the clock starts again, and the creditor may report the bad debt, with a zero balance, for another 7 years.
I would recommend that you contact Consumer Credit Counseling. They may be able to help you work out a way to pay your debts, and improve your credit rating!