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 Posted: Fri Aug 17, 2007 11:33 am |
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I have some things on my credit report and wanted to know if I take out a loan from the bank and pay off everything will that increase my credit score quicker? When you pay off things some times it will say settlement for less on the credit report. I really need my score to go up within the next year because I want to buy my 1st property. Any suggestions? Thanks
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Guest
Debtcc Points: 100
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| Posted: Fri Aug 17, 2007 12:11 pm |
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Are you not able to have access to funds without the loan to repay your debt? Depending on your credit score you may not even qualify for the type of loan you are looking for. Furthermore, even if you are approved, there is always a "what if" that could happen, and then your credit score will go down ever more.
If you are able to obtain the loan in the amount you're wanting to pay off the debt, make sure everything is marked paid on your credit report, and the new item is being reported as on time...considering you've made your first payment on time. Credit Unions tend to give the best rate on signature loans.
I would recommend talk to the collection companies that are currently holding your debt, and work out a payment plan with them. Just remember that you shouldn't be paying more than 25% of your income to debt.
Regards
Mike
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Teleport
Moderator
Joined: 09 Aug 2005
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| Posted: Fri Aug 17, 2007 12:14 pm |
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First, you have to find a company that will offer you a loan with decent interest rates. You can use that money for paying the past debts, but make sure that you maintain a good payment history on the new loan account.
What is the current status of your previous accounts? Are some of them in collections? I believe their are few negative trade lines because of which your scores are low. You have to negotiate with the creditor on a fair reporting with the bureaus in exchange of your payment. With proper financial planning, you can take care of your past credit history and raise your scores.
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Steg
Joined: 22 May 2006
Posts: 392
Debtcc Points: 5545
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| Posted: Mon Aug 20, 2007 10:08 pm |
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Hi
Steg is right. You should make every possible effort to maintain a good payment history. Payment history is a significant factor that greatly affects your score.
Take care
Nelly
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goodnelly
Debt Samaritan
Joined: 20 Jun 2007
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