Credit score improvement

you may not see any improvement for awhile....paying a collection account doesnt add points and most of those will continue to report unless you dispute them off and even then if they are reporting correctly they might not be removed. Continue to pay your positive accounts to increase your score.

Paying off past due account will definitely have a positive impact on your credit report. However, it will take some time to increase your credit scores. You may have to wait for 2-3 months in order to see a major increase in your credit scores.

Another thing I would like to add is that, after resolving all your past due accounts, you must take steps to not default on other accounts. Otherwise, your credit score will again drop. Always handle your credit responsibly. Check your credit report to see whether or not the status of all your accounts is reported correctly.

I defaulted on several cards and settle 3 out of 6. I am current on 2 other cards which are closed. Will paying them on time help rebuild my credit? I had new offers from several cards to help rebuild credit. I don't want them but would apply for if it will help rebuild credit.

Question is "Do I need new cards to rebuild or will keeping current on 2 do that for me"?

Thanks

Reply: In my research you want to have open lines of revolving credit, with no more than a 25% balance on any card and timely payment. Keeping them open and on time for the longest period of time is a key factor to improve your score. My caution, and I am no expert, is the cards that rebuild card often have very high interest rates, can be secured and have very high initial fees. I used Household and Orchard to start rebuilding my credit. I then went for retail cards (Texaco, JC Penney, Target).

I am just finishing paying off 24 bad debt accounts. I make all my payments on time but have a low score (551) and minimal credit. Mortgage ($2340/month)), credit one card with $700 limit, Household $700 limit, Orchard $300 limit, Target $200 limit, JC Penny $350 limit, Texaco $300 limit. Question: Will adding either of the following help my credit score.

1) I bought a car with my g/f. The car and loan are in her name but I made the down and I pay all of the payments. Will adding my name to the loan (we are NEVER late, not even a day)? I was told adding an installment payment, paid timely, was good for my credit.

2) My g/f has a credit card we use (Chase) with a $7000 limit. Should I try and get my name on this card? Again, we are never late on any payment. IWas told a high level revolving account, paid on time, is good for my credit.

I ask because I want to increase my score and buy a home but am conflicted because I think showing this may indicate I have more debt.


Thanks

RC