Rebuilding Credit & Scores

[xapooh]

Good am. I was discharged last year and then lost my job. I had applied for two c/c to rebuild my credit then couldn't pay them on time. Now that I am back at work I settled with one on Fri and the other since it was not closed paid it off on Thursday keeping it open for the open line of credit. My score was 478 last week and then I pulled it yesterday and it went up to 491. I have two judgements on my public records in which one I paid in full last week. By me paying this judgement and paying those two c/c's will my score go up a good bit. This week I am planning on paying three other items off and requesting that my records will be updated. My basic question is does anyone know a range of how much your score goes up after paying off closed accounts. Let's say I have $5K in debt and pay off $3K. Should my scores increase a good bit? Plus paying $200 a month on the other $2K until it's paid off. Thanks for any responses I receive.

[bkfiler]

i hope you arnt paying off debt that was discharged or debt that was out of the SOL (statute of limitations time period for your state or for their corporations state - it gets tricky)

that would hurt your credit score because all that becomes new and fresh 'bad data'

assuming you are not, then its hard to tell you how much it will go up. too many variables. and im not sure 'how much it matters' how much each debt is. it might help a lot or not. too hard to tell.

im sure you know this already but paying your bills off on time, always, and keeping your balances at less then 50% is the key. 30% is better so you dont get out of control.

side note: maybe quit using credit cards. just use them for credit building only. think of them only as a tool for that purpose.

[xapooh]

no, I am not paying debt that was included in my ch 7. No offense but I am a smart cookie. I had two judgements in which one has been paid off. The two credit cards that I received were after the discharge. The others are just some small things that range in the $200- $300 status. Regardless if they are in the statue of limitations it still shows on your report for the 6-10 years. I would rather pay it off and show it paid for the next 3 years rather than let the SOL run out. I am doing what is right. Thanks!

[AAAArt]

I don't think that you are going to see a dramatic increase in your scores right away by paying them off.
Your score is so low (sorry, but I've also been there), that it will help some, but I doubt that it will get you in the 600's.
Good move to pay off the one that is still open and keep it. Length of credit history matters (I think about 20%)
Paying off the other stuff means that (IMHO), your score will gradually go up over the next 2 years, rather than 4-6 years that it would take otherwise.
Sadly, you had a bad break in losing your job after filing. It will now take a little longer to get to where you want, but it is still doable.
The other thing that you can do is wait about 6 months after you pay them off and request the the CRA's "verify" these amounts and accounts or remove them. Sometimes companies whom you have paid off small amounts won't bother to get back to the CRA's and that they would be removed. Then you might see a 25-50 point jump.
Don't forget that there is usually a lag time between paying and them reporting. Most report every month, but some don't. Also make sure that they are being reported correctly.
Best wishes, Art

[Jenny]

No one knows the formula for computing a credit score, but some general principles do apply. Your score will be higher if you have a low debt-to-available-credit ratio. That means it's better to owe $1,000 on a $5,000 credit line than it is to owe $4,000 on that same line. Your score is probably low now because you have a recent bankruptcy and additional delinquent accounts.

[StaciMM]

It is impossible to predict... Everyone's credit file is different, in terms of how many accounts, how old, and the details of the derogatory info. The only thing that is certain is with making all payments on time, things should gradually improve.

Good am. I was discharged last year and then lost my job. I had applied for two c/c to rebuild my credit then couldn't pay them on time. Now that I am back at work I settled with one on Fri and the other since it was not closed paid it off on Thursday keeping it open for the open line of credit. My score was 478 last week and then I pulled it yesterday and it went up to 491. I have two judgements on my public records in which one I paid in full last week. By me paying this judgement and paying those two c/c's will my score go up a good bit. This week I am planning on paying three other items off and requesting that my records will be updated. My basic question is does anyone know a range of how much your score goes up after paying off closed accounts. Let's say I have $5K in debt and pay off $3K. Should my scores increase a good bit? Plus paying $200 a month on the other $2K until it's paid off. Thanks for any responses I receive.

[bkfiler]

no, I am not paying debt that was included in my ch 7. No offense but I am a smart cookie. I had two judgements in which one has been paid off. The two credit cards that I received were after the discharge. The others are just some small things that range in the $200- $300 status. Regardless if they are in the statue of limitations it still shows on your report for the 6-10 years. I would rather pay it off and show it paid for the next 3 years rather than let the SOL run out. I am doing what is right. Thanks!

did you know that if you pay an old debt then it becomes new history on your account for another 7 years. be careful, even though you are a smart cookie, because most people advise not touch accounts that are too old. its hard to figure out how it will effect your credit rating and how they will report it, etc.