Paid Everything off need help getting my credit up

[WhoDat]

First, pay off all outstanding credit. (EVERYTHING). I would dispute everything I can with all three credit bureaus. This takes time and will be a huge hassle. Its a long process of calling/writing letters. And do not open any new credit for years. Once you fix everything wait 3 years and then apply for a mortgage. Companies look for 2 years + (so 3 years is a safe time frame) of good reporting credit history. Good Luck!

When you say dispute everything, are you also talking about the accurate info also? Maybe I am reading your post wrong, but it sounds like you are telling this person to do what the credit repair agencies do. Plus, where are you coming up with these numbers (2 years for this, 3 years for that)?

[backtoschool]

When you say dispute everything, are you also talking about the accurate info also? Maybe I am reading your post wrong, but it sounds like you are telling this person to do what the credit repair agencies do. Plus, where are you coming up with these numbers (2 years for this, 3 years for that)?

Consider the source of the post WhoDat. The poster buys bk asset claims from creditors. It is in his interest to have people go bankrupt paying off old charged off debt, and then he can swoop in and file a claim on the equity. Paying on old charged off debt for years is no way to improve one's credit score, or to dig out from past financial mistakes.

[LSUTiger32]

Consider the source of the post WhoDat. The poster buys bk asset claims from creditors. It is in his interest to have people go bankrupt paying off old charged off debt, and then he can swoop in and file a claim on the equity. Paying on old charged off debt for years is no way to improve one's credit score, or to dig out from past financial mistakes.

I did not see the thing at the bottom so yeah that's kind of interesting. Still, if you can avoid BK you should do it at all costs. I would have much rathered 3 years of paying off old debt than to did what I had to do. I was backed into a corner, but sure wish I would have had a choice. It's not horrible advice other than as you said there seems to a little bit of personal gain in it for the poster!

[backtoschool]

I did not see the thing at the bottom so yeah that's kind of interesting. Still, if you can avoid BK you should do it at all costs. I would have much rathered 3 years of paying off old debt than to did what I had to do. I was backed into a corner, but sure wish I would have had a choice. It's not horrible advice other than as you said there seems to a little bit of personal gain in it for the poster!

Paying off debt in and of itself is not bad and is necessary if someone wants to buy a house and is not filing bk. It's the timeframe that is bad advice in my opinion. There is no good reason to wait 2-3 years before adding positive trade lines while you are paying off the debt. Paying off debt and adding positive tradelines will improve a fico score much faster, than paying off debt and not adding tradelines, all other things equal. I interpreted the OP as not wanting to pay off the debt, so in that case, adding positive trade lines is a must or the fico score will be around 500 indefinitely.

[WhoDat]

I did not see the thing at the bottom so yeah that's kind of interesting. Still, if you can avoid BK you should do it at all costs. I would have much rathered 3 years of paying off old debt than to did what I had to do. I was backed into a corner, but sure wish I would have had a choice. It's not horrible advice other than as you said there seems to a little bit of personal gain in it for the poster!

Yeah, I didn't catch the bottom part either. Same situation here as you LSU, I would have prefer to pay off the debt and avoid the BK, but at the time there was no other alternative. I agree with back2school, just paying off the debt by itself and then playing the waiting game will yield little results.

[hcorreia1]

Just paid my last judgment I had against me. Now the rebuilding will be starting. this is what i plan on doing. I already have two unsecured credit cards will be charging no more then 40% of available credit and paying them off. I also got a copy of my credit report will be disputing all the negative items and see what happens. I will let people know real facts of disputing worked and a sample of letters i will send out as soon as I have them. As any one ever read this book? Does anyone have any other ideas about getting positive trend lines on the credit report?

http://www.creditbible.com/

[LSUTiger32]

Paying off debt in and of itself is not bad and is necessary if someone wants to buy a house and is not filing bk. It's the timeframe that is bad advice in my opinion. There is no good reason to wait 2-3 years before adding positive trade lines while you are paying off the debt. Paying off debt and adding positive tradelines will improve a fico score much faster, than paying off debt and not adding tradelines, all other things equal. I interpreted the OP as not wanting to pay off the debt, so in that case, adding positive trade lines is a must or the fico score will be around 500 indefinitely.

The OP didn't file. Therefore, paying off the debt would be positive tradelines on his report as he pays them. Of course, at this point I am so confused I don't really know where I am........

[backtoschool]

The OP didn't file. Therefore, paying off the debt would be positive tradelines on his report as he pays them. Of course, at this point I am so confused I don't really know where I am........

This is incorrect LSU. Charge offs whether they are paid off or not, are reported on credit reports as negative trade lines. The only positive trade lines on credit reports are currently open, currently active paid in full never late trade lines, such as current car payments, current open credit cards, etc. Old paid off cars count positively on the credit report, but they are not considered active positive trade lines. Paid off charge offs are definitely not considered postive trade lines.

[LSUTiger32]

This is incorrect LSU. Charge offs whether they are paid off or not, are reported on credit reports as negative trade lines. The only positive trade lines on credit reports are currently open, currently active paid in full never late trade lines, such as current car payments, current open credit cards, etc. Old paid off cars count positively on the credit report, but they are not considered active positive trade lines. Paid off charge offs are definitely not considered postive trade lines.

Yeah, like I said I am confused at this point. No, old charged off debt being paid would not be a positive tradeline, I missed the part about them being charged off. Then again, a paid charge off or a settled charge off is much better than a unpaid charge off. That does make a difference and it shows that you went back and fixed your prior mistakes. If this credit report is full of charge offs I don't see much of a point. That's worse than some of us that filed. I never had a charge off or a late payment for that matter.

I think I will stay out of this thread because my head is about to explode.