Any benefit to paying discharged debts?

[dragsnguns]

As I work to improve my credit score, the only advice I can find is to pay my bills on time....DUH!

Can I improve my score by paying discharged debts?

[SMinGA]

As far as I know - no. They can't report anything after the bankruptcy, so even if you paid them off it would not show on your report.

As time passes, the discharged accounts will have less significance on your score and any new trade lines you've added will have more impact.

[kornellred]

Why would improving your credit score be a concern after bankruptcy? Are you saying that you cannot make it without more credit?

[bkinparadise]

Why would improving your credit score be a concern after bankruptcy? Are you saying that you cannot make it without more credit?

Amen to that! After I go down the road of BK, I do not want another CC in my pocket or wallet. My FICO will be trashed and that is okay with me. I've learned "debt is dumb and cash is king" as our Dave Ramsey says at the beginning of his radio show.

[StartingOver08]

Paying your discharged debts will not improve your score.

Think of your credit score as a debt score instead. It measures how you handle debt now and in the past. The two most recent years are given the most weight in your score. If you check www.myfico.com it will give you the very basics of the score attributes. There are things you can do if you really want to increase your score: get new credit (sparingly) and let time pass.

If you carry a balance, especially on those low limit cards issued after BK, it will bring down your score. If you have no new credit, your score will not increase. If there are reporting errors your score will remain low. The first thing to do is to really examine your report for inaccurate reporting, correct any inaccurate item and re-establish new credit. But do so very sparingly.

One of the things I did find my score is higher if I pay the balance before the statement drops. That way my card balance is zero on the reporting date. Get the reporting date from your card issuer. A big part of FICO is the credit utilization (30%) as well as payments. If you have a $1000 limit and you have used $500 that is a 50% utilization and your score will take a hit. The utilization is only measured on the reporting date. Check the FICO forums for other tips. Check other rebuilding sites for tips. Good luck.

[aa06a47]

Handling and managing credit properly is what will improve your credit score now. Having went through the bk process, I know the pitfalls of improper management. I do believe cash is king. Building credit scores though isn't a bad thing either.

Unless you have millions like Dave Ramsey (and if your reading this forum, you probably don't), in my opinion, building a good credit score / history from this point will enable you get money if / when you need credit in the future. Be very aware though, it will also put you at risk of being back here in 7 years if you didn't learn your lesson the first time.

Apply for a card with a limit of about 5% of your annual income. Chances are, you will never have an issue paying it off each month and your credit score will fly.

[bkinparadise]

Handling and managing credit properly is what will improve your credit score now. Having went through the bk process, I know the pitfalls of improper management. I do believe cash is king. Building credit scores though isn't a bad thing either.

Unless you have millions like Dave Ramsey (and if your reading this forum, you probably don't), in my opinion, building a good credit score / history from this point will enable you get money if / when you need credit in the future. Be very aware though, it will also put you at risk of being back here in 7 years if you didn't learn your lesson the first time.

Apply for a card with a limit of about 5% of your annual income. Chances are, you will never have an issue paying it off each month and your credit score will fly.

What I've learned through all the hell I've been through with debt and now filing for BK is that I am not good with credit, period. But with cash, I'm more aware of what I have and now being able to budget for what I need and the "wants" in life. I'm working on an emergency fund and saving. As for credit cards, when I do feel I can deal with it, I'll work on getting a secured card and eventually work up to a real credit card with a limit of 5% of my annual income as you suggested. At the moment, cash is the only way I am dealing with my expenses until my BK is out of the way.

[HHM]

As I work to improve my credit score, the only advice I can find is to pay my bills on time....DUH!

Can I improve my score by paying discharged debts?

None whatsoever.

What is the bigger issue is your obvious obsession with your credit score; to even contemplate paying discharged debt to improve a score must be some sort of psychosis. Your credit score DOES NOT DEFINE you.

[Brazzy]

If you are to agree to settle on these debts you can do it under the terms that your credit be updated to "paid as agreed". Not going to make a huge difference.

[AngelinaCatHub]

None whatsoever.

What is the bigger issue is your obvious obsession with your credit score; to even contemplate paying discharged debt to improve a score must be some sort of psychosis. Your credit score DOES NOT DEFINE you.

I have to second HHM. Yes, we were so used to just getting what we need. I may have had a part or tool I needed in my garage, but to look for it was harder than just purchasing it again. Not anymore. and yes, I found multitudes of stuff I have needed in the past and purchased over and over. What a waste.

If we can't pay for it, we don't need it. Emulate your Great or (great, great) Grandparents who went through the Depression. Consider this, even after your bk, things are NOT getting better here. UNLESS, you are a Census taker. 'Hub

[frogger]

Can I improve my score by paying discharged debts?

No.

[catleg]

No, it won't help, and will probably hurt your credit score, to pay back an aged, bankrupted account. Heck of a system they've got huh? (best George Carlin impersonation here)

Best thing you can do is to go over all three credit reports and dispute anything you can. Typically post-Bk your credit is very clean but your report is a mess.

[StartingOver08]

If you are to agree to settle on these debts you can do it under the terms that your credit be updated to "paid as agreed". Not going to make a huge difference.

This is unlikely. The OP filed and had the debt discharged. Paying the debt after discharge will not change the status of the debt as it was included in the bankruptcy.

The OP might be able to negotiate with the OC a deletion of the tradeline in exchange for payment of the debt. That may help his score nominally, but so will just the passage of time.

[olivies]

Come on guys- surely improving your credit after a bankruptcy annihilates it is a legitimate concern. Buying a house or looking to change jobs, for example, are both good reasons to be concerned and to work at improving a credit score. That doesn't make anyone crazy or obsessed.

[nc73]

Come on guys- surely improving your credit after a bankruptcy annihilates it is a legitimate concern. Buying a house or looking to change jobs, for example, are both good reasons to be concerned and to work at improving a credit score. That doesn't make anyone crazy or obsessed.

employers don't use credit scores. they are concerned about how much you owe, who you didn't pay, etc etc. although if you're only interested in the score just for the sake of it, that would be obsessive.