How high can your credit score go up after being very low?
Tuesday, December 30th, 2008 at
11:53 pm
Autumn Interlude asked:
My credit score is around 500. I’m 21 years old and I have made some pretty poor decisions regarding my financial obligations. (PLEASE, do not post any negative information or comments telling me to get back on track and how important good credit is. I KNOW THIS and since March of this year, I have gotten back on track.) How much can my score go up after I continue paying my bills on time and get some bills out of collections? Thanks.
My credit score is around 500. I’m 21 years old and I have made some pretty poor decisions regarding my financial obligations. (PLEASE, do not post any negative information or comments telling me to get back on track and how important good credit is. I KNOW THIS and since March of this year, I have gotten back on track.) How much can my score go up after I continue paying my bills on time and get some bills out of collections? Thanks.
Tagged with: Collections • Credit Score • Poor Decisions
Filed under: Credit
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Opening a new credit card account helps; you may have to get a secured card, but that’s how I improved mine was a secured card and a JCPenney card, and just kept paying my bills on time. Keep at it steadily and be patient…it may take a few years, but it WILL come back up.
leave the ones in collections alone, every time you call them, make a pmt or whatever, it updates that and it sticks out more. just make your reg pmts to whomever and wait about 6 mos.
you can get much information in this website,stay a minute in website and check anyone link at a time,you can aslo get your answer in Google Search in this website, which has helped me alot
I understand that the highest credit score is 840, and that you will have to keep paying your bills on time, with no late payments for at least one year, to be considered for a better credit score.
Good luck!
Its going to take about a year of on time payments for it to come up and it may only be a couple points, its not a quick process, Just pay everything thats on your credit on time EVERY time and that is all you can do.
kat9375 is correct, but you should alway listen to comment negative and positive you can learn alot from this information. Don’t be so fast to dismiss this information. Also, you are on a forum, where you are asking us, so whether you pick one person’s answer over another one, we still get points and we still get our point across. Your road of recovery could take some time, so you will just have to do the right things, have patient, and be diligent.
Good luck……………………..
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If those collection accounts have already been charged off and sold off to collection agencies, paying them off won’t help you score at all. In fact, initially it will lower your score. The older the item, the less impact on your score. When you pay off old debt, it becomes a current transaction and counts more in your score calculation.
However, creditors look at more than just your score. Paid old debt always looks better.
Get a copy of your credit report and start with the newest derogatory item and work back to the oldest. If you have single entry items like cell phone, medical, utility bills, negotiate a pay for delete. This will help your score but it doesn’t work as well for multiple entry items like credit cards. Collection agencies can only remove what they have reported. The original creditor’s charge off stays.
If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2 years old, offer 75%. Lump sum gets the best deals. Any payment plan has to be short term.
Get any settlement agreement in writing and keep it, along with your payment proof, forever. Do not give collection agencies direct access to your bank account.
It will take a minimum of 24 months of consistent, on time payments to see your score improve.
By the way, FICO scores go up to 850.
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