Article Score0

I have two credit cards in collections and i recently started paying them off. after i have satisfied these accounts how long should it take to repair my credit score. and what might any one suggest that could help rebuild my credit???

3 Thoughts on how long after paying off an account in collections can you start rebuilding credit?
  1. My Take on It
    October 28, 2011 at 3:54 am

    Paying off bad debt is not going to make your score increase
    You have to re establish credit and keep it in good standing for an extended period of time to see things improve.

  2. Chris A
    October 28, 2011 at 4:21 am

    You can (and should!) start right away. Ask around at local banks and credit unions– even now, you may be able to get an unsecured card with a low limit. If you cannot get an unsecured product, and if you have a few hundred dollars to spare, get a secured credit card (or even a secured loan–use the loan to pay itself off). If you can’t get a secured card, start looking at the rebuilder cards like Orchard Bank. Orchard has a good pre-approval web page that tells you what you’re qualified for without leaving a hard inquiry on your credit report. Rebuilder cards come with significant fees, but they can be worth it in the long run. You may also consider applying for store cards where you frequently shop; they are not as useful as bank cards, but they do report and so are useful in building positive credit history.

    Your credit score depends on length of history, on-time payments, and debt-to-credit ratio. The sooner you get a card and start making payments on it, the sooner you start building that history and establishing a good debt-to-credit ratio. Just don’t go crazy with the applications–too many inquiries for credit drive your score down and make future inquiries less likely to be approved.

  3. bdancer222
    October 28, 2011 at 5:10 am

    You don’t have to wait to start rebuilding. You need an open, active account. If you don’t have one, open a credit card, even if you have to get a secured card. Use the card and pay the balance in full every month. This will build good payment history. You will need at least 24 months of consistent, on time payment history to see any improvement in your score.

    By the way, paying off defaulted debt won’t improve your score. The damage is done and will remain for the balance of the 7 year reporting period, whether paid or not.

    Leave a reply

    Register New Account
    Reset Password