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I am in a lot of debt. What will happen if I pay my secured debt (a loan for $ 650) and one of my credit cards off completely? The credit card has a balance of $ 1,200. I still have at least 12 other accounts on my credit report that have been turned into collections or charged off. I am looking to slowly turn my credit around and get these paid off, but I would like to know if paying off a credit card will dramatically improve my credit score?

7 Thoughts on What will happen with my credit score?
  1. Reply
    redwine
    January 15, 2013 at 12:02 am

    it will not dramatically improve your score, but it is a step in the right direction. tba

  2. Reply
    labelle_2004
    January 15, 2013 at 12:54 am

    No it won’t because even if you pay off those account, the collections will still remain on your report. Unless you get them legelly remove but that will cost lot of money the best company for that is lexington.com

  3. Reply
    BoredAtWork
    January 15, 2013 at 1:41 am

    Dramatically? Maybe not. But it WILL improve things. Keep at it, though! Pay off the highest interest stuff first; don’t add to your debt; and things will improve, I promise.

  4. Reply
    frankie
    January 15, 2013 at 2:08 am

    Get help it is often better to pay of something from all than a large amount from one.

  5. Reply
    tone
    January 15, 2013 at 3:00 am

    Pay off what ever you can as quickly as possible. Try to pay the ones with highest interest rate first. Contact the ones in collections and work with them. Often you can negotiate and pay them off for 30, 40, 50, 60 sometimes even 70% of what they are trying to collect. Your plan is an excellent start. Remember once you get things cleaned up, to increase score you must open NEW trade lines (lines of credit) in order to raise your score ….and they must be paid ON TIME every month….Good luck. Also, check to be sure the colection accoutns are all valid and not duplicates….it can happen. Collection agencies must provide proof of original debt and signatures….

  6. Reply
    Beverly S
    January 15, 2013 at 3:34 am

    No paying off a credit card will not increase your score. It will however help keep it from decreasing even more. The way to increase is to pay things on time. Work on getting all of your stuff paid, & maybe get a “secured” Visa or MC to start building your credit.

  7. Reply
    Bubba
    January 15, 2013 at 4:16 am

    Your best bet likely is to try to settle out as many as you can. Charge offs show up as a very negative mark, but settling out the accounts will let you resolve as many accounts as possible. Paying one account if full while letting the others go is not the way you want to do it. Take the money you have an settle out as many of those cards as you can. Once you’ve settled (whether you settled for 25% or 75% the account will show as “Settled in Full” on the credit bureau.

    What that means compared to an R9 (credit card charge off) is subjective to the viewer. Meaning, let’s say you were going to rent an apartment from someone, the landlord may look at the Settled in Full as “This is someone that takes care of their responsibilities to the best of their ability”, may also look at as “This guy’s going to miss payments as long as he can and then try to resolve it by paying pennies on the dollar of what is owed”.

    Credit score marks tend to stick around for 7-10 years, depending on your state.

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