Raising Credit Score? - Financial Management

MissOHara · 12-28-2007, 11:49 AM

So I have a credit card that I have defaulted on. I'm coming onto some money and I was wondering, would it be better for my credit score if I...

Pay it off in one lump sum

or

Pay 80% off and then make payments on time for a while.

NikkiD · 12-28-2007, 11:59 AM

If it is already a negative mark on your credit it will be there for 7 years from time the debt originated or became delinquent. It probably would best to show it a collection account but paid instead of having a balance yet to be paid.

Ellen · 12-28-2007, 12:01 PM

Since you already defaulted on it - paying it off would be better.

MissOHara · 12-28-2007, 12:07 PM

I thought paying it off would be better. But then something told me, maybe showing I CAN make payments on time will help! But oh well.

NikkiD · 12-28-2007, 12:17 PM

Originally Posted by MissOHara

I thought paying it off would be better. But then something told me, maybe showing I CAN make payments on time will help! But oh well.

I think it would be better to have a delinquent account showing paid. They want to see that you can make monthly payments on time with a current account. Once you have defaulted, at least it shows you eventually paid it off. Just know that a payment of any kind can restart the time frame it appears on your report.

Angela P. · 12-28-2007, 12:19 PM

Paying it would be better!

~~Bex~~ · 12-28-2007, 12:36 PM

making payments would be better.

how late are you on your payment?

flangl18 · 12-28-2007, 02:21 PM

Pay it in full but also contact the creditor to see about removing it. Some will work with you if you are paying it in full so that a negative mark is not shown. Better to have no mark than a negative mark.

Berkley · 12-28-2007, 02:24 PM

Originally Posted by Bex

making payments would be better.

how late are you on your payment?

I agree making payments would be better.
Creditors don't want to know that you can't make the monthly payments but you eventually will pay it off when you come into money.
They want to be assured you are capable of making the monthly.

*Dawn* · 12-28-2007, 03:02 PM

making payments on it will look better in the long run to future creditors. Sure its nice to pay something off but now your trying to rebuild your credit and you have to pay on things to do that. Because thats shows you hav credit, by paying it off you no longer have credit.

12-28-2007, 11:49 AM	#1 (permalink)
MissOHara Senior Member Join Date: Dec 2007 Posts: 2,078 Blog Entries: 6 Classifieds: (0) Activity: 0% Longevity: 32%	Raising Credit Score? So I have a credit card that I have defaulted on. I'm coming onto some money and I was wondering, would it be better for my credit score if I... Pay it off in one lump sum or Pay 80% off and then make payments on time for a while. __________________

12-28-2007, 12:01 PM	#3 (permalink)
Ellen Loving Life! Join Date: Feb 2006 Posts: 21,995 Blog Entries: 4 Classifieds: (2) Activity: 5% Longevity: 64%	Since you already defaulted on it - paying it off would be better. __________________ My Guys!!

12-28-2007, 12:07 PM	#4 (permalink)
MissOHara Senior Member Join Date: Dec 2007 Posts: 2,078 Blog Entries: 6 Classifieds: (0) Activity: 0% Longevity: 32%	I thought paying it off would be better. But then something told me, maybe showing I CAN make payments on time will help! But oh well. __________________

12-28-2007, 12:19 PM	#6 (permalink)
Angela P. Lovin' my Marine! Join Date: May 2007 Location: J-ville, NC Posts: 1,756 Classifieds: (0) Activity: 0% Longevity: 43%	Paying it would be better! __________________ Loving my Marine!

12-28-2007, 02:21 PM	#8 (permalink)
flangl18 Senior Member Join Date: Jul 2007 Location: NAS Lemoore Posts: 3,991 Blog Entries: 2 Classifieds: (0) Activity: 17% Longevity: 40%	Pay it in full but also contact the creditor to see about removing it. Some will work with you if you are paying it in full so that a negative mark is not shown. Better to have no mark than a negative mark. __________________ “Do all the good you can, By all the means you can, In all the ways you can, In all the places you can, At all the times you can, To all the people you can, As long as ever you can.” John Wesley

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12-28-2007, 11:59 AM	#2 (permalink)
NikkiD Life is good! Join Date: Dec 2005 Posts: 2,870 Classifieds: (0) Activity: 1% Longevity: 66%	If it is already a negative mark on your credit it will be there for 7 years from time the debt originated or became delinquent. It probably would best to show it a collection account but paid instead of having a balance yet to be paid.

12-28-2007, 12:36 PM	#7 (permalink)
~~Bex~~ Banned Join Date: Jan 2004 Location: san diego, ca Posts: 30,189 Classifieds: (0) Activity: 0% Longevity: 99%	making payments would be better. how late are you on your payment?

12-28-2007, 03:02 PM	#10 (permalink)
Dawn Big Dog Mommy Join Date: Jan 2004 Location: Pueblo Colorado Posts: 4,954 Classifieds: (0) Activity: 0% Longevity: 98%	making payments on it will look better in the long run to future creditors. Sure its nice to pay something off but now your trying to rebuild your credit and you have to pay on things to do that. Because thats shows you hav credit, by paying it off you no longer have credit. __________________ My Aaron Your Pampered Chef Consultant http://www.youdata.com/join/mommy2aaron