Jul
15
I have about 5500-6000 dollars in debt to pay off and it is effecting my credit score BIG TIME!! I am planning a way to pay it off myself by the end of this year. How long will it be until my credit score improves? How high can it improve and will old credit history/scores show up on a report in say, February?
In addition, my car was repossessed in Nov. 2005. The rest of the lease payments were payed off. Can this be taken off of my credit?
Comments
3 Responses to “Can old credit history show up in more recent scores?”
Leave a Reply
There is no way to tell how much your score will improve because your debt is not that high.
Add that to the repossession and it won’t be much.
As far as the accounts showing up, yes your old accounts will continue to show for 7-years after the last reported date including your pay history.
And no there is no way to get the repossession taken off your report. It will also show for 7-years.
If some of this debt is collection accounts, like old hospital bills, then your score actually may get lower. When you pay an old collection account it makes it something more recent. therefore lowering your score.
It’s not how much you owe or when you pay it off that counts so much. It’s whether you make the payments on schedule. Unfortunately, the negatives on your report (repossession, late payments) affect your report faster and more significantly than positives.
Your credit score won’t improve much, if any, when you pay off your loan, unless it’s a revolving or line-of-credit account. It will, however, help when lenders look at your debt-to-income ratio.
Get a couple of credit cards and gas cards. Use them often but pay off the balance each month. This creates unused credit limits that are positive on your report.