Ignorant as to how it works.

[tigger22472]

What is the name of your state? Indiana

My husband and I recently bought a house on contract due to the fact we didn't think (and were right) we had good credit. A credit report was run and my husbands was 642 and mine was like 580(said I didn't have enough credit... some bad...but not alot). My husband does have one big one for like 4,000 on his. We looked it over and have tried to look at our options.

My husband said he thought(and I'm not sure) that Chapter 7 would consolidate everything. I'm not sure I want to do that. I guess my big question is ... say I start paying this stuff off that's on the credit report. How long does it take to show that it's been paid and how long or much does it take to bring that rating up? I think most of it is a bunch of little stuff and honestly we aren't sure what a lot of it is. Some of it is even nearing the 7 year mark I believe. Is it best to file either 7 or 13 to get the numbers up faster(we'd like to refinance sometime) or to pay the things off slowly... starting with the newest in case the other fall off? By paying them off am I just asking for CA to contact all the time??

TIA

Okay Tigger, I am going to take a crack at this. I'm not positive, but I am sure someone will let me know if this answer is wrong. Paying off something that is close to falling off your record will not help your credit score that much. If you can negotiate with the creditor to remove the item completely, then that's another story. However, your lender will probably require that you pay those items anyway.

[tigger22472]

I figured I'd start with the newer ones first... that way if it took me a while then the others may fall off. I just wondered say if I paid something off how long it would take to show that on the report and how much that helps my rating.

(take a look at the post about the horse, I left you a message , AND I see our friend has replied again... MUST go see what she is saying now!!! )

PS.. hubby is making brownies.. want some??

[tigger22472]

OK..got another question... What if I don't have any assests? I can't file on the house since I dont' technically own it and we don't have anything else worth anything.

For the things you have on your credit report that are about to fall off, after the 7 year period , the credit bureaus must remove those items off your record, they may not do it without you requesting it , so if I was you I would wait until the 7 years are up and then send those agencies a certified return receipt requested letter , requesting to have the items removed explaining that the records are over 7 years old.
As far as paying off the newest ones , you can do that , you can try to negotiate for the companies to remove the information off the credit report but they may choose to just report it as "paid in full" or "satisfied" without removing it from your credit report.

[tigger22472]

I realized they would put "paid in full" or "satisfied" but what I wondered is if it said that it brings your numbers up.

Well, just a personal anecdote, I had one collection on my record. It was a really small amount that I was disputing with MCI. I got so pissed that I didn't pay it out of principal like an idiot and didn't realize that they would report it. Yeah, like an idiot, I already said that. Well, they were hardasses and I couldn't get them to take it off my report, so I just paid it. Well, the paid collection, (which only got updated after three months and me disputing it), didn't really help me at all. In fact, I think my score only changed by less than 20 points and that could have been for other reasons because I didn't order my score right away. The rest of my credit is impeccable if a little new, except for some high balances on my credit cards, but that paid collection is HAUNTING me. Luckily, since it was paid, it didn't stop me from getting my home and car loans. I read something a long time ago from some credit guy that paying those doesn't really help you, (not saying you shouldn't pay, just don't expect your score to jump up right away) and to always negotiate to have them removed. I've been trying to find the guys website because it had a lot of good info, but I can't find it. If I run across it, I will let you know.