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Nekapooka07

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Account has been closed. Pay it off or pay little by little?
I have two credit accounts (Amazon Store Card and HPDirect). Both accounts are currently closed, because I was unemployed for 5 months. During those 5 months, I never paid payments. Since January of this year, I agreed to pay both companies a certain amount until the debt is paid. I know closed accounts lower a credit score (even though my score on CK is inaccurate, b/c they don't have either companies listed), but how can I improve my credit score at this point?

If I pay off both accounts in full, would it drive up my credit score? Or is it better for me to continue my monthly payments?

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One: The information on this site is obtained from Transunioin and your closed accounts may have been reported to Experian or Equifax..  You would find that out when you check all three credit reports once a year.

Two: These missed payments are going to remain on the late list for 7-7.5 years because they are part of your credit history, and that's the way it is.  But regular monthly payments or (if able) paying the accounts off in one or two large payments will show intention to pay as agreed even though circumstances prevented doing so and that would be very positive on your reports.

It's going to take time for the score to climb but there are things to do that you'll discover when you use this site's articles and financial tools to learn how credit works and learn the skills you need. That is the purpose of Credit Karma.  Please use it for your benefit.

FYI-I used some hints here and my score went from a "fair" to a "good" but it can't climb much further until some late student loans that were taken care of disappear in a few more years.  No biggie. 

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