Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Report
Profile Image

Question By
Tikalete7

0 Contributions
0 People Helped
Advice on how to raise my 485 credit score on my own??
I'm in the process of trying to fix my credit score after I lost my job when I was in my late teens and I had 3 accounts which I stopped paying. I realize now that I was young and stupid but now I'm paying the consequences. I have 2 charge offs on my credit score totaling about $2000. I also had a student loan which I was never able to pay and I've just learned that the department of education took the money ($900) from my tax returns for this year. My first question is, since the student loan is technically "paid" will that reflect on my credit score and will my credit score go up or do I have to write a letter to get that removed from my credit score? My second question is, if the other two creditors are offering me a settlement, should I take it or pay what I owe in full and how do I go about improving my credit. I really need all the advice I can get, I'm new to the topic! Thanks

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7816 Contributions
1466 People Helped

If the 900 dollars covered the amount owed on the loan it should be marked as paid with a zero balance within a month or two. If this does not happen you would want to "dispute" the account with the credit bureaus for incorrect information. Transunion, Equifax and Experian all have websites with instructions on how to file disputes. Regarding the two charged off accounts, how old are they? I assume that they are not federal loans, maybe credit cards or something like that. Negative accounts (non-federal) will fall off of your reports seven years from the DOFD (date of first delinquency) this starting date is typically one month after you made the last payment on the account before it charged off. So, should you even touch these accounts? Depends on the age, if they will fall off within a year or two, it may be best to let them age off. If they are fairly recent accounts, then you might consider doing something with them but only after you have thoroughly read about the options to take. Do your reading, don't go into this blind. You should not consider entering payment agreements as it can reset the time frame for you to be sued for the debt. This time frame is known as the "statute of limitations" it is different in each state and different for different kinds of debt. Look up the "statute of limitations" to be sued for the type of debt at hand in your state. Settlement vs. Paying In Full, really no difference there for scoring purpose, the paying in full would look better when your credit is under manual review, but in most cases, settlement amount would be better for you if it will save you a lot of money, but it depends on the situation. Do some further reading on all of this, come back here ask more questions if needed, just don't take action until you know what is going on and how this all works.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.