credit report update?

Question

I have a few past due accounts in collections and am paying them with a lump sum i have recieved. If i pay them all off will my score jump right away so that i can be approved for a loan?

Answer 1

Sorry but it doe's not work that way.



The only thing that will change is the accounts will be updated to show as paid with a $0 balance.



Paying these debt will not help your score at all as a matter of fact it could even cause it to go down since by paying them you will cause them to become current rather then old and all derogatory accounts will continue to show for however long remains on the reporting time line which is set by the Fair Credit Reporting Act (Federal law) which is 7-years from the date of first delinquency which works out to 7-years and 180-days.



That's why they call it credit history.

Answer 2

Your score will jump some, but not enough for you to be approved. Having had any accounts past due or in collections can keep you from receiving a loan for up to 7 and 1/2 years, even if you pay sooner.

Answer 3

No it will not. Your credit score is NOT determine by the fact that you HAVE debt, it is determined based on how you MANAGE your debt. Those accounts will STILL show up as delinquent, even after you pay them off. Those stay on your credit report for 7 YEARS. Your credit report is a report of your credit HISTORY, not a report of how much money you owe. When you pay off the delinquent accounts, the DEBT will go away, but the RECORD of the deliquency WILL NOT. Also, your creditreport IS NOT updated in real time. Normally it takes 30-60 days for an account pay off to show up.

Answer 4

No things can show up on your credit report for up to 7 years. It will not jump right away. After you pay off your debts it will probably take up to 6 months to a year before your score begins to change.