sadloner07
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Well I will also suggest that you would pay them at once if possible because one by one. The bills might stock up. |
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Buzzy
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If you can pay them off all at once, why have you not done it before this. You should pay your bills when due; that's the best for credit ratings. And don't be late! |
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badbill1941
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Either way will help your credit in time. If you opt for payments, make sure they are made on time. |
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garylsmih1973
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If you can afford to pay the bills in one easy step without running up debt elsewhere then 100% without doubt pay them off in full up front while you can.
this will increase your credit rating. which means should you need credit at a future point you will be able to get it easily.
in the UK (i don't know about the rest of the word) we have experian a credit reference agency one of many.
I'm in the middle of a trial of the service for checking my personal credit rating. I suggest everyone to do this. It also lists all those who have registered searches and or debts (loans) in your name. my rating is considered poor at less than 700 and above 650 out of 1000 points, so definately pay your bill if you can.
this will also help you in the future should you get into finacial difficulty you may be unable to pay off your debt or need credit, with a rating like mine you will find it extremely difficult to get credit even from the company you have banked with the longest. |
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mntndo
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Do you mean pay off one and pay nothing on the others? That's what I'd do. Because the sooner you pay one off, the sooner it gets off your credit score. Paying off chunks just delays all of them longer. |
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Alletery
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If you can afford to pay them all off at once, do so. Some credit rating agencies wait until you paid off your bad loan. Then they begin the 6-7 years wait (depending on the jurisdiction) to purge your bad history.
USA - I have 4 links below.
In Canada, it depends on the province and the credit rating agency. Scrolling right to the bottom of the link below will give you two charts for each agency and the jurisdiction. This link is from the Government of Canada:
http://www.fcac-acfc.gc.ca/eng/publications/CreditReportScore/UCreditScore_e.asp#howlong
USA - Bad Credit
http://www.consumeraction.gov/caw_credit_negative_info.shtml
USA - Credit Tips
http://www.consumeraction.gov/caw_credit_general_tips.shtml
USA - Credit Bureaus and Credit Scoring
http://www.consumeraction.gov/caw_credit_reports_scores.shtml
In the USA, you can get a free Handbook on consumer action/credit:
http://www.consumeraction.gov/
My suggestion is to use these upcoming years to save money instead. Go into your favourite bank or other financial institution and see if they offer a Pre-authorized Purchase Plan (PPP) in mutual funds. You can start investing in mutual funds for as low as $25 a month. Some funds have higher minimums. This will give you great credibility later on if you want to buy a house. You will be seen as a saver who has learned from past mistakes!
By scrolling down to "General Description", you can see that the minimum PPP for this mutual fund is $25
http://www.tdassetmanagement.com/Content/Products/MutualFunds/Funds/p_FundCard.asp?FID=9&PID=5&SI=3 |
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nomorequestionsplz
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If they're already in collections your credit is tarnished. It will help a little, but not much to pay them off at once.
Making normal (not in collections) payments, like a house payment will rebuild your credit, those are better to pay off by payments. |
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Smiles
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depends on what bank or orginization/collection took over bill. |
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CUrias
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One makes payments in order to build up credit but letting them go to collections damages your credit. If you can afford to pay them all off - pay them off. Don't make late payments because you're ruining your credit. |
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Hana
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they r already part of ur credit report depending how deep ur pockets r i would call people u owe and set up a payment plan,they will try to talk u into paying more than u can just tell them that u have more than just them to repay and your pocket book is only so full,so before u call have a plan ,one that will work for ur budget,if you don't call or you become late with a payment they can take it right out of your payroll and possibly your tax refunds,so don't waste time/or procrastinate. |
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jackiniraq
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If your bills have gone to collection and you have the money to pay them all off, you are actually in a pretty good position.
Contact the collecting agency, dont let them know you got plenty of money in fact make off like you dont. They dont want to hold that debt, they want to collect, in many cases you can get the owed amount dropped considerably. This may take some amount of discussing. But one of the things you can negotiate, is them removing any record of their activity from your credit report. I would not make any payment at all until you and the collector have come to that agreement. They will say it cant be done, it totally can. But when they say ok they will, you need to get that in writing before you make the payment. Do this with every agency holding your accounts.
Get them paid off. So when your done, you may have been successfull at dropping your overall out of pocket, and there will be no record of defaulting or collection activity. Your credit, for those accounts, will be clean. (that does not mean you will have a credit good enough to get A-paper) |
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