NJ asked in Business & FinanceCredit · 1 decade ago

Does making arrangement to pay off credit card effect your credit scoring?

Ive got poor credit due 2 bein irresponsible in my teen years & helping others (yes i know dumbass). Im now 25 & Im on a mission to repair my credit file by the time im 30. I kno Ive improved becos last yr I went frm 554 to 659.im in a debt of about 6k. I can clear about 3k. I wanted to get a small loan to clear the rest, as I know it would work out cheaper and better, otherwise I would be paying the rest off for the rest of my life. I have not missed a payment in 2 years. However when I recently applied for a loan with citifinancial, they declined me, but said that my file actually looks ok, but asked if I had an arrangment, to which I do. It is not an IVA, I had to come to an arrangement with one of my credit crd companies because I fell pregnant and due to complications couldnt work, since then I have been paying it off little by little (an agreed amount each month). Can this really effect your credit rating or score? what about an insurance claim on a credit account?

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  • 1 decade ago
    Favorite Answer

    it depends on how old those credit card are and if the companies did a charge off ......You should call the credit card companies and talk with someone , about your

    situation . At least they can see you're making an effort .

    Let's say you pay them off , then it would help your scores.

    Many young adults , doesn't realize what they do when they're

    young , will effect them , when they get older .......

    better to limit charging credit cards , and if you do , pay it off , when you get your bill ....don't leave balances .

    Source(s): Read as much about credit as possible , education yourself . I didn't know alot , several years ago , but now I do . I try and help family / friends , if they need it . I know one thing credit card companies , doesn't like people who pays there debt off in full each month . I have my own rule , I pay my bills 2 weeks advance , this way they're never late . and my score will go up and I have perfect credit ...........also I have 8 months of money reserved for a Rainy Day ......I heard so much about credit , it could be confusing ...........Im making every effort to raise my scores . Right now my scores will go up , I'm not sure how much , I'll give it a few months ......because I paid off a car . I figure the less bills you've , the better off you're ......especially with this economy .......TRY and don't make credit if possible ..... everyones situation is different financially .. 690 - 700 ......average scores 700 - 750 .....good 750 - 850 ......perfect
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  • 3 years ago

    If those credit enjoying cards are already charged off and became to series agencies, you're able to barter settlement for decrease than the entire stability -- probable 25% to 50% in a lump sum cost. If the series agencies are no longer contacting you suitable now for cost, it rather is advisable to bypass away napping canines lie for now and only wait till you're able to furnish lump sum settlemetns. it rather is an extremely undesirable concept to make small funds. That only keeps resetting the Statute of obstacles (SOL), the time-physique to deliver lawsuit. there's no such factor as "sturdy faith" funds. Making small funds won't end creditors. you should additionally comprehend that paying off derogatory products on your credit report won't develop your score. the wear is accomplished and could stay for the stability of the 7 12 months era, no remember if paid or no longer. in case you do negotiate a settlement, make particular to get it in writing and don't provide the collector direct get right of entry to on your financial business enterprise account.

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  • 5 years ago

    You need to check out this video on how to increase your credit score by using a 100% legal loophole. Here is the video URL: http://www.creditscoresecret.org

    I was able to get to 595 from 489 in just one day and from 489 to 748 in just a few week; that's pretty fast in my book. Good luck!

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  • 1 decade ago

    YES ANY FINANCE OR FINANCIAL ARRANGEMENT MADE PAYING OF A CREDIT CARD IS LISTED WITH A CREDIT RATEING AGENCY REGARDLESS OF ANY LOAN OR CREDIT CARD THE BANKS OR ANY CREDIT CARD PROVIDER WHO ISSUES YOU WITH A CREDIT WILL AUTOMATICALLY DO A CREDIT CHECK AND ASSESSMENT TO A CREDIT AGENCY PROVIDER AND LIST WITH THEM YOU HAVE TO UNDERSTAND THAT A CREDIT CARD IS A FINANCE LOAN APPROCED BY THE BANKS AND IS MONEY THAT IS AVAILABLE TO YOU ALL THE TIME REGARDLESS IF THERE IS A PAYMENT ARRANGEMENT MADE IT WILL STILL BE LISTED WITH ALL THE MAJOR CREDIT ANGENCIES FOR 5 YEARS AND AFTER THAT TIME IT WILL BE WIPED OFF AND ALL YOU CREDIT DETAILS WILL BE DELETED FROM YOUR FILE AND YOU WILL START CLEAN AGAIN AND YOU WILL BE ABLE TO BORROW MONEY AND LOANS AGAIN ALSO ALL UTILITIES COMPANIES ANY PROVIDER OF SERVICES YOU DEAL WITH WILL ALLWAYS DO A CREDIT CHECK ON YOU AND EVERYTIME YOU GO OUT AND TAKE OUT ANY SERVICE YOU WILL HAVE YOUR NAME LISTED TO YOUR CREDIT FILE BY THE SERVICE PROVIDER IT IS LAW MADE BY THE GOVERMENT AND ALL CREDIT PROVIDERS WHO BORROW MONEY OR OFFER YOU SERVICES BY CREDIT HAVE TO LIST YOU TO YOUR CREDIT FILE ONE YOU HAVE PAYED OF A LOAN OR CLOSED A SERVICE IT WILL BE ADJUSTED ON YOUR CREDIT FILE AND YOU WILL HAVE ALL THE CREDIT SCORE ADDED IF YOU HAVE A GOOD CLEAN RECORD IF YOU DEFAULT IN A LOAN OR SERVICE IT WILL BE THERE ON YOUR FILE FOR 5 YEARS OR UNTILL YOUR CLEAR THE DEBT IN FULL AND IT WILL THEN BE ADJSTED TO SHOW YOU HAVE PAID OF THE DEBT IN FULL AND WHEN THAT IS DONE YOU WILL NOT HAVE ANY TROUBLE AGAIN

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