Which is a better way to improve my credit score? I have 3 accounts closed n in collections. Is it better to ?
Pay them off or make payments on them? Which one well raise my credit score faster?
- bdancer222Lv 710 years agoFavorite Answer
Neither. Paying off derogatory items on your credit report will not improve your score. The damage is done and will remain for the balance of the 7 year reporting period, whether paid, settled, or unpaid.
You should negotiate a settlement for as little as you can. You can probably settle for 25% ot 50% in lump sum, depending on how old the default. Forget payment plans. It's better to wait and save up for a lump sum offer. Get any settlement agreement in writing before you pay and do not give the collector direct access to your bank account.
To improve your score, you need at least 24 months of consistent, on time payment history. If you don't have an open, active line of credit, get a credit card even if you have to get a secured card. Use the card, wait for the statement, and pay the balance in full every month. This will build your credit and avoid interest.Source(s): BD
- Bruce KLv 610 years ago
Paying them all off, as it will take 7 years for that to be wiped off your cerdit score.