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Okay, I contacted a lender over the weekend to find out what I need to do to get my credit score high enough to obtain a VA home loan. Right now my credit score is 492. I did some stupid stuff when I turned eighteen and still have not paid it. Anyways, my question is if I pay all of the old debts in collections and chargeoff status off all at once, will it increase my credit score that much? Im 25 now so most things have been six to seven years. The lender says I should be fine and I dont need to concern myself with the medical bills just yet, but I just want to verify this before I spend the 10000 it takes to pay it off when I could use that to powerpay the bills I have now. I have three credit cards, 2 loans, an apartment community, and 2 medical bills that are 180+ days late. I have also had about 5 loans that have all been paid on time throughout the past 3 years. Any information would be greatly appreciated.

jenkin7 · Posted: Mon Nov 09, 2009 2:14 am Post subject:

Hi Shane,

There is no doubt that your credit scores will increase, once you pay off your past due loans and charged off debts. But it is not sure how much your scores will increase after the debts are paid off. You need a score of something around 620 points in order to get a VA-approved loan. But if you pay off the debts, it will be good for you in the long run. Even if you do not qualify immediately after paying off these old debts, you can wait for a few months and make your bills and other payments on time. I believe this will help you improve your credit scores enough to qualify for a new mortgage.

Guest

Thank you very much this is very helpful, also one more thing I have been reading around, will it be better for me to try and get the creditors to agree to a "pay for deletion"

savior70 · Posted: Mon Nov 09, 2009 3:47 am Post subject:

Hi Shane,

You should send the collection agencies or your creditors a pay for deletion letter. You can then start negotiating with them and work out a repayment plan or settle the debts for a lesser amount. Once the debt is paid off, the lender will remove the negative listings from your credit report. But you must ensure that you get the pay for deletion agreement in writing from your lender. In case, the lender does not remove the negative items from your credit, you can use the written agreement as a proof in future to force them to remove the items from the report.

Guest

the credit bureau has has service that will tell you actually how much you need to pay down which accout to get certain amount added to your score. After you pay that certain amount you will ask the creditor for a updated statement and send it to the bureau attached to the form thay provide you with indicating how much needs to be paid. hope that helps.

sam

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Will this increase my score enough?