Expert: David - 3/31/2009

Question
Hi, I just recently printed out a copy of my free credit report from two of the agencies. My wife and I want to try and get a loan to purchase our first home. After reviewing my credit report I noticed that I have a few public records(Bankruptcy-discharged) and about 7 negetives. I have paid off about 5 of the negetives cause I had the money to do it. Will this improve my credit score? Also, since I am paying these things off will that reflect as something positive to the lender? I have received reciepts and letters for all the ones that I have paid already so I can use those to prove that I paid them. Not sure how long it takes for the credit bureau to update.

Answer
Hi Justin,

Paid collections will do nothing to raise your score.  I advise that you do not update the credit bureaus status to paid.  Rather, go to www.financialscoringsolutions.com and work through that type of process. It is your best chance at quickly raising your score.  Also, there are several steps that you can take that will have a big impact in 6-12 months on your score.  Feel free to call me if you want info on those as well.

David McArthur
219-718-8566