I am sure this has been asked before, yet, I want to bring it to refresher. My past bills, some old, some REALLY OLD (Past point of limitations on creditors, alas they are not detoured.) And a couple new. One of the new ones is a former apartment where I broke the lease. They want 3000 dollars or 500 a month asap or I will be sent to collections. My credit score is about 565-580 up from about 520 4 years ago. However, I have no plans to buy a house. It would be nice to have good credit (625+) however, is it worth trying to dig out of the hole? Especially when I have student loan payments coming due here soon, which will be around 300+ per month. What say you? Thanks!
How old are the older accounts? Negative information can stay on your CR for 7 years. If you're close to that point (where they'll just fall off) and you can afford your student loans and any other current obligations, I would suggest working on an agreement with the apartment especially if this is very recent. Having a high CR score is more than just for home loans.
I agree, However, What else do I use it for? I am all set for credit cards, I have a good job and retirement plan...
Creditors can adjust your credit lines whenever they want. Example: consumer has a prime CC and scores in the 700's. Collection pops up, score drops to low 600's or worse. CC co. pulls a soft inquiry at some point for 'review' sees you no longer meet previous criteria and lowers CL or worse, closes account. Auto loans, personal loans, new apartment complexes. 7+ should not be reporting. Those that are between 5 and 7 and close to dropping and depending on your state's SOL, may be beyond the creditors ability to sue you. If you're okay with waiting till they drop off, then go ahead. But as I said, I suggest you try to keep the latest account out of collections.
Alright, thanks for the tip man. I agree for the most part, its just right now I have a lot on my plate, so I am putting every option on the table.
Agreed. Since improving your score isn't in the urgent stages right now, I would focus on keeping up w/ newer accounts since those are going to have the greatest effect on your score in both the present and the future. The old accounts don't have as much of an impact moving forward, especially once they fall off your CR completely.
Reasoning behind this? Don't do anything that puts the student loan repayment at the slightest bit of risk. Like
I think flacorps is speaking to the importance of new debts versus old. Old debts are set to fall off, where as new debts show you're an improved user of credit and give you another opportunity to boost your credit long term. Then again, that doesn't solve the issue of the broken lease. Obviously you don't want this to go into collections or you can expect your score to be shot for another long while. Do you have any negotiation room left with the apartment complex?
