How to Raise Your Credit Score 100 Points in 45 Days
by Edward Jamison, Esq.
1. GET RID OF YOUR COLLECTION ACCOUNTS.
Did you know that paying a collection account can actually reduce your score? Here’s why: credit
scoring software reviews credit reports for each account’s date of last activity to determine the
impact it will have on the overall credit score. When payment is made on a collection account,
collection agencies update credit bureaus to reflect the account status as “Paid Collection”. When
this happens, the date of last activity becomes more recent. Since the guideline for credit scoring
software is the date of last activity, recent payment on a collection account damages the credit
score more severely. This method of credit scoring may seem unfair, but it is something that must
be worked around when trying to maximize your score. How is it possible to pay a collection and
maximize your score? The best way to handle this credit scoring dilemma is to contact the
collection agency and explain that you are willing to pay off the collection account under the
condition that the all reporting is withdrawn from credit bureaus. Request a letter from the
collector that explicitly states their agreement to delete the account upon receipt/clearance of
your payment. Although not all collection agencies will delete reporting, removing all references to
a collection account completely will increase your score and is certainly worth the involved effort.
2. GET RID OF YOUR PAST DUE ACCOUNTS.
Within the delinquent accounts on your credit report, there is a column called “Past Due”. Credit
score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score.
If you see an amount in this column, pay the creditor the past due amount reported.
3. GET RID OF YOUR CHARGEOFFS AND LIENS.
Chargeoffs and liens do not affect your credit score when o