Thursday, April 16, 2009

Does paying my bills restore my credit?

You would think that trying to make ammends with your debtors would be the right thing to do. Unfortunately, if you are trying to increase your credit score that could actually hurt you.

Sometimes when you pay an old debt--depending on how old it actually is--you could actually hurt your credit score. Once activity shows on the account (i.e. your payment) it rescitates the item and creates a new "Date of Last Activity." Unfortunately, this will make your credit score worse.

Seek the advice of a professional credit repair consulant if you are not sure whether paying off the debt will hurt or help your score. Of course, it is important to remember that paying your debts in a timely manner may prevent future problems with your credit report.

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The Cost of Bad Credit

The Cost of Bad Credit