Posted by Tom Resner on July 30, 2007 at 10:26:23:
It is hard to advise based on such limited information.
If you are attempting increase credit scores, paying off bills may have the opposite effect because you remind the system of an old derogatory accounts. In the long run it will yield benefits.
Negotiate with all creditors. Depending on their willingness to discount their position and your resources you may have enough money to clear the slate. If you can clear all collections you may qualify for a FHA loan now. Don’t spend money or time on medical accounts. Some 100% programs allow up to $5,000 in non-medical collections.
If you cannot negotiate pay offs with cash on hand offer to make very low monthly payments. In 12 months you will qualify for FHA/VA. The lender will count the payments on collections as part of your debt ratio just as if they were open accounts.
Do open some new accounts. The goal is to keep your credit limit high and your balance low. This strategy of adding new accounts will boost your score more than paying off old collections.
These are some general ways to rejuvenate your credit. Any additional specifics would have to be done on a personal basis. You are welcome to call 866-776-2915.