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Common Questions

Will paying my bills fix my credit report?

The trick is to work on restoring your credit at the same time you pay off your debt.

Here's why:
The act of paying off the unpaid debts that show up on your credit reports can actually work against you. However, it is hard to restore your credit and not satisfy your debts. This dilemma has to do with time.

Bankruptcies can remain on your credit reports for ten years and other negative items may stay on for seven years.

The date of last activity is what starts the credit bureau clock ticking. So you see, if you pay a delinquent debt, your action changes your account to "paid collection" or "paid was late" or "paid was charged off". These will stand out on your report as negative listings.

As though this is not enough, a new date of last activity (the day you pay off the accounts) begins. THE SEVEN-YEAR CLOCK WILL RESET OVER AGAIN!

So, what is the answer to this problem? It is almost always advisable to seek professional help to guide you on how to settle your debts without further damaging your credit. Legacy Legal Services can assist you in this area.

Legacy Legal Services