| Many credit repair companies will advise you to pay | | | | purchases for the time being. However, the good thing |
| off you debts so that your credit score will increase | | | | is the severity of the negative record ill diminish |
| immediately. Unfortunately, this may not be the case. | | | | significantly over time. |
| For those people with serous debt issue, there are | | | | For example, if you have declared bankruptcy, your |
| other related issues that they faced too. These issues | | | | score will nosedive sharply for the first two years. This |
| include charge-off, begin reported to a collection center | | | | is the time you will likely have a hard time getting any |
| and bankruptcy. All these are negative records that | | | | credit at all. However, if you have been paying your |
| can stay in your credit report for seven to ten years. | | | | bills on time for the next two years, then the |
| The records do not go away immediately even after | | | | bankruptcy record from two years ago will become |
| you cleared all your debts. | | | | less important. |
| Even for small mistakes like not paying bills on time, it | | | | This does not mean you should sit on the fence and |
| will take some time for the record to be erased from | | | | wait for negative records to lose its severity. You |
| your credit report. | | | | should start working on improving your credit as early |
| If you have been repaying your bills on time, it will still | | | | as possible and also improve your financial |
| take time to built a good credit history that can boost | | | | management knowledge. You do not want to get |
| your score. | | | | yourself into the same financial disasters after your |
| For any over-due account that you have paid off, it will | | | | credit score has improved. |
| be marked as 'paid' in your credit report. Even if your | | | | Although paying off debts will not improve your credit |
| credit score does not show any improvement, | | | | score immediately, it is still an important part of good |
| creditors and lenders may view the paid item more | | | | financial management. As long as you keep working |
| positively than seeing an unpaid account. | | | | on eliminating debt and cultivating food financial habits, it |
| If you have faced a major financial disaster such as a | | | | is s a matter of time before your score take a serious |
| bankruptcy, there is really no short-term solution to fix | | | | leap upward. |
| your credit score. You may have to put off larger | | | | |