- This topic has 11 replies, 10 voices, and was last updated 9 years, 10 months ago by Anonymous.
- May 6, 2011 at 4:29 am #207049AnonymousInactive
…credit score, on eg experian? My boyfriend, stupidly, lets not go there, has 4 defaults on his credit report giving him a super low score. 2 are settled, 2 have a bit of money outstanding on them. Does anyone know if he was to pay off the outstanding defaults in full tomorrow would the credit score automatically go up or would it take time? Thanks!
- May 7, 2011 at 12:04 am #265478AnonymousInactive
no it does not – it takes time
- May 10, 2011 at 12:11 am #269685AnonymousInactive
No, it will not help his score. When you pay off a debt, the creditor is only required to show it as paid, but all the negative information about collections, charge offs…etc will still be there.
He needs to negotiate a pay for delete agreement so that when the amount is paid, the listing is completely removed from his credit report. Otherwise the listing will remain and his score will not improve.
As for the 2 that are already settled, you can try disputing them with the credit bureaus. Chances are, the collection agencies won’t bother to verify a paid account. If that doesn’t work, you can send a goodwill letter and see if that works.
- May 10, 2011 at 2:04 am #269917AnonymousInactive
It would take time. If your boyfriend contact the lenders and
worked out an agreement to pay off the balances in full over
12 to 36 months; his credit score would go up within 90 days.
The Credit history would record a constant payment. Although
the balance may still be high (90 – 90%) of what is owed
the score will raise. The funds you have on hand can
be used to make all the bills paid.
Credit points to consider:
1. Amount of bills owed (as percent of income)
Your are better off having 1 or 2 high bills than
6 or 7 medium bills.
2. Payment vs. non Payment
- May 10, 2011 at 3:29 am #270248AnonymousInactive
It would improve as all accounts would show as settled now. the history would remain though for some time. It may take a month or so to filter through and you should check the file at relevant agencies to check that the account details have been updated.
basic facts are that settled is far better than an amount outstanding. amount outstanding means you currently are not honoring your current credit agreements. a default history says you have had a problem but you have straightened up your act and dont owe at the moment.
- May 18, 2011 at 8:12 am #280412AnonymousInactive
No! the payments procedure involves applying for an “order of satisfaction”, if this is not done, then the credit agencies, have this still recorded as a debt outstanding, it will only get listed as paid when the court issues this order, and then it will still take some time for this to be nullified, for credit purposes, the history is, in some cases still there, after six years, with CCJ’s , and it is only when you can demonstrate a level of responsible use history, it is difficult to demonstrate this history, there are ways of doing this but I would be reluctant to disclose these, on an open forum because I may be accused of aiding and abetting a fraud, which I will not risk, but look around the internet, you can get your credit rating back, but the history is the thing, creditors only finance peiople who can demonstrate the ability to pay back loans, hence it is usually so hard to get that first one! “no track record, no loan, anymore, things are tighter now and will stay that way for years, but as a piece of advice here, if you are borrowing to finance a lifestyle, STOP!!! whatever you buy will lose half of it’s value, as soon as it becomes yours!, if you are buying anything that will increase in value over time, creditors see an advantage in that, and will lend, e.g. homes, land, etc. Or in the case of Business loans, you must demonstrate a business plan, that shows that you can make more with this money than your repayments are, (i.e. you can make more than the Bank in question would, if it kept it, ), are you smarter than the Bank? credit is a good servant, but a bad master, still is true, and always will be, it built the western economy in record time, without it, none of what you see would have been possible, but never buy with a loan, anything you can get by saving, and at a much lower cost, do you believe that the goods you purchase are the bees knees or will another even better, be along any minute, did you buy Betamax, when every one else bought VHS, have you bought the right recorder this time? be patient, and remember, that the price you pay for credit is going to triple the cost of the goods you buy before you have paid for them, but if you stand in front of a salesman and offer him/her a lower price for an item (even during sales), for every one who says no! there are a hundred more who will say yes! (Cherie Blair got someone to negotuiate the flats she bought and got a reduction of 35,000 on the market price, just how do think Donald Trump writes books with the title “The art of the deal”, the trick is to seem as if you are just short of the asking price, the way to do that, is to keep you money in seperate pockets, and know the amounts, in them, when offered an item you would like,tell them you would like it,but it is just out of your price range, after having just counted out the money in front of them, so the amount is just shy of the asking price, (how much depends on your knowledge of how the market is for the goods they are selling, and your nerve) you can try a large amount lower if you like and ask your boyfriend, to carry his money this way, so if the worst comes to the worst, ask him if he has any on him, but stay reluctant, in front of the sales man, be very careful, about one thing though!!!, at this point, many people do not realise, that whoever mentions the price first, is going to be the big loser!, do not let it be you! the reason is simple, if you say it first, the only way it is going is up, he/she is not going to offer it to you for less than you are offering to pay ( unless he wants to sleep with you) so his counter offer is going to be higher! get them, to make the first price offer, because, 1) it may be less than you were thinking of offering, and you already score, you can negotiate from here in your favour, downward, it is a much better game than football, on a saturday, and you can wind up an assistant, just to practise on, by watching closely, you may also spot from his/her body language, where the weaknesses lie, e.g. the pupils of someones eyes widen when they see something they like, so use sunglasses also at poker tables, this in the trade is called a “TELL”,and if you know them, you can make a killing, sunny days make even hardened salesmen easier on the trade, dull rainy days if prolonged may affect a salesman’s income, especially those on commission, these are all pressure points, you can push these buttons a little harder on these occassions, horsetrading can be fun and there is a lot more than these things, learn to tag team a sales man, understand that everything has at least 100% mark up in any business, and gold/ jewellry is sometimes as much as 300% learn to negotiate, the salesman has, and the older the wiser, they are reluctant to pass on tips to younger sales people who might steal their business, look for the young ones but be careful that they do not have to run to a manager for approval, (it is much easier for them to say no if they do not se you), do not be a defenseless little rabbit in the headlights, watch the spielers The loud ones working the crowds in the marketplace, I know 1 man who is worth more than 3 million, who has never, done anything but run a market stall, selling plates! too many people view work as a grind, it should not be, but you do need to learn the rules, and one last bit of advice I work in a casino, (do not go there even for entertainment) but that is not what I am about to say, I knew the man who owns one of the largest loan company in Britain, he used to come in a pair of jeans, with holes in his backside, literally, and play pennies, twenty years ago, now his net worth is 350 million, and this is absolutely true, he now plays games for up to 4 million pounds at a sitting, notice the important things about this are 1) he had enormous patience, life is not a sprint! 2) he owns a loan company, that’s right! it’s the money that every one else wasted that made him rich, do not add to this, by getting into avoidable debt!!!, P.S. I have spent a long time learning the difference between the rich and the poor, but left it too late to apply to my life, I hope that you and “boyfriend” in question, learn from my mistakes, it will save so much misery, it is unreal. and lastly make friends in the trade and I do not just mean your moms mate has a son in this or that, trust this above all else, friends of friends do not do you favours! get your own, who will, because you will be paying the tax free, commission without knowing it!. Like poker, you are at war, and when the game starts you do not have any “friends” trust yourself there are no laws that say you can not be as rich as anyone else, and there are some really dumb millionares out there, but they all follow the rules that most of us do not understand, and they play the long game.
- May 19, 2011 at 3:00 am #281235AnonymousInactive
the score would change, but anybody checking his credit worthyness can tell immediately that he has a chequered past with his money .. he will have to keep financially stable for a while before anybody would release credit to him
- May 19, 2011 at 8:25 am #281343AnonymousInactive
NO. One has to take a positive action to correct the score. I wouldn’t pay any defaulted balances because it doesn’t help your score. start all over again after three years and you will be surprised everybody wants to lend you again!!
- May 31, 2011 at 2:36 pm #285353AnonymousInactive
It will take time for them to come off, if you look at the credit report, it will tell you when it was reported and what year it will come off.
- June 10, 2011 at 4:12 am #435989AnonymousInactive
I think you should consider local lenders on this. I have no idea what the fees are for construction loans, however they will roll the remainding amount into your mortgage when finished and you take on your permanent loan.
- June 10, 2011 at 4:12 am #435990AnonymousInactive
If you only need $ 5000 you should approach your bank and see if you can get an unsecured personal loan. Most banks will do that amount unsecured. Most of the time people get construction loans when they are building and they are for a short period of time until the house is built so they can get a mortgage. If you can’t get an unsecured loan then do you have a vehicle with equity that you could borrow against? If the builder is doing the construction loan then you might pay higher fees. Check with your bank.
- June 10, 2011 at 4:12 am #435991AnonymousInactive
It doesn’t sound like you are being required to get a construction loan. The builder is asking for an earnest money deposit. Typically, builders require $ 5,000 to start the home and would ask for an additional 5 or 10 during different phases of the project. If they are going to build something to your specifications, they want you to have enough money into it so you don’t back out. The only financing you will need is a normal mortgage, once the house is complete. You will be able to use the money given to the builder as the down payment. Otherwise, you can buy the model.
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