I Paid Off My Bills – Why is My Credit Worse, and How Am I Going to Buy an Orange County House Now?

I Paid Off My Bills  – Why is My Credit Worse, and How Am I Going to Buy an

Orange County House Now??



Perhaps you’ve tried to do the right thing and paid off old debts.  Then you learned that your credit score had gotten worse!


How is that possible?

You did the right thing, didn’t you?

You paid off your creditor.


However, there are a few things you may not have known.


A late payment that is more than 24 months ago or a charged off debt that hasn’t been reported for more than 24 months, has significantly less effect on your credit than a newly reported payment.


When you make that payment, it can actually give more negative impact to that old late payment or charge off.

The more recent the problem, the more likely it is to hurt your credit score.


Additionally, making a payment may restart the statute of limitations – the time during which the credit may file a lawsuit against you.


So, is not paying old debts the answer?  While leaving well enough alone might help your credit score, it doesn’t mean that your creditors can’t come after you for your outstanding debt, as long as they’re within the statutue of limitations.


If you are planning to buy a home, your credit score is important and can make a big difference in your interest rate or even if you can get a loan.


If you are in this situation and are wondering what you can do to put yourself in the best situation possible to buy a home, please contact me at 714-319-9751 to discuss your specific situation.

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