Can paying old debts (five years old) be bad for one's credit? Is debt consolidation bad for one's credit?
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Answer:
A debt consolidation loan is not a bad thing by any means... just PLEASE make sure you don't run up additional debt on the credit cards you're consolidating. If you do, then you'll not only have to pay the consolidation loan itself, but you'll be right back where you were with your old credit card payments.
paying off debt is never a bad thing...and credit counseling is fine if you need a big change and bankruptcy isn't what you want to do
all debt should be paid off.
Pay of the debt that charges the highest interest first.
yes, consolidate, it's a lot cheaper and will show that you are serious about paying it off.
paying off debts is a good thing. it will raise your credit score and show you have less things over your head when you try and apply to something.
To both questions pay your old bill good and consolidate to pay off is best to improve credit report Good Luck
Paying off any/all debts will always increase your credit score. Consolidating may be beneficial depending on the interest rates of your debts. You may be able to lower some interest rates by consolidation but others may be better off just making small monthly payments. Some companies may say that you MUST pay (for example) $50.00 per month but many companies have a hardship condition, if you are willing but unable to make the full payment, they will allow you to make smaller payments. You may just need to speak to a manager. BUT, before you do this, come to a final pay-off amount so you do not accrue interest daily, monthly, or even annually.
Paying off the old debt may not be the best option. Depending on what state you are in, the statute of limitations is only so long before a creditor can't collect on debt. So you should check out how long that is based on the state you're in. Consider how long it would take you to pay it off, or if you're at any risk if you don't (like going to court). In some cases, you can just not pay it off and use your money somewhere else and it will fall off your credit report if the time is over.
Now if you've got a long time before it falls off, then yes, pay it. Then it's off your credit report -- and better for you.
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