Is it possible to fix credit score without paying off debt?

[krantcents]

Hi, I have about $6000 worth of debt in collections due to extreme negligence and recklessness on my part a few years back. My credit score is low 400's as a result of this. I have the ability to pay off this debt by settling for about half by the end of summer, but I feel I could make better use of that money in the mean time than to pay off the debt. Question is, is there any way my credit score will get out of the hole without paying off this debt? My friend said it would look much better to have a car loan paid off; method: save up money for a car, then finance the car with a high-rate auto loan, and pay it off within a month, assuming there are no early payoff fees. Thanks.

There are multiple factors that create a FICO score. Having debt in collections is a problem! I think in this case you need to get that out of collections, whether you pay it off or the creditor is willing to take it back. You must show regular timely payments. I think you will have to pay it off. These kinds of things create black marks which is difficult to turn around quickly. Good luck

[dczech09]

mattymo, as you can tell from what we've all said, your likelihood of getting these remarks removed is essentially zero. Only the original creditor can remove it, and since they had to write off your debt due to non-payment, I'd be willing to bet that they will not take any sympathy on you.

I'm trying hard not to come off rude or mean, but at the same point in time it would appear all my efforts just don't seem to get through. Please don't make me say "I told you so."

[mattymo]

Hey guys, thanks for all the responses. catatonico, you hit the nail right on the head. I'm not interested in doing anything underhanded to get these debts removed - I want an even exchange in where I'm giving the collection agency something and they're in turn helping me out. From what I understand, they've paid pennies on the dollar for my debt, and will stay make a profit even if 09I'm only paying back 25% of the original amount. The ideal situation would be to pay a minimal amount of money and get the remarks removed. dczech09, despite what you keep insisting, I truly believe this is possible. Whether or not it will actually happen remains to be seen, but either way I'll content paying the debts off and moving forward towards a more responsible financial future. I'll keep you guys updated with how things go. Thanks again.

[thomsoad]

It is possible but illegal. Therefore I will not disclose.

[KiwiJo09]

First of all, even with a down payment, getting a car loan is going to be next to impossible with such a low credit score. You should pay off your debt first. Also ask if when you pay it off, it can be removed from your credit report.

The car should wait.

[yengyang69]

I am once again in a credit predicament. Trying to get a lien removed from my credit history. In the past, I had American Express "paid in full". However, it seems that they charged me an additional 35.00 service charge that was never billed to me. Therefore, due to non-payment, they filed a CO (Charge Off) to my credit reporting agency. This dropped my credit rating. Of course when I saw this on my account I made several calls to AE and was finaly able to make them see that they were in the wrong. AE then generated a letter and sent to the reporting agencies. After 4 months the CO was removed.
Saying that, I recently had the same type of issue with the IRS. Made a payment and sheduled a payment plan. Before I could get the second payment in, my account was frozen and lien filed against my home. Fortunately I had enough cash to pay off in full. Free use was restored to my account. However, my credit was in the toilet with the lien showing. This brought my credit score from 750 to 650 almost over night.

Does anyone have any suggestions ???

[flipyourdebt]

If you don't pay off the debt, you will get collected against or you will have to do bankruptcy. Those aren't good options, so use the money you have to pay off the debt.