Posted on July 17, 2008 at 1:40 pm I have the following types of items on my credit report 1. Collections from Banks and Utility Companies e.g. Cable, Phone, Gas 2. Charge-Offs for loans and credit cards My question is which would be more beneficial to my score to start paying off on? Also, I heard the following. 1. Charge-offs are easy to remove with dispute letters. 2. Collections are easy to remove if the balance is paid in full. 3. If a bankruptcy has been dismissed for atleast 2 years, it's easy to have it removed from your credit report.   Are any of these statements(myths) true?

Posted on October 23, 2008 at 4:56 am Bankruptcies remain listed on your credit report for 10 years from the time they were originally listed. So even if you discharged it two years ago, if it was originally listed 6 years ago, you have four years to wait. If you're planning to borrow/apply for more credit, take the Bankruptcy Discharge letter with you as evidence. They will ask for it anyway.

Posted on October 23, 2008 at 12:49 pm If I may suggest, I have the perfect solution for your situation. It is called a Debt Management Program. It is not a loan nor a settlement, it is a program most people are unaware exists. The program was created by creditors themselves in order to recapture the original principle owed to them instead of risking loosing it, and at the same time allowing you to get out of debt about 75% faster while keeping your payments around the same, or in most instances, actually lowering the payment. This way, most of your payment will go towards your balance which will allow you to save a significant amount of time and thousands on interest. It works by making one simple payment that is distributed to all the creditors for you at lowered prenegotiated rates they are willing to offer you for being on the program. Being on the DMP, most creditors will give you the benefit of waiving late/overlimit fees, plus they will report your account in good standing so it will also help you rebuild your credit if you have deliquencies. It is a win win solution that can lower your payment, save you thousands on interest, pay off your debt 75% faster, plus help your credit at the same time. Neither is there a need to pull credit or be within a certain Debt-to-Income ratio.

Posted on December 16, 2008 at 5:54 pm Anything negative brings down the credit score.  Some people don't realize that a collection agency can sell your debt to another collection agency and both appear on your credit report even though one agency has the actual debt.  Getting things like this removed can help your credit score.  Resolving any old debts and getting them to report as paid or settled is more benificial then doing nothing at all.  Any resolution you can do will help your credit score.  Debt to income ration or DTI is a big factor in credit worthiness so the more debts removed or settled the but DTI is thus raising your credit score.  Inquires are bad things on credit that drags credit down. 

Posted on December 22, 2008 at 12:06 pm Debt to income ratio has absolutely no impact on your credit score.  It matters if you are applying for a loan or a mortgage but not your score.