Christine Baker (Admin)
Post Number: 45
|Posted on Monday, August 19, 2002 - 04:17 am: ||
If you have large credit lines, plan on discharging those and PAY the $40 co-payment for your doctor's visit and other small bills.
Because discharged accounts lower your Fair Isaac credit scores, it may well be worth the $$$ to have another GOOD account on your credit.
Consider paying department store cards with low balances. If you reaffirm, make sure the agreement contains a provision to report the account without ANY derogatory notations such as "included in bankruptcy."
This isn't just about the lowering of your scores through another "included in bankruptcy" account, but if this account is several years old and you haven't had any lates, you'll GAIN MANY points for having that good payment history.
I've seen reaffirmed accounts with the bankruptcy notation - the ultimate insult: You pay and they STILL lower your scores.
I don't know if Fair Isaac deducts an equal amount for EACH discharged account or if the weight of each account is lowered as the number increases (similar to inquiries.) I hope to find out through my suit.
Don't pay any delinquent accounts or collections!
PAY ONLY good accounts, paying collections will NOT increase your scores and you're better off having it reported as discharged.