Targeting Accounts that Harm Your Profile

Image of Bills / Paying off Accounts

Once you've conducted a thorough review of the information contained in your report and have taken any appropriate actions necessary, you can begin to manage the accounts that are causing the most harm to your profile. Initially, it is recommended that you should focus on those accounts that are behind. As described earlier, your most recent history carries more weight than what happened several years ago, so making on-time payments is a great start toward improving your profile. The longer you pay your bills on time, the better your profile.

At the same time, you should make arrangements to pay off any accounts that may be in collections. Be aware that paying off a collection account will not immediately remove it from your credit report - it will take years for such a notation to disappear entirely - however, unpaid collection accounts are far worse than those you have managed to pay off. Therefore, paying off these accounts will generally place them in better standing. While the accounts will remain on your report for seven years, they will reflect that your obligations have been satisfied. Some collection agencies will report your account as "Paid as agreed" if asked, but they are under no obligation to do so. Be sure to get any such agreement in writing before sending off your payment.