How much will my credit go up?

How much will my credit score go up?

• My score is currently 518 i just paid off 2 judgements 2 credit card debts that were over 600 was 1 was 90 days late and negotiated a settlement from 2800 to 1800 hundred with my credit union which will get me out of debt Completely

• Answer:

  Paying off the judgments will do nothing to improve your score. The damage is done and will remain for the balance of the 7 year reporting period, whether paid or not. Make sure that the judgment holder processes the paperwork to the courts to show the judgments satisfied. Settling the credit card for less will result in the account being reported as "charged off/setted". The charge off is a severe negative and will lower your score. If the account was at the 90 point, it probably had not been charged off yet but would be by the 6 month point. If the other card was still open and active, paying off the balance might have helped lower your credit card debt to limit ratio which would improve your score, but not more than the charge off. You will need at least 24 months of consistent, on time payment history to even begin to overcome the negatives. If you no longer have an open, active line of credit, your score will continue to go down as every thing counts less the older it gets.