Any help will be appreciated! Now that I am a college graduate and have a steady income, I have been paying off debt that I incurred throughout my college career. I had a couple of credit cards when I was in college that I was behind in payments but ultimately they were paid off. I am current on the card(s) that I have as well as a college loan with the government, both of which are reflected as a positive on my report . I have alot of medical bills and it seems that I have some stuff on there that is also from way back when!

As of recently I have been paying off old medical bills and old debts (like unpaid cell phone bill, old credit cards, etc) and my credit score has improved from 540 to 570. That doesn’t seem like a huge improvement but I think that was in a timespan of a couple of months.

I am wanting to buy a home this year and I am trying to figure out how my credit score will impact the type of home loan that I get. I’ve heard that mortgage companies don’t look at medical debt as hard as retail debt. And then I read that if you pay off old debt, it brings your credit score down further because the account is then updated.

I am confused as to what to do!! I feel so discouraged because I feel that each time I make a payment to a collections agency or pay off an old account, I’m taking 2 steps back with regards to my credit….

Any help will be greatly appreciated!!!!!!!

Technorati Tags: 2 steps, cell phone bill, collections agency, college career, college graduate, college loan, credit cards, Credit score, debts, home loan, medical bills, medical debt, mortgage companies, paying off debt, timespan

Tags: 2 steps, cell phone bill, collections agency, college career, college graduate, college loan, credit cards, Credit score, debts, home loan, medical bills, medical debt, mortgage companies, paying off debt, timespan