I’m Paying Off Old Collection Account But I Want Better Credit So I Can Buy a House. – Angie

“Dear Steve,

Have several old collection accounts (most are over 2 years old). Also had late vehicle payments. Have since paid off the vehicle and bought another, which I am current on. Have paid off 3 other old collections, but still have about $3000 worth of debt.

My score was around 590 a few months ago. Since then I have paid 3 collections accounts and am working on the rest. Also paid off the vehicle that I was behind on and got a different vehicle, which I am current on. How long will it take to get my credit to where I can purchase a home? Do I have to pay off ALL my old debt, or will it come up as long as I keep paying in increments?


Dear Angie,

It actually sounds like you are on a positive path to digging your way out. The only component missing appears to be the rebuilding of your credit at the same time you are paying off the old accounts.

Think about it like this, your credit score is like a grade point average. In order to improve it from a D average we need new good credit reported. That will bring up your score at the same time you are dealing with the old debt.

If you follow this guide to rebuild your credit it will do the trick.

If you can payoff the old debt within a year and follow my guide to rebuilding your credit, I would imagine that within 30 months you’d be in good shape to buy a house.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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