I have 3 credit cards that i have not paid off since i was 18 I know my credit has gone down since then..
If I pay them in full Will it make my credit better? what is the benefit of paying them all back in full?
it's About $3000 that I owe.. Capitol 1, Amscot loan, bank of america, and tmobile.
Any suggetions help as well.. monthly payments are not an option.
How old are you now? It takes 7.5 years of inactivity for it to fall off. If you pay them off now, they'll probably just report as "paid in full" or "settled in full" depending on what you do, which won't be worth it. If you have a significant amount of time before the fall off date, then write them a goodwill letter first, admitting your mistake and that you have changed and would like to settle the accounts in exchange for having them completely removed from your credit report as if they were never there.
Quoting Pusherman _tko_:" How old are you now? It takes 7.5 years of inactivity for it to fall off. If you pay them off now, they'll ... [snip!] ... to settle the accounts in exchange for having them completely removed from your credit report as if they were never there. "
The benefit is that you pay for the things you purchased on borrowed money. Your credit will improve if they're showing as paid. You won't be able to get a home loan until the debt is cleared.
Once paid get a letter from the company stating the debt has been satisfied and keep it on file. When the 7 year mark hits (From the date you paid off the loan)
get a copy of your credit report and have the accounts removed.