Re-aging an account means bringing it back to “current” status, so your credit report will no longer list you as behind.
Since recent late payments can really hurt your scores, getting up to date on your payments now is a smart move, especially as the sting of past late payments fades over time.
Some creditors may report that a credit counseling agency is repaying the account. FICO, the data analytics corporation that calculates consumer credit risk, ignore such reports. Of course, any late payments or high balances on accounts will continue to impact your credit score.
With the help of the counseling agency, you can stay current on your payments, and that can improve your credit score.
Retirement account loans aren’t reported to credit reporting agencies, so your credit reports will show less debt with no new loan.
It doesn’t necessarily represent exactly what will happen in your case.
How far your score drops—and how quickly it bounces back—depends on a lot of different factors.
So when you pay off debt, especially credit cards that are close to their credit limits, you should see improvement in that part of your score.
However, understand that our analysis of credit relief plans is based on generalities.
There are many ways to lighten your debt load, and not all of them will have a major negative effect on your credit.