I am in the process of trying to rebuild my credit. I got a secured credit card and have been working with Lexington Law since April. I have gotten several items deleted but still have some negative items. I am meeting with consumer credit counseling to determine if I should settle the old debt or pay in full. My goal is to build up to be able to get a mortgage- right now my score is around 575. My question is if my mother added me to a credit card of hers (she has excellent credit and pays it off every month) will this help me? Suze Ormann recommended this on one of her shows. Im just curious as to what I should do. Thanks for your insight!
1. Call and CANCEL Lexington Law NOW!!! The fact that you are posting here means you know about this WEALTH of knowledge and experience waiting to tap the keys to answer you and help you! I have come here to ask for "sample letters to collection agency's, mortgage, auto, credit card, etc. to send off to these companies... that's ALL Lexington Law is doing for you.
2. Do you currently have ANYTHING open and in good standing?
2a. What are they, and who are they with and what's the limit and what do you owe?
3. What card would your mom add you too? what is limit and what is her balance and what year did she open it?
Lexington isn't doing anything for you that you can't do for yourself....for free! Lose them.
Lexington Law is disputing credit items for you. FHA requires that credit disputes be removed in most instances. Read up on the mortgage forum for more information. You would be better to spend your money on PFD if possible than spending it on Lexington Law.
I would agree 100% with utilizing the forum instead of an outside source; I have been on here since June and have gotten nothing but great advice! By adding you as an authorized user, you automatically gain your mothers positive history and account age. AAoA is the average age of accounts and is one of the major contributors to your FICO score, along with percent utilization, payment history, etc. Playing the FICO game is long term, so dont expect anything major to happen within a few months. However, continue to use your cards wisely and within 6months to a year, you should have no problem with getting a mortgage.
Im not too sure about the settle or pay question as I dont have experience; however, I do know that charge offs and collections remain on your report for 7 years (maybe 5...). The older these derogs are, the less impact they have on scoring.
I have about 6 old things with balances- the rest of paid off but still on there negative. The biggest is the Repo from GMAC- $5300.00 in April of 2010. I have no problem paying all the debt in full- i just am not sure which is better for me to do- settle or pay in full- does it matter after years have past??
I would not PIF, Unless it's for you and paying what you really charged, etc. Otherwise if you are looking for gains in your credit file and possibly getting yourself off the bank black list, PIF vs. settle not going to change score a bit.
I was able to move from category of unpaid items to paid for less or paid for such and such... as long as they report $0 I don't care about anything else.
When all that reported $0 I was able to get Capital One in less than 60 days, I settled an old cap1
and then GE, well I was off and running! LOL
all of them said no before i settled the 2 accounts i had, 1 cap1, 1 santander repo.