Credit Cards

[Nelly510]

Hey guy im trying to fix my credit to get a house, and i was wondering if paying off these 2 cards which are easy to pay off help my credit?

First Premier - 250 (CL) and balance is 250

Orchard Bank - 300 (CL) and balance is 300

so i will pay these off since they are maxed out, and also i have 3 collections showing negative accounts, and i have 3 accounts that says potentially negative accounts. As of right now i am writing GW letters to the 3 accounts stating negative, but no luck so far! i have the money to pay the negative accounts, but im not willing to pay unless they PDF, which i have no luck in getting so far, because i know a collection still shows as a collection whether paid or unpaid.

Credit Score pulled from Discover Card was a 585, i need at least a 620 thanks!

Btw: i just bought a car 2 months ago, and when i got approved for the car my score was a 645, it dropped a lot idk why? maybe because of my debt to income ratio and the maxed out credit cards?

[aussiesareforever]

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Nelly510 wrote:

Hey guy im trying to fix my credit to get a house, and i was wondering if paying off these 2 cards which are easy to pay off help my credit?

First Premier - 250 (CL) and balance is 250

Orchard Bank - 300 (CL) and balance is 300

so i will pay these off since they are maxed out, and also i have 3 collections showing negative accounts, and i have 3 accounts that says potentially negative accounts. As of right now i am writing GW letters to the 3 accounts stating negative, but no luck so far! i have the money to pay the negative accounts, but im not willing to pay unless they PDF, which i have no luck in getting so far, because i know a collection still shows as a collection whether paid or unpaid.

Credit Score pulled from Discover Card was a 585, i need at least a 620 thanks!

Btw: i just bought a car 2 months ago, and when i got approved for the car my score was a 645, it dropped a lot idk why? maybe because of my debt to income ratio and the maxed out credit cards?

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Welcome to the forums Nelly. And congratulations on your credit journey so far.

I absolutely agree with you that your utilization is probably affecting your creit score by a lot. Paying down both balances will give you a nice increase in your score. You debt to income ratio plays a huge role in your ability to get a mortgage but it actually does not affect your credit score. My first recommendation will be to pay off your maxed out creit cards.

You should continue to work hard to get those collection accounts deleted. HOWEVER, if you are thinking about an FHA loan, all collection accounts MUST be paid before you can get a loan. This was a recent change in the FHA laws. It seems like either way, those collection accounts have to be paid but it will be better for your credit score if you got them deleted. I also agree that having the negative marks deleted will help.

Bottom line is that pay off your maxed credit cards. Secondly try to get the collection accounts deleted.

Good luck!!!!!

[tcbofade]

You've got several issues that you need to address, but to simply answer your question, yes.  Paying off the maxed out cards will help.

[FrugalRican]

You're maxed out credit cards are hurting you a lot, but those collections are hurting you even more.

Not only will a collection still show as a collection even if paid, but you won't get a point boost from it either.

Pay off those credit cards ASAP.

BTW, I'm sure you need a 620 mid-score, not just 1 score at 620. And also, whatever Discover might have pulled might not even be the same bureau as what the car dealer pulled.

[Nelly510]

Thanks guys! but yes i am going for a FHA loan and i will be paying off both credit cards today, but i was wondering i know you guys said i have to pay off collections no matter what, but i had a question what are the accounts that are called "Potentially Negative Closed"? do those balances needs to be paid off? or are those falling off my report? i dont really know what all the titles mean, as there are 3 other accounts listed "Potentially Negative" which im thinking are the newer accounts that went into collections that im trying to PDF right now.

[Crashem]

I think there is some bad information here from some of the previous posters.

The original poster is correct that a collection account paid or unpaid will affect his FICO score the same.  Going for a PFD is an admirable goal.

However some of the posters are somewhat correct.  Mortgages are a more manual process.  A lot of underwriters will not grant a loan no matter what the borrowers FICO score is, if there are unpaid collections.  The new FHA rules do not allow qualification if there are unpaid accounts in collection above a certain amount ($1000?).

If I was in the borrowers' situation, I would pay down my credit cards to 0.  See where my FICO score is.  You need to get more ammo in negoiations with your collection accounts.  I am happy to give you more advice, but please list the colleciton accounts in more details.  Need to know at least the folllowing:  SOL on debt, amount, creditor, DVed?, any responses so far, etc., but don't list out any identifing information.  PFD are  common with some and take a ton of work with others.  If they know you are considering a mortgage, they will play hardball with you so don't let them know it.

[Nelly510]

Thanks! let me see if i can post some here:

AFNI, INC. Potentially Negative More Account Details Close Account Details 888-216-2408 PO BOX 3427 BLOOMINGTON, IL 61702
	Experian®	Equifax®	TransUnion®
Account Name	AFNI, INC.	AFNI, INC.	AFNI
Account #	204084XXXX	204084XXXX	204084XXXX
Account Type	Debt Purchase	Open Account	Collection Account
Balance	$696.00	$696.00	$696.00
Date Opened	6/1/2010	6/1/2010	6/21/2010
Account Status Closed Closed Open Mo. Payment       Past Due $696.00 $696.00   Payment Status Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department At least 120 days or more than four payments past due Collection account High Balance   $696.00   Limit       Terms 1 Month     Comments Account in dispute-reported by subscriber COLLECTION ACCOUNT Account information disputed by consumer
24 MONTH PAYMENT HISTORY     2009           2010                       2011           Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun                           KD ND ND ND ND ND ND ND ND ND KD                       OK OK 120 OK OK OK OK OK OK OK OK OK OK

[Nelly510]

ENHANCED RECOVERY CO L Potentially Negative More Account Details Close Account Details 800-496-8941 8014 BAYBERRY RD JACKSONVILLE, FL 32256
	Experian®	Equifax®	TransUnion®
Account Name	ENHANCED RECOVERY CO L	ENHANCED RECOVERY CO	ENHANCRCVRCO
Account #	3144XXXX	3144XXXX	3144XXXX
Account Type	Collection Department / Agency / Attorney	Collection Account	Collection Account
Balance	$237.00	$237.00	$237.00
Date Opened	5/1/2010	5/1/2010	5/20/2010
Account Status Closed Closed Open Mo. Payment       Past Due $237.00     Payment Status Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department Unpaid Collection account High Balance       Limit       Terms 1 Month     Comments   Unpaid Placed for collection
24 MONTH PAYMENT HISTORY     2010                   2011                       2012   Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb                                               KD

[Nelly510]

FAIR COLLECTIONS & OUT Potentially Negative More Account Details Close Account Details 877-324-7959 12304 BALTIMORE AVE STE BELTSVILLE, MD 20705
	Experian®	Equifax®	TransUnion®
Account Name	FAIR COLLECTIONS & OUT	FAIR COLLECTIONS & O	FCO
Account #	364XXXX	364XXXX	364XXXX
Account Type	Collection Department / Agency / Attorney	Collection Account	Collection Account
Balance	$512.00	$512.00	$512.00
Date Opened	4/1/2011	4/1/2011	4/12/2011
Account Status Closed Closed Open Mo. Payment       Past Due $512.00     Payment Status Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department Unpaid Collection account High Balance       Limit       Terms 1 Month     Comments   Unpaid Placed for collection
24 MONTH PAYMENT HISTORY     2009         2010                       2011             Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul                                               KD

[Nelly510]

CO OP ADJUSTMENT BUR Potentially Negative Closed More Account Details Close Account Details 800-331-0009 PO BOX 232027 PLEASANT HILL, CA 94523
	Experian®	Equifax®	TransUnion®
Account Name	CO OP ADJUSTMENT BUR	No Data Returned For This Bureau	COOP ADJ BUR
Account #	1230086000014XXXX	1230086000014XXXX
Account Type	Collection Department / Agency / Attorney	Collection Account
Balance		$0.00
Date Opened	9/1/2009	9/2/2009
Account Status Closed   Closed Mo. Payment     Past Due     Payment Status Paid, was a collection account, insurance claim or government claim or was terminated for default Payment after charge off / collection High Balance     Limit     Terms 1 Month   Comments   Paid collection
24 MONTH PAYMENT HISTORY     2009       2010                       2011               Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug       KD ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND OK