why is orchard so bad?

[vish1]

Around 7%

[pyboathon]

So if I pay it off each month  it should be below 7%, right?

Is that a bad thing for your credit. I remember a long time ago someone told me that if you have a credit card, that making small payments on them was better than paying off in full.

[vish1]

The best thing to do if you have low limits is to keep paying as soon as the transaction posts. At any time, keep your balance low. PIF or making small payment will have no difference as long as the balances are low.

[JayRizzo]

For those rebuilding credit, I would "not" suggest going to their local credit union where, more than likely, you keep your money, unless you've opened an account for $20 just for the sake of opening a secured card.

My reason is... if it's one of your primary accounts where you actually do your everyday banking, the prying eyes of the CAs will notice the key words "Credit Union" when your secured card starts to report and will quickly zone-in on the garnishment process in hopes of collecting a debt - they're watching.  Also, check the forums for the "Opt-Out" feature on your report -- this may help give you a shield while building.

[Anonymous]

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@pyboathon wrote:

i just applied for a orchard credit card and got aproved with a $300 limit. I was happy to get approved since my credit score is 449 and have a steap hill to climb to fix my credit. But all I read on these phorums is how bad orchard is. Sgould I get another card, should I get more than one?

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I'd suggest that you not apply for any more credit for the time being, secured or unsecured. I think that you should focus your efforts on repairing. Repair 1st, rebuild after! You've still got unpaid collections within the SOL. I think that's where you need to focus your efforts, and your money. Reducing your risk of getting sued should be a top priority. Opening fee harvester cards & secured cards (at this time) might detract from your ability to pay (unless you've got the cash to PIF immediately) & negotiate those bad debts off your credit reports. New credit accounts while you have active collections is asking for trouble.  

Please, do yourself a favor and opt-out (you can use the link in my siggy), and work on your baddies first. Believe me when I say that a great many of us, myself included, wrangled the bad credit, and survived to tell the tale with 700+ & even some 800+ scores today. And, many other forum members well on their way. It can be done & it will be done-- just do it with the least amount of risk & pain possible.

Good luck!

[pyboathon]

How does the PFD work, is there a standard letter, can I send emails, can I call and request this. I have the money to pay probably 4 out of 6 collection in full. But if I can't get them removed won't it be pointless. also, when I call them, the always try to negotiate a price, most of the time at 60% but then they will report it as settled and not take it off and remove it. Doesn't a settlement look as bad as not paid

once again thanks for every once help, i want to get the hang of this, and learn the tricks of the trade so that I can help people as well, and give them a great real life story.

[JayRizzo]

Do Not Send Emails to negotiate a settlement with a CA, this must be done via certified mail to CYA.  Check out the stickies in the "Rebuilding your credit" forum which will guide you through the process as well as give you information on how things are to be reported, etc. 

To be honest, you can't do any worse but to have your score go up from your current state by doing some due-diligence, therefore, being concerned how anything looks in reporting is not an option at this time.  As long as a debt is taken care of, it's a good thing.  Doing nothing will be a slow crawl with the one good card that you have.

[pyboathon]

that's why i was wondering if I should just forget about the pdf and just try to settle with all my collections. All together its only around $1500 so if I settle it probably will just be around $750

[danisgods]

i believe if you pay in full,is better than settling , for lenders to view on your report, not sure though.

[JayRizzo]

Again, I strongly urge you to go to "Rebuilding your credit" and learn all you can before handing over $1500.  There are things that you're not aware of.  Paid in full doesn't necessarily mean everything is now good.  You'll need to learn how to pick and choose your battle plan in order to have more advantages on your side or you "will" have your money taken with no improvement to your credit score.  In fact, it may be negatively impacted for an additional 7 years, if you don't know what you're doing.

The stickies are very informative and the members are helpful.  They will walk you through each step if you're stuck or have additional questions.  They will even tell you what sneaky tricks to watchout for.  Most of all, how to cover yourself legally.

I stress visiting that forum because many people "think" paying off an account in full is the end of the story just to find out the debt was purchased by another CA (happens often) and your paid $1500 doesn't mean JACK to them, if you didn't properly cover yourself with all of the necessary documentation.

Just check it out.