Credit repair

[slowlyclimbing2007]

I am new to this site and to repairing my credit. I have a couple of questions to get going in the right direction.  I am currently going to lease a home or do an in house home loan with a local bank for the next year until I can purchase on my own.  In the mean time I would like to improve my score. First most of my bad debt is from 2002, when i went through a bad divorce.  Most are still in collection and a couple were charged off. They are Doctors, utilities, and cell phones. They have not reported in a few years. Should I touch these? Some people say offer a settlement others say no because they are old. Next, I have a few newer (end of 2005 or beginning of 2006) items in collection.  Do I offer a settlement or pay in full.  I want to get these things clear or off and do not know where to begin! Any advice is greatly appreciated.  

[Anonymous]

Your best bet is to dilute your old, bad credit with new, good credit. If you start now, your score will begin rising by the end of this year, and by 2009 those old baddies will begin to drop off and you'll see even more substantial gains.

[Boswd]

It also depends on the amount you may owe on some of these debts.   There is no majical number on when a CA or Creditor will sue but if any of them is near or over a $1,000  I would be a little leary.  And would think about settling those up.   The last thing you want is a judgment.  That will kill your score.  Also see where these debts fall within your State's Statute of Limitations, do this first,  you may not have to pay on anything but also if they are close to the SOL's CA have a funny way of sneaking in a lawsuit before the time expires.  

[slowlyclimbing2007]

None of the debt is near $1,000.00 except the doctor bill.  Most is under $500.00

Message Edited by slowlyclimbing2007 on 06-21-2007 07:39 AM

[Anonymous]

Hi I am another ont that is repairing my credit. And I have found out that it's best to pay off the ones that are checking or hitting your credit every moth or so. Pay them off. I have on mine. I am trying to buy a house. The lender said that open up a new credit card and use it within a few months that will help your credit. Keep it going like that and then it will help your credit. If you couldn't get a credit card. Them get a secured credit card. Where you have to put a deposit down before you get the card. These help. That's what I am doing for 1 month now to re-build credit. ( orchard bank, New milluinm bank). thanks

[Anonymous]

Before you go paying off debts, you'll want to know the SOL and DOFD. If it's a debt that went delinquent in 1998, then it can no longer be reported on your CRs and in most states it's beyond the SOL so they can't sue.

If the debt is recent, then you should try to negotiate a PFD. Paying off a collection or chargeoff will simply yield a paid collection or paid chargeoff. It won't help your score.

Prime lenders generally require unpaid collections and chargeoffs to be paid, but that doesn't mean you shouldn't try for a PFD. Worst case scenario, they say no, and you pay it. Be persistent and start early. DW and I are planning to buy a house soon, and I'm trying to leverage a PFD outta the one paying on collection we have.