HELP...Confused with whole process...

[kris0830]

Hi there,

I am new to this board. I have in the past believed credit was nothing until I went for a car loan and was shot down time after time. I realized I need to do something about this. If anyone out there can help, I appreciate it. Here are my freecreditreport.com scores: EX 552, EQ 529, TU 549. I have several inquires, two which will fall off this November. I have disputed some accounts which werent mine so it leaves:

HSBC repo

CapOne credit card which turned into a judgement which I am paying

DirectTv for $158.00

Credit Union for $291.00

Sovereign repo

Verizon $300.00

I can pay the debts with amount but should I ask for a GW letter or something and ask for them to take it off. Does anyone know what I should do ?? Any help is good. Also, can someone explain the letters to me.
Thanks everyone.

[Anonymous]

Ouch! You have dug a hole, and you are doing what ever is necessary to get out of that hole. My congratulations to you for that.

A GW letter is a good idea, always. Sometimes it works, sometimes it doesn't. A lot depends on the age of the debt.

Offer PFD letters, if they are old. It worked in my case and the debt was 2 years old.

I'm sure others will offer their good opinion.

Don't get down about it... you're doing the right thing.

Case in point: in March of this year, my TU score was 521. I started immediately doing all I could, mainly get my cc utilization down. The result is that on 10/1/07 my TU score had risen to 676.

Keep up the good work!

[kris0830]

Thanks for the help. Can you help me with one other thing: when should I use the GW letter and when should I use the PDF letter?

[Anonymous]

Hey Im kinda new here myself but I have spent countless hours reading the forums.  From my understanding this is how it all goes:

#1- pull your credit reports and dispute negative stuff, if it falls off great, if not go to step 2

#2- anything that didnt' come off with initial dispute, send off a DV (debt validation) letter to the company that is holding the account, usually a collection agency (ca), this letter states that they are obligated to show you the paperwork that they have that validates that you are financially obligated to them, they have 30 days to do it or it should be deleted from your file.  If it still comes back verified, move to step 3.

#3- This is where you it can get a little tricky.  You want to send a PFD (pay for delete) letter.  Basically a letter stating that you are willing to pay, as long as they are willing to delete from your file.  Here's the tricky part.  You must know your SOL (statue of limitations) this is the amount of years from the date of your first major deliquency ( I believe) that an agency is able to sue you in court over the debt.  Every state is different, just use google to find yours.  If it is PAST your SOL that you can settle for a lesser amount with no worries of the ca coming back to sue you.  However, if you are still within the SOL, you should probably pay the full amount, overwise, if you settle they can still come after you for the difference.

That is pretty much what I have gotten from reading the forums but please take the time to read them for yourself, I don't want to steer you wrong.  Several things that you MUST DO IS :  NEVER ACKNOWLEDGE THAT THE DEBT IS YOURS!, WHEN YOU SEND THE LETTERS SEND THEM CERTIFIED MAIL RETURN RECEIPT REQUESTED (CMRRR), SAVE EVERYTHING, AND NEVER, NEVER AGREE TO ANYTHING VERBALLY!!!!!

as far as the accounts that you have already paid, that is when you can try a "good will" (gw) letter or for an account that you may have a few lates with put are up to date for the most part.  You can find examples are all the letters under the links for beginners.

Sorry so long but I hope it helps.

[Anonymous]

A goodwill letter you use when you have something paid in full, but still shows on your credit report.  To either have it deleted or put in a good status.

A pay for delete would be something that you still owe some money on and is effecting your credit score.  You can send them a letter asking them that if you pay this in full, will they delete it off of your report.  If they aggree to the terms then ask for it in writing and once you receive it, then pay it in full.

Or least this is my take on it.  Hopefully one of the more experienced will chime in.

[Anonymous]

I'd be glad to, and I'm sure others will, as well. But I really need more info.

1. Which ones are in collection, and their age?
2. As far as repos go sorry, wouldnt even venture a guess, unless a PFD would be justified.
3. Are any still current? If so, which one's?

All this has a bearing on how to proceed. There's not just one universal answer