Need advice from those more experienced!

[mommy2b3]

I've been lurking for a while, but finally decided to ask for advice.  My current credit scores are TR 620, EQ 583, and EX 577.  I made some bad decisions my freshman year in college (2000) and got credit cards I didn't pay for and they were all charged off/sent to collections.  With the exception of those credit cards the only bad items are a hospital bill (2006) for $197, cell phone bill (from 2000) for $395, and an account that doesn't belong to me for $450.

I am currently in a stable job making about $50,000 a year and my fiance makes about the same.  We are working on improving my credit from the current awful scores to decent levels (680+).  He has suggested that I pay off all of the small items that were sent to collections (including the bill that's not mine).  Do you think I should send PFD letters for the hospital bill, cell phone bill and random account offering to pay if they remove the information from my report?  What type of score boost could I expect to see?

I can pay off one credit card - Capital One - I think the past due is $1500 (original balance $300).  If they are willing to negotiate an amount should I accept and send a PFD letter?  Discover is saying I owe them $3600 (original balance $1000) and I don't think I can afford to pay this amount.  Since the majority of these items were opened in 2000, should I just wait until they "fall off" of my credit report?

Other than that, I purchased a car a month ago ($20,000 through Capital One Auto) and we are looking to purchase a house in the next 9 months.  Is my goal of a 680 score achievable or should I just throw in the towel?  I really really want to get my credit cleaned up.  If I only knew then what I know now...  :-)  We are also pretty diligent savers - we have about $6000 in the bank and we both have 401(k) plans with our jobs (Me - $5500; Him - $12000).  In addition, I have calculated our budget from July 2006 through May 2009 in Excel.

Any advice?!?!

Thanks for your help!

[cadavis0609]

You could expect to see a very nice jump if you got the collections removed from the report. Definitely send a PFD for the hospital and the cell phone. I would dispute the unknown account.

Is Cap1 charged off? If it is, is it past the SOL? If it is past the SOL, they should be very receptive to any amount and likely to accept a deal. Make sure they know that you know its past SOL as well. Whatever you do, do not pay anything without a letter stating they will remove it from your CR. It will reage the account and it will sit on your report for another 7.5 years.

[Anonymous]

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mommy2b3 wrote:

I've been lurking for a while, but finally decided to ask for advice.  My current credit scores are TR 620, EQ 583, and EX 577.  I made some bad decisions my freshman year in college (2000) and got credit cards I didn't pay for and they were all charged off/sent to collections.  With the exception of those credit cards the only bad items are a hospital bill (2006) for $197, cell phone bill (from 2000) for $395, and an account that doesn't belong to me for $450.

I am currently in a stable job making about $50,000 a year and my fiance makes about the same.  We are working on improving my credit from the current awful scores to decent levels (680+).  He has suggested that I pay off all of the small items that were sent to collections (including the bill that's not mine).  Do you think I should send PFD letters for the hospital bill, cell phone bill and random account offering to pay if they remove the information from my report?  What type of score boost could I expect to see?

I can pay off one credit card - Capital One - I think the past due is $1500 (original balance $300).  If they are willing to negotiate an amount should I accept and send a PFD letter?  Discover is saying I owe them $3600 (original balance $1000) and I don't think I can afford to pay this amount.  Since the majority of these items were opened in 2000, should I just wait until they "fall off" of my credit report?

Other than that, I purchased a car a month ago ($20,000 through Capital One Auto) and we are looking to purchase a house in the next 9 months.  Is my goal of a 680 score achievable or should I just throw in the towel?  I really really want to get my credit cleaned up.  If I only knew then what I know now...  :-)  We are also pretty diligent savers - we have about $6000 in the bank and we both have 401(k) plans with our jobs (Me - $5500; Him - $12000).  In addition, I have calculated our budget from July 2006 through May 2009 in Excel.

Any advice?!?!

Thanks for your help!

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Know the difference  state SOL and CRTP

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=17466

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

We need more info in order to give a better answer.

Have you disputed with CRAs?

Collections are with  OC or CA,

What is the DOFD on all CO,CA accounts.

Dates are very important it tells us if you might get sued, if it should be deleted for other reasons or if a DV, PIF or PFD or a GW is in order.

Income & 401K & things like that mean nothing as far as cleaning credit or scores! It WILL mean alot to a mortgage though.

It takes time to clean up bad credit. Do not think that if you pay off old debts that your scores will go up NOPE. They can still show on CR 7-7.5 years.

You must do it right and use correct letters in order to get baddies deleted

NEVER talk to any creditor on the phone!!!! everything CMRRR....they all LIE!  if they agree to do anything on the phone you have no proof!!!

Message Edited by HappyDays on 09-02-2007 01:33 PM