For starters, I am trying to get my credit score improved so that I can receive a lower interest rate when I purchase a new vehicle within the next year. My credit score is 609 as of this morning that is reported by TransUnion. I am well aware that this number will change FREQUENTLY! I am 26 years old and I have made a lot of poor choices when I was younger that has had an impact on my credit rating. In the last 5 years or so, I have been establishing credit and paying all my bills on time and regularly along with keeping balances down. With that being said, I am concerned with how to deal with collections on my reports. I had one of those secured pre-paid credit cards when I was STUPID and NEVER used it. When I cancelled it, I thought that would be the end of it, WRONG! Okay, so I paid it off AFTER it went to collections. But it is still on my credit report as paid. So now I'm curious as to whether or not to worry about the other collections. Will they also remain on my credit? Or is this the time to write one of those Pay For Delete letters?! Just so that you have a better understanding of what exactly I am wanting to deal with I am going to list what I owe below. Like I said before, I was stupid at one point like we all have been, so please don't be judgmental on this.
Collection opened 12/5/06 for $54
Collection opened 11/22/05 for $72
Collection opened 4/2/03 $291
Collection opened 5/9/02 for $136
Collection opened 2/12/02 for $80
Please keep in mind that these are ALL medical bills that have gone to collections. Some of them I wasn't even aware of going to collections until it was too late. I would get the bills and it would say that insurance was pending or if you have insurance disregard this letter kind of thing. I was under the impression that insurance was going to cover these expenses. Some of those collections are WAY older than what they are stating also. I was unaware that they could change the date opened date time and time again.
I have a charge account, credit card, note loan, unsecured loan, 3 note loans that are student loans, and a secured loan. All of which have been completely paid in full, never late, and/or still current and up to date with.
With all that being said and done, are those worth paying on if they will still stay on my credit. I know that these amounts are INCREDIBLY small amounts to have EVER gone to collections over. Any advice on this situation would be enormously appreciated! What else can I do to raise my credit rating?! I realize that some things just take time and this is definately one of those occassions.
