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Seeking some basic advice!!

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Seeking some basic advice!!

Hello all,

I won't get into the details of the how, because it's probably the same common story. Young + Irresponsible + Stupid = Bad credit.

Now, I'm a little older [26 years old], and I'm trying to get my life in order. I finished engineering school and have a good job in which I make about $50-60,000 a year [varies due to out-of-town work and bonuses]. This year, I'll pull about 70,000 due to a 5 month out of town project. Anyway, I just bought an Equifax and TransUnion credit report and "scorewatch" from myfico.com

Equifax score = 628
TransUnion score = 611

---------------------- Equifax Bad Standings -------------------------------

Bad Credit Standings - Open

Midland – Date of last payment 05/2001 – $2,437
Midland – Date of last payment 10/2000 - $1,810
AAC – Date of last payment 10/2002 – $190

Bad Credit Standings – Closed

Discover – Date of last payment 04/2002 – Account Settled for lower amount!!

My equifax report doesn't show any DOFDs for the bad accounts [How convenient]
--------------------------------------------------------------------------------
----------------TransUnion [Located under “Collections” tab of report]----------

Midland – Date assigned 11/2004 – Date of last report 04/2007 – $2,437
Midland – Date assigned 05/2005 – Date of last report 04/2007 - $1,810
AAC – Date assigned 08/2005 – Date of last report 03/2007 - $190
Crd Prt Asso [For Hollywood video] – Date assigned 04/2004 – Date of last report 06/2004 - $70
Blmngtn Acct – Date assigned 06/2003 – Date of last report 07/2003 - $200 **

** Have no clue what this is, will definitely dispute!!

---------------------------------------------------------------

Now my questions. What should I do? I haven't taken a single step of action in along time.I'm mostly concerned about the two Midland accounts, as they are collection agencies for two credit cards I had while 18. According to the Equifax report it's been quite awhile since I paid on them, should I just ignore them? Will it go away after 7 years? The Indiana SOL said 6 years. Someone once told me that I should always dispute all "bad claims" on my credit report even if they are legit.

For some of the smaller accounts, do people usually take a letter of agreement from them to "delete once paid". I do not mind to pay things, but I won't bother if it won't make them disappear.

I also have a public record due to a medical lawsuit, do those go away after 7 years as well?

I also recently was approved for a CC. Only a small LOC, and crappy set-up fees, but it's a new account in good standing. How should I use it? Use it regularly and pay off balance every month? Rarely use it and carry a balance? Little bit of both?

Message Edited by Scubasteve2365 on 05-10-2007 09:14 AM
Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: Seeking some basic advice!!

Use that CC very sparingly...the key to strategic use of a CC to improve FICO is to keep your balance low...preferably under 10-20% of the CL. DO NOT charge up a lot on the card, thinking this will endear you to the credit card company. This canard--that carrying high balances is necessary to get CLIs--probably hoses millions of FICO points off the CRs of Americans today, not to mention costing millions in interest and actually impeding consumers from getting CLIs.

If your credit line is only $300, put a dinner at McDonald's on the card, wait about a week, then pay it off. Next month, buy a tank of gas, and pay it off. See how it works...you have a decent level of activity on the CC, but your balance never goes over $40 or so.
Message 2 of 3
Tuscani
Moderator Emeritus

Re: Seeking some basic advice!!



Scubasteve2365 wrote:
Hello all,

I won't get into the details of the how, because it's probably the same common story. Young + Irresponsible + Stupid = Bad credit.

Now, I'm a little older [26 years old], and I'm trying to get my life in order. I finished engineering school and have a good job in which I make about $50-60,000 a year [varies due to out-of-town work and bonuses]. This year, I'll pull about 70,000 due to a 5 month out of town project. Anyway, I just bought an Equifax and TransUnion credit report and "scorewatch" from myfico.com

Equifax score = 628
TransUnion score = 611

---------------------- Equifax Bad Standings -------------------------------

Bad Credit Standings - Open

Midland – Date of last payment 05/2001 – $2,437
Midland – Date of last payment 10/2000 - $1,810
AAC – Date of last payment 10/2002 – $190

Bad Credit Standings – Closed

Discover – Date of last payment 04/2002 – Account Settled for lower amount!!

My equifax report doesn't show any DOFDs for the bad accounts [How convenient]
--------------------------------------------------------------------------------
----------------TransUnion [Located under “Collections” tab of report]----------

Midland – Date assigned 11/2004 – Date of last report 04/2007 – $2,437
Midland – Date assigned 05/2005 – Date of last report 04/2007 - $1,810
AAC – Date assigned 08/2005 – Date of last report 03/2007 - $190
Crd Prt Asso [For Hollywood video] – Date assigned 04/2004 – Date of last report 06/2004 - $70
Blmngtn Acct – Date assigned 06/2003 – Date of last report 07/2003 - $200 **

** Have no clue what this is, will definitely dispute!!

---------------------------------------------------------------

Now my questions. What should I do? I haven't taken a single step of action in along time.I'm mostly concerned about the two Midland accounts, as they are collection agencies for two credit cards I had while 18. According to the Equifax report it's been quite awhile since I paid on them, should I just ignore them? Will it go away after 7 years? The Indiana SOL said 6 years. Someone once told me that I should always dispute all "bad claims" on my credit report even if they are legit.

For some of the smaller accounts, do people usually take a letter of agreement from them to "delete once paid". I do not mind to pay things, but I won't bother if it won't make them disappear.

I also have a public record due to a medical lawsuit, do those go away after 7 years as well?

I also recently was approved for a CC. Only a small LOC, and crappy set-up fees, but it's a new account in good standing. How should I use it? Use it regularly and pay off balance every month? Rarely use it and carry a balance? Little bit of both?

Message Edited by Scubasteve2365 on 05-10-2007 09:14 AM

"Young + Irresponsible + Stupid = Bad credit." DEJA VU!
Welcome! Check out this thread for reporting periods:
 
 
Disputing accurate account info is unethical and discouraged on the FICO forums. You can try a PFD for old unpaid collections, or a GW letter for paid ones.
 
For the new CC, just be responsible.. keep util at 1-9% and pay on-time every month!
 

 
Message 3 of 3
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