Student Trashed Credit...Beginning Repair

[J_Garver]

I just graduated college, and I, like many college students have done quite a number on my FICO....I had 3 CC's charged off....I have since paid off 2 of those, just so it would look better...my question is, does it actually matter, if I pay off a CC that was charged off 5 years ago?? I only have a FICO of 545, very poor...I got an auto loan with help from my stepdad who had a perfect credit score at 8.24% interest...Since I have had this payment, it has been paid 2 weeks early for almost a year...will this help me?? I also have student loans that will begin in a month...if i keep up on those and my car loan, will i begin to see the light of day?  Most of my delinquent accounts were from 4 years ago when I just went crazy partying...Should i pay off the most recent accounts first, then work my way back to the oldest until I am at $0.00.....I actually only have $1,659.00 in past due, which I could pay off right now...but if it will not help me that much, I would rather invest this money somewhere that I can make a little off of it...

[Creditaddict]

what's it's charged off I see no point in paying it... personally... maybe someone will tell me the benefit of this to your score, but it drops off your credit in 7... you pay it now it's going to bring it back to the front of the line as a bad debt paid... but restart that 7 year clock if im not mistaken!

[Anonymous]

Hi J, welcome to the forum. There's a wealth of information on this board to help ressurect your credit.

I'd suggest first off by reading "Credit Scoring 101":

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Your charge offs, and collections, if any will haunt you for 7 years, if not taken care of. And it is certainly a major contributor to keeping your score in the cellar for the duration.

I consider both to be what I call "fatal baddies". Very difficult to get higher scores with them.

I'd suggest you offer to PFD(pay for delete). It has worked to remove collections and charge offs countless times. It's worked for me as well.

And regarding the question of whether to pay a collection and/or charge off, ask yourself, what is the right thing to do? That is something only you can answer.

Good luck to you

[CreditDrama85]

from what it sounds like, you should apply for the wells fargo secured credit credit. it does report as either a line of credit or secured credit card BUT if you pay on time for 1 yr. they send you a new card and convert you to an unsecured account.