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Bad Credit - Need sugestions

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srn
Valued Member

Bad Credit - Need sugestions

Hi Everyone,

 

EQ 587 on 7/25/2011

 

Collections: 1 Account (Appartment - $117) - (PIF today)

 

(Below accounts from 2 to 7 are negative)

1) Public Saving Bank Secured Credit Card - Balance $205 ($300 limit)
2) Citi $2,254 Bad debt/collection
3) Bk Of Amer $1,879 Bad debt/collection (Paid today)
4) Bk Of Amer $770 Bad debt/collection (Paid today)
5) Aac $969 120+ days past due (Paid yesterday - $0 balance)
6) Dte Energy $0 Bad debt/collection (I PIF $14 balance last month)
7) Amex $0 Bad debt/collection (PIF 3 years ago, this and #3 are the oldest accounts)
8) Nwfcucc $0 Pays account as agreed
9) Hsbc Bank $0 Pays account as agreed
10) Cap One $0

 

Action taken by me:

1. PIF on the collection account today.

2. Paid a settlement for 2,3,4,5 today. I am planning to knock out the other #1 next month.

 

Next action: Send GW letters?

 

Request your sugestions to improve my score.

 

Thank you.

Message 1 of 10
9 REPLIES 9
casmith1980
Established Contributor

Re: Bad Credit - Need sugestions


@srn wrote:

Hi Everyone,

 

EQ 587 on 7/25/2011

 

Collections: 1 Account (Appartment - $117) - (PIF today)

 

(Below accounts from 2 to 7 are negative)

1) Public Saving Bank Secured Credit Card - Balance $205 ($300 limit)  Get utilization to 1-9%
2) Citi $2,254 Bad debt/collection
3) Bk Of Amer $1,879 Bad debt/collection (Paid today)
4) Bk Of Amer $770 Bad debt/collection (Paid today)
5) Aac $969 120+ days past due (Paid yesterday - $0 balance)
6) Dte Energy $0 Bad debt/collection (I PIF $14 balance last month)
7) Amex $0 Bad debt/collection (PIF 3 years ago, this and #3 are the oldest accounts)
8) Nwfcucc $0 Pays account as agreed
9) Hsbc Bank $0 Pays account as agreed
10) Cap One $0

 

Action taken by me:

1. PIF on the collection account today.  Did you ask for a PFD (pay for delete) or are you going to PIF and then pray for a GW adjustment?

2. Paid a settlement for 2,3,4,5 today. I am planning to knock out the other #1 next month.  Are your settlements tied to an agreement for deletion once paid? 

 

Next action: Send GW letters?  Once you send the money in, you don't really have a leg to stand on with GW (except for keeping your fingers crossed that they work).  I would suggest calling all the people you are paying off (BEFORE YOU SEND THE PAYMENT) and ask them if they would be willing to delete the negative TL from your CR. 

 

Request your sugestions to improve my score.

 

Thank you.


 

Filed BK 12/5/14
341 meeting 1/9/15
Anticipated discharge 3/10/15

Goal: 700 by 3/2017
Message 2 of 10
srn
Valued Member

Re: Bad Credit - Need sugestions

I tried for a PFD, they were not agreeing to send me any letter. I was not sure what to do. I just paid them.

Message 3 of 10
casmith1980
Established Contributor

Re: Bad Credit - Need sugestions

Then keep your fingers crossed they delete with a GW request. Keep in mind, a paid collection is just as bad as a unpaid collection.
Filed BK 12/5/14
341 meeting 1/9/15
Anticipated discharge 3/10/15

Goal: 700 by 3/2017
Message 4 of 10
srn
Valued Member

Re: Bad Credit - Need sugestions

There is only one left in my list above. I get calls from some Collection agency about that account, i talked with them once and they are not willing to negotiate for a settlement and did not send any mail to me so far. The original account is Citi $2,254. Do i need to find their address and send a PFD letter.

 

What should i do? Call them, make a settlement and then send a PFD?

Message 5 of 10
kjm79
Valued Contributor

Re: Bad Credit - Need sugestions

Get the address and send them a DV letter first.  If they respond and you agree with their response let time be the factor that decides what route you take next.  If it's within the SOL be prepared to pay the full amount but still ask for deletion in return.  All they can do is say no.  If it's out of SOL then offer PFD (either in full or lesser amount).  Or if you can, wait it out until it fall off.  Another option is to just pay it no matter what, if it's a debt you owe, some people feel better that they paid it no matter the SOL or CRTP as it's the right thing to do. 

 

As for improving your score, you are pretty limited.  Sadly, as stated, a paid collection is the same as an unpaid collection.  The accounts should at least update to a paid collection with zero balance, but it won't improve your score unfortunately.  Hopefully, some of the GW's will come through.  Getting your UTIL down is really the only power you have over your score at the moment.  It doesn't look like you have an open installment account on your reports.  Try getting a small secured personal loan.  Might give you a bit of a boost. 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 6 of 10
srn
Valued Member

Re: Bad Credit - Need sugestions

Thank you kjm79 and casmith1980 for your suggestions.

 

I have called DTE Energy, they have accepted to remove negative comments from the 3 credit bureaus.

 

I have a question: As i mentioned in my first post, i have 2 oldest accounts (BOA and AMEX). If i write a GW letter and if they remove them, does that hurt my score even more?

 

Or is there any way i could wait for all the accounts to shown $0 balance and then ask AMEX to reopen my account ?

 

kjm79, you asked to get my UTIL down. I only have 1 secured CC with me now ($300 limit). So, i understand that i should be using it for <30% of my limit and pay the balance ontime. Am i correct.

 

About "Secured Loan": I do not know anything about this. Do i need to contact banks for this. I have an account in BOA and a local CU.

 

 

Message 7 of 10
casmith1980
Established Contributor

Re: Bad Credit - Need sugestions


@srn wrote:

Thank you kjm79 and casmith1980 for your suggestions.

 

I have called DTE Energy, they have accepted to remove negative comments from the 3 credit bureaus.

 

I have a question: As i mentioned in my first post, i have 2 oldest accounts (BOA and AMEX). If i write a GW letter and if they remove them, does that hurt my score even more?  This could potentially ruin your AAoA...do a forum search for "how to calculate AAoA" and then give it a shot to see where you would be if they were deleted.

 

Or is there any way i could wait for all the accounts to shown $0 balance and then ask AMEX to reopen my account ?  You could possibly do this, but I haven't had much luck in this department.  If it were me, I would call the companies I'm willing to PIF and ask over the phone if they would agree to opening the card as "secured". 

 

kjm79, you asked to get my UTIL down. I only have 1 secured CC with me now ($300 limit). So, i understand that i should be using it for <30% of my limit and pay the balance ontime. Am i correct.  30% util is good, 1-9% is better Smiley Wink

 

About "Secured Loan": I do not know anything about this. Do i need to contact banks for this. I have an account in BOA and a local CU.  Talk to your CU.  They seem to be the most reasonable especially if you have built a good relationship with them. 

 

 


 

Filed BK 12/5/14
341 meeting 1/9/15
Anticipated discharge 3/10/15

Goal: 700 by 3/2017
Message 8 of 10
kjm79
Valued Contributor

Re: Bad Credit - Need sugestions


@srn wrote:

Thank you kjm79 and casmith1980 for your suggestions.

 

I have called DTE Energy, they have accepted to remove negative comments from the 3 credit bureaus. - Awesome!

 

I have a question: As i mentioned in my first post, i have 2 oldest accounts (BOA and AMEX). If i write a GW letter and if they remove them, does that hurt my score even more? - As stated, you have to  check into your AAoA and overall credit length history.  But if they are your oldest accounts and they remove them, it will lessen your AAoA and history, but can't say how much until you calculate your AAoA.  For example, let's say you lose the two accounts and your AAoA drops from 5.9 to 5.1, you still have a AAoA of 5 years.  No change in AAoA.  But if it goes from 5.9 to 4.9, you now have a AAoA of 4 years, so that would hurt your score.  Got to do the calculations to figure that out. 

 

Or is there any way i could wait for all the accounts to shown $0 balance and then ask AMEX to reopen my account ?  That would probably be the best course of action.  I think if you search the credit card forum you might find some posts about AMEX reopening accounts once the "old" account was satisfied.  But of course, it's different for everyone. 

 

kjm79, you asked to get my UTIL down. I only have 1 secured CC with me now ($300 limit). So, i understand that i should be using it for <30% of my limit and pay the balance ontime. Am i correct. - Close.  First let me start by saying only worry about UTIL when you are about to apply for new credit and need to optimize your score, otherwise don't stress out over it.  If not seeking new credit, use your card and remember to not go over the limit and make more than your minimum payment.  Now, you are rebuilding credit.  You want to do two things, you want to build a good relationship with the CCC so they grow with you.  And you want to work the CC to work for your score.  One thing people get confused on for the UTIL is that they think they can only USE a certain % of their cards.  Not so.  You can run, $300, $600, $900 or whatever you want through your card AS LONG AS YOU PAY IT RIGHT AWAY and of course don't do it all at one time.  I use a cash rewards card just like my debit card.  I use it, I write it in my check book, at the end of the week I pay what I spent.  What's important in building your score is the balance you let report.  Typically, when your statement cuts, that amount is what reports and is factored into your UTIL.  So a few days before your statement cuts (you'll have to account for payment processing) make a payment on the card to get the balance between 1%-9%.  So for your card, leave somewhere between $5-$25.  Then once the statement cuts, pay it off within a couple days so you don't pay any interest and then start the cycle over again.  To get the most points, play with the reported balance a bit and see what happens with your score.  Find your so-called "sweet spot". 

 

About "Secured Loan": I do not know anything about this. Do i need to contact banks for this. I have an account in BOA and a local CU. - You can check with either bank.  The CU would probably be more willing to grow with you than BOA.  It's similiar to a secured credit card.  You deposit x amount of money and they give you that amount (sometimes more) as a personal loan.  The amount isn't important, just the installment account and the fact you pay it back on time.   

 


 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
Cap1 QS ($5350) (Combined QS and QS1) Discover It ($4100) MilStar ($8,600) Fingerhut ($800)
Off to the garden 05/01/16
Message 9 of 10
srn
Valued Member

Re: Bad Credit - Need sugestions - My score is now 613

My score is now 613 (Got an alert from FICO Score Alert on 08/04/2011). Did not check my Credit Report so far. It was 587 when i first posted here.

 

Thank you all.

Message 10 of 10
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