Hi all, new to the forums here. My wife and I are looking to buy a home in the near future. The issue is my credit is bad. I have a current 555 score. The issue is that I never had revolving credit, so it just got charged off and as a result was stagnant. My only credit has been a student loan (just got refinanced) and a auto loan. I have 3 items in collections (OLD Debt and 2 are from same company).
My Questions:
1. My auto loan shows on my credit at almost $15K. Now this says the car company last reported it 8 months ago. As a result though, I only owe around $10K. I called the car company and they said they are aware and were going to report it as its been an error they've been dealing with. Will this help RAISE my score? I have been on time for all payments and its reduced now by $4000.
2. The company that has me in collections for old debt, is around $2000. Now is it adventageous to go ahead and pay that off? I talked to my credit repair guy and he said the damage is done. But I need to raise my score, and don't want that impacting it if I can just pay that off and have it raise it.
I finally got approved for a credit card, which has been paid off routinely so that I can have revolving credit so I am hoping that will help. But any insight helps! Thanks all!
