Cheapest way to build credit?

[Lynners]

I am new to the FICO Forums and I have been learning a lot! But I can tell rebuilding me credit after basically credit suicide (Not bankruptcy but many charge-off's and collections etc) I have my work cut out for me. It is also going to be expensive! I'm looking for inexpensive ways that maximize my score. I am already working on some PPD's too. BTW: What is the max % you should pay for a PPD?

[randyrhodes]

Try offering around 20 to 25% to start. make sure you're past the SOL. you'll have a better chance of success. good luck

[gdale6]

A PFD percentage will need to be negotiated between the 2 parties, some, depending on how old they maybe would have to be 100%. There is no set number for the question that you ask only what they are going to require if you can get them to do a PFD.

[randyrhodes]

I'm sure he or she understands that. i would say start low as possible and see if they counteroffer. then you counteroffer. some that you can't be sued over you'll have more success. those not past SOL you'll have more difficult time with probably. best of luck. i hope you do well and keep us updated.

[-NewGuy-]

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@gdale6 wrote:

A PFD percentage will need to be negotiated between the 2 parties, some, depending on how old they maybe would have to be 100%. There is no set number for the question that you ask only what they are going to require if you can get them to do a PFD.

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This. Out of the six that I've done so far, all but one required full payment, and the other one didn't settle for much less. Not to mention, full payment can frequently be a larger number than what's on your CR (fees and interest as allowed by state). It's worth a shot but be prepared to PIF. A PIF for PFD is still a win in my book, but that's just me.

[grassfeeder]

Tought to answer this without you outlining your credit profile - who you ow, how much you owe, age of each account

[notfancy]

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@grassfeeder wrote:

Tought to answer this without you outlining your credit profile - who you ow, how much you owe, age of each account

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Can you give us specifics about what is on your credit report? Number of delinquent accounts, amounts, age of them? When did they go delinquent? What is the SoL in your state? Do you have ANY good accounts? Secured cards, mortgage, auto loans, student loans, etc?

[Lynners]

Thanks for the answers. Most of my accounts are getting to SOL of 4 years. I had a job layoff in early 2010 that spurred most of the issues. It seems like I am being double and triple dinked.  The original creditor reports negative then a collection company reports negative and then sometimes another colletion company reports negative for the same exact debt. So on the PPD, do I only address the original creditor or do I try the collections companies too? That seems expensive!

I only have 1 good account and that is on a Capital One (use to be Orchard) but it is secured and only $300.

Curently 9 Collections 3 charge-offs and 5 accounts with late payments that are now closed but never went to charge off.