Rebuilding Your Credit

[newby2012]

I want to build good credit and I need some advice on how to do. I've really avoided credit over the years, but I think it's time rebuild it. 

My score? A few weeks back it was 610. They said it would raise to 650 if I got a credit card with a $300 limit so I got one from 1st Premier. (Yes I know the fees are horrendous but they are the only ones who will give me one)

I have three chargeoffs on my credit report:

One is for about $865 from Capital One

One is for about $121 from Walmart

One is for about $469 from Target

These three have been turned over to Collection Agencies and here is what the collection agencies are reporting:

Asset Acceptance(Target): $858

LVNV(Walmart): $322

LVNV(Capital One): $1308

They are all from mid 2007. My state of residence is Washington so from what I understand they are past the statue of limitations so paying them off will only hurt me. I guess all three have been sent to Collection Agencies. 

From what I've read, you shouldn't pay off a charge off that is past the statue of limitations because it won't help your credit and can hurt it so what can I do to help my credit? 

If I wanted to get those chargeoffs paid off, could I negotiate for a much smaller amount? I'd like to try to get all of those cards again in the future.

[Lasko189]

First make sure they truely are beyond the SOL then send the a letter like this. I looked it up for the state of Washington and the info I found states 6 years.

Your City, State Zip

Collector's Name
Collector's Address
Collector's City, State Zip


Account Number: XXX-XXXX-XXXX

To Whom It May Concern:

This letter is response to your phone call on/letter dated xxxxxxx, concerning the above referenced account number.

I have checked with my state Attorney General and confirmed that the statute of limitations on this type of debt has expired. Therefore, if you choose to pursue this matter in court, I will be forced to show proof that the statute of limitations has expired.

Let this letter serve as notification that I do not wish to be contacted about this debt any further except to be notified that future collection efforts are terminated. Any other communication regarding this debt will be taken as a violation of the Fair Debt Collection Practices Act.

Sincerely,
Your Name

[Watts]

What would sending a letter like that do for their credit score? My husband has a CO that I'm working on, that's why I'm asking.

[Lasko189]

It would get the debt removed from there credit report, as if the debt never exsisted.

[newby2012]

Yes, 6 years is right? I thought I read where it's 3 years. What the difference between open ended and written? Aren't credit cards openended?

So is it worth paying them off or just avoid it? 

Cleaning up my credit is not something I need to do over the next few months, just looking at doing over the next year or two. 

Edited to add this:

On this thread it says it's 3 years.....

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/WA-SOL-for-credit-card-debt/m-p/1419336

[Lasko189]

http://apps.leg.wa.gov/RCW/default.aspx?cite=4.16.040

http://apps.leg.wa.gov/RCW/default.aspx?cite=4.16.080

Oral agreements and open ended contracts are 3 years, written are 6 years from the date of first deliquency. That would be the first due date that you didnt make a payment. So if you made your last payment on 09/28/2007 your first date of deliquency would be 10/28/2007

http://www.debtsteps.com/debt-collection-statute-of-limitations.html#SOL

 Im finding conflicting info on whether credit cards are 3 or 6 years. Im trying to find a state statue.

If youve gone this long without paying and you dont need to fix your credit right away id just lay low and wait for them to drop off.

[newby2012]

That is what I'm thinking.....just let it fall off, but would it help my credit to take care of them? 

What kind of negotiating could I do to pay them off at a lesser amount?

[Lasko189]

The only way it will help your credit to pay them off is if you do paid if dropped. That means you pay them and they remove the record of you missing payments from your credit. If it is in deed 3 years you are already in the clear and can ask them to remove them from your credit. Maybe call your state attorney generals office and just ask.

Everything im finding says that credit cards are open ended contracts and have a SOL of 3 years in WA.

[Shogun]

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Lasko189 wrote:

It would get the debt removed from there credit report, as if the debt never exsisted.

---

Hello and welcome to the forums.

Lasko, that is incorrect.  The letter you displayed is called a Cease and Desist letter, sometimes called a FOAD.  It bars any contact from you, yes it does do that.  However it has no affect on the reporting to your CRs.

If you want to get those removed now, you need to do a PFD letter, or Pay For Delete.  Read below on that.  If you have any questions feel free to ask.  Good Luck.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/What-Steps-Do-I-Take-Do-I-DV-PFD/td-p/337142

[Shogun]

Always be extremely careful when sending a cease and desist letter.  It is like sending the creditor a card with a pop up in the middle of it that says sue me!  Make sure it is outside the SOL before you ever, ever do this.  Sometimes creditors will still sue you outside the SOL, but you would have that as a legal defense.  So always be very cautious if considering this.