Finally Rebuilding Credit From Stupid Youth

[Rex727]

Hello,

I've been browsing and researching for the last couple weeks and finally want to take the plunge - make a post, and begin to actually work on my credit. I could really use some advice on how to properly proceed. I conceed that the debts are valid, so I honestly feel as if I should pay them but I want to go about it in a way that I can save the most money and maxmize my returns on my credit report. I only have my TU report off hand, waiting for hard copies on the other two but this is where I'm starting.

Adverse Accounts:

Capital One, opened 4/19/08, last payment 6/19/10 - charged off, closed on 3/11 - notes: Sold to Portfolio Recovery Associate -- $1,000 on the dot.

USAA Saving Bank, opened 7/08, last payment 6/10 - charged off, closed on 12/10 - I can't find who I owe this to - is it still USAA? How can I get more info? Roughly $1,700

Verizon Wireless, opened 1/12, closed 10/12 - in collection - - $600

Verizon Wireless, open 4/10, closed 3/11. Account paid in full; was in collection.  -- Can I clean up that account somehow?

WSFS Bank, open 3/10, deposit overdraft $155 - charged off. Again not sure who the debt is owed to.

Allied Interstate (OC Nextel) 11/13 - in collection - $450 notes: Placed for collection 11/13

Convergent Outsourcing (OC Xcel Energy) - in collection - $275 notes: Placed for collection 2/14

Interstate Credit Cntrl (OC my old landlord) - inc ollection - $2,000 notes: Placed for collection 1/14

Portfolio Recovery - this is the Capital One debit

4x Spring Collections (OC my old doctor) - in collection, totalling roughly $475 notes: Placed for collection all in 2013

SW Credit Systems (OC Windstream) - in collection, $171, acct info disputed by consumr - placed for collection. Not sure what this is, definitely needs to be verified. placed for collection on 6/21/13

I then have a few satisfactory accounts and even some that are from joint accounts with my parents;

American Express, account relationship terminated, CL $2,900. Current, paid or paying as agreed (open 7/2004, 4/2011 last update)

American Express, account relationshiop terminated. CL $25,000 Current, paid or paying as agreed (open 3/2006, 5/2006 last update)
Bank of America, individual account, revolving account. CL not listed. Current, paid or paying as agreed (open 8/2004, 4/2080 last update)

Chase/Bank One Card Services, authorized account. CL $29,500. Current, paid or paying as agreed (open 3/2000, 5/2011 last update)

Then a bunch of inquiries.

I really want to get the stuff that is charged off or in collections taken care of. I'd like to pay a percentage, or full with a PFD, or just in general want to help improve my credit as I have a goal of buying a car in 12 months. I finally have a real, salaried job and begin to pay off my debts and be financial resposbile.

I know this is a ton of info, I would greatly appreciate any/all advice. On other forums I've read about the '1-2 Punch' but it seems kind of shaddy or just irresposbile. I'm thinking I should validate all of the debts given the age of most of them and then go from there, no?

Should I offer to settle/PFD on any that anyone has experience working with and can give advice?

Please let me know if you need any info or if I posted anything inapproriate or wrong.

Thx,

Rex

[Shogun]

Hello and welcome to the forums.

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@Rex727 wrote:

Hello,

I've been browsing and researching for the last couple weeks and finally want to take the plunge - make a post, and begin to actually work on my credit. I could really use some advice on how to properly proceed. I conceed that the debts are valid, so I honestly feel as if I should pay them but I want to go about it in a way that I can save the most money and maxmize my returns on my credit report. I only have my TU report off hand, waiting for hard copies on the other two but this is where I'm starting.

Adverse Accounts:

Capital One, opened 4/19/08, last payment 6/19/10 - charged off, closed on 3/11 - notes: Sold to Portfolio Recovery Associate -- $1,000 on the dot

Send a DV to Portfolio

USAA Saving Bank, opened 7/08, last payment 6/10 - charged off, closed on 12/10 - I can't find who I owe this to - is it still USAA? How can I get more info? Roughly $1,700  You can contatct them and ask if they still own it and if you can set up payments to repay.

Verizon Wireless, opened 1/12, closed 10/12 - in collection - - $600  

Probably going to have to pay/settle this one.

Verizon Wireless, open 4/10, closed 3/11. Account paid in full; was in collection.  -- Can I clean up that account somehow?

You could try the GW route, but probably wouldn't work since you have another active collection with them.

WSFS Bank, open 3/10, deposit overdraft $155 - charged off. Again not sure who the debt is owed to.

You could contact them and ask if they still have the account, and arrange payment.

Allied Interstate (OC Nextel) 11/13 - in collection - $450 notes: Placed for collection 11/13

Send a DV

Convergent Outsourcing (OC Xcel Energy) - in collection - $275 notes: Placed for collection 2/14

Send a DV

Interstate Credit Cntrl (OC my old landlord) - inc ollection - $2,000 notes: Placed for collection 1/14

Send a DV

Portfolio Recovery - this is the Capital One debit

Send a DV

4x Spring Collections (OC my old doctor) - in collection, totalling roughly $475 notes: Placed for collection all in 2013

Send a DV

SW Credit Systems (OC Windstream) - in collection, $171, acct info disputed by consumr - placed for collection. Not sure what this is, definitely needs to be verified. placed for collection on 6/21/13

Send a DV

I then have a few satisfactory accounts and even some that are from joint accounts with my parents;

American Express, account relationship terminated, CL $2,900. Current, paid or paying as agreed (open 7/2004, 4/2011 last update)

American Express, account relationshiop terminated. CL $25,000 Current, paid or paying as agreed (open 3/2006, 5/2006 last update)
Bank of America, individual account, revolving account. CL not listed. Current, paid or paying as agreed (open 8/2004, 4/2080 last update)

Chase/Bank One Card Services, authorized account. CL $29,500. Current, paid or paying as agreed (open 3/2000, 5/2011 last update)

 Leave these alone!  

Then a bunch of inquiries.

 Don't apply for anything as of yet, they will age off quickly.

I really want to get the stuff that is charged off or in collections taken care of. I'd like to pay a percentage, or full with a PFD, or just in general want to help improve my credit as I have a goal of buying a car in 12 months. I finally have a real, salaried job and begin to pay off my debts and be financial resposbile.

I know this is a ton of info, I would greatly appreciate any/all advice. On other forums I've read about the '1-2 Punch' but it seems kind of shaddy or just irresposbile. I'm thinking I should validate all of the debts given the age of most of them and then go from there, no?

Should I offer to settle/PFD on any that anyone has experience working with and can give advice?

Please let me know if you need any info or if I posted anything inapproriate or wrong.

Thx,

Rex

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OK. Rex, I've given you a little info on what I would do.  Just remember, it takes time.  The DVs are sent to make sure they still own the debt, also remember to ask for the OC's name when you send them, that way you know who you are paying.

[Rex727]

Quite the mess huh?

It seems your score was around where mine is and now is sky high - thanks so much for the advice.

Is there any specific DV letter I should use to verify all those?

I think I'm also going to get a PO Box setup for all this mail, or is that a bad idea?

Thanks,

Rex

[Whitneyy]

I didn't see a need for  PO Box because I cleaned up all old addresses on my credit report and had everything sent directly to me so I could deal with it first hand.

When you get ready to start paying for things, the way I go about it is, starting with the smaller thing first. Telling the CA I can only pay a certain amount every two weeks on payday and I let them take it directly out of my account. I have gotten a lot of things paid quickly and deleted off that way. I still would go ahead and send DVs for everything else before offering to pay.

As stated, do not apply for anything at the moment because inquires bring your credit score down as well. 

[Rex727]

Working on contacting WSFS and USAA to start, they are the least ittimidating to me and I had an account at WSFS for 15yrs and my parents still have their money with them so hopefully they are receptive.

Will having those older good accounts with AMEX and Chase help my score increase after I start removing some of the baddies? Also are these going to fall off soon like a bad thing would? Most of them are dated in 2007...

Thx,

Rex

[Shogun]

I agree with the not opening the PO Box, so as not to add to the confusion. Those AU accounts are helping, although not as much with the new FICO 08 scoring model.

You do need to build new good credit while repairing the old.  You might have to go secured for a bit, but that's no big deal.  You just open secured cards with what you can afford.

If the DoFD of those are from 2007, then yes, they are on life support and will be excluded from a simple pull of your CR shortly.  You have to look at when they went into arrears though, not when they were opened.

Look at the below link for some DV suggestions.

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=61276

[Rex727]

Got it, I won't do the PO Box - the reason I was considering is that I rent my apartment and have moved at least 5 times in the last 5 years so it would just be for future consistency.

I've read conflicting things on if I should send DV letters if they are legit debts - I suppose if I conceed that I am going to pay them in the next few months I might as well verify before I pay. 

For the Springer Collections, they are from my doctors office - do you think I should contact their office first or if it has been placed in collections is it too late?

I'm thinking I'm going to send DV to all the places you advised, if they are verified I will setup a payment agreement and try for PFD. If that doesn't pan out I will just pay it and then try a GW letter. If that doesn't work, at least I gave it the old college try!

I went to Wells Fargo today where I have my checking & savings account (with direct deposit from work) and they are going to set me up with a secured credit card. I'm going to start it at $400 - should I get a second one as well?

Sorry for the abundance of questions, just want to make sure I tackle this correctly

Thx,

Rex

[Shogun]

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@Rex727 wrote:

Got it, I won't do the PO Box - the reason I was considering is that I rent my apartment and have moved at least 5 times in the last 5 years so it would just be for future consistency.

I've read conflicting things on if I should send DV letters if they are legit debts - I suppose if I conceed that I am going to pay them in the next few months I might as well verify before I pay.  There's nothing against DV's on legit debts, that's on disputes.  You don't dispute a proper posting.  The DV just verifies they still have the debt and have active collection authority.  They are outside the 30 day dunning notice, so they don't have to respond.  Most do though.  

For the Springer Collections, they are from my doctors office - do you think I should contact their office first or if it has been placed in collections is it too late?  I'd contact the doctor's office and just ask if they accept payment.  If they do, I'd pay, wait a bit, then DV them.  Might work.

I'm thinking I'm going to send DV to all the places you advised, if they are verified I will setup a payment agreement and try for PFD. If that doesn't pan out I will just pay it and then try a GW letter. If that doesn't work, at least I gave it the old college try!

I went to Wells Fargo today where I have my checking & savings account (with direct deposit from work) and they are going to set me up with a secured credit card. I'm going to start it at $400 - should I get a second one as well?  Actually, yes.  Another would help.  Get those positive TLs to make a thicker healthier CR.

Sorry for the abundance of questions, just want to make sure I tackle this correctly

Thx,

Rex

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[Rex727]

I'm quite tempted to just send PFD settlement letters to the CAs on my report and offer roughly 25% payment in the form of a cashiers check and see if they will agree. Maybe for the bigger ones I will do the DV first, but I'm kind of itching to just start settling some of these.

I actually have an appointment at the doctors office that sold my debt to Springer Collections so I will just see if I can meet with someone from their billing department when I am there later this week. 

Is it a bad idea to jump right for PFDs? Does it let them know I am able to pay and want to get my credit fixed - making it more likely they will play hardball?

Thx,

Rex

[Rex727]

And this will be my DV letter that I will customize for each CA but this is the template I've created:

USPS CERTIFIED MAIL XXXXX123456789XXXXX

Michael XXXXXX

1234 ABC Avenue North

Anytown, US 12345

May 13, 2014

SW Credit Systems Inc

4120 International Parkway

Carrollton, TX 75007

Re: Claimed Debt in Collection

Dear Sir or Madam:

I recently pulled my credit bureau reports and discovered that you claim I owe a debt in the sum of $171.00. In accordance with § 809 of FDCPA, I formally request that you send me a validation of this debt.

Sincerely,

Michael XXXXXX

Thoughts? Comments? Concerns? Compliments ?

-Rex