Rebuilding Your Credit

[Cthomp7280]

Ok, so my goal is to raise my FICO Score to the 620-640 range for an FHA loan.

I have two trouble acounts that I need to handle. Here is the full snapshot:

#1 - CapitalOne Account - Charged Off (Amount Owed: $1,171 - No CL reporting - High Balance Only of $1,027)

#2 - Asset Acceptance - Open Collection (Amount Owed - $3,860 - Largest Past Balance of $2,268 - Settlement Offered for about 1/3rd of the balance)

Since these are Charge Offs and Collections, do these amounts this affect my utilization? If so, would paying the CapOne in full, and accepting the settlement with Asset (with a plan to have the Trade-Line deleted) raise my score? If this is in fact affecting my utilization, is the CapOne account "appearing" to have a utilization of 114%? Does the same hold true for the Asset acount?

Any help and insight would be appreciated. Thanks!

[Shogun]

The Cap1 is counting against your util.  A CA will not count as util.

[Cthomp7280]

Another helpful tip. Thanks. So paying this off ASAP should help my score almost immediately (even if it needs to rebound from a drop)?

[Shogun]

Paying down util is one of the fastest ways to get a bump.  

[Cthomp7280]

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Shogun wrote:

Paying down util is one of the fastest ways to get a bump.  

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Well guess who'll be getting a call today!!!

Thanks Shogun!