How to gain 56 points

[Anonymous]

As of today TU=603 EQ=604 EX=576

Trying to get to 660 in the quickest way.  Received a settlement letter from a Law firm associated with LVNV Funding LLc who has an old JCP account, balance says 840.40, will settle for 60% -- I want to counter offer for 40% as long as PFD is accepted.

Do I go for the PFD, or do I pay down my open, in good standing THD/Citi revolving CC to 90%  - Balance 1319, LOC 1500. (I make double payments now)

Ideally I would like to do both, but being realistic I'm trying to figure out if the counter offer PFD will effect my score all that much.  I'm reading in the forum that paying down util effects score more.  

Also, can't figure out why EX score is so much lower -- I've compared the reports and I can't find anything greatly different, negative or positive.

Thanks for the help -- we're getting somewhere!  EQ score was 585 back in June 2008

[Anonymous]

Definitely pay the balance down on the CC...to 1-9% UTL....which is between $15-$135...I don't think LVNV Funding does PFDs....but if you can get them to do a PFD...do that also...but focus on the CC balance first...

[Anonymous]

Can you share the reason you need a 660? That may influence what the best option would be.

Is the collection your only one?

Do you have other baddies? If so, what?

Is the collection within SOL? What is the DOFD?

If you got your reports from here, use the score simulator to see what would happen if you pay down your CC the amount you are wanting to pay it down.

[Anonymous]

Personally, I'd say it hinges on whether or not it is your last/only baddie. My experience and observations on this board are that the last baddie can get you quite a jump, certainly in the range you are looking for.  My last baddie fell off of Equifax and I got a 51 point jump. 

Also, imagine they are close/similar jumps; in one case you have a (say) 660 with a lower utilization and the other you have a 660 with an unpaid collection.  Who would you rather lend to?

[valley_man0505]

Is your CC that you want to pay down your only CC, meaning that your TOTAL revolving UTL is 90%.  If that is the case, I would pay down the card.  At one time, I only had 1 CC and my scores were similar to yours with about a 90% UTL.  I paid the card down to about 9% and got a 75 point gain.  However, as others have said, it would also depend if the collection you want to PFD is your only collection or not and how recent it is.  Even so, IMO, I think paying down your CC balance would be the best place to start.  Just remember, it is never a cut-and-dry situation since everyone's reports are different.  What gives me a 75 point gain may only give you a 5 point gain, but I don't think that will be the case here.

[Anonymous]

Thanks for the good advise.  This is not my last baddie -- trying to chizel away at what I can.

Just received a letter today from the law firm I wrote the settlement PFD counter offer.  The will accept an offer of $377.00 on a 844.25 account.  They say from GE Capital, I know it was from Wells Fargo / Slumberland.

The wording of the response is interesting, but they do not specifically state they will delete.

It says: Purseant to our earlier conversation this transmission will confirm acceptance on behalf of our client LVNV Funding, LLC the sum of $377.00 as full and complete settlement of the subject claim.  This acceptance is however contingent upon receipt of funds in this office no later than February 13, 3009.  Please make sure remittance is marked as a settlement in full and not payment if full and reference the file number XXXXXXXX.  The statements made herein are intended for settlement purposes only and can not be construed as admitting any of the within information.  This law firm is a debt collecor attempting to collect this debt for our client and any information obtained will be used for that purpose.  Please contact our office at XXXXXXXXXXX if you have any questions concerning this matter.

It is signed in pen by a collections supervisor.

I am reluctant to send $$ without the promise of delete.  Do I write back quick to try to demand that as part of the settlement?  I'm afraid if I pay that it will change th date and start the clock over again before it drops off.

Any help is greatly appreciated.  Oh, and btw I was looking to get to the 660 mark as a milestone on my quest for credit rebuilding.  I hoped to make this and possibly qualify for a used car loan.  The CC is the only active one and I make regular double payments on, I am planning to try to pay this down by this payment or next to reduce util %.  I do not have any other open lines of credit that I am activily using or paying on. Several write-offs in the bad column.

[ralbusta]

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@Anonymous wrote:

I am reluctant to send $$ without the promise of delete.  Do I write back quick to try to demand that as part of the settlement?  I'm afraid if I pay that it will change th date and start the clock over again before it drops off.

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Paying does not change the DOFD, which determines the drop off date. I would be wary about paying without the PFD commitment.

Paying down that balance to 1-9% will give you a substantial boost. Go that route first.

[Anonymous]

Thanks didn't know about the DOFD -- should I say didn't understand. 

If I end up settling with the CA will paying down that balance count in reducing the util% as well?  OR does it have to be an open, active account?

[ralbusta]

Collection accounts are not included in the Util calculation if I'm correct. Only open revolving accounts, and closed accounts with a balance (including CO's) count in util.

On open accounts your limit and your balance are used in the calculation, on closed and CO's only the balance is counted not the limit since it is no longer available. This is why closed accounts and CO's with a balance kills your util.