Lump sum of cash to repair and delete items from my credit report

[WaterOverFire]

Hello All, 

Awhile back, I let an ex take advantage of me and signed for some credit cards for her and let her put some things in my name. Obviously I was stupid and learned a hard lesson to not let people I love take advantage of me.  

Fortunately, I am now in an excellent financial position to pay off those past debts all at once and repair my credit.  I'd just like some input on settling it all and making SURE those items are deleted once I settle them.  

My first step was pulling my free annual reports and validating some of the items reported and I managed to get a few items deleted which is a good start. 

There are 2 collections for smaller amounts on there (less than $200 each) which I'd like to pay off and 2 judgements totaling roughly $3,500. I've contacted the attorneys involved in the judgements and worked out a settlement amount. I have the finances to pay everything off all at once and I'd just like to make sure everything gets deleted thus greatly improving my score quickly. My questions are:

1.) Would the scores dramatically increase after the collections and judgements are all paid off? I understand I'll need to give the CB's 30 days or so to update but will the scores go up dramatically in 30-60 days? (I'm currently in the low 500's due to these debts and collections continuiously revolving)

2.) What do I need to do to make sure the creditors delete them after I settle them? I don't want a situation where I pay them off and they're still there, wreaking havoc on my scores, causing lots of headaches trying to get them removed long after I paid them off. 

3.) Some of the collections and judgements fall off in 2014-2015, is it worth it to pay those off? I live in Ohio and it sounds like it's a creditor-friendly state which works against me. 

Thanks in advance, any input appreciated. 

Thanks in advance. 

[sjt]

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@WaterOverFire wrote:

Hello All, 

Awhile back, I let an ex take advantage of me and signed for some credit cards for her and let her put some things in my name. Obviously I was stupid and learned a hard lesson to not let people I love take advantage of me.  

Fortunately, I am now in an excellent financial position to pay off those past debts all at once and repair my credit.  I'd just like some input on settling it all and making SURE those items are deleted once I settle them.  

My first step was pulling my free annual reports and validating some of the items reported and I managed to get a few items deleted which is a good start. 

There are 2 collections for smaller amounts on there (less than $200 each) which I'd like to pay off and 2 judgements totaling roughly $3,500. I've contacted the attorneys involved in the judgements and worked out a settlement amount. I have the finances to pay everything off all at once and I'd just like to make sure everything gets deleted thus greatly improving my score quickly. My questions are:

1.) Would the scores dramatically increase after the collections and judgements are all paid off? I understand I'll need to give the CB's 30 days or so to update but will the scores go up dramatically in 30-60 days? (I'm currently in the low 500's due to these debts and collections continuiously revolving)

2.) What do I need to do to make sure the creditors delete them after I settle them? I don't want a situation where I pay them off and they're still there, wreaking havoc on my scores, causing lots of headaches trying to get them removed long after I paid them off. 

3.) Some of the collections and judgements fall off in 2014-2015, is it worth it to pay those off? I live in Ohio and it sounds like it's a creditor-friendly state which works against me. 

Thanks in advance, any input appreciated. 

Thanks in advance. 

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If you pay off the collections make sure you get a "Pay For Delete" and its in writing. Paying off a collection and it updates a "paid status" doesnt mean you

[Countingpennies]

Also, ask the judgement attys., if they will file to vacate or dismiss the judgements. If they are just updated with the court as satisfied, the CRAs will just update.
Of course, get any deal you make in writing.

[WaterOverFire]

So the PFD is supplied by the CA or the creditor?

[WaterOverFire]

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@Countingpennies wrote:
Also, ask the judgement attys., if they will file to vacate or dismiss the judgements. If they are just updated with the court as satisfied, the CRAs will just update.
Of course, get any deal you make in writing.

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File to vacate or dismissing the judgements will completely remove them from my credit reports? If they're not vacated or dismissed, then it'll just update automatically on my credit reports but just say satisfied? Is that the difference? Thanks again

[sjt]

Vacating a Judgment:

From my limited knowledge and understanding is that the process for vacating judgments vary from each jurisdiction. Ultimately the presiding judge makes the final decision not just the plaintiff.

At the very least when paying the judgments the plaintiffs will file a motion of settlement. Your reports will show them as settled/paid. To have them vacated you will have to file a motion with the court. Some courts will not vacate just because you paid.

Pay For Delete:

When contacting a collection agency make sure you get a Paid for Delete agreement and it must be in writing. You can search the board for sample of an agreement. You need to iniate the PDF as the collection agencies will not offer.

[WaterOverFire]

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@sjt wrote:

Vacating a Judgment:

From my limited knowledge and understanding is that the process for vacating judgments vary from each jurisdiction. Ultimately the presiding judge makes the final decision not just the plaintiff.

At the very least when paying the judgments the plaintiffs will file a motion of settlement. Your reports will show them as settled/paid. To have them vacated you will have to file a motion with the court. Some courts will not vacate just because you paid.

Pay For Delete:

When contacting a collection agency make sure you get a Paid for Delete agreement and it must be in writing. You can search the board for sample of an agreement. You need to iniate the PDF as the collection agencies will not offer.

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Would my scores improve in the same manner whether it shows satisfied/paid as it would if it was vacated? In other words, what benefits (if any) for me to take the extra steps to file a motion with the court to have them vacated? Thanks 

[guiness56]

No, a paid judgment, collection or charge off is just as bad, score wise, as an unpaid one.

[WaterOverFire]

So what are the advantages to paying them off then if the scores will remain the same and it's just as bad to pay them off as it is to leave them be?

[guiness56]

For a judgment, if you pay it they can't garnish your wages or whatever else your state might allow.  For the collections and COs, so you won't have a judgment. 

Above all else, to be debt free.