915westtexas wrote:
Newbie here and I'm finally deciding to pay attention to credit and try and clean up the mess I've created! Here's my mess and my questions:
1. I have a charged off auto loan (March 08) with Wells Fargo (previously Wachovia) showing for $9000. The vehicle was never repossessed and I paid a hefty tax fine when they reported the charge off. I'm getting a work bonus next week and am working to improve my horrible credit and would like advice on best option. I can settle it - I still have the vehicle, but not the title - but not for $9000. According to Kelly Blue Book it's only worth about $1100 right now. Would you recommend calling or writing to offer the settlement? I'm hoping that they would negotiate and send me the title. Would there by anything else I could do to make a positive impact on my credit?
I would attempt negotiation with them, but I would try to see if you can work a way to bring the account back to good standing, or if not, to remove the listing upon settlement. It has been done, although legally I am not sure with the fact they charged it off already. I had success removing a repossesion from Santander. My loan was with Citi Financial, and when Santander bought the portofolio they bought my already settled reposession account. So I just good willed Santander and tried to confuse them into believing that this account shouldnt have been listed. You could always try that with Wells Fargo since it was originally Wachovia. Just 2 cents on that.
2. $4400 owed to a university that was sent to collections. I am going to pay the university directly. Would the collection agency then remove it or would I have to contact them to do so? Would it have to stay?
You are making the assumption the Univeristy will take payment from you. Sometimes, the original creditor will defer to the collection agency regardless of your intent. While negotiating with the University, make sure that any agreement you have with them has the stipulation that they recall the account from the colleciton agency and have it stricken from your credit record. If you pay the University, there is nothing in the credit reporting laws that requires the collection account not report, although it wlil be required to be listed as paid. So your best bet is to negotiate that before paying the University, of course, if they will even work with you.
3. Paid off charge off to Cash Call (August 2011). Would a GW letter work with them for removal?
If this account is paid, a GW could very well work. It would be your best shot, in my opinion.
4. Charged off account with Plains Commerce(July 2008). I can pay this in full ($282). I'm thinking a PFD? Could it work?
Plains Commerce will not take payment for a charge off. Been there, done that. Over and over with that company. They will refer you to the collections agency who owns the account. In my case that was Jefferson Capital. However, Plains Commerce was the one account I was able to remove with a frivalous dispute before I started using this board and understood the correct ways to handle things. I wouldn't advise you to do that, but I would be remissed if I didn't tell you that's how that one came off my credit.
5. Three small collections for less than $200 each. They range from 3-6 years old. I'd like to send PFD with settlement amount. Is that a good idea?
I think the PFD route is a great way to go. That is how I handled similar situations. Another thing you could try and worked for me. The smaller collection accounts I just paid in full. I left money on the table, with the explicit thought that I would good will these and use that fact to my advantage. And it worked many times. Coulple times it didn't. But that was obviously after I tried PFD several times on each account first. The logic behind it was this: if the account is small, you can say in your good will letter 'I paid this account in full without negotiating' and some companies will consider that good faith and return the favor. Use this at your own risk. It worked for me.
6. I have 2 student loans (Direct and Sallie Mae) that I have just brought current in January (Direct was showing 90 days and Sallie Mae 30 days).
Good Will is the way to go with these as well, but you might want to give it a little time since they are so new. You may also call and try to work through it, since you are now in good standing.
7. I have 2 credit cards open, but balances at the limit. I have 1 30 day late from Nov 2011 and have just paid them off. I will keep them open and low balance going forward as I've read in the forums
. Pay down the balance on one to 0, and the other to 9 percent or lower of the credit limit. This will ensure your best score. Try to goodwill the late payment, late payments are Fico destroyers.
Thanks for any and all advice!
I have bolded my opinions on how I would handle these accounts if I was in your position. We had a few similar accounts and situations. Keep in mind, everyone has different opinions and techniques to handling things. Some people like the direct dispute process, some will not.
I think you need to take the advice many of us give you, and make your own action plan.
Starting Score: 576 EQ 1-12-13
