@seanashby wrote:Greetings all,
I'm 29-years old. When I was in college I did a number on my credit. I let the bad marks slide off of my report and opened two Capital One secured credit cards. Both cards have been open for two years. I've used them, made payments every month, and within the past year with a jump in income have always kept my utilization under 25%.
My scores are as follows: EQ 663, TU 651, and EX 615. They've stayed at the same level for the past year.
I have two aforementioned cards open with a total limit of $1,500.
Here are my questions:
The only black mark I have on my credit is an open collections from an unexpected hospital stay I had in 2011. The bill stands at $1,900. I have the cash on hand to pay the full amount and be rid of it forever. I'm apprehensive to do that because I have seen some people say I should save that money and let the account expire (in 2018). Should I pay the account off (after negotiating of course) - or should I leave it and let it run its course?
Lastly, what can I do to kick start my credit? I've considered opening a retail card or applying to take out a small loan just to pay it back.
Any help is greatly appreciated. I started a new job recently where I'm doing pretty well and am thinking about buying a new car. I would also like to get credit cards with some real incentives at some point. Thank you, FICO community!
-SA
Ask the OC/CA if they will agree to PFD, most lenders won't approve you if you have an unpaid collection as to the case with me with Chase.
Try to get an auto loan/personal loan since it will count as an installment loan, store card will help to.
@seanashby wrote:Greetings all,
I'm 29-years old. When I was in college I did a number on my credit. I let the bad marks slide off of my report and opened two Capital One secured credit cards. Both cards have been open for two years. I've used them, made payments every month, and within the past year with a jump in income have always kept my utilization under 25%.
My scores are as follows: EQ 663, TU 651, and EX 615. They've stayed at the same level for the past year.
I have two aforementioned cards open with a total limit of $1,500.
Here are my questions:
The only black mark I have on my credit is an open collections from an unexpected hospital stay I had in 2011. The bill stands at $1,900. I have the cash on hand to pay the full amount and be rid of it forever. I'm apprehensive to do that because I have seen some people say I should save that money and let the account expire (in 2018). Should I pay the account off (after negotiating of course) - or should I leave it and let it run its course?
Lastly, what can I do to kick start my credit? I've considered opening a retail card or applying to take out a small loan just to pay it back.
Any help is greatly appreciated. I started a new job recently where I'm doing pretty well and am thinking about buying a new car. I would also like to get credit cards with some real incentives at some point. Thank you, FICO community!
-SA
For medical debt:
1. Call the OC and ask that they recall the collection in exchange for full payment
2. Send the reporting CA a PFD offer
3. Google the HIPAA Process and contact its creator for help
You have 2 secured cards so as soon as you resolve the medical CA thats the time to app for some unsecured bankcards and 1 store card. I would pay off those revovlvers so only 1 is reporting a balance of no more than 9% of its CL when you app for the new cards. When the time comes you can pose a question in the CC Board to ask what cards you should actually get, you would want to give them your spending habits and whether you are looking for travel or cashback cards. Good luck in getting this all resolved 
