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Valued Member
brentlamb6708
Posts: 25
Registered: ‎01-28-2011

NEED HELP ON BEST WAY TO IMPROVE SCORE

[ Edited ]

Ok Here is the delima, fresh out of highschool applied for 5 credit cards and all accepted. maxed all of them out with the intentions of paying all of them off once i went fulltime at my job. Instead of going full time i was laid off. so i fell behind trying to survive and each card fell more than 120 days past due, so they were charged off. These were the cards

First financial 220.28 (paid off now)

Capital one 1230 (paid all but 53.29)

Chase 863

Chase 859

Bank of America 796.99

 

Also i just saw on my cr the only thing showing uti is

CFNA at 719 with a CL of 1200

i have several student loans that show a balance of more than the loan amount due to Deffered payments. should i pay the student loans and cfna first to bump my credit score or should i pay off the charge off's?

 

My question is all of the cards show just as a charge off, and my mortgage loan officer told me that paying them off will not help my credit score. I need to know what will be the best plan of action to boost my credit score up?

PFD

PIF

settle

When i call the banks they will not handle a payment from me and refer me to the collection agency but the CA doesnt show up on my CR


Starting Score: 501
Current Score: 2/04/2012 611
Goal Score: 10/01/2012 720


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Established Contributor
kjm79
Posts: 1,008
Registered: ‎01-22-2008

Re: NEED HELP ON BEST WAY TO IMPROVE SCORE


brentlamb6708 wrote:

Ok Here is the delima, fresh out of highschool applied for 5 credit cards and all accepted. maxed all of them out with the intentions of paying all of them off once i went fulltime at my job. Instead of going full time i was laid off. so i fell behind trying to survive and each card fell more than 120 days past due, so they were charged off. These were the cards

First financial 220.28 (paid off now)

Capital one 1230 (paid all but 53.29)

Chase 863

Chase 859

Bank of America 796.99

How old are these accounts?

 

Also i just saw on my cr the only thing showing uti is

CFNA at 719 with a CL of 1200 - approximately at 60% UTIL - hurting your score. 

i have several student loans that show a balance of more than the loan amount due to Deffered payments. should i pay the student loans and cfna first to bump my credit score or should i pay off the charge off's?  Installments have very little weight in your FICO score, don't worry about this yet as long as the accounts are listed as current.  BUT do keep a close eye on them.  You can read horror stories here about people not knowing the loans came out of deferrment and they didn't know and missed payments. 

 

My question is all of the cards show just as a charge off, and my mortgage loan officer told me that paying them off will not help my credit score. I need to know what will be the best plan of action to boost my credit score up?  Your LO is right, a paid CO is the same as an unpaid CO.  Will not improve your score at all. 

PFD - This is the best option.  But depending on the length of your credit history, getting your oldest accounts deleted can do more harm than good. 

PIF - Will not improve your score.  But after you PIF you can attempt GW letter to remove negative info. 

settle - Will not improve your score.  Same as above regarding GW letters.

When i call the banks they will not handle a payment from me and refer me to the collection agency but the CA doesnt show up on my CR - are the charged off accounts reporting the limits, balances, past due etc???  If they are still reporting the info then they still own the debt.  If they are reporting zero balances, zero past due, then they sold the debt to the CA and you ahve to deal with them.  If the CA's aren't reporting, you can try to get them to agree to not report if you pay in full. 


What are your current scores?  Are the student loans and CFNA accounts the ONLY positive accounts on your reports? 


Starting Score: TU? EQ 585 EX? (12/06) (CH 7 bk 11/04)
Current Score: (5/12) TU 699 (myFICO) TU 709 (WalMart) EQ 690 EX 686 (CC denial 7/11)
Goal Score: 720 Across the Board by Mid 2012
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Valued Member
brentlamb6708
Posts: 25
Registered: ‎01-28-2011

Re: NEED HELP ON BEST WAY TO IMPROVE SCORE

tu and eq are 540's and i have 5 student loans 2 revolving credit accounts that were closed the cfna and also a verizion wireless that is in co status.

so yes the only accounts in good standing are the student loans and cfna. should i pay cfna down to like 10 dollars and then work on students loans?

 

I have spoke with chase and boa and both said i could not pay them. if i pfd with the ca, they are not reporting so do they have the abbility to delete a boa or chase acc from my cr? Should i settle with the ca


Starting Score: 501
Current Score: 2/04/2012 611
Goal Score: 10/01/2012 720


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Established Contributor
kjm79
Posts: 1,008
Registered: ‎01-22-2008

Re: NEED HELP ON BEST WAY TO IMPROVE SCORE

Definitely apy down the CFNA.  Whatever your are comfortable doing to get it less then 9% UTIL.  You should try adding a secured credit card to your mix.  Doesn't have to be a large amount, $300-$500 to start.  And let it report a balance less than 9% (if you add a secured card, pay the CFNA to zero).  I have a CFNA account and they have been very generous with CLI's, keep the account in good standing and every other month or so request a CLI online (I've requested one every month for the last 6 months, given $200 each time, just a soft pull so no inquiry ding).  Getting a larger CL will help your UTIL. 

 

As long as the SL are in deferrement, don't worry about them.  You would be better off paying the charge offs and collections.  Start with the most recent of those.  Keep trying PFD's and GW's.  Search the boards for contact info for the companies you are dealing with.  Any time you can pay a collection account before it reports, do it.  Otherwise you get double dinged by the OC and CA for the same account.  So if you can pay and they won't report, do it.  Unfortunately, once you pay the CA they can't do anything about the OC reporting.  At that point all you can do is make sure the OC is reporting zero balance zero past due, paid status.  It'll still say charged off or sold or something along thsoe lines.  But at that point your can GW letter them to death.  It's only $.44 or free if you can find an e-mail. 


Starting Score: TU? EQ 585 EX? (12/06) (CH 7 bk 11/04)
Current Score: (5/12) TU 699 (myFICO) TU 709 (WalMart) EQ 690 EX 686 (CC denial 7/11)
Goal Score: 720 Across the Board by Mid 2012
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