Need help on how to raise my score? *UPDATED*

[Anonymous]

I am trying to do some credit repair myself and raise my score and from what I have read and understand I believe my biggest issue is my uti.  Here is the info on my accounts and the baddies that I currently have.

JC Penny’s - $2700 balance ($3000 CL)

HSBC Direct Merchants - $372 ($400 CL)

Macy’s - $100 balance ($200 CL)

Orchard – $0 balance ($300 CL – not reporting yet it’s a new card)

AU Sears (Closed account) $730 balance ($800 CL) – I requested to be removed as AU and waiting for CR to update.

I have a few baddies….

(1) 30 day late on auto loan from 12/09 (sent a GW letter, but haven't heard anything) 

(1) charge off

(1) collection

BK filed 12/03

I do have another charge off that I am disputing because it should say “IIB”.  I have about 5 accounts that are listed as "IIB", but should be falling off starting in 8/10 per TU CR.

Can anyone give advice on where I should start to get my scores up?  

EQ – 577 (fico)

TU – 566 (fico)

Thanks in advance!!

[mauve]

Where you start depends on a few factors

- Do you have money to pay your collections / chargeoffs in full if necessary?
- What are the DoFDs for those (date of first delinquency, NOT DOLA, date of last activity)

- What is the SoL in your state (statute of limitations, the time they have within which to sue you)

Honestly, I'd probably get all of those credit card balances down, starting with the ones charging the highest interest.  Your utilization is 35% of your score, and ideally you want that at 0-9% of your credit limit.  However, if you are within SoL for the collection and chargeoff, you probably want to make sure you have enough cash on hand to pay those in full if necessary.  Is the chargeoff paid?  If so, start sending goodwill letters to them.  And if you have the money to PiF (pay in full) the collection and/or it's outside of SoL, I'd send them a DV (debt validation) letter.  Just basically "Please validate this debt".  There's a variety of options for how they'll respond - they might not respond, they might validate, they might not be able to validate and will delete...they might also send you a settlement offer.  Once you get a response, send them a PFD (pay for delete) letter, and if they sent a settlement letter, use that number as your offer. 

[Anonymous]

You're right - your utilization is having a significant impact on your scores. 

Remember FICO looks at overall utilization as well as utilization on each account, and they like a balance to report on less than half of your revolving accounts. 

If you give a little more info on the Charge Off and Collection, you'll get some good feedback on how to handle those.  Also make sure to read the posts sticked at the top of this forum - they are full of helpful information.

With your good work at cleaning up your reports and paying down your utilization, you'll see good score improvement now, and when your BK falls off your report.

ETA:  mauve's speedy fingers are more awake than mine!

[guiness56]

Even though you still have negatives on your CR, just paying down the utilization on those CC should gain you some points.  You are near maxed out.  Utilization counts 30% of your score.

What are the DoFD for the CO and the collection?  Are you still within your state's SOL?

As far as paying down the CCs, there are different ways to go about it.  It depends on what you want.

Paying down the ones with the smallest balances will boost your score faster and give you the satisfaction of getting it done.  Paying off the higher interest ones first will stop you from paying higher interest each month.  It is up to you.

[Anonymous]

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@mauve wrote:

Where you start depends on a few factors

- Do you have money to pay your collections / chargeoffs in full if necessary? No
- What are the DoFDs for those (date of first delinquency, NOT DOLA, date of last activity) 8/06

- What is the SoL in your state (statute of limitations, the time they have within which to sue you) 6 years

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The charge off and collection are the same account.  The charge off is reporting $0 balance. I have not paid the charge off/collection.  Bureau Investments Group is the CA reporting.  Do I send them the DV letter?

[guiness56]

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@Anonymous wrote:

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@mauve wrote:

Where you start depends on a few factors

- Do you have money to pay your collections / chargeoffs in full if necessary? No
- What are the DoFDs for those (date of first delinquency, NOT DOLA, date of last activity) 8/06

- What is the SoL in your state (statute of limitations, the time they have within which to sue you) 6 years

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The charge off and collection are the same account.  The charge off is reporting $0 balance. I have not paid the charge off/collection.  Bureau Investments Group is the CA reporting.  Do I send them the DV letter?

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Since you do not have the money to pay and it is still within SOL, no do not send a DV.  Just let it sit.

If you were to send a DV and they validated and you could not pay, they could sue you.

[mauve]

Do Not Send Them A DV until you have the money to PIF.  The DV can wake the sleeping giant and lead to them suing you.  Let it sleep and work on other stuff until you have the cash to PIF or the SOL expires in 2012.

[mauve]

I mean "ditto". 

[Anonymous]

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@guiness56 wrote:

Even though you still have negatives on your CR, just paying down the utilization on those CC should gain you some points.  You are near maxed out.  Utilization counts 30% of your score.

What are the DoFD for the CO and the collection? 8/06 Are you still within your state's SOL? Yes, SOL is 6 years

As far as paying down the CCs, there are different ways to go about it.  It depends on what you want.

Paying down the ones with the smallest balances will boost your score faster and give you the satisfaction of getting it done.  Paying off the higher interest ones first will stop you from paying higher interest each month.  It is up to you.   I am planning on paying off the HSBC account ($372) this month.  

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[Anonymous]

Looks like my only option right now is to start paying my CC's down and then hopefully I will get a little score increase.  

Thanks, you guys are the BEST!!