Need strategy for rebuilding of credit

[KrisNoel]

I apologize in advance, this is going to be very long. Gold star to anyone who finishes it.  My husband and I have gone through several rough years since the recession. We both lost jobs, and my husband had several years of unsteady employment due to project-based work. For the past 6 months we have both finally been fully employed with good salaries, so we are trying to dig ourselves out.  Our ultimate goal is to buy a house. We are looking to move across the country next summer, and would love to be able to buy then, but based on the below, that is unlikely.  But would like to make as much headway as possible in the off-chance it could work out.  But we realize we have a long road.  On the plus side, based on our current salaries, we will have about $4-5K a month to tackle utilization and past debt (and save for down payment). But I want to make sure I tackle the things that will make the biggest impact first.  Our current utilization is very high, but we have been concentrating on getting everything current first. We could pay in full in December, but I think that money might be better spent trying to PFD or settle charge offs. And then worry about utilization.  So would love any advice anyone could give.

One thing keeping our scores as high as they are is that we have very long credit history (+19 years for both of us).  I think AAoA is about 12 years. My current scores (from Credit Check Total) are Experian 544, Equifax 592 and TransUnion 576. Not sure of husbands Ficos, but FAKOs are similar to mine. Reality is probably lower.

Here is the bad news.

Collections/Charge-offs:

Me:

• Capital One charge off. Paid in full Feb 2015. DOFD ~6/2013. GW?
• Cavalry Collections for Citibank charge off (original charge off not showing). Balance $1,549. Not showing monthly lates since it is collection, not CO.  DOFD 7/2013.
• Jefferson Capital, orig. Verizon. $94 balance. Mailing PFD this week.
• UCSB America. Medical Collections, orig. Kaiser. $1,745 bal. Reporting monthly. Opened 8/11, orig debt from Oct 2010. PFD or HIPAA?
• Advance Imaging – Medical Collections. $79. No idea what this is, never received collection notice as far as I know.  Updated 1/13/12, so it is old.  PFD or HIPAA?

Husband:

• 3 Capital One accounts (putting together since it is so confusing). Husband has spoken to them several times, but because there are 3 accounts, I don’t think we are getting resolution on all of them.
• #1- charge off. Reporting balance of $220, but just made last payment. Have been making payments for 1 year+, but of course showing charge off every month. Wait until it updates to paid and then GW?
• #2- not showing as charge off, but I am sure it is about to. 150 days late as of October. Husband thought he was getting this in repayment too, but doesn’t look like he did. Calling again today to see options. Not sure what recommended approach is here.
• #3 – last time he called to resolve above, they reactivated third account. Showing current since September of 2015. Had 30/60 day lates just prior. Not sure why they reopened this account when #2 is so late.

• Cal Coast – Medical Collection. Balance $110. PFD or HIPAA?
• IC System - $0. Husband talked to them a couple of months ago and set up payment plan. Just paid last payment. They said they would remove once it was paid. But only verbal agreement, so who knows.
• Cal Coast – Paid collection in March of 2015. GW?
• Bridgeport Financial – Paid collection from Feb 2014. GW?

Lates:

Me:

• AES Student loan. Current past 2 ½ years.  120 day lates Jan-May 2014 (had been in forbearance, never followed up with payment)

Husband:

• MOHELA student loans (lists as 7 separate accounts totaling $40K). Current now, but shows 1 90 day late in July of 2016 on all 7. Any chance of GWing them?
• Navient student loan Balance $19,927. Current now, but shows 90 and 120 day lates Jun/July of 2016. Any hope for this?

Both:

• Toyota Financial (joint with husband)– Tons of lates. Current since Sept.  30 day lates: Jan, Feb, Apr, May, Jul, Aug (paid monthly but couldn’t catch up with late payments so stayed late)  Any hope?  Also had lates in 2015.  We only have $2400 left to pay on it, should be paid off by March. Worth trying to GW?
• Santander (joint with husband)– also tons of lates. Current since October. 30 day lates: Jun-Sept 2016 (paid monthly but carried late balance). Aug 30, Sept 60, Oct 90 in 2015. It’s a horrible loan with huge payment. We will be trying to sell in January (will probably take an extra $1,000 or more from us to pay off since we are upside down). GW?  And before or after payoff loan?

Positive tradelines:

Me:

• Capital One. Credit limit $1,000, balance $950. Had for 6 months, no lates
• Victoria Secret – got in Dec of 2014 in previous attempt to improve credit. Never actually used. Limit $250, not reporting since unused. Any advantage in charging small amount to have it update, or let it go and have it eventually close for non-use?

Husband:

• Credit One. $500 limit, $485 balance. Had since March of 2016, never late
• Credit One. $600 limit, balance $591
• Showing open and no lates on TransUnion and Experian. Not sure why, was told it was closed (for non-use, not lates) years ago. But updating current every month.

Both:

• First Premier 1. (authorized user, husband’s account) Limit $300. Maxed out. Had account since Dec. 2014, no lates
• First Premier 2 (authorized user, husband’s account). Limit $400, balance $374. Had account since Jan 2015, no lates.

Other positives (not sure if they actually help anything):

• Past mortgage account from 2005 -2007 still showing on account (closed, $0). Never late
• 2 past car loans still on account from 2008-2010 (closed, $0 bal). Never late
• If needed for hopeful mortgage, been in rental house for 6 ½ years. On time except for 2 15 day late payments one in 2013 and one in 2015). Could get letter from landlord stating that.

So. With all that, what is the best way to tackle?  I have the money to throw at this, but not sure where to start. Should I just pay off the charge offs and then hope to GW, or is there any chance for a PFD? Confused by PFD vs. HIPAA for medical collections.  Is there benefit to paying down utilization early, or should I put that money to charge-offs first? HELP!

[KrisNoel]

So, obviously, the previous was a rambling Dear Diary post, and my questions are buried in a wall of text!  I will keep it though for accountability, and update it as I (hopefully) make progress.  My questions to get started are:

- If my goal is to have the best credit possible in 6-9 months, is there any benefit to paying down utilization now?  Or should I keep paying minimums to free up cash for PFD?

- Is there really any point to PFD Citibank charge offs? Or would it be better to just pay it now to start the clock for no monthly lates, and then hope for a GW? I don't want to waste 6 months of CO showing monthly, for a <1% chance for a PFD.

- For my husband, is there any different strategy for dealing with 3 different accounts with Cap One? Obviously, keeping #2 from being charged off is a priortiy, but not sure how to deal with trying to fix multiple history? Should we approach them as a set, or one at a time (without referencing the other 2).  Not sure how to begin.

- Anthing different I need to do for joint accounts?  Should we write from the primary debtor (or from both of us) and then any removals are removed from both of our credit, or should we write separately?

- On my credit I have one Cap One for $1000, and am the AU on 2 First Premier small cards.  I also have an unused Victoria Secret card from a couple of years ago. Is there any benefit in charging a small amount and paying off to keep it active, or should I just let it fall to the wayside?

- Oh, and for our cars, we are planning on getting out from under the loans for both within the next few months. Does it look better to appeal for a GW for lates as a current customer (so asap) or wait until we pay them off and then try?  I am doubtful it will work either way.

Sorry, that is still pretty long!  I appreciate any advice anyone could give.  As you can all tell, I am sure, I am a bit overwhelmed!

[Anonymous]

I don't have good answers to many of your questions, but I do know one. Absolutely charge small things on your VS card and then pay it off. Never waste a chance to have something positive show up on your credit report. You want that card to start reporting to the credit bureaus. 

[KrisNoel]

Thanks, KS21. I will start using (and paying off) the VS card.  I can use all the positives I can get.

Anyone else?  

I am particularly wondering how to tackle my husbands Cap One accounts.  I know we have to get the one that is open but reporting way late taken care of right away.  Should he just call about that and get in repayment plan, and then deal with the Charge off later? And, I don't want to miss a chance to leverage his positive account if it would help at all, but I am not sure how to go about that.