10-23-2012 07:59 PM - last edited on 10-23-2012 08:39 PM by LIGHTNIN
Hello to all:
I am new - signed up 30 mins ago when I found out the reality of FICO vs. paid credit scores. Ugggh...Anyway, I was a career firefighter until injured in 2005. I was medically retired. Unfortunately, when I ended up in the hospital, my credit went belly up after four back surgeries and enormous medical bills - workers comp not involved. I recently pulled my paid credit file and set about paying off 3 State tax liens, a judgment on a furniture loan, and 24 medical bill collection accounts. In all, I spent 20K paying down ALL debts on my report. Whether this was a good thing or not, it's done now and can't go back. I'd rather pay what I owe anyway, even though late.
My score is now a dismal 539. Like most, I want to get a mortgage before the market recovers. I do maintain a 16% use balance on my credit card (secured card with $300 limit), have a current auto loan and several other "Paid as Agreed" old accounts and loans with no late payments.
My question is if I wait six weeks for all the dust to settle from paying off all the debts, will a rapid rescore help me? I believe my next step is to write to the big three agencies and let them know that all the debts are paid. Is there anything else I can do to "heal" my credit any quicker? Any help is appreciated. Thank yoU!
I didnt change any content, only spaced-out your post for easier reading.
Hope you dont mind.Lightnin, myFICO moderator
10-23-2012 08:48 PM
FICO scoring sees a Paid collection the same as an UNpaid collection, no score change.
What will help......Send G W letters to the CA's and ask if they will kindly remove it from your CR.
CA's (collection agencies) stay on CR's(credit reports) for 7.5 years from the DoFD (date of first default).
EX and TU will have the drop off dates. The EQ report will show the actual DoFD.
Since your debts were from 2005......Are most of them due to drop off your CR, anytime soon?
10-23-2012 10:00 PM
Look at your reports. EQ will have a DOFD on there, go 7.5 years from that to see when they will drop off. TU and EX will list the date. Any that are paid need GW letters sent. Get as much as you can cleaned off. I don't think the rapid rescore will do much good just yet.
10-24-2012 08:47 AM
Good luck! I am in a similar situation but was given very valuable information on this forum. You are in good hands here.
10-24-2012 09:11 AM
Thank you! ...and good luck to you too. I am sick and actually a little PO'd that my credit score will not change although i have not only honored my past debt, but paid MORE by including interest and late fees. It just seems that anyone who pays their debts - even though very late - should be rewarded by the Credit Bureau. I was sleeping better when I paid these debts, but now I worry that I blew 20K for no reason. I just don't get it?.....I am hoping that GW letters will work to remove the collections -- I just have no idea of how many points are given for such things. Anyone?
10-24-2012 09:13 AM
GWs do work, I can attest to that. It sometimes takes awhile but be vigilant. Also it wasn't 20K wasted. You have your debts paid. They can't come after you for those anymore. Now you just get those GWs going and get that CR cleaned up!
10-24-2012 09:23 AM
Yes, I will! And I hope that maybe exposing my embarrassing credit situation may help someone else. I no longer feel like a girl with a scarlet letter .... maybe someday soon I'll even feel like a worthy mortgage prospect!!!
10-24-2012 11:41 AM
2 years ago I couldn't borrow a cup of sugar. Now I've got my CUs fighting with my local bank for my mortgage and car loan. My LO calls me once a month and asks me if I need anything. The weight that's off my shoulders is so gratifying. Just keep at it.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.