New, just starting to clean up my reports.

[Anonymous]

Hello.

I've recently come into a windfall, and decided it is time to get my financial  house in order. I pulled my three credit reports today, and it looks pretty bleak.

Exp: 587

EQ: 541

TU: 567

I don't have a FICO score, because I have been using cash or prepaid cards for a long time. I have a joint account with my partner that I solely use, but it is less than six months old. The only information on my reports are some older medical bills totaling about $1400.00, and some older medical collections accounts that have been paid but are still on my credit report.

Do I pay those off in full? Is it worth it to try PFDs? Ethically, I want everything paid, but I want to pay it in the way that will boost my score the most. After that, I'm going to talk to my credit union about a secured card.

Do investment accounts affect one's FICO? I will be investing some of the windfall for the future.

This is all like learning a new language without a textbook.

Thanks!

[rootpooty]

Don't pay any attention to a score that isn't a fico. They are very misleading. You will need 6 mos of account history to generate a fico score. Starting with a secured card from your local CU is a good start. I recommend you start with 3 secured cards. Capital One also has a great secured card. As your local CU if they do secured loans as well and make sure they report to the CRA'S.

As far as the medical collections goes, for the paid ones send a GW letter and see where that gets you. As for the unpaid ones send a PFD letter. I had 7 medical collections and every single one of them refused a PFD. I had success removing them by sending a GW after I piffed the accounts

[Anonymous]

Thanks.

I started making phone calls and paying accounts I recognized today. There are a few I need to verify, and some that need GW letters.

One step at a time.

[Shogun]

Congrats on being able pay these off and improve your finances.  Always try for a PFD first, this will be your best first course of action.  If not, then pay it and GW it.  Good Luck!