Newbie trying to rebuild

[Anonymous]

These forums have been so wonderful to begin getting educated about my credit. I'm hoping some of you that are so experienced with this can help me out because I have no clue where to go from here. I'm aiming to rebuild my credit in hopes to qualify for a good interest rate on a home loan, but I have quite away to go. My poor credit really came from being a poor single mom trying to make it through college/not being educated about how credit reports or scores really worked. Now that This whole process started about 2 weeks ago when I had no clue what I was doing, but acutally had some good luck. I started off with the free credit reports and getting my "credit score" from TransUnion. At this point I didn't realise that this was actually a FAKKO and not a FICO score.

Situation as of 2 weeks ago: My TransUnion FAAKO was definitely skewed but it was 648

Revolving Accounts

• Capital One CC- Went into collections and was settled back in 2011. Limit 300, high balance 573
• Wellsfargo CC- OPEN EQ and EX reports one 20 day late payment Oct 2009. The high balance is 3,796 and credit limit at 3,700. Current balance was 3,567

Installment Accounts

• Student loans- 8 different accounts origionally from the US Department of Education, but they consolidated them into 1. Currently in deferment until Feb so I could get my feet on the ground with the new job. In good standing at 35,265
• Auto Loan- Account in good standing, never late. Loan was taken out in  Oct 2011 for 16,248 currently at 8,434

Collections

• TimeWarner sold to Collection Bureau of America  $131.00 (Dec. 21, 2012)
• PEC sold to Mech&Prof CB $388 (Nov 2011)
• Austin Radiology(MED) sold to Credit Management LP $281 (Feb. 14, 2011)
• Quest Diagnostics(MED) sold to Credit Collection Service $182 only on TU (Nov. 11, 2013)

Current as of today: EQ:622 TU:609 EX:621

I have now PFD on my TimeWarner and PEC account. When I called to pay I asked how it would show up on my account and both said they would just delete them. I didn't know that PFD was actually a method when I called those CA or I would of actually asked for it before paying...so I got kind of lucky there. That leaves me with 2 Medical Collections. I'm not really sure what approach to take with those call/email/fax PFD or HIPPA method. Wellsfargo raised my CC limit randomly to 4,900 and I have paid it down to 3,368. This still isn't showing on any of the reports or MyFico so I hope once it goes through it will bring up my score. I'm also considering trying to send WellsFargo a GW letter to remove the late payment on my card back in 2009, but I dont know if that would be pointless. 

Any help of what my next step should be would really be helpful! Also what scores should I realistically be aiming for to get a home loan in the next year?

[dashpt]

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@Anonymous wrote:

These forums have been so wonderful to begin getting educated about my credit. I'm hoping some of you that are so experienced with this can help me out because I have no clue where to go from here. I'm aiming to rebuild my credit in hopes to qualify for a good interest rate on a home loan, but I have quite away to go. My poor credit really came from being a poor single mom trying to make it through college/not being educated about how credit reports or scores really worked. Now that This whole process started about 2 weeks ago when I had no clue what I was doing, but acutally had some good luck. I started off with the free credit reports and getting my "credit score" from TransUnion. At this point I didn't realise that this was actually a FAKKO and not a FICO score.

Situation as of 2 weeks ago: My TransUnion FAAKO was definitely skewed but it was 648

Revolving Accounts

• Capital One CC- Went into collections and was settled back in 2011. Limit 300, high balance 573
• Wellsfargo CC- OPEN EQ and EX reports one 20 day late payment Oct 2009. The high balance is 3,796 and credit limit at 3,700. Current balance was 3,567

Installment Accounts

• Student loans- 8 different accounts origionally from the US Department of Education, but they consolidated them into 1. Currently in deferment until Feb so I could get my feet on the ground with the new job. In good standing at 35,265
• Auto Loan- Account in good standing, never late. Loan was taken out in  Oct 2011 for 16,248 currently at 8,434

Collections

• TimeWarner sold to Collection Bureau of America  $131.00 (Dec. 21, 2012)
• PEC sold to Mech&Prof CB $388 (Nov 2011)
• Austin Radiology(MED) sold to Credit Management LP $281 (Feb. 14, 2011)
• Quest Diagnostics(MED) sold to Credit Collection Service $182 only on TU (Nov. 11, 2013)

Current as of today: EQ:622 TU:609 EX:621

I have now PFD on my TimeWarner and PEC account. When I called to pay I asked how it would show up on my account and both said they would just delete them. I didn't know that PFD was actually a method when I called those CA or I would of actually asked for it before paying...so I got kind of lucky there. That leaves me with 2 Medical Collections. I'm not really sure what approach to take with those call/email/fax PFD or HIPPA method. Wellsfargo raised my CC limit randomly to 4,900 and I have paid it down to 3,368. This still isn't showing on any of the reports or MyFico so I hope once it goes through it will bring up my score. I'm also considering trying to send WellsFargo a GW letter to remove the late payment on my card back in 2009, but I dont know if that would be pointless. 

Any help of what my next step should be would really be helpful! Also what scores should I realistically be aiming for to get a home loan in the next year?

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Well I'm no expert but from the knowledge I gained here I would say send DV to all those collection agencies first......if they validate them, offer a PFD for PIF since the amounts are small....If they don't accept the PFD then maybe you could pay them then do a good will.....I'm not sure about CAP ONE with that PFD though i heard they are tough....for wellsfargo please pay down that balance that's gonna give you a big jump in score plus you don't need that kind of balance when you go to apply for a mortgage loan because they include it in your DTI...also maybe wait until you pay down the balance before asking for a GW from them.....

[Anonymous]

The captial one was paid back in 2009 so I can't do a PFD. My wellsfargo limit was raised so I'm now at a 69% util...I am working on paying down the amount but its gonna take a bit. I dont know if I should focus my extra cash on that or if I should do PFD for the other 2 collections..

[Burned2manybridgesB4]

Somebody will jump on this Saturday. It's late.

[Burned2manybridgesB4]

Okey dokey...good morning.

The cap one settled....how's it showing? Balance, zero? Any notations of paid/settled? Just want to make sure it's reporting correctly.

WFCC- one late that old, not really doing anything to you. Utilization is killing you on that card though.

SL's- you've consolidated, and deferred, from a multiple disburstment...going to look funky to an underwriter, and probably be misinterpeted by a CMS, as it'll look late pay.

Medical CA's- Is this something that was NOT covered by insurance, and has to come out of your pocket, or something that fell through the cracks?

Good that you're getting PFD results.

[Anonymous]

Account Name CAP ONE    

Condition-Paid

Responsibility-Individual

Current Balance-$0

Original Balance-$573

Limit-$300

Monthly Payment-$0

Last Payment-07/05/2011

Status-Collection / Charge-Off

Term-0 months

Loan Type-Credit Card

Opened-06/03/2009

Reported-07/05/2011

Remarks Payment after charge off/collection|Settled - less than full balance

I didn't know they even consolidated my loans until I ran my credit report. It shows as pays as agreed, but it wont be deferrment starting in feb. 

Medical CA's-Those were labs and xrays not covered by my insurance and were just over looked. I have moved so much I dont even remember getting bills from them. 

Do you think it would be more bennificial to my score to just pay my balance down on my CC or try to get my last 2 medical collections deleted?

Thank you for your help! I definitely appreciate any insight.

[Burned2manybridgesB4]

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@Anonymous wrote:

Account Name CAP ONE    

Condition-Paid

Responsibility-Individual

Current Balance-$0

Original Balance-$573

Limit-$300

Monthly Payment-$0

Last Payment-07/05/2011

Status-Collection / Charge-Off

Term-0 months

Loan Type-Credit Card

Opened-06/03/2009

Reported-07/05/2011

Remarks Payment after charge off/collection|Settled - less than full balance

I didn't know they even consolidated my loans until I ran my credit report. It shows as pays as agreed, but it wont be deferrment starting in feb. 

Medical CA's-Those were labs and xrays not covered by my insurance and were just over looked. I have moved so much I dont even remember getting bills from them. 

Do you think it would be more bennificial to my score to just pay my balance down on my CC or try to get my last 2 medical collections deleted?

Thank you for your help! I definitely appreciate any insight.

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I can't give you an exact promise of what will yield the best points gain. All I can say it that the gains will be good, as they're systematically removed/reduced.

Comes down to what makes the most financial sense for you at this moment.