Not sure what the next step is...

[diamante130]

Hello everyone,

I have been lurking on this forum to self-heal my credit situation in hopes of purchasing a home in May 2017. In the last few months my scores have fluctuated significantly but currently…Transunion 592, Equifax 608, Experian 576. My husband left me 3 years ago so I had to prioritize with 1 income. I am now trying to pull my life back together and purchase a home. I am in the process of trying to settle with MCM in hopes that they will delete the collections. Any other advice would be much appreciated!!

My baddies are:

Charged Off-Webbank/Fingerhut: Opened 2012 (transferred to Midland Funding) Balance $343

Charged Off- Navy Federal Credit Union Joint Acct: Opened 2013 balance $1019

Charged Off- Navy Federal Credit Union Line of Credit: Opened 2012 balance $1848

Charged Off- Navy Federal Credit Union Line of Credit: Opened 2012 balance $1133- currently in payment plan

Charged Off- Navy Federal Credit Union Credit Card: Opened 2012 balance $5944

Charged Off- Credit One Bank: Opened 2013 (transferred to Midland Funding) balance $631

Paid Collection: Credit Acceptance: Opened 2010

3 Late Payments: DEPT OF ED/NAVIENT: Opened 2006-sent gw letter

3 Late Payments: DEPT OF ED/NAVIENT: Opened 2006-sent gw letter

My positives are:

AUTOBANK Acct. # N2**

Opened:              09/01/2014

Limit:     $0

Balance:               $7,850  Never late

CAP ONE Secured Acct. # ****

Opened:              11/01/2016

Limit:     $300

Balance:               $275 Never Late

CAP ONE QS Acct. # **** (Authorized User)

Opened:              08/01/2016

Limit:     $300

Balance:               $19 Never Late

CB/ANNTYLR Acct. # ****

Opened:              10/01/2016

Limit:     $250

Balance:               $0 Never Late

CB/EXPRESS Acct. # ****

Opened:              10/01/2016

Limit:     $250

Balance:               $46 Never Late

CB/NY&CO Acct. # ****

Opened:              10/01/2016

Limit:     $400

Balance:               $93 Never Late

CCB/BOSCOV Acct. # ****

Opened:              10/01/2016

Limit:     $250

Balance:               $194 Never Late

CREDITACPT CAR LOAN Acct. # ****

Opened:              10/01/2015

Limit:     $0

Balance:               $12,610

[Anonymous]

Not sure if you saw, but Midland Credit (Funding) has updated their credit reporting policy and it may be beneficial to your situation.   https://www.midlandcreditonline.com/help-center/credit-reporting/.

A post by a consumer advocate as well.

https://getoutofdebt.org/100778/encore-capital-group-enhances-credit-reporting-policy-help-consumers

[diamante130]

Thanks I settled with Midland Credit and they promptly removed the collections from my credit report. I recently sent another goodwill letter to the advocate at Navient and I received a call within 24 hours. The customer service representative was very nice and told me that she will do some research to determine if she is able to remove the late payments. I have my fingers crossed on that!

[DollyLama]

I would also concentrate on your CC's, try to pay in full all but 1 CC, let it report with a balance that is less than 9% of your line of credit. But do not close the other accounts, you can alternate CCs if you wish but  PIF BEFORE your statement cuts, so your accounts won't be stagnant, and down the road possible CLI would be easier to obtain, only if a SP on your reports. 

Also since you have some credit, I would remove myself as the AU on the QS. I only say this, as this account was only opened 2 months prior to you getting your own credit, so it really doesn't help you AAoA of credit, or the payment history either. It would be different if it was an account that had been opened for several years. 

Let these open tradelines age a good bit, before going on any further app sprees. 

[RobertEG]

My first priority would be to focus on preventing things from potentially getting worse.

It is common, after charging-off a debt, for the creditor either to assign collection authority to a debt collector, or to sell the debt to recoup a bit more of the loss.

Either will permit the addition of a collection, and possibly, if sold, prevent any further dealing with the original creditor, such as a PFD offer to atttempt deletion of the charge-off.

What is the DOFD on each of the charged-off accounts?

What are your payment plans for those debts?

If you dont pay those delinquent debts, will having unpaid, delinquent debt be a show-stopper in any mortgage loan process?

If you do pay those delinquent debts, will you remaining cash necessary to close on a mortgage loan?

Perhaps a chat with a prospective mortgage officer will give you insight into what will be required when you apply.....