Paying off some debt, just have a few questions.

jvickroy1013 · ‎05-08-2015

I am currently trying to rebuild my credit. I have a few baddies on there. Medical bills, one credit card and a Verizon cell phone.

About a year and a half ago i got a securced cap one card to start the rebuild process. Months later i was approved for a un secured credit one card and was just recently approved for a un secured cap one card. The first 2 cards have helped me get my score up some and the third has not even hit the score yet as i just got it a few days ago.

I have got to take care of some old debt so i can get my credit in better shape. So then come some questions

First, i recieved a letter from the collection agency for the verizon account, offer a settlement of 90 on a original 220, i have no problem paying the 90 and getting it done and over with, BUT is this worse for my credit? Is it better to just pay the full amount?

Second, when i go to pay off a debt, is there a ideal way to do so for proof that you paid it? Check, Credit card online, phone ETC...

Thanks in advance for the help!

Anonymous · ‎05-08-2015

First thing to do, is to spend hours upon hours reading this forum as well as other sites on the net. You want to be educated well before you proceed any further as some actions that you could make sometimes you shouldn't make.

As far as the outstanding debts, you want to offer "pay for deletes". Where you offer to pay in exchange of them removing it from your credit report. It doesn't matter if you pay in full or settle for a lesser amount, it will be marked as a paid/settled account with a $0 balance, but the damage would still be there, that is why you want to go for "pay for delete". Do some research on "pay for delete" commonly called "PFD" on the forums.

jvickroy1013 · ‎05-08-2015

I have looked into the PFDs, and am very interested. What i dont see a ton of info on, is how do i know exactly where to mail the letter to. Also, would i be mailing to the Original creditor or the collection agency?

gdale6 · ‎05-09-2015

@jvickroy1013 wrote:
I have looked into the PFDs, and am very interested. What i dont see a ton of info on, is how do i know exactly where to mail the letter to. Also, would i be mailing to the Original creditor or the collection agency?

PFD and GW letters always go to the entity who is reporting on your CR. I would send them to the office of the CEO.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

jvickroy1013 · ‎05-09-2015

Okay thanks for the input!