Please review my credit rehab strategy, your help is appreciated!

[photosofrichard]

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@fot1 wrote:

If getting a house is the overall goal, then pay the CO's, PFD when or if possible. and add one more credit card.. Three years from now the Co will have aged enough to no longer kill your score and the 3 positive tradelines will be more then enough to re-establish your credit for lenders.

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Thanks for weighing in! A house is the goal by the time I graduate. I've never had a mortgage before and my oldest accounts are all student loans so I'm trying to figure out what I need to do now to put myself in a good position three years from now. Do you think a secured card would be my best third card or should I try to see what Amex has to offer once I've paid everything off?

[gdale6]

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@photosofrichard wrote:

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@gdale6 wrote:

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@photosofrichard wrote:

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@gdale6 wrote:

Before you run off and pay off all those COs you need some strategy here.. How old are those COs?? Are they past your states SOL?? Any CAs involved with them??

On the Barclays if you didnt call the backdoor number you need to do so and recon that denial, be prepared to answer questions on your negatives and current financial profile. Its goot you got the other 2, I might get one more secured card but the fact that you already can get unsecureds I might just wait on it..

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Thanks for your reply! The COs (Charge Offs?) are two years old so the SOL has not passed and there are no collection agencies are involved with any of the cards. Is there any way I can get my old inactive cards reopened? I could use a credit line with some history. I did call the backdoor number for Barclays (twice) and they said they wouldn't be able to approve me until they saw new activity on my account. 

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Ok, I would try PFDs for full payment but they are so new they might not agree. I would only contact them one at a time as you have the funds to PIF. Since they are not past the SOL there isnt much working room here. You are not going to be able to reopen any of those accounts you would have to apply for new accounts after they are PIF if you want cards from those banks. As stated by creditaddict you can get a rehab account from AMEX if you want to deal with them and they will backdate to your original MSD.

Adding: You will be using GW letters after you PIF in an attempt to get them removed if PFD fails.

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How does PFD work? I would just call them up and try to negotiate an arrangement with them or would this be done through correspondence? 

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No you dont call them, all communications should be done by mail to retain your rights. You would write them a letter indicating that you will pay it off in full in exchange for them removing the negative reporting from your credit file. You can find examples of the letters here http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

[photosofrichard]

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@gdale6 wrote:

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@photosofrichard wrote:

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@gdale6 wrote:

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@photosofrichard wrote:

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@gdale6 wrote:

Before you run off and pay off all those COs you need some strategy here.. How old are those COs?? Are they past your states SOL?? Any CAs involved with them??

On the Barclays if you didnt call the backdoor number you need to do so and recon that denial, be prepared to answer questions on your negatives and current financial profile. Its goot you got the other 2, I might get one more secured card but the fact that you already can get unsecureds I might just wait on it..

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Thanks for your reply! The COs (Charge Offs?) are two years old so the SOL has not passed and there are no collection agencies are involved with any of the cards. Is there any way I can get my old inactive cards reopened? I could use a credit line with some history. I did call the backdoor number for Barclays (twice) and they said they wouldn't be able to approve me until they saw new activity on my account. 

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Ok, I would try PFDs for full payment but they are so new they might not agree. I would only contact them one at a time as you have the funds to PIF. Since they are not past the SOL there isnt much working room here. You are not going to be able to reopen any of those accounts you would have to apply for new accounts after they are PIF if you want cards from those banks. As stated by creditaddict you can get a rehab account from AMEX if you want to deal with them and they will backdate to your original MSD.

Adding: You will be using GW letters after you PIF in an attempt to get them removed if PFD fails.

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How does PFD work? I would just call them up and try to negotiate an arrangement with them or would this be done through correspondence? 

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No you dont call them, all communications should be done by mail to retain your rights. You would write them a letter indicating that you will pay it off in full in exchange for them removing the negative reporting from your credit file. You can find examples of the letters here http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

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Wow. That thread is full of suggestions, I'll look through them and hopefully I'll figure out what I want to say in regarding to proposing at PFD. Thank you for linking this!

[fot1]

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@photosofrichard wrote:

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@fot1 wrote:

If getting a house is the overall goal, then pay the CO's, PFD when or if possible. and add one more credit card.. Three years from now the Co will have aged enough to no longer kill your score and the 3 positive tradelines will be more then enough to re-establish your credit for lenders.

---

Thanks for weighing in! A house is the goal by the time I graduate. I've never had a mortgage before and my oldest accounts are all student loans so I'm trying to figure out what I need to do now to put myself in a good position three years from now. Do you think a secured card would be my best third card or should I try to see what Amex has to offer once I've paid everything off?

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I don't know anything about the Amex offer that was brought up.. Generally AMex wants pretty good credit, so i would say hold off on them till later..   You just got the Discover  It card.. so I would think you would be in good shape for  a Cap one card.( say plantuium card now and after a year of good use PC to a Quicksilver).. If you add something like that.. pay off the old baddies then next year this time you would have a far better shot at an Amex, then garden for a year or two and set up nice for mortgage..