@Anonymous wrote:
Hello! Brand new member here. I am not what you would call a very financially responsible person. As such... My credit is terrible.
I make ok money, have a nice home paid on time. A car loan paid on time. Credit card I've never missed on in umpteen years. But I have a few black eyes on my report.
Most notably a collections account/charge off totaling a whopping $1,300. Now that may not be a lot to you guys, but I don't have it.
I'm trying to rebuild my terrible credit in a hurry to secure a mortgage. Is it better to settle that debt for a lower amount or to make timely payments on it?
For reference... My credit is around a 570 average. Ouch.
Also... I want timely updates to my credit as I rebuild. Is the myFICO app the best one? Also... What is the "1% trick"?
Thanks. And any advice to get that number up... I'm all ears!!
It's not possible to rebuild credit in a hurry short of everything derogatory getting deleted.
Building/rebuilding credit just doesn't work that way.
After my Ch 13 discharge in 2013 it's taken me 2 years to go from 630 scores to 670's-680's I don't have any collections or chargeoffs and still won't see the 700's until everything derogatory from the Ch 13 falls off my reports in the next few months.
Just the way it is.
@Anonymous wrote:
570 will be an issue with attaining a mortgage. You'll be forced to have this outstanding debt paid or satisfied prior to being approved for any mortgage. I'm sorry to give you the bad news. But if you are unable to pay this $1200.00 debt, how will you be able to pay a new mortgage payment ??? If you can make a mortgage payment, couldn't you put the money you planned to use for your mortgage on hold an extra month, take care of this debt, and than a month later go for your mortgage ??? If you just don't wish to pay this debt, than that's a different scenario. Just advise. Thanks.
That too.
