Rebuilding from an awful score

[Anonymous]

Hello All,

This is my first post to the forums and I would like to know are their any reccomended posts about rebuilding my credit? I have an awful FICO score of 462. I'm 30 y/o, have a few student loans (still attending classes) and some collections on my reports. I don't know where to start. I did recently open a secured Capital One to help me. My problem is that I have bad credit (utilities and medical bills) and no real history of credit. I do have a car loan currently, which will be paid off in about 8 months. Since my score is so awful, I have a rediculous 18% rate on my car note. Can anyone suggest any postings so I can educate myself. What do I need to do to start with the rebuilding process? Do I need to contact the collections and pay in full, settle? I want to buy a home in a few years and I spent most of my 20s being irresponsbile but I'm trying to make a change since I'm entering my 30's. Any advice or links to help get me started with a better credit future would be greatly appreciated! I considered bankrupcy but I would rather clean up my credit than wipe it with the black line of bankrupcy.

Thanks in advance,

Jesse

[JonRun]

I would start with the collections. Don't just pay them as that will not help your score at all. I arranged a PFD (pay for delete) on 2 collections I had and raised my Equifax FICO from 550 to 630. Take one of the example letters from one of the stickied threads on this board and make it your own. Good luck.

[jordanmedical]

If you want to list the collection companies, dofd, and amounts, you may get better advice.

Any lates of student loans or any other credit?

this site is great I went from 440s to 510s in a month.

[Anonymous]

Kansas Counslers

$270 - 11/01/2011

$1,177 - 01/01/2011

$262 - 09/01/10

Ad Astra Recovery

$399 - 09/01/11

Credit Systems INTL

$323 - 06/01/11

Enhanced Recovery

$481 - 03/01/12

$342 - 01/01/10

Harvard Collection

$414 - 12/01/06

HSBC Bank

$300 CL - Charge Off - 07/01/2008

T-Mobile

$664 May 2012

Kansas Gas Service

$323 June 2011

Peoples Gas Lights

$481 March 2012

I have a lot on my report! I need a plan of attack, I know it's going to take a while.

[jordanmedical]

Enhanced Recovery I got rid of by just disputing.

The first thing you should do is an excel spreadsheet of all your baddies. DV all of them with the sample DV here, CMRR.

GW all paid ones and use the search function on this site to find emails and addys for those.

For Medical, look up the HiPAA steps.

If they validate the debt or you just want to pay it, send a PFD. Examples of those are already here as well. 

I've had more than 7 collections deleted so far.

Just my 2 cents, I'm sure more will be a long with more advice.

[Anonymous]

DV all of them even if I'm still within the SOL? Some of those collections are recent?

[jordanmedical]

If you just want to pay, use PFD. I don't know what your states SOL is so I didn't ref that since every state is different.

[Anonymous]

I live in Kansas. I believe my SOL is 5yrs. To be honest, I don't know much about this. I've been reading and reading forums trying to figure out how to start a plan of attack. Some of these, I know were valid. Others, I have no clue about. I'm afraid to DV and 'awake the giants' but I want to work on getting as much of these PFD or removed. Any thoughts on how I should start? Does the arbitration clause in a DV only relevant to credit card CA?

[jordanmedical]

Better to wake then giant then let him slumber and cause blockage. Even if you are within you SOL doesn't mean you don't have the right to validate a debt. You're going to have to wake the giant to ask for a PFD. You can start with a round of PFD to the ones you recognize.

There is no 1 right way to start, you'll just have to dive right in.

[RobertEG]

I concur that seeking removal of the collections would probably be the best start, with the most potential for score improvement.  DV is one way to begin, but not necessarily the best way.  Before you start sending DVs, consider the following.

Will the DV be timely?  If they have sent dunning notice and more than 30 days has expired, the DV will not be timely, and thus will not invoke a cease collection bar.  They would then have no prohibition against just continuing business as usual without providing the requested verification.  To whatever extent it might "awaken" them, you would gain little if nothing in exchange.

If timely, do you wish to immediately initiate PFD offers?  If so, your cease collection bar created by a timely DV would prevent them from any negotiations until such time as they chose to provide debt verification.