Starting...again

[jacq]

Sorry if this seems so long...It's probably more out of my frustration than a need for you all to know...

I've been working on rebuilding for almost a year. I have 2 credit cards...one unsecured with orchard bank ($300 limit) and a secured with Capital One ($200 limit). I'm 2 payments away from graduating with Fingerhuts Fresh Start program. I had gotten all but one collection removed. My remaining collection is with a company I've had a positive GW experience with in the past so I have/had high hopes for getting this one removed. I got a dunning notice for a 5 year old utility bill. Followed the proper process, it's mine, I paid and then they placed it on my CR.

AND...we had been working with the bank on getting a modification for my fiance's home. It was already in foreclosure when we met. I kept my rental in case he lost the home but it was all he could do to pay utilities and survive on unemployment. He got a trial modification with the first payment due less than a week after getting the paperwork. We had already agreed that if the modification was successful, we would combine households but the sudden, "due now" payment threw our finances in a tail spin, especially since I was afraid to give up my rental until he had FINAL paperwork in hand, and we were afraid to press our luck and ask for a later due date for the modification. Borrowing that much money wasn't an option. I got a deferrment for my car payment but they ended up reporting 2 new 30 day lates and a 60 day late. 100+ points lost (down to 504), BUT the 3 month trial evolved into a full modification. I've moved from the rental so now we have just one household to support. I've just gotten a promotion and a bonus so while life may not be easy, it'll be manageable. It's depressing but we're happy to have saved the home.

My questions: I've paid the credit cards down to 9% (from 111%) with my bonus but have some left. Would it be better to pay the collection or use it to raise my secured credit limit? I'm afraid Fingerhut will do anothe pull and deny my account because of the new lates. Anyone have any thoughts on this? I'm hoping the decrease in my util will raise my score enough so that it's not an issue.

I plan on continuing the GWs, adding to them the "new" already paid collection and for the lates on my car payment. I'm thinking right now that's about all I can do besides sit and let everything age. Advice?

[sphinx313]

Which is worse? Your overall utility or the collection? I don't know the exact numbers, but let's say you have a collection account for $200 that you can try to PFD, this ding on your credit report sucks! In my opinion, your secured card is doing fine as is. If your utility is in the tank, like, far far in the tank, just pay off the collection/PFD. If your overall utility is in good shape/close to being in the butter zone, put it there by increasing your credit limit. Seasoned pro's will have better advice, what I stated here is just from a logical standpoint...which logic and credit scores don't really mesh well together lol. Good luck to you regardless!