TRCKS OF THE TRADE

[DIYcredit]

    Hi  recently learned  of two methods which make sense to me and I'm going to utilize to my full benefit.Here's the first one
.
    #1 My Capital One Quicksilver billing cycle starts [for example]October 4th and closes November 3rd.,Due date is November 28th.
    -Charge something small [about $25] on November 4th and pay it down  below %10 on November 25th so that it gets reported to the credit bureaus
    -Pay it off a couple days after statement date closes  
    -My utilization is low and I'll always have something reported to the cb's and not $0.

   #2 I have two medical collections reported on my credit report The total balance is about $700.I have made the decision of not paying these, because I learned if you have a collection is the thousands they are more likely to negotiate.Mine are about $350 each.If you pay them it will be marked as paid on credit report no PFD.If I pay them in two years they can be be reported to the cb's as current and effect your credit score. [I would'nt do this method if I owed in the thousands or was going to court for a collection account].
   -I will let them age and after two years it will have less effect on my credit score.

  DIYcredit

[SunriseEarth]

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@DIYcredit wrote:

    Hi  recently learned  of two methods which make sense to me and I'm going to utilize to my full benefit.Here's the first one
.
    #1 My Capital One Quicksilver billing cycle starts [for example]October 4th and closes November 3rd.,Due date is November 28th.
    -Charge something small [about $25] on November 4th and pay it on November 25th so that it gets reported to the credit bureaus 
    -My utilization is low and I'll always have something reported to the cb's and not $0.

   #2 I have two medical collections reported on my credit report The total balance is about $700.I have made the decision of not paying these, because I learned if you have a collection is the thousands they are more likely to negotiate.Mine are about $350 each.If you pay them it will be marked as paid on credit report no PFD.If I pay them in two years they can be be reported to the cb's as current and effect your credit score. [I would'nt do this method if I owed in the thousands or was going to court for a collection account].
   -I will let them age and after two years it will have less effect on my credit score.

  DIYcredit

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if I'm reading #1 right, you'd still have a $0 balance by statement date and it would appear that credit isn't being used.   If you have multiple cards, that might be necessary.

As for #2, I'm going to disagree.   PFDs can and have been negotiated on smaller amounts, as have settlements.   Years ago, I had a collection that was ~$120 and I settled for $50.   This was before I learned about PFDs, but I had later success with GW removal.  Yes, paying/settling can temporarily make the derog look "new" (they have to update the balance and paid status), but it also gives you a much better shot at GW removal if the CA didn't agree to a PFD.   Also, it may be necessary to pay/settle debt in many circumstances, such as getting a mortgage.  Unless you're trying to wait out SOL for some reason (and that has its risks), I don't see a good reason to delay paying/settling.  

[Imperfectfuture]

Quick tip: there is no risk on small medical collections falling off your report. Nor are small charge offs. My charge offs were HSBC and capital one, and since I now have capital one care, I don't think it's a problem.

If paying a 350 for delete is a hardship, you more than likely qualify for charity care and back dating. In my state, WA, charity care lax laws are only outdone by NJ. Consequently, even small bills are zeroed out if the associated facility bill is hospital or government funded facility (most non profit facilities are heavily funded by government).

If paid by charity care, the original creditor must remove the items from the collection agency. The agency then removes, or you must dispute. I have paid for some medical deletes, until I learned I didn't have to pay for them. Research the laws in your state, 100% write off is available for 209% above poverty line (and they only take into account income).

[Gunnar419]

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@DIYcredit wrote:

    Hi  recently learned  of two methods which make sense to me and I'm going to utilize to my full benefit.Here's the first one
.
    #1 My Capital One Quicksilver billing cycle starts [for example]October 4th and closes November 3rd.,Due date is November 28th.
    -Charge something small [about $25] on November 4th and pay it on November 25th so that it gets reported to the credit bureaus 
    -My utilization is low and I'll always have something reported to the cb's and not $0.

   #2 I have two medical collections reported on my credit report The total balance is about $700.I have made the decision of not paying these, because I learned if you have a collection is the thousands they are more likely to negotiate.Mine are about $350 each.If you pay them it will be marked as paid on credit report no PFD.If I pay them in two years they can be be reported to the cb's as current and effect your credit score. [I would'nt do this method if I owed in the thousands or was going to court for a collection account].
   -I will let them age and after two years it will have less effect on my credit score.

  DIYcredit

---

On point 1, I agree with Sunrise Earth. If the dates you're describing are accurate, zero will be reported on your QS card.

On point 2, you say that you learned these things about collections. Where did you learn them and how reliable is your source? Basically everything you say in that paragraph seems dubious at best.

[DIYcredit]

    Hi, on  point 1-I've been using this method since August and actually for my due dates I paid it down below %10 l  between  15th -25th of every month and had a small balance reported to my CR and when I payed  earlier than that.The balance reported was $0.So my balance reported from my statement should be calculated as utilization as the same info is reported to CR.
.
    on point 2  Here is a link to video posted on youtube this credit expert Dave Sullivan.     https://www.youtube.com/watch?v=K8XQh8mE52o 
    If you still disagree post up your points so I can learn from them and not post up any inaccurate info if I am wrong .. I'm here to learn and post any information that I come upon  in my credit repair process. I like to ''Pay it Forward"

[Lemmus]

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@DIYcredit wrote:

    Hi, on  point 1-I've been using this method since Augest and actually for my due dates I paid in full  between  15th -25th of every month and had a small balance reported to my CR and when I payed  earlier than that.The balance reported was $0.So my balance reported from my statement should be calculated as utilization as the same info is reported to CR.
.
    on point 2  Here is a link to video posted on youtube this credit expert Dave Sullivan.     https://www.youtube.com/watch?v=K8XQh8mE52o 
    If you still disagree post up your points so I can learn from them and not post up any inaccurate info if I am wrong .. I'm here to learn and post any inormation that I come upon  in my credit repair process. I like to ''Pay it Forward"

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..."credit expert' 

...i stopped watching after the first 30 secs 

[SunriseEarth]

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@DIYcredit wrote:

    Hi, on  point 1-I've been using this method since Augest and actually for my due dates I paid in full  between  15th -25th of every month and had a small balance reported to my CR and when I payed  earlier than that.The balance reported was $0.So my balance reported from my statement should be calculated as utilization as the same info is reported to CR.
.
    on point 2  Here is a link to video posted on youtube this credit expert Dave Sullivan.     https://www.youtube.com/watch?v=K8XQh8mE52o 
    If you still disagree post up your points so I can learn from them and not post up any inaccurate info if I am wrong .. I'm here to learn and post any inormation that I come upon  in my credit repair process. I like to ''Pay it Forward"

---

I watched his video and I think you may have misunderstood his point about aging collections (granted, he gave a confusing explanation).  He is correct that paying on a collection will cause it to update on your CRs and make it look more recent.   He is correct that you should carefully consider this if you are about to apply for credit/loans.

However, the chart about aging collections is where his explanation got confusing.   Basically, what he is saying is that paying a collection that first reported recently won't ding your score as much as paying a collection that's been on your CRs for a while.   That's it.   He should have left it at that.  His chart was confusing.

So I would encourage you to look into your collections.  If they're out of SOL (or if you're able to PIF), then request PFD.   If they won't agree, pay/settle and then request GW removal.  

[Anonymous]

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@DIYcredit wrote:

    Hi  recently learned  of two methods which make sense to me and I'm going to utilize to my full benefit.Here's the first one
.
    #1 My Capital One Quicksilver billing cycle starts [for example]October 4th and closes November 3rd.,Due date is November 28th.
    -Charge something small [about $25] on November 4th and pay it on November 25th so that it gets reported to the credit bureaus 
    -My utilization is low and I'll always have something reported to the cb's and not $0.

   #2 I have two medical collections reported on my credit report The total balance is about $700.I have made the decision of not paying these, because I learned if you have a collection is the thousands they are more likely to negotiate.Mine are about $350 each.If you pay them it will be marked as paid on credit report no PFD.If I pay them in two years they can be be reported to the cb's as current and effect your credit score. [I would'nt do this method if I owed in the thousands or was going to court for a collection account].
   -I will let them age and after two years it will have less effect on my credit score.

  DIYcredit

---

I'll give you a much better CC strategy. Charge it up as much as you can and pay it down multiple times during the month. Use it for everything that you would normally use cash or debit card for - groceries, gas, bills ect, then on the 1st, two days before the statement closes, pay all but $20. Then on the 6th, three days after the statement closes, pay the final $20 off. Do ALL of your payments online.

note: Cap One typically reports 1-2 days after the statement closes.

You will pay $0 interest, show low UTI on your credit reports, but Cap One will see a lot of usage, with little carried balance. This is EXACTLY how they want you to use the card. It incurs lots of vendor fees for them and very little risk. This encourages CLI's.

[TigerRed]

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@DIYcredit wrote:

    Hi, on  point 1-I've been using this method since August and actually for my due dates I paid it down below %10 l  between  15th -25th of every month and had a small balance reported to my CR and when I payed  earlier than that.The balance reported was $0.So my balance reported from my statement should be calculated as utilization as the same info is reported to CR.
.
    on point 2  Here is a link to video posted on youtube this credit expert Dave Sullivan.     https://www.youtube.com/watch?v=K8XQh8mE52o 
    If you still disagree post up your points so I can learn from them and not post up any inaccurate info if I am wrong .. I'm here to learn and post any information that I come upon  in my credit repair process. I like to ''Pay it Forward"

---

Regarding point #2, I am not an expert but I would recommend first trying to negotiate a pfd before just not paying it. In my situation, it was a medical collection for $198 and they said they would do it but would not put it in writing but held to their word. 

[cabner]

Regarding point #2 - while that may sound good in theory, when those medical places turn around and sue you for charges, interest, and attorney fees your score will take a big hit with a judgement listed, and then you'll wish you would've sucked it up and just paid the $350 each.