anything that you have paid , send GW(goodwill) letters until the post office runs out of stamps.
You can find examples here --> http://ficoforums.myfico.com/t5/General-Credit-Topics/GW-Example-Letters/m-p/4521/highlight/true#M12...
anything not paid send a PFD(pay-for-delete) letter.
You can find examples here --> http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/m-p/4519/highlight/true#M1...
Dont feel worthless. Youve done the right thing and paid what you owed. Be persistent in the above actions and you will find it pays off.
Starting FICO Score: 10/1/12--EQ 512 | TU 492 | EX 524
Sign up for secured credit card. First Progress is the best. I signed up for one in february. Its just a 300 dollars card. I pay off full every month and they are very fast to post the payment (next day) and updates on all 3 credit bureaus on first week of every month.
I also had added myself as authorized user on my wife's major credit cards (AMEX, CITI, DISCOVER) and they started reporting on my credit report. My score started increasing. Though lenders may not give too much importance to authorized cards, but FICO scoring model consider authroized users in account and effects your credit score.
6K in debt is nothing. I had 12K debt and paid off everything in February using my yearly bonus. I have an excellent job but was messed up with my credit from college days. Had 12 collection accounts and had a credit score that i myself can't look at. You can see my progress in my signature.
A lot of my collections deleted on full/settled payments. I still have few left, of which few will drop off next year and the others will have long age on them to affect my score.Paying off old debt does not re-set their drop off time. It depends on first date of delinquency reported. Thats a big misconception among people. You did the correct thing to pay off everything. Debt free life is THE BEST LIFE.
Shell FCU : 5K
@Iconic_since1989 wrote:Help! I have a great job and I've been paying off my debt aggressively this year and was very proud to be debt free by my birthday this September. I was a measly $6k in the hole. Don't laugh, its enough to ruin lives. Mine for instance. I paid $3k to collection agencies and creditors (in 3 months). Was excited to pull my report to see some progress when I noticed all the "Charge Off's" I had no idea what that meant. Well It turns out its bad, very very bad. I've been paying all these thousands for no reason because as I'm sure your aware, paid or unpaid it sits there for 7 years. The damage is done and I pulled my Fico and its 481. I feel like I've been punched in the gut. I feel worthless. What is the best next steps I can take to rebuild my credit?! I'm not even confident that I will be approved for a secured card! Help me I can't live like this!
In addition to what others have already posted, I will add that time is what will have those negative items have less of an of impact. The most important thing you can do is NOT miss any payments at all. If you have any open accounts, pay them on time and more than than then the minimum due. I was at a 475 3 years ago and my scores have increased mostly due to not missing any payments since. Keep us posted on your progress.
I did not know about 'Pay for delete' thing either before coming to this website. I had paid all of the collection agencies/creditors already before i became a member here. I called all of them back to request if they can delete them or not. Some of them were kind enough to delete. Rest of them i disputed with credit bureaus as 'no longer obligated for this account'. Most of the collection agencies who already got their money would not care to respond to dispute and the account will fall of after 30 days if they dont respond. 3 of my collection accounts were deleted by all 3 bureaus using the dispute process.
@Karnage146 wrote:sghosh5, how did you get these items deleted? I, unknowingly, either paid in full or settle on a couple accounts without the knowledge of asking for deletions PRIOR to paying off. Now that I have already paid them off, they seem to be uncooperative telling me that they were legitimate debt.
I also have done several old bad debts that way, I called them and made a deal with them or reponded to their mail offers of settlement. They didn't delete the accounts and I didnt think to ask but I figure its still god to have them marked as paid/closed and be done with them.
Anyone know why the image in my siggy fico challenge will not appear?
@Iconic_since1989 wrote:Help! I have a great job and I've been paying off my debt aggressively this year and was very proud to be debt free by my birthday this September. I was a measly $6k in the hole. Don't laugh, its enough to ruin lives. Mine for instance. I paid $3k to collection agencies and creditors (in 3 months). Was excited to pull my report to see some progress when I noticed all the "Charge Off's" I had no idea what that meant. Well It turns out its bad, very very bad. I've been paying all these thousands for no reason because as I'm sure your aware, paid or unpaid it sits there for 7 years. The damage is done and I pulled my Fico and its 481. I feel like I've been punched in the gut. I feel worthless. What is the best next steps I can take to rebuild my credit?! I'm not even confident that I will be approved for a secured card! Help me I can't live like this!
Iconic,
Dont feel bad! I am working on getting out of the 400 Club as well. Im sure that we both can do it. You've come to the best place to get help! I would truly recommend doing the GW letters for the collections that you have paid off. I sent off my first one and they removed it! That boosted me 29 points. I sent off some PFD letters today so that should help out too. Trust me, its a journey but it will be so worth it in the end.
Dont feel worthless, we all make mistakes. The important things is that your taking the steps to fix them!
Keep us posted! 