Trying to rebuild my credit!

[JTH86]

Hello all!

I could most definitely use some help and advice here and I would appreciate everything. My FICO score is near 500, which is horrible in my own view. I made some mistakes a young kid and that messed up my credit. Not to mention going to college for something I cannot even use my degree with now. Anyways, I have three or four accounts in collections that do need to be paid off that are on my credit report. I was told by someone to pay off a settlement paying about 50% of the actual debt amount. I am aware that paying the reduced amount would be great. Here is the question; would paying the full amount jump my FICO more a good amount compared to if I paid a settlement for an account? Another reason why I don't like paying settlements, last year I paid a settlement on a government debt and I ended up backpaying in tax time and that is something I don't want to do again. Would I have to pay back?

One other thing I've thought of. Since I've heard credit reporting reports every 30 days, is it best to pay once I could pay all collections off in the same month? That way I don't help myself and then hurt myself the next month by paying none of the others?

I am aware that you can request to have things removed from your credit report once you pay them. Does that apply to everything? I was just curious if once I pay these I can have these removed from my credit report to hopefully improve my FICO score.

My score is near 500, but if I had paid my debts off which total off to be about $2,500 how many points do you think it'd jump, if any? Does paying off debts or get caught up on payments for a student loan help me more with my credit score?

I do greatly appreciate all the help and look forward to getting the help I much need to help fix my scenario.

[09Lexie]

Welcome to the forum. PFD (pay for deletes) should be requested before you pay your delinquent TLs. After they have your money they may not be inclined to remove your derogs. If you have already paid, then you would need to write GW letters. Samples of both and the how to's are in the stickies .

If you haven't done so already, pull your actual CR's. You can get them at annualcreditreport.com. Once you have them, post the info here for more assistance.
Keep in mind, a collection account paid or unpaid is still counted the same way in scoring. Paid does look better than unpaid on manual review but the key is removal.

[JTH86]

I have a few medical debts and a bad cvs check that I'll be taking care of shortly.

1. Medical debt for $680
2. Medical debt for $1,330
3. Cvs check for $183

I know that I also have some salliemae student loans out there as well. I haven't necessarily made any payments on these yet, and I'm sure that they are far along past-due. I am sure that these are most definitely hurting my credit. But I have one major question!!

Which would hurt my credit more; my debts or my past-due student loans? Also, which would help improve my credit score the most?

[JTH86]

BUMP. Can I get some advice please? What would help my credit score better. Paying off debts or working on paying my student loans?

[KoolDev]

Like lexie said, you really need to pull your report and see exactly what is reporting for the baddies, post it here and you can get pointed in the right direction.  Also, use the search bar and look up topics and read read read.  It really helped me alot.  There is no magic to making the scores jump immediately.  Put your good sneakers on and get ready for the marathon     There is a lot you can learn here.  The more you can read topics and start relating some of them to yourself, its easier to understand. 

Good Luck to you

[guiness56]

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@JTH86 wrote:
I have a few medical debts and a bad cvs check that I'll be taking care of shortly.

1. Medical debt for $680
2. Medical debt for $1,330
3. Cvs check for $183

I know that I also have some salliemae student loans out there as well. I haven't necessarily made any payments on these yet, and I'm sure that they are far along past-due. I am sure that these are most definitely hurting my credit. But I have one major question!!

Which would hurt my credit more; my debts or my past-due student loans? Also, which would help improve my credit score the most?

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They are all hurting your score equally.  Since the student loans are current loans, they will incur lates each month and keep adding up.  I would do something with these first.  See about rehabbing them.

Getting the collections removed will help, getting your student loans current and then making on time payments will help your score.

[JTH86]

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@guiness56 wrote:

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@JTH86 wrote:
I have a few medical debts and a bad cvs check that I'll be taking care of shortly.

1. Medical debt for $680
2. Medical debt for $1,330
3. Cvs check for $183

I know that I also have some salliemae student loans out there as well. I haven't necessarily made any payments on these yet, and I'm sure that they are far along past-due. I am sure that these are most definitely hurting my credit. But I have one major question!!

Which would hurt my credit more; my debts or my past-due student loans? Also, which would help improve my credit score the most?

---

They are all hurting your score equally.  Since the student loans are current loans, they will incur lates each month and keep adding up.  I would do something with these first.  See about rehabbing them.

Getting the collections removed will help, getting your student loans current and then making on time payments will help your score.

---

Thank you for your input. I am going to work on the loans and then when tax time comes, I can use that money to pay on majority of the debts. As for the baddies, its all past due student loans through Sallie Mae. I do have some things on my credit report that I know ARE NOT mine but they won't do anything about it. I have one for Star Tribune Credit Union which I know I never banked in Minneapolis, MN and I was only an authorized user on a Capital 1 credit card. Is there anything I can do to get these taken care of? I do appreciate everyones advice! Thanks in advance.

[cartwrna]

The Capital1 account you are referring to I'm assuming is in bad standing? If you were only an authorized user as you stated it will be fairly easy to hace it removed as AU do not have any liability for the debt. Call Cap1 or mail them a GW letter and they will remove it promptly. Just had a Chase card removed that started going in a bad direction and I was an AU on. Good luck!