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New Member
Oneking
Posts: 1
Registered: ‎07-26-2011

Trying to rebuild score and credit

Hi everyone,

I’m new to the boards, and of course like a lot people in the US, I’m here because my credit is in need of some major repairs. First I would like to say thank you to Myfico and all the board members that offer great advice for people in these kinds of situations.

 

Now on to my issues, I pulled my 3in1 report from Equifax and Myfico. I really don’t understand the rating process, but Equifax has my scores in the high 500’s, whereas Myfico has me in the mid 400’s.

 

My report reads like this:

 

Equifax                                 TransUnion                           Experian

Negative   8                         Negative   10                          Negative   8

Collections   3                    Collections   0                         Collections   2

 

Out of this I have:

 

4 Authorized User cards,   1 Joint Contractual card, 5 Charged off cards, and 3 Collections.

 

I disputed the authorized User cards to have them removed because 3 out of 4 are charged off and the open account is maxed out.

 

I have done the same with the joint contractual, because I was 4 years old when it was opened, and it is now listed as a charge off.

 

I have already settled for less of the balance on 3 of my 5 charged off credit cards, and I’m working on paying the last 2 (if it makes sense to do so) in the next 3 months.

 

I have disputed 1 of the collection accounts, because I really have no idea what it is. The remaining is one hospital bill and the other is AT&T.

 

I have so many questions, but I will start with this. What is your best tips to fixing all this and start rebuilding my credit?

 

Should I focus on paying off the 2 remaining charged off cards or let them ride out the 7 year itch without a settlement?

 

Would it help if I paid the hospital collection? I have always heard that creditors don’t really look at bad medical debt.

 

Thanks again for any tips you can offer me :smileyhappy:



Established Contributor
casmith1980
Posts: 633
Registered: ‎03-20-2010

Re: Trying to rebuild score and credit

 

I have so many questions, but I will start with this. What is your best tips to fixing all this and start rebuilding my credit?  Dispute negatives wtih CBs.  Once they come back "verified", then start with DV letters to the creditors.  Be careful though, if the items are less than the SOL (in your state) you could be opening yourself up to being sued. 

 

Should I focus on paying off the 2 remaining charged off cards or let them ride out the 7 year itch without a settlement?  If you're confident these are yours, and the balances are correct, you might want to offer a PFD so the TL will be removed once you reach an amount agreement.

 

Would it help if I paid the hospital collection? I have always heard that creditors don’t really look at bad medical debt.  IMHO, a bad debt, is a bad debt, is a bad debt.  Medical/Credit Card/ Car Loan, doesn't matter. 

 

Thanks again for any tips you can offer me :smileyhappy:




Also - keep in mind, the only actual FICO scores you can get, are from myfico.com (for TU and EQ).  Experian is typically only available through lenders and some various CUs.

 

 

 

EQ Fico 2009 500's
TU Fico 2009 500's

EQ Fico 04/10/2012 663 (SW alert)
TU Fico 04/13/2012 653 (Walmart)

Goal: 760 by 12/2013 and close on my first house :smileyvery-happy:

Goal - 720 by 12/31/12
Established Contributor
kjm79
Posts: 1,008
Registered: ‎01-22-2008

Re: Trying to rebuild score and credit


casmith1980 wrote:

 

I have so many questions, but I will start with this. What is your best tips to fixing all this and start rebuilding my credit?  Dispute negatives wtih CBs.  Once they come back "verified", then start with DV letters to the creditors.  Be careful though, if the items are less than the SOL (in your state) you could be opening yourself up to being sued. 

 

Should I focus on paying off the 2 remaining charged off cards or let them ride out the 7 year itch without a settlement?  If you're confident these are yours, and the balances are correct, you might want to offer a PFD so the TL will be removed once you reach an amount agreement.

 

Would it help if I paid the hospital collection? I have always heard that creditors don’t really look at bad medical debt.  IMHO, a bad debt, is a bad debt, is a bad debt.  Medical/Credit Card/ Car Loan, doesn't matter. 

 

Thanks again for any tips you can offer me :smileyhappy:




Also - keep in mind, the only actual FICO scores you can get, are from myfico.com (for TU and EQ).  Experian is typically only available through lenders and some various CUs.

 

 

 


Start by DV'ing the CA, not the CRA.  If the CA can't validate, then dispute with the CRA.  Save the CRA dispute for items that you KNOW for certain are inaccurate or can't be validated. 

 

 

How close to falling off are the last two charge offs?  Also, try and GW the accounts you paid to remove the lates or negative info.  Might say no, might say yes. 

 

Maybe mortgage lenders don't look as heavily on medical debt but FICO scores do.  FICO doesn't see it as a medical collection or a cc collection.  It's a collection.  See if you can pay the OC and get them to remove the medical collection.  Or arrange a PFD with the CA. 

 

Also, it looks like you now have NO open positive accounts reporting.  Try getting a small secured cc to start outweighing the bad on your reports.  And definitely make sure you get your TRUE FICOS so you have a baseline for your scores.  You can't rely on FAKOs for a baseline to track your growth. 


Starting Score: TU? EQ 585 EX? (12/06) (CH 7 bk 11/04)
Current Score: (5/12) TU 699 (myFICO) TU 709 (WalMart) EQ 690 EX 686 (CC denial 7/11)
Goal Score: 720 Across the Board by Mid 2012
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