Trying to turn the page...

[jhoffa34]

i just printed out my TU credit report and grade...525-F.  I am embarrassed, upset, and dont really know what to do.  As i look at the report there is a lot of "BS" stuff on here.  I have $125 here $250 there.  I have student loans out the wazoo and dont know how to get that to stop reporting negatively when they have a $0 balance due to consolidation.They are killing me as well because their are so many. 

 1 collections on a car that is for $12,900 8/11/06 opened.

$259 Time Warner

$124 Wachovia Bank

$390 Tmobile

$101 Verizon

$ 232 Verizon

$772 Verizon

$512 Charge Off HSBC Bank

and that is all of it on TU...i havent seen the others but i feel like if i start here i could be on my way to getting better. i guess my question is, do i pay this stuff off? most of it is old like in the mid 2000's.  i make $50k a year, i have a home that i share with my fiance and a car that i have through Credit Acceptance and never missed a payment. I would like to just start fresh and be able to provide for my wife and my family and not taking care of responsibilites isnt the type of person i want to be anymore.  

[Jutz]

Welcome.  I think this is the path most of us have taken.  Knowledge is the most important part, IMO.  Learn everything about what affects your credit profile.  Once I did that I realized how irresponsible I was.  I was literally exactly where you were 5 months ago, so I know how you feel.  Make a plan, stick to it.

As for what you plan is...there are some set steps most will recommend you take.  Do some readin on Debt Validation letters, available on stickies in this forum.  Then assuming most or all of these debts are validated, do research on Pay for Delete offers.  Keep in mind derogatory lines will sit on your profile for 7 years.  If you have some at 6 years, 6 months, that may make your decision for you.  Don't pay anything without getting something for it.  Simply paying on a derog will not increase your score.

[jhoffa34]

Thanks for the response. Of those accounts listed, most of them are with AFNI...do you think i should make one offer for all the accounts they have in my name, or do you think i should handle them individually? 

[igids1]

Slooooooooow way down there!! Do not pay anything until you have been here for at least 30 days! There is lots to learn here. Start reading all the posts from folks, and go back as far as you can. 

First thing to do, is to get a copy of the other two credit reports. Where did you get the TU one? We need to know the dates of first delinquency on each of these accounts. We need to know the dates of last payment, and we need to know what state you are in.

[jhoffa34]

lol i understand what you mean by slow down, but you have to understand and as im typing this im sure you do...but im so frustrated...Lexington Law, back alley credit gurus, lying debt collectors, for years and years now. i'm a college graduate, i have a great job, i shouldnt be worried about if ill be approved for ANYTHING,  and at this point i'd rather just pay it, but i want to make sure i can have it erased...not like "paid as agreed" but erased from my profile. i got this TU report from their website with a free 7 day trial.  the only account i'd even think about entertaining with statute of limitations is my GM Financial for that $12,900 car i have, that was 8/2006 hopefully i can clean up all the small stuff i have and that will come off in due time. just thinking out loud about that, trust me i dont know what im doing, im looking for advice.

[Jutz]

Here is why you're in a better circumstance than you may think:

1. You don't need a score of XXX by XX.  Some people come on here and say "I need 70 points in 3 weeks, help!".  You will be able to work at a realistic pace.
2. You are gainfully employed and not in money trouble! Yay! You can afford to fix past mistakes.
3. You still have leverage to get these accounts deleted. CAs want these paid, and have no reason to not negotiage, despite if they insist on the contrary.

Bottom line is you have the ability to dig yourself out, and there's no reason to feel pressed for time. 

What does the rest of your credit profile look like?  What kind of credit card debt do you have? You mentioned student loans, what's going on with those?  I know you want to see some tangible results, so maybe look into your Utilization % of revolving credit.  That's a quick way to see results in your credit score. 

[jhoffa34]

i have one unsecured first premier credit card with a $300 limit that i max out and pay in full most months but sometimes like this month my balance is $370 so id say in the year i had it i was 60 days late 1 and on time every other month. other than that i have no other reoccurring bills or open credit lines.  I think my goal is to find the most effective way to get these collection accounts off my report. i am willing to pay but i dont want them to still be effecting me, i realize i need to get a more complete credit profile by that i mean other accounts that i keep current like my car and my credit card but its hard to get approved for anything at a 525 i cant help but feel like if i clean up these 7 collection accounts that will improve me significantly, well thats my hope at least.  Anyone have advice or direction on pfd's? fax, email, snail mail, call, anyone have a preference or experience in those means of using a pfd?

[Shogun]

Hello and welcome to the forums.  Read up on the threads below and formulate your game plan.  Post any questions or suggestions you might have to the forums and we will be glad to help.  Good Luck!

http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/td-p/88458

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/What-Steps-Do-I-Take-Do-I-DV-PFD/td-p/337142

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...

[jhoffa34]

does anyone think sending an offer on all 3 accounts from AFNI in the form of a PFD is a bad idea...offering 40% of debt owed.

[Jutz]

Follow the links Shogun dropped, you'll get all you need there.

If you want a bit of motivation via visible progress, get that CC paid down and reporting 0.  Stop using it for now.  Paying it in full each month is great, but maxing it (and then some) and letting it report on your statement is a terrible practice.  Instead, strive to pay it off before the billing cycle ends. For most cards, your balance gets reported monthly based on your statement balance.  If you have your card maxed each time your statement closes, your credit report sees only that.  Most common best practice is keeping your credit card utilization equal to or less than 9% with only one card reporting a balance.  You shouldn't have more than $27 reporting w/ a $300 limit. 

TLDR Pay off your credit card never let more than 9% of your total balance report.  This will give you a quick boost in credit score to aid in motivation.