Unpaid debt - need to increase score

[Anonymous]

Hi Everyone - This is my first post here and I would like to thank you for taking the time to read this

I will make it brief. I have some unpaid debt on my report from a few years ago when I didn't realize how important good credit is. My score now is like 548 and I need at least a 620 so I can qualify for an FHA home loan. I am reading a lot about these "credit repair" companies like Lexington Law etc. Does anyone have experience with these types of companies and any luck getting them to improve the score? I am not sure how it works with unpaid debt. and if I should just file BK and start over. Any info will be greatly appreciated thank you so much!

[StartingOver10]

How much is your debt? What are the baddies's you have on your reports? Have you pulled your 3 credit reports from annualcreditreport.com?

[Repo-ed]

ok, first know that settling debt with CA will not increase your score.

Secondly, do not file BK, if at all possible.

Thirdly, there will be somebody posting shortly with a bunch of links for things you need to read.

Fourthly, I'm always concerned about people talking about buying a house, and already in debt and sub-620 scores.  Do you have an emergency fund and a down payment for this home purchase that you will immediately be under water with, upon purchasing?

[Anonymous]

Hi there thank you so much for the reply I have anout $15K in credit card/line of credit debt from when I was going to school. I have one auto-repo on my credit event though I told them to come and get it because it was a lemon! But besides that it is really just old CC debt.

[Anonymous]

Yes, I am good now with my finances, I have a good job and do ok I just dont make enough to stay current now and pay $15K of past debt. I have emergency savings and money for a down payment saved. I have a 2010 VW and I have made every single payment on time and paid more than I was supposed too. I am NEVER late on any of my current bills and always pay the one credit card off that I have (I only use it for airline tickets).

I know how to take care of finances now - it's jsut dealing with this old debt that I am having trouble with!

[Anonymous]

You still have to pay off the debt before a bank will give you the loan even with a guaranteed loan like USDA. Settle with them for as low as possible, After you DV them. (if you have the funds to pay) be careful it's not within the SOL because they could sue. 

[Anonymous]

Also focus now more on rebuilding credit. Getting more credit lines, even if theyre secured. Old credit doesn't reflect as much as new credit.

[Anonymous]

Thank you so much! And I am sorry but what does DV mean? I hear ppl say paying old debt wont improve the score but I guess in order to avoid BK paying off the old debt after negotiating with them and having them delete the acct will be the best route?

[Anonymous]

And what is the SOL for debt?

[Anonymous]

If they are still sending you demand for payment letters you can DV them, which is basically stating "Prove this debt is mine or delete it off my credit reports."


The SOL is statue of limitations. That date depends on which state you are in, if you are within the SOL they can pretty much still sue you. So you hear people saying dont wake a sleeping giant (if the collection agency isn't bugging you and you don't have the money to pay) if it's within SOL because they can sue.