What Do I Do

[OmarGB9]

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@timshifty wrote:

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@bass_playr wrote:

Paying off a collection account won't get rid of the damage to your score right away, but when it's left unpaid, it will continue to update as unpaid until it either falls off or you finally pay it.  As it keeps updating, it keeps harming your score.  

A paid collection, however, will have less negative effect as time goes on because the moment it's reported as paid, it stops updating.  So you no longer have a "fresh" collection update each month.  

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ok this explains it well

so it sounds like you should pay things off either way for sure unless it is falling off soon

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Pretty much. Best case scenario is when you can get a PFD on collections, because then it's as if the collection never happened in the first place.

[timshifty]

Do original places like Capital one or First Premier do PFD?

[FireMedic1]

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@timshifty wrote:

Do original places like Capital one or First Premier do PFD?

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These two wont do PFD. Jefferson and CCS will PFD I believe. The other 2 collections. Once paid the only good side is FICO 9 doesnt keep records of collections that are taken care of.

[OmarGB9]

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@timshifty wrote:

Do original places like Capital one or First Premier do PFD?

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Pretty much no.

[simplegirl]

I sent source receivable a pfd letter before and they accepted it. So i would send them a letter and see what they say.

[HeavyResist]

@timshifty I have to agree with many here. First and for most, don't consider BK until All other options are gone. It took me years to rebuild.

second, Utilization matters. Get a card, build with it, keep utilization down, get CLI's and garden.

third, with Debs about to drop off, let them. But long term ones that have several years left, consider negotiating. For example, the one falling off in September 2022 should be allowed to lapse. But the 2025 one should be looked at.  I've been where you are, and knowing what I know now I might have made a different choice.

[jrwa81]

Those collections are definitely causing some serious harm to your scores.  I would start working on those first.  Reach out to the collection agencies see if they will agree to settle for around 30% (that is usually the lowest most CA's will go) and agree to deletion.  Get everything they agree to in writing.  That is very important.   Only agree to pay if they agree to delete, because if you simply pay them and they are not deleted, that will do nothing for your scores.

I  know that your student loan is in deferral right now, but that high balance is also hurting you, so I would start paying on that as much as you can to lower the balance, which will also help your scores.

I'm a bit confused about the Capital One repo.  You said that is due to fall off in September of 2021.  That date has already passed.  Are you positive that is the correct fall off date?  If so, and it's still on there, you need to dispute it with the credit bureaus because it should have come off your reports 4 months ago.  

You definitely have your work cut out for you and it will probably take some time to start seeing results, but it should be doable.  Start with the collections and try to settle those for deletion and knock those out.  Also, while you are repairing, you also want to start the process of rebuilding to establish positive credit history.  Get a couple of secured credit cards and keep your utilization 10% or less and set them up on auto pay.   Good luck.