What makes the most sense?

Anonymous · ‎06-22-2015

I have been working hard on rebuilding my credit. I recently got a couple of Capital One cards and they have already raised their limits twice. I am at the low 600's with all CB's right now but I have some collections on my credit report. I am really wanting to raise my scores and am wondering if it makes sense to try and negotiate and pay them and ask for removal or leave them be?

I have two options I am considering:

Option 1: Medical collections from 2011 - totalling $1345. Should be removed in 2018.

Option 2 - Old Credit Card debt do to fall off towards the end of 2016. Totalling $2117.

Would it make sense to leave the credit card ones alone since they are so old and try and negotiate the medical bills or leave them both alone as it has been over 4 years on both?

Any information and guidance would be greatly appreciated.

Anonymous · ‎06-22-2015

@Anonymous wrote:
I have been working hard on rebuilding my credit. I recently got a couple of Capital One cards and they have already raised their limits twice. I am at the low 600's with all CB's right now but I have some collections on my credit report. I am really wanting to raise my scores and am wondering if it makes sense to try and negotiate and pay them and ask for removal or leave them be?

I have two options I am considering:

Option 1: Medical collections from 2011 - totalling $1345. Should be removed in 2018.

Option 2 - Old Credit Card debt do to fall off towards the end of 2016. Totalling $2117.

Would it make sense to leave the credit card ones alone since they are so old and try and negotiate the medical bills or leave them both alone as it has been over 4 years on both?

Any information and guidance would be greatly appreciated.

I am more inclined toward the CC debt but only if its the OC reporting the Charge Off with a balance.

Anonymous · ‎06-23-2015

I had a couple medical collections that were not very large from 2005 to 2008 that I paid in 2010 to 2012.

I found that in general, they would only accept a reduction of about 20% and only if I paid in a lump sum.

If I had to make payments, it was almost always at the full amount. I kind of kept a running payment with them for 2 or 3 years there, buyt they were all paid.

Mine were from a hospital and from an ER Doctor group from the same hospital. They would not do a pfd even if pif, but they have fallen off my CRs before other debts in that time period.

hth

ETA: I believe the CC debts count more than medical debts, and especially in a manual review.

Jeff532003 · ‎06-24-2015

I would work on the credit card debt first. Capital one while I love them more than any other bank is easy. Almost any other prime lender will not approve you if they see unpaid credit card collections. I do believe their scoring models see it as you burned them, your likely to burn us as well. Also medical collections do not factor into your score very much on the newest FICO models.

Jeff532003 · ‎06-24-2015

Also just a thought but Avant or another personal loan lender may approve someone with your score and profile. They'll give you an interest rate with just a soft pull. You might be able to use a personal loan to pay off the old collections which will also give your profile a boost by having a new unsecured line of credit. Make all your payments on time with them and in a year you could be in very good shape.

gdale6 · ‎06-24-2015

@Jeff532003 wrote:
I would work on the credit card debt first. Capital one while I love them more than any other bank is easy. Almost any other prime lender will not approve you if they see unpaid credit card collections. I do believe their scoring models see it as you burned them, your likely to burn us as well. Also medical collections do not factor into your score very much on the newest FICO models.

The amount must be $100 or less for Fico to discount it anything larger and it is used in scoring.