Whats my best move

[Anonymous]

Hello.....new user here...and I humbly ask advice. Been reading along for about a month. I am rebuilding and have been able to increase my Fico scores by about 90 points in the past month just by paying attention to my finances and reading this forum, so thank you to the many contributers. My scores are currently TR-597 EQ-598 EX-617. So I obviously have a long way to go.

Heres the scenario. I have been able to bring all my payments current and still sock away 800 dollars into savings in the past 2 months. I have a new (6 weeks old)NFCU credit card with a $3100 limit. I immediately put 519.00 on it and have since paid it down to 300 this past week. 

On my credit report I have a medical collection of $838( I have made payment arrangements with them) and an older CapOne (now Portfolio Recovery) charge off of $399.00. NOT on my report is an old Direct TV charge off of $758 (now at a CA, they are willing to settle for 454)

My current open accounts are -

Cap1  300Limit/36 balance

Kohls  500Limit/showing11.00 balance but PIF a few days ago

NFCU 3100/301 balance

Installment Loan Origional 19000/11,200 balance

Since my lates make me a credit risk I need a year of payment history and account settling. I'm in no rush to make my scores as pretty as they can be next report and my interest is long term. That said....what do you see as my next best move? Pay down the NFCU or pay off one of the collections? 

Your experienced opinions are appreciated.

[medicgrrl]

How old is the Direct TV CO? If it's too old for them to report, I would work on the other negative items first. If it's not that old, definitely pay it with a written agreement that they won't report it.

[Anonymous]

Its been with the CA for just 6 months, but probably only 1.5 yrs old? I got a letter from them 2 weeks ago. Paying it now an trying to avoid reporting was one of my options, I agree with you.  thanks for responding!

[medicgrrl]

I would pay another collection before paying off Navy. The sooner you can get all the negatives paid the sooner it'll stop reporting as "current lates". You can always pay down Navy later and improve your score. Going that route will cost you a small amount more due to interest.

[Anonymous]

I am new to this as well .... but this is what I have read/learned so far and how I would approach your situation....

I would pay off your Navy credit card and the collection/ CO for Capital one.    

You can leave that small balance on your Capital One card that you currently have.     
If you do the two things I mentioned about you will have zero balances on your credit cards, with only one showing less than 9% used and you will also elminiate a collection off of your record as paid.  

After that I would concentrate on your past collections,  getting them paid off,  in the meantime,  keep all of your credit cards at Zero balance and only let one report at 9% useage or lower.    Make sure you do NOT miss any payment on your loan.   

Best of luck !!    Great job so far of taking back control.  

[rmduhon]

If you're going to try for optimal scoring (only letting less than 9% on 1 card) I'd use the NFCU card for that since you can let up to $240 report as opposed to $24. (Less than 9% of the card's limit, not overall lumits).

[Anonymous]

Thanks for the responses. I went with Option 1 which was to pay the Direct TV and prevent reporting. Unfortunately, it looks like I waited too long and the IC System operator informed me that it reported Sunday. He also said however, that after 30 days they request deletion. Just in case, I took down his name and employee number should I need it later.

Interesting to note you all is that while I paid IC Systems Collection agency, I immediately got email confirmation from Direct TV. So that does not appear to be complete account ownership by the collection agency.

[Anonymous]

I to have an I C systems collections. Will they do a PFD?

[Anonymous]

Its my opinion that they will, and from what I have read here they arent hard to convince.....Your experience may be different but I dont get the feeling they are too rigid. I could'nt get written or emailed confirmation on my pending deletion, he just did a good job selling me that was the typical route with ALL thier Direct TV accounts. He offered up his name and employee number, I didnt have to demand it.

I also didnt need to ask for a supervisor. you might get better confirmation/documentation out of an account manager or supervisor.

[Anonymous]

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@Anonymous wrote:
I to have an I C systems collections. Will they do a PFD?

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They would not do a PFD but assured me that it would be removed the following month.

I did not believe them one bit, but still paid my debt because .....well becaue it was my debt.

Two months later, the collection was removed from my reports as was told to me.