Where to start?

[RaeC]

I just received my credit score report from freecreditreport.com (I paid for all 3) and signed up for my FICO as well. All in all, I do NOT have credit card debt debt which I think is good but at the same time, I feel maybe it makes it more difficult to resolve? I'm not sure where to start. My FICO score is low, my 3 scores run about 50 points higher.

To be honest with you, I am completely lost. I do not know where to start. How do I dispute? WHAT do I dispute, if anything? How do I consolidate this debt into one monthly payment? How can I lower the amount of debt owed? How do I improve my credit score? I'm not expecting a quick fix, but I see these miracle stories about points shooting up 100+ in less than 6 months and I'd like to find the same results.

This is a scary world I've just entered, and I'm feeling a little alone!

[Gunnar419]

Totally understand being overwhelmed! First thing, for your benefit and the use of the MyFico credit gurus, would be to lay out your situation in more detail. Just exactly what do you need to dispute? What do you need to consolidate? Do you have NO credit cards or do you have cards that have zero balances? Etc.

[RaeC]

Okay, deep breaths! Most of it is medical, grand total under $4000. No credit cards whatsoever, and one charge-off and one paid (from 2006-2008). Some of these medical appear to be duplicates, or posted under different credit reporting agencies. Am I making any sense? I sure don't feel like I am! They are all fairly recent (late 2012 to early 2013) as my husband was laid-off, we had no insurance for our family. 

I've done some reading on GW and other letters, but I'm not sure they'd apply. Through another thread I read something about HIPAA, and tried my google-fu but to no avail of figuring out what all talk is about! I feel like I need someone to hold my hand during this process.

*Edited to also add: I don't even know what qualifies for disputing! Or what the terms for doing so are.

[guiness56]

Duplicate accounts, that is the same CA reporting the same debt with the same account number can be disputed as duplicate.

2 different CAs reporting the same account is not a duplicate account and is not disputable.  As long as only one CA is actively collecting, previous CAs do not have to delete their TLs.

I would contact the hospital and ask for financial aid on these debts.  Some or all of it can be wiped out and the collections would need to be removed.

For a dispute, there has to be an inaccuracy in the reporting of or within the TL itself.  Meaning it is not your debt, the amount is way off etc.  You cannot dispute accurately reporting TLs.  Disputing will not automatically delete the TL, it can also update the TL to reflect the corrected information.

[llecs]

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

I recommend starting with a secured CC from somewhere. Having revolving credit is important to your mix of credit and I predict a significant increase in score if you do so.

GWs are for paid baddies only. So, for example, you can send a GW to the paid CO.

For unpaid baddies, try a PFD letter. Basically it's a letter stating that you'll pay $x in exchange for a deletion.

HIPAA process is for medical debts only. Google for more info. These forums don't allow specific letters or steps for the HIPAA process. IMO, I'm not too keen on it. It was popular because creditors didn't understand HIPAA. But not they have caught on and realized that the process has nothing really to do with HIPAA at all. It's become increasingly difficult to have success, though certainly not impossible. The challenge with the process is that it involves paying off the debt first with the OC. I prefer the DV-PFD route on medical CAs.

Only dispute inaccurate info. For example if an account never was yours, then dispute with a police report. If an account was yours but maybe the balance seems wrong or they incorrectly placed the wrong DOFD thereby causing it to report longer, then certainly you can dispute too. However, once you start disputing the odds of getting it removed if verified go down. It makes it much harder to remove items through PFDs or GWs, and in some cases, disputing can wake them up and you might find increased collection activity and even drops in FICO as the TLs update.

ETA...I'm a slow typer.

[RaeC]

Okay! How many secured CC? One? Two? Any recommendations on from who to acquire these? How exactly do secured CCs work? Your 'deposit' of let's say $500, is your credit limit, or do they match that deposit thus equalling $1000? Sorry, I am such a noob but I definitely want to get started on this road.

[jzsnow]

Capital one has a good secured card. Do you know what your FICO score is?

[llecs]

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@RaeC wrote:

Okay! How many secured CC? One? Two? Any recommendations on from who to acquire these? How exactly do secured CCs work? Your 'deposit' of let's say $500, is your credit limit, or do they match that deposit thus equalling $1000? Sorry, I am such a noob but I definitely want to get started on this road.

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I'd start with one, focus on repair, and then try for another when it has aged a few months and you are mostly baddie-free. I bet by the time you apply for #2 you won't need a secured CC.

CapOne is good as mentioned. Also try your local bank or CU.

Yes, if you deposit $500, your limit is $500. If you default, they keep the $$$. Your deposit is security for the card. They'll often have you put the money into a savings acct they control, a CD, or even their own acct. Depends on the lender.

[YMLDC09]

Have you heard of Harley Davidson's Secured Card? I am wondering since it reports to all bureaus if it is a sold offering? It is from USBank. Has anyone used them?

[RaeC]

My FICO is 522! Am I allowed to post my report to see if someone can help me get a better understanding and what I should attack first? The weird thing is, I have a $85 amount for Windstream, with whom I currently have active service and just paid my bill! I was a few days late with that, but by pure mistake (I thought I had it on auto bill pay and it wasn't properly set up).