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hi all,
i'm brand new here so please bear with me.............
so, i have collections and charge-offs on my credit report. my credit score is between 535 and 500 and i would like to buy a house by the end of next year. the majority of my charge offs and collections have open dates between 2007 and 2009 and are debts between $61 ( the lowest) and $3500 ( the highest).
my plan is to:
1. send debt validation letters to a few collection agencies
2. if they validate them, i would send a pay for deletion letter and see what they say. if they don't validate them, then they would come off of my credit report.
3. if they say ' no ' to my pay for deletion letter, then i would send settlement letters and take it from there
1.) when i send debt validation letters to the collection agencies, more than likely, will i receive a letter showing the "validation" from them?
2.) if they completely ignore my letter , even though i'll ask for 30days to validate the debt, what should i do then?
3.) if i do a PFD letter and the company says ' no, we don't do that', should i be persistent and keep trying? if i should keep trying should i do it through letters or phone calls or both?
i read many times in different websites and forums that paying for collections and/or charge offs (whether they are paid in full or settlements)won't raise your credit score at all!! BUT i was told by a few credit counselors that pay for deletion letters don't work and that if i offer settlements, that i can expect to see my scores rise after 60 - 90 days after the payment is done. is that true? it seems just paying the settlements shows people that you paid something on the debt and thats all.
and what does "GW" on here stand for?
thank you so much!!!!!!!!!
Start here (also):
http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/What-Steps-Do-I-Take-Do-I-DV-PFD/td-p/337142
GW = Good Will [letter], usually a, "Please do X because it's the right thing to do" letter.
EDIT: Paying or settling a collection typically will not affect your score at all, but may affect how your report looks in manual review. I'd be weary of these credit counselors.
thanks cassembler. unfortunately, im still within the SOL. these debts on my credit report occured when i lived in pennsylvania, but i live in maryland now.... so idk if collection agencies would use the Pa or Md SOL and idk if i could use that info you linked to. also, i can't PIF either at this time.
anyone else?
Sending a request for debt validation does not set any statutory period or requirement that they respond. Penalty for not providing the requested debt verification is their cessation of collection activiites until such time as they choose to provide verification.
If they decide to suspend collection activites, that is their option.
Showing satisfaction of a debt is not trivial.... it informs others that you have fulfilled your debt obligation. It goes beyond just a three-digit score.
How do you pay for deletion letter? What does it need to include and how does it work?
thanks I am new too!
@adio413 wrote:hi all,
i'm brand new here so please bear with me.............
so, i have collections and charge-offs on my credit report. my credit score is between 535 and 500 and i would like to buy a house by the end of next year. the majority of my charge offs and collections have open dates between 2007 and 2009 and are debts between $61 ( the lowest) and $3500 ( the highest).
my plan is to:
1. send debt validation letters to a few collection agencies
2. if they validate them, i would send a pay for deletion letter and see what they say. if they don't validate them, then they would come off of my credit report.
3. if they say ' no ' to my pay for deletion letter, then i would send settlement letters and take it from there
1.) when i send debt validation letters to the collection agencies, more than likely, will i receive a letter showing the "validation" from them?
2.) if they completely ignore my letter , even though i'll ask for 30days to validate the debt, what should i do then?
3.) if i do a PFD letter and the company says ' no, we don't do that', should i be persistent and keep trying? if i should keep trying should i do it through letters or phone calls or both?
i read many times in different websites and forums that paying for collections and/or charge offs (whether they are paid in full or settlements)won't raise your credit score at all!! BUT i was told by a few credit counselors that pay for deletion letters don't work and that if i offer settlements, that i can expect to see my scores rise after 60 - 90 days after the payment is done. is that true? it seems just paying the settlements shows people that you paid something on the debt and thats all.
and what does "GW" on here stand for?
thank you so much!!!!!!!!!
GW stands for "goodwill".
The collection counselors told you 10000% bad advice. A settlement won't help your score, and it shows up as a settlement on your report "Settled for less than" yada yada which isn't a good statement to have. PFD means there is nothing left for anyone to see. Good thing you found the forum before you settled.
@rredstick9 wrote:How do you pay for deletion letter? What does it need to include and how does it work?
thanks I am new too!
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.
thanks!!! very glad and appreciative to be here
sending out 5 DV letters tomorow..............
a few things on my CR that maybe y'all can help me with...............
#1
cap one
XXXX-xxxx-xxxx
late dates: LAST LATE DATE 4/10
DATE REPORTED: 5/12
DATE LAST ACTIVITY: 2/10
DATE OPENED: 2/07
HIGH CREDIT: $1862
ECOA: B
BALANCE: $2683
ACCOUNT TYPE: REV
PAYMENTS REMAINING: $-
CURRENT STATUS: CHARGE OFF
HISTORICAL STATUS:
MO= 63 30=3 60= 3 90 = 9
AMOUNT PAST DUE $2683
ACCOUNT CLOSED AT CREDIT GRANTOR'S REQUEST
#2
MIDLAND CREDIT MANAGEMENT
XXXX-XXXXX-XXXX
DATE REPORTED: 2/11
DATE LAST ACTIVITY: --/--
DATE OPENED: 08/09
HIGH CREDIT: $994
ECOA: B
BALANCE: $1222
TERMS: 001
PAYMENTS REMAINING: $1221
CURRENT STATUS: COLLECTION
HISTORICAL STATUS:
MO= 18 30= 0 60= 0 90= 0
AMOUNT PAST DUE $1222
these are 2 of the 3 big ones on my CR. at the time, i was living in pittsburgh, pa but i now live in maryland.
1. can i send DV letters to them or do a PFD letter?
2. what does the 'date of last activity' and 'date reported' mean? what is the 'ECOA'?
3.why wouldn't midland put a date of last activity on there?
4. if i were to do a pfd letter, would i offer $ based on the high credit or amount past due?
5. under historical status what does the 'mo' mean?