need rebuilding advice

[honky]

Almost all of my bad credit is dropping off of my report this spring, but a couple items will be there until 2014.  Here are my 3 main dilemas:

Should I close my old Capital One account?  It is not closed, but is permanently suspended.  I have not used it in 4 years, but it shows 3 late payments in the 48 months before closing.  I feel that this is hurting my report as an adverse revolving credit account and would do nothing but help if I closed.  I do have another personal and business card from Capital One, so it doesnt seem like it will hurt me like closing another account would.

Collections account for $133.  I paid this off 5 years ago and cannot find the receipt. it is still showing unpaid!  I disputed it and lost..and I know I cannot win until I find the receipt.  In April 2014 this will be removed from my report.  Money is not an issue at all at this point in my life, but at this point I think it would do nothing but extend my bad credit to pay it again.   If I find the receipt and dispute this, will that start my 7 year period over from the date of the dispute, the date of payment, or stay as is? 

I am listed as an authorized user on my dad's Capital One card.  He has a $3600 CL, but is using 71% of it!  I only have a $1500 limit on my own accounts, but am using 8%.  Combined, this has my utilization around 55% and I believe it may be actually hurting my score to be listed on this account!  He has never had a late payment and I am showing 10 years of history because of this card.  My other accounts are 8 years, 2 years, and 1 year so I would lose length of history.  Does the perfect history over 10 years outweigh the 71% utlization?  Should I stay or ask to be removed from this card?

I know that in June I will have 4 negative reports fall off which I am very happy about.  I have the last 2 set to drop off my report in 2014 and I should look squeaky clean when that happens.  I just need to know the best way to go about these 3 items to see the biggest changes.

Thanks for your help!

[RobertEG]

Neither closing of the Cap1 nor paying the debt collector will result in the deletion of any derogs from your CR.

When you paid the collection, who owned it, and how was it reported?  If the OC still owned it and thereafter reported current status of paid and balance of $0, that is the OC statement that the debt was satisfied with them.

What did you dispute regarding the paid collection, and what was verified as a result of the dispute?

[honky]

The collection account is listed as a collection service, not the original creditor.  It was listed in 2007, and the 7th year will be 2014.  If I pay it tomorrow, will it update and stay for another 7 years or remove in 2014?  if I find the reciept showing it was paid 5 years ago, same question applies.  I realize it would then show as paid in full, but I want to make sure it isnt listed as derogatory for 7 more years when I should only have 2 left.

Im really confused about being on my dad's card as well because it really messes up my utilization despite showing on-time payments for 10 years.

Thanks for the help!

[izzesparks]

Your collection account cannot start over it starts from the date of first delinquency, DOFD. It wont change if you dispute or pay it.

[izzesparks]

Also Utilization scores big points so either ask your dad to pay down his debt, help him pay it down, or remove yourself from his account and open up a few more accounts in your own name.

[honky]

I would love to open a few more for myself, but I get 300-500 limits, so that doesn't help much.  I dont need the credit, so it's easy to keep my utilization low, but I realize I need a higher line if I want to continue to improve.  I will probably try to get another in 6 months after most of my 7 year old dings fall off my report.  I think talking to my dad about his utilization may be stepping over a boundary, so I will ask him to remove me.

I am a small business owner and eventually, bad credit will criple any growth potential I may have if I dont get this fixed!  I messed it up when i was 18-24 and here I sit at 31 finally seeing the light at the end of the tunnel.

[honky]

Does anyone else have an opinion?  Will dropping myself from my dad's card help utilization enough to offset the age?  Or should I give it a couple months to see if he can pay it down?  Ultimately, I am hoping to see a significant increase in June when baddies drop and want to have myself set up well all-around by then.

[RobertEG]

I , personally, would terminate AU status. 

At any given time, it can fluctuate between a plus and a minus.  Once you are in the actual process of applying for new credit, you wont have time to get the AU status removed.  It doesnt happen with just a phone call, and removal the next day.  Plus, when a creditor reviews an app for credit and sees an AU account on your CR, they know that your score is not a reflection of your individual credit history, thus possible casting its whole worth to them aside.

Low limit cards are certainly useful in establishing your own revolving credit.  You are scored on having them, and in your % util of its CL, not the CL itself.  Higher CLs can be an incentive to build higher debt, so low CL cards have a kinda built in benefit of keeping your debt low.

Sure, they take more work to make sure their % util is low, but thats the price.

[honky]

That sounds right to me.  I'll call and ask to be removed, then see what it does for me in a couple months once that fixes utilization

[honky]

Creditkarma shows me at a 557--I wonder how much higher that could go if I dropped the utilization from 55% down to 1%, but the simulator doesnt show any changes no matter what I do....doesnt seem to work very well to me!

I sent out GW letters for 2 old late payments, but due to the age that probably wont help my score very much.  I also sent a pfd for my old $133 collection.  I did talk to me dad about utlization and he said he paid for a class and will be putting a few hundred on it this week.