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New Member
kimscredit
Posts: 2
Registered: ‎03-19-2008
0

Help

Hello,
I recently decided to clean up my credit.  My score has increased but I'm getting mixed messages about what to do as far as cleaning it up.  For example, I  recently paid a collection account, not in full but settled and I afraid that it wont raise my score, if anything it will hurt it because of new activity(the payment).  So Im confused should I be paying these accounts...if not full at least partially??  Please help:smileysad:  I will have a score of 750 by the end of the year!!
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: Help

Unfortunately, a paid or unpaid CA has the same negative effect. I'd send a DV letter to the CA to get the balance from them. Then, I'd send a PFD letter to them to pay the remaining balance. If you are lucky, maybe they could delete without the remaining balance via a GW letter.
 
BTW, welcome to these forums! Check out Credit Scoring 101 for more info.
Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007
0

Re: Help

Hi Kim. Don't just go paying off collections all willy-nilly.:smileyhappy: This will do little for your score, if not more damage than good. Before doing anything else with them--STOP. First analyze your CRs. Look at the DOFD/DOLA on the CAs. Figure out your state's SOL. If past SOL--DV the CA. If near the SOL, then you should wait it out (let sleeping dogs lie--you could get sued if near SOL).

Recap--you want to first DV the CA (if the timing is right). If they can validate, you want to go for PFD. If you have already paid, then you want to go for a GW.

GL
___________________________________________________________________
Do what is true in spite of the consequences--your future is only as true as you are.
New Member
kimscredit
Posts: 2
Registered: ‎03-19-2008
0

Re: Help

Hey Guys,
Thank you both for your quick responses.  I love this forum!!  Anyway, it took me a minute to learn the abbreviations, so sorry it took so long to reply.  Anyway, how do I find out the SOL for my state.  And where do I get GW letters or do I just make them up myself.  Geez, who would have thought that cleaning up your credit would be so tricky???  I thought that if I paid it would go away but not so much.  I'm just afraid that I may have hurt my credit or woke up some dead dogs?! I am definately going to try the advice you both gave me, hopefully the PTD will work or the GW letter, either way, I just want my score to go up!  Oh and I do I calculate my utilization, Im still stuck with that one?? Thanks in advance:smileyhappy:  My score will be 750 by the end of the year!!!:smileyhappy:
Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007
0

Re: Help



kimscredit wrote:
Hey Guys,
Thank you both for your quick responses.  I love this forum!!  Anyway, it took me a minute to learn the abbreviations, so sorry it took so long to reply.  Anyway, how do I find out the SOL for my state.  And where do I get GW letters or do I just make them up myself.  Geez, who would have thought that cleaning up your credit would be so tricky???  I thought that if I paid it would go away but not so much.  I'm just afraid that I may have hurt my credit or woke up some dead dogs?! I am definately going to try the advice you both gave me, hopefully the PTD will work or the GW letter, either way, I just want my score to go up!  Oh and I do I calculate my utilization, Im still stuck with that one?? Thanks in advance:smileyhappy:  My score will be 750 by the end of the year!!!:smileyhappy:



Hi Kim. Hope that you enjoyed your reading.

Anyway, here is where you get your states SOL:

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

To find a GW letter, search GW letter or Goodwill letters. There are several good examples.

Uti calculation is as follows: Total balances/total credit limits. Ex. $700 balance on a $3500 CL= 700/3500=20%
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