topic Re: Credit Repair Action Plan, Please Help in Rebuilding Your Credit

Credit Repair Action Plan, Please Help

Anonymous — Tue, 18 Jun 2013 14:52:01 GMT

Ok, I'm new to this game and need a few pointers. Thank you to everyone who reads/replies to my questions. Experience is invaluable!

I have 8 (yes, eight) negative accounts listed on my credit reports. Each one is from a variety of credit card charge-offs. They are all from 2008 and each one has been sold to legit CA's.

I want to do the right thing and pay these debts, however, I hate knowing that these CA's are making money off of me (or anyone else). I plan to tackle all eight of my negatives with lump sum payments via money order or cashiers check. I would prefer to settle the debts with CA's for hopefully around 25%.

I understand that all correspondences should be in writing and sent certified mail. My questions lie in what happens AFTER I pay? What proof do need from them before I send the payment? If I am able to settle for reduced amounts will they still show a balance or will they be listed as paid/settled? I'm not concerned with DV's or PFD's, I just want to pay, improve my rating, then move on to the next.

Thanks

Re: Credit Repair Action Plan, Please Help

llecs — Tue, 18 Jun 2013 15:03:48 GMT

Paying them will not improve your credit rating per FICO. A $0 balance CA is equally as bad as one with a $10,000 balance. I'd aim for PFDs.

Re: Credit Repair Action Plan, Please Help

Nik2010 — Tue, 18 Jun 2013 15:10:20 GMT

Agreed. Unfortunately, paying the CA only will just change their reporting to a $0 balance. The only way to improve your score would be to get rid of the tradeline by successful DV or a PFD.

Re: Credit Repair Action Plan, Please Help

ktm214 — Tue, 18 Jun 2013 15:17:54 GMT

You have to keep in mind that it is not a quick fix. It does take time and a lot of letters and stamps. PFDs are worth the effort but remember, do not be demanding but, rather, be nice as you are asking for a favor so to speak.

Re: Credit Repair Action Plan, Please Help

Anonymous — Tue, 18 Jun 2013 15:29:06 GMT

So, this brings two new questions.

1) Would I be just as well off to be patient and let these items 'fall off' next year? I'm not an any rush to boost my score.

2) If I start sending DV and PFD letters am I at any risk of having these items renewed and not falling off as expected? From everything I have read on other posts most these agencies are tough to deal with and typically won't PFD and I have little hope that they can't verify.

Thanks for the replies!

Re: Credit Repair Action Plan, Please Help

Anonymous — Tue, 18 Jun 2013 15:32:04 GMT

One more question.

If I am successful with the PFD's is it possible to have the OC's remove their lines as well or do I just have to suck it up and deal with those?