topic Re: What to do first? in Rebuilding Your Credit

What to do first?

Anonymous — Tue, 22 Mar 2016 20:49:20 GMT

I'm totally lost on where to start. This is such a newbie thing to do, but what where would you start off if you were in my shoes?

I have 5 collections (2 medical, 2 rental, 1 utility) all adding up to $2,210.00 all opened around 2011.

I have a charge-off for an auto loan in 2012 for $5,761.00 that is reporting as a negative.

And a high credit credit balance for Wells Fargo, CL of $4700, currently $4300 outstanding, This CL was opened in 2011 and was just recetly maxed out.

I have about $2K in savings that I can use on paying off some of this debt, but I'm unsure where to put that money to bost my Credit Score.

At the moment all I know is that I'm at 586 with Experian. I was also just approved by Khol's ($300), Amazon ($1,500) & Victoria's Secret ($250) all with in the past few days/weeks.

Where do I start? What's affecting me more?

Also, I have 4 accounts that are closed, with "Paid as Agreed", are this affecting me? should I write letters? if so, what letter?

Any help would be VERY MUCH APPRICIATED!! THANK YOU!!

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 13:24:09 GMT

So no one has any suggestions?

Thanks anyways!

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 13:32:05 GMT

I would start by getting your active Wellsfargo under 50% uti. It's maxed out and keeping your score down.

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 13:56:58 GMT

+1 on getting the WF to under 50%. Are you currently behind on any bills? I would also suggest holding off on opening any more new lines of credit until things start getting paid down.

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 13:59:32 GMT

@Anonymous wrote:
I'm totally lost on where to start. This is such a newbie thing to do, but what where would you start off if you were in my shoes?

I have 5 collections (2 medical, 2 rental, 1 utility) all adding up to $2,210.00 all opened around 2011.
I have a charge-off for an auto loan in 2012 for $5,761.00 that is reporting as a negative.
And a high credit credit balance for Wells Fargo, CL of $4700, currently $4300 outstanding, This CL was opened in 2011 and was just recetly maxed out.

I have about $2K in savings that I can use on paying off some of this debt, but I'm unsure where to put that money to bost my Credit Score.

At the moment all I know is that I'm at 586 with Experian. I was also just approved by Khol's ($300), Amazon ($1,500) & Victoria's Secret ($250) all with in the past few days/weeks.

Where do I start? What's affecting me more?

Also, I have 4 accounts that are closed, with "Paid as Agreed", are this affecting me? Yes, but in a positive way. should I write letters? NO! if so, what letter?

Any help would be VERY MUCH APPRICIATED!! THANK YOU!!

Closed, positive TL's reporting "Paid as Agreed" are good on your reports and will continue to report for 10yrs from the closing date helping your positive reporting and your AAoA.

I agree that you should pay down your current acct as the high UTI with so few good accts is hurting you more than you know.

Your collections and CO's are all so new, and I don't have much experience with GW's, PFD's, etc that I'm not much help with them but someone here is.

Re: What to do first?

gdale6 — Wed, 23 Mar 2016 16:34:29 GMT

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if you qualify for Charity Care
2. If not then ask that they recall the collection in exchange for full payment
3. Send the reporting CA a PFD offer
4. Google the HIPAA Process and contact its creator for help

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 16:40:11 GMT

Thank you, that was my first though aswell.

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 16:44:34 GMT

djenks76 I don't have any past due bills. I currently have 3 opend accounts with a total of $6,200 (not including the 3 new ones) all paid in full with the exception of WF.

Re: What to do first?

ohreally7654 — Wed, 23 Mar 2016 17:49:20 GMT

I definitely agree with reducing your utilization. Word of caution however. Wells Fargo is very conservative and they've been known to slash CLs once you pay down the balance. I had perfect payment history with them and every other lender. Never a late or collection at the time. My overall utilization was just under 30% across my open cards. As soon as I paid off my $4k balance with them, Wells slashed my $7500 CL to $750. There it has sat ever since. I would definitely caution against opening any more accounts for awhile and be sure to let only one card report a small balance. If you can keep under their radar hopefully they won't balance chase you, further impacting your scores.

Re: What to do first?

RobertEG — Wed, 23 Mar 2016 19:21:36 GMT

Planning also involves considering what additional derogs could occur.

A charge-of is a major derog that often is followed by either a referral to a debt collector, or sale of the bad debt.

That would be my first focus, as it could get worse.

What is the DOFD, and when was it charged-off? Is it still owned by the OC?

As for the collections, who still owns them, and are the debts still within SOL?

Are the debts all legit?

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 20:59:33 GMT

ohreally7654 thank you for this info, I had no idea about "balance chasing"

Re: What to do first?

Anonymous — Wed, 23 Mar 2016 21:10:07 GMT

RobertEG

Planning also involves considering what additional derogs could occur.

A charge-of is a major derog that often is followed by either a referral to a debt collector, or sale of the bad debt.

That would be my first focus, as it could get worse.

What is the DOFD, and when was it charged-off? 10/2012 Is it still owned by the OC? Yes I believe so. It aslo says "Date Major Delinquency First Reported: 06/15"

As for the collections, who still owns them, and are the debts still within SOL? Satue of Limitations? Not sure how to determ this date.

Are the debts all legit? Sorry I'm not sure what this means..