topic Re: Rebuilding - early days - and looking for advice in Rebuilding Your Credit

Rebuilding - early days - and looking for advice

Anonymous — Tue, 26 Oct 2021 05:19:05 GMT

These forums have been so helpful to me; thank you! I wanted to share my credit story and the beginning of my rebuilding. Hopefully I can get some advice on how best to move forward. I must apologize in advance for the length of my post but, I want to ensure I provide background and there's a lot that I'm addressing and trying to overcome.
I divorced my first husband (and children's dad) in 2011 and living on my own was hard. We'd always had good credit so I was able to get credit cards in my own name with credit limits ranging from $2k - $12k. I had about 4 or 5 credit cards. Over the next few years I also got store credit cards and utilized those; my limits were $1k or less on those usually. I always made the minumum payments and wasn't maxed out on anything (close to it on some, but not maxed).

In 2016 I remarried. It was a huge mistake and I knew it from the start. I soon discovered the man I married had a spending problem (along with other traits he'd managed to hide during the couple of months we dated). He had over $200k in student loans and more than $100k in credit card debt. He was completely upside down in a vehicle and struggling to make the payments on everything. But keeping up appearances was important and I didn't want to just give up on my marriage and admit that I had made a terrible decision and hear the "I told you so's". I quickly maxed out all of my cards too; my balances when we married were about $8k. By the time I finally got up the courage to leave (July 2019), and planned everything out, my balances were about $22k.

When I left I had to get an apartment, paying first months rent and deposit, and buy pretty much everything to live in it. Having 3 children (none with him thankfully), they needed beds etc. I cashed in a small retirement account I had which helped with that. I also had to buy a car; I left the Cadillac with him because I wasn't in a position to pay $970 a month for a car!!!
But, I couldn't make the minumum payments on all of my credit cards. I called the various companies when I couldn't pay and explained my circumstances. I asked if it was possible to put my account on hold for 3-4 months and I would begin making payments again. I was told no, that something would need to be paid. Could I pay $50? I explained that I was struggling, that I didn't have $50 for their card, and the 4 other cards too. I just couldn't do it. So I didn't pay them. I felt horrible. I have never not made payments before.
After about 6-months I was in a position to have a little extra each month. I reached out to Freedom Debt Relief because I kept seeing commercials on how they save you so much money and help your credit. I began paying them $400 a month to negotiate on my behalf.
In June 2020 I was promoted and moved to a new state where I met a wonderful man. By November 2020 my salary had doubled, and my boyfriend and I knew we wanted to be able to buy a house down the road. We met with a lender in December 2020 (because I knew my credit would suck) who told me that FDR was a waste of my money; they had only settled one account for less than $500 and were making small payments on 2 other accounts.
My initial scores from December 2020 with the FICO Score 5, 4, & 2: Equifax, 582, TransUnion, 540, Experian, 572

Following that meeting, I cancelled FDR and began paying off things on my own. My plan was always to pay back my debts; that's why I had gone to FDR. Here's my account information as of today (all the baddies):

AmEx: Charge off paid to a collection agency - $0 balance (settled for less than full balance)

Kohl's/Capital One: Charge off paid - $0 balance (settled for less than full balance)

Synch/Belk: Charge off paid in full to a collection agency - $0 balance (collection is no longer reported but charge off is)

JPMCB Card Services (Chase): Settled for less than full balance (not charge off; $0 balance)

Citicards CBNA: Charge off - original amount $3,327. They are still reporting the balance each month; decreasing. This account is owned

by a collection agency, Couch, Lambert, who threatened legal action. I am paying $100/month on this. Current balance is $2,627. The collection is not reported on my credit report, the charge off with decreasing balance is (I can probably negotiate this to a lump-sum settlement - would like to get PFD but probably not possible).

Capital One: Charge off - original amount charged off $7,205 (not sent to collection; they report this every month).

JPMCB Card Services (Chase): Charge off - original amount $5,680. Last reporting April 2020 in the amount of $5,680.

COLLECTION: Cavalry Portfolio Services: $5,214; original creditor JPMCB (Chase - above account). Balance is what was on card when it went delinquent.

COLLECTION: Portfolio Recovery Associates for Synchrony Bank/Old Navy: Original balance; $1,460. Paying in full at $100/month; balance $1,000.

COLLECTION: Portfolio Recovery Associates for Synchrony Bank/Lowe's: Original balance; $600. Paid in full (last payment October '21 so it's still on my credit report)

COLLECTION: L J Ross Associates: Paid in full. Original creditor SWEPCO. (Collection from electric company. I have no idea how this wasn't paid/what month etc. Possible in the move from LA to TN I missed a payment).

That's all the baddies. I know, it's a lot.

Additional information from my credit report:

I sold my house in August 2020 so my mortgage is paid in full; established in Dec 2015, 3 different lenders. All paid as agreed.

I have 2 student loans. I had been making mimimum payments (loans from 2014 and 2019) then was in deferment, then Covid happened so no payments. The balances were higher than the original amounts. I just (last week) paid them down to the original amounts. The reports are not yet updated with that information. I am going to make payments each month to reduce the amount owed and keep the balance below the original amount.

I paid off my car - $16,000 - loan established July 2019; always paid as agreed.

I have 1 late payment on a Limited store credit card in January 2015 (I am going to write a GW letter to ask for removal)

I have 17 other paid as agreed accounts; no late payments, most are closed and no derogatory remarks on them. A variety of mortgages, auto loans, credit cards, store cards. My oldest account is 21 years.

I have one open current credit card with USAA (I also bank with them so paying this was important to me). My limit is $2,500 and my balance was close to that limit until last month when I paid it down to $1,500.

All of my accounts were paid as agreed until September and October 2019 (left my marriage in July 2019). I had zero late payments prior to that.

As of October 17, here are my scores:

FICO 8 (I don't have the December 2020 scores): Equifax, 633, TransUnion, 620, Experian, 606

FICO 5, 4, 2: Equifax, 614, TransUnion, 558, Experian, 585

I would love the advice of those who have been through this and come out the other side. I really want to get the last 2 accounts; Capital One and JPCMB; Chase, (also a collection account), paid. I can pay in full but would prefer to settle for whatever I can and try to get them deleted (probably not possible). I also want to negotiate the Portfolio Collection Account as I am in a payment plan to pay in full. I think they'd settle at this point for a lump sum payment and that would be preferable to get it to a $0 balance.

If you've made it this far, thank you! I appreciate all advice, suggestions, encouragement!

Is it better to mail a settlement letter or is sending an offer via email ok? Or should I call and try to negotiate in person on the phone?

What about asking for a GW removal...is an email ok or should it be mail?

What else can I do to improve my score? I have started to receive offers for credit cards in the mail. Would it be beneficial to get one of these and barely use it to keep my utilized percentage of credit low? One credit card or two?

Thank you again; these boards have been so incredibly helpful in learning how to navigate this!

Re: Rebuilding - early days - and looking for advice

FireMedic1 — Tue, 26 Oct 2021 08:49:54 GMT

Well you did a fine job getting everything if i read it correctly PIF or settled. Or working on it. Anything with Portfolio will be deleted from your reports once paid or settled. Takes 2 months once completed. GW's for CO or other baddies wont happen. Especially with Chase and Cap1. All you can do is keep hammering all the remaining baddies then time will do the rest. If you could list whats left or active it will make it easier to see and there might be a plan. Whats already taken care of you can leave out. We can go from there. Time is on your side with what has been tackled for now.

Re: Rebuilding - early days - and looking for advice

Anonymous — Tue, 26 Oct 2021 15:12:05 GMT

Thanks for the reply @FireMedic1

By what's active still I think you mean what's still an open account, not everything that is paid/closed/settled/old etc.

Here's what I still have to work on getting paid.

Chase CO - $5,680 (last reported date April 2020)
Cavalry Portfolio Services Collection (original creditor above Chase account) - $5,214 (reporting monthly)
Capital One CO - $7,205 (reporting monthly)

-- Chase and Capital One are the biggies and the last two balances that I need to take care of. I haven't contacted them yet.

Should I call and offer to settle for 30%? Higher?

-- Is it better to send a letter with a settlement offer or can I get someone on the phone who can make that decision by calling their 800 number? I know you said Chase and Capital One won't do a PFD - should I even try for that?

The below 2 accounts are currently being paid. I am going to call each and see if I can pay a lump sum settlement to get them closed and a $0 balance reported.

Citicards CO – Originally $3,327; balance $2,627 (reporting monthly). Making payments to Couch | Lambert collection agency; $100/month (collection is not reported to any of the bureaus)
Portfolio Recovery Associates – Originally $1,460; balance $1,000 (original creditor Old Navy); Paying $100/month

Open accounts:

2 student loans totalling $28,000 (paid this down from $31k this month to get it below the original loan amount). Paid as agreed.
USAA Credit Card: Credit Limit $2,500; balance $1,500; paid as agreed. Opened Jan 2019.

Current mortgage scores as of 10/17: FICO 5, 4, 2: Equifax: 614, TransUnion: 558, Experian: 585

Will getting all of my baddies reporting a $0 balance make a big difference in the score?

Is there anything else I can do to increase my scores?

Thank you for any advice and suggestions.

Re: Rebuilding - early days - and looking for advice

FireMedic1 — Tue, 26 Oct 2021 20:24:10 GMT

Chase CO - $5,680 (last reported date April 2020)
Cavalry Portfolio Services Collection (original creditor above Chase account) - $5,214 (reporting monthly)

Does Chase show a balance or $0 balance. Looking to see who owns it.

Capital One CO - $7,205

Citicards CO – Originally $3,327; balance $2,627 Making payments to Couch | Lambert collection agency; $100/month (collection is not reported to any of the bureaus) Couch/Lambert is a law firm not a collection agency.

Portfolio Recovery Associates – Originally $1,460; balance $1,000 (original creditor Old Navy); Paying $100/month Once paid they will delete.

2 student loans totalling $28,000 (paid this down from $31k this month to get it below the original loan amount). Paid as agreed.

USAA Credit Card: Credit Limit $2,500; balance $1,500; paid as agreed. Opened Jan 2019.

Basically just keep paying on all these. You can call and ask for settlement. The older the lower they usually go. But all these just need to get cleared and paid. Time will do the rest as they age.

Re: Rebuilding - early days - and looking for advice

FireMedic1 — Tue, 26 Oct 2021 20:25:16 GMT

@Anonymous wrote:
Thanks for the reply @FireMedic1
By what's active still I think you mean what's still an open account, not everything that is paid/closed/settled/old etc.
Here's what I still have to work on getting paid.
Chase CO - $5,680 (last reported date April 2020)
Cavalry Portfolio Services Collection (original creditor above Chase account) - $5,214 (reporting monthly)
Capital One CO - $7,205 (reporting monthly)
-- Chase and Capital One are the biggies and the last two balances that I need to take care of. I haven't contacted them yet.
Should I call and offer to settle for 30%? Higher?
-- Is it better to send a letter with a settlement offer or can I get someone on the phone who can make that decision by calling their 800 number? I know you said Chase and Capital One won't do a PFD - should I even try for that?

The below 2 accounts are currently being paid. I am going to call each and see if I can pay a lump sum settlement to get them closed and a $0 balance reported.
Citicards CO – Originally $3,327; balance $2,627 (reporting monthly). Making payments to Couch | Lambert collection agency; $100/month (collection is not reported to any of the bureaus)
Portfolio Recovery Associates – Originally $1,460; balance $1,000 (original creditor Old Navy); Paying $100/month
Open accounts:
2 student loans totalling $28,000 (paid this down from $31k this month to get it below the original loan amount). Paid as agreed.
USAA Credit Card: Credit Limit $2,500; balance $1,500; paid as agreed. Opened Jan 2019.
Current mortgage scores as of 10/17: FICO 5, 4, 2: Equifax: 614, TransUnion: 558, Experian: 585
Will getting all of my baddies reporting a $0 balance make a big difference in the score? YES!
Is there anything else I can do to increase my scores? Just settle, pay. anything to get them in the past.
Thank you for any advice and suggestions.

Re: Rebuilding - early days - and looking for advice

Anonymous — Wed, 27 Oct 2021 04:07:41 GMT

@FireMedic1

So now I'm not sure what is going on. I went back to my credit reports to look for the details.

Cavalry Portfolio Services lists the original creditor as Citibank (not Chase). I don't know how I didn't see that! 🤦‍♀️

It was opened on 3/19/20. Status is "Collection account. $5,214 past due as of Sept 2021"

This is terrible; do I have a 2nd Citibank account that has been charged off? I only have 1 Citibank account reported on my credit report; the one that was originally $3,327 that I am paying through Couch, Lambert.

How do I find this missing account?

I can't remember everything I had when all this happened in 2019; it was a lot, and my computer that had all this information on crashed and I lost everything.

Does this mean I have an additional $5,000 debt I had completely forgotten about that I need to settle?
HELP!!!

Re: Rebuilding - early days - and looking for advice

FireMedic1 — Wed, 27 Oct 2021 08:31:05 GMT

Did you get your real credit reports from https://www.annualcreditreport.com/index.action

Re: Rebuilding - early days - and looking for advice

Anonymous — Wed, 27 Oct 2021 12:48:52 GMT

@FireMedic1
Yes. I got all 3 in the past couple of days.

Re: Rebuilding - early days - and looking for advice

FireMedic1 — Wed, 27 Oct 2021 13:53:46 GMT

@Anonymous wrote:
@FireMedic1
So now I'm not sure what is going on. I went back to my credit reports to look for the details.
Cavalry Portfolio Services lists the original creditor as Citibank (not Chase). I don't know how I didn't see that! 🤦‍♀️
It was opened on 3/19/20. Status is "Collection account. $5,214 past due as of Sept 2021"
This is terrible; do I have a 2nd Citibank account that has been charged off? I only have 1 Citibank account reported on my credit report; the one that was originally $3,327 that I am paying through Couch, Lambert.

How do I find this missing account?
I can't remember everything I had when all this happened in 2019; it was a lot, and my computer that had all this information on crashed and I lost everything.
Does this mean I have an additional $5,000 debt I had completely forgotten about that I need to settle?
HELP!!!

You posted 2 separate CO's but only seeing 1? Or you seeing Couch and Portfolio? Confused. Whats missing?

Re: Rebuilding - early days - and looking for advice

Anonymous — Wed, 27 Oct 2021 15:15:33 GMT

@FireMedic1

I'm sorry...I'm confused too.

JPMCB (Chase) is reporting a CO. Amount - $5,680 (last reported date April 2020).
Capital One is reporting a CO. Amount - $7,205 (reporting monthly).
Cavalry Portfolio Service is reporting a Collection account. Amount - $5,214 (reporting monthly). Original creditor Citibank.
I only have ONE account from Citibank on my credit reports; original balance $3,327; current balance $2,727 as I am paying this through Couch, Lambert.

I thought that the collection with Cavalry was for the Chase credit card; not another Citibank credit card.

Why isn't there another Citibank account on my credit report for the $5,214 that Cavalry is reporting? Does Citibank delete the TL when they send/sell an account to collection?

So I actually have $18k that I haven't started to negotiate any payments on which is just overwhelming. I thought I had the last two accounts totalling $13k left to pay.

Thank you again for your replies; I appreciate your help with all of my questions!

Re: Rebuilding - early days - and looking for advice

FireMedic1 — Wed, 27 Oct 2021 15:32:54 GMT

Well consider yourself lucky. PRS will delete themsleves once paid. No they are not known to do such a thing. It may pop again or maybe not. Cross your fingers it doesnt. Best of luck on your journey to being debt free.