topic Re: Trying to rebuild to buy a house in Rebuilding Your Credit

Trying to rebuild to buy a house

Ray72484 — Wed, 26 Jan 2022 20:07:36 GMT

Let me start out by saying that I have no clue about how any of this fico stuff works. Biggest thing I don't understand is that it is so easy to lose points but a pain to gain them back. I have 4 collections that are reporting. 1 of them is paid off and has been paid off for almost 2 years. The other 3 are from credit cards the highest is around 800 and the next is around 700 and the last is under 200. Now I do have late payments on a auto loan that is now paid off and it was late because of Covid and a few other things that happened when we first got the car such as job loss and some other stuff. But anyway for the last year I have made it a point to make sure all my credit cards and car loans have been paid on time. Granted on some credit cards I only pay the minimum so that I can pay more on something else but everything gets paid. Even the credit cards that got closed because I missed payments at the beginning of Covid. What do I need to do first to get mainly my mortgage scores up. They are EQ 581. TU 544. EX 491

Re: Trying to rebuild to buy a house

FireMedic1 — Thu, 27 Jan 2022 09:56:43 GMT

If you can list out your open/closed cards as:

Creditor Name/Credit Line/Balance/Date of Lates

Name of Collection Agency/Amount (Not that it matters with collections unless its medical under $100)

Then we can set up a plan. Gonna take a while. It can be done.

Re: Trying to rebuild to buy a house

Ray72484 — Thu, 27 Jan 2022 15:39:34 GMT

This is everything that is current and never had a late

Avant/Webbank. 300/240

DFS/Webbank (Dell) 2000/1100

capital one quicksilver 300/200

kik off 500/12

capital one auto 23000

milestone 300/250

celtic bank 600/550

self card 400/300

fingerhut 600/500

Consumer portfolio services (car loan) 14000

studentbloans about 68000 reported 90 day late in September of 2016 but has been current ever since

credit one bank (closed) 300/440. 1-30 day late 2-60 day late 2-90 day late between February and June 2020.

bank of Missouri 450/350. Closed account went 120 days late in April 2020 but current ever since and still paying on it currently

Merrick bank charged off in June 2020 and was reporting CO until July of 2021. Started being late November of 2019 until CO and has had 1-30.60.90.120.150.180 day late until charge off. This account is paid in full.

Re: Trying to rebuild to buy a house

Ray72484 — Thu, 27 Jan 2022 15:46:41 GMT

Avant/Webbank 300/243

DFS/Webbank 2000/1100

Cap1 Quicksilver 300/200

kikoff 500/12

Milestone 300/250

celtic bank 600/550

self card 400/300

fingerhut 600/500

Cap1 auto 23000

Consumer portfolio services (car loan) 14000

Re: Trying to rebuild to buy a house

Ray72484 — Thu, 27 Jan 2022 15:53:15 GMT

Everything that has been late.

old Cap1 auto loan. Has a bunch of 30 and 60 day lates and a couple 90 day lates as recent as last year until June when I traded that car in for my new car

student loans about 65000 90 day late on 9/16 but since they are all grouped into on payment but separate accounts it look like I have about 15 90 day lates instead of just 1

Bqnk of Missouri 450/350. Closed account went 120 days late in April 2020 but current ever since and paying on it currently

Merrick Bank CO in June and was reporting CO until July 2021 when I paid it off. Started being late November of 2019 in charge off. Has 1- 30.60.90.120.150.180 day late until it was CO

collections

portfolio recovery. Has 3 different account of mine in collections

1 Mid America Bank. $876

2 HSBC. $714

3 Cap1 $196

Att Mobility. $120. Paid off

Re: Trying to rebuild to buy a house

gdale6 — Thu, 27 Jan 2022 18:46:45 GMT

@Ray72484 wrote:
Avant/Webbank 300/243
DFS/Webbank 2000/1100
Cap1 Quicksilver 300/200
kikoff 500/12
Milestone 300/250
celtic bank 600/550
self card 400/300
fingerhut 600/500

Cap1 auto 23000
Consumer portfolio services (car loan) 14000

Fastest way to some Fico point boosts is to pay off those credit cards, start with the highest interest rate and work on down the list. What you want to end up with is one card reporting a small balance in relation to its overall CL on the CRAs.

Re: Trying to rebuild to buy a house

Ray72484 — Thu, 27 Jan 2022 19:44:35 GMT

I am looking for a fast way but I know realistically nothing with credit scores is fast. My plan was to take the smallest ones first and pay one off every month maybe 2 every month while paying a little more on all the others. My problem is that with all the lates it's killing my score. I know paying my credit cards off will help but it will only go up so far with the lates holding me down

Re: Trying to rebuild to buy a house

Anonymous — Fri, 28 Jan 2022 03:48:10 GMT

Fast way....No such beast in Credit repair.

However, you do need to pay down them credit cards, especially the ones that are almost maxed out. Once this is completed you can start looking at the lates. It gets better overtime as your cards age and the lates age, but you have to pick an item or area to start.

Re: Trying to rebuild to buy a house

Ray72484 — Fri, 28 Jan 2022 06:03:29 GMT

My plan was definitely to start on getting the balances down on everything. I have a lot of time on my hands for at least the next month because I had surgery and out on disability until the end of February. That's why I was wondering how to address the lates and the collection accounts. I will have a lot of time to sit and get everything in order and call or send out stuff to people to get the ball rolling. I just need advice on how to go about doing lol this. Thanks

Re: Trying to rebuild to buy a house

FireMedic1 — Fri, 28 Jan 2022 08:56:53 GMT

You'd be surprised how much your high util %'s are hurting. Good news first. Portfolio will PFD and that will remove the collections. Bad news. You came for advise. Quit using your cards. You have what I call swipe fever. If you cant pay it. Dont charge it. CO and lates will have to age. But you can fix whats open now. Get out of CC Debt ASAP. Thats why I asked for you to list it out. @gdale6 nailed it. Bout it in a nutshell. Good Luck!

Re: Trying to rebuild to buy a house

Ray72484 — Fri, 28 Jan 2022 12:53:00 GMT

I have neve asked for a PFD before. Should I tell them I can only pay a certain amount. Will they do it if I make smaller payments to it rather than one big payment.

Re: Trying to rebuild to buy a house

BB30 — Sun, 30 Jan 2022 03:53:00 GMT

You're in luck with Portfolio as they'll delete those once they're paid. You can probably even negotiate to pay less.

You don't have to negotiate the delete, they do it for everyone and it's listed on their website.

Re: Trying to rebuild to buy a house

FireMedic1 — Sun, 30 Jan 2022 11:20:19 GMT

@BB30 wrote:
You're in luck with Portfolio as they'll delete those once they're paid. You can probably even negotiate to pay less.

You don't have to negotiate the delete, they do it for everyone and it's listed on their website.

Consumer portfolio services isnt the PFD Portfolio we know. CPS is the lender and not a collection agency.

Re: Trying to rebuild to buy a house

tnhomestead — Sun, 30 Jan 2022 16:30:07 GMT

PRA does delete, and you can make payments. And those charge offs, and high utilization hurt. Good news is utilization has no memory, once the card comes down the penalty goes away. 89%, 69%,49% etc are the goal posts.

2nd point if you can, open up 2 bank accounts. 1 gets enough money to live on, ie food, rent, gas, utilities etc. Rest goes into 2nd account. Goal is to live off first account and never use cards till the finances are done. I am using upgrade for account 1 since I get 1 or 2% back on spending, but just pick an account. Good luck

Re: Trying to rebuild to buy a house

FireMedic1 — Tue, 01 Feb 2022 10:44:36 GMT

@tnhomestead wrote:
PRA does delete, and you can make payments. And those charge offs, and high utilization hurt. Good news is utilization has no memory, once the card comes down the penalty goes away. 89%, 69%,49% etc are the goal posts.
2nd point if you can, open up 2 bank accounts. 1 gets enough money to live on, ie food, rent, gas, utilities etc. Rest goes into 2nd account. Goal is to live off first account and never use cards till the finances are done. I am using upgrade for account 1 since I get 1 or 2% back on spending, but just pick an account. Good luck

@tnhomesteadConsumer Portfolio Services is a lender. Not a CA. CPS and PRA are 2 different companies. Look at @Ray72484 3rd post.

Re: Trying to rebuild to buy a house

tnhomestead — Tue, 01 Feb 2022 14:57:49 GMT

@FireMedic1 See post 5, 3 accounts in collections with portfolio recovery. Have a great day.

Re: Trying to rebuild to buy a house

gdale6 — Tue, 01 Feb 2022 16:51:45 GMT

@Ray72484 wrote:
I have neve asked for a PFD before. Should I tell them I can only pay a certain amount. Will they do it if I make smaller payments to it rather than one big payment.

If you want to make an offer of settlement the typical guidelines are if its still inside SOL at least 75% outside the SOL start at 30%. Do not make a promise to pay in writing that you cannot live up to as it is likely to reset the SOL. As far as the actual wording there are some examples you can draw from:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

As an aside and has been stated in this thread you dont need to offer a PFD with Portfolio Recovery as they have a stated deletion policy all you would have to do is negotiate the amount of the settlement and the terms of its payment.

Re: Trying to rebuild to buy a house

FireMedic1 — Tue, 01 Feb 2022 16:59:49 GMT

@tnhomestead wrote:
@FireMedic1 See post 5, 3 accounts in collections with portfolio recovery. Have a great day.

Your right on 5. I responded to #3 which didnt have PRS just CPS. #5 showed up after and I didnt catch it. Thanks.