topic Re: What Do I Do in Rebuilding Your Credit

What Do I Do

timshifty — Sun, 13 Feb 2022 23:11:00 GMT

I need some help. I have done a bunch of research on my own and have did as much as I know how to do on my own. I have Asked for a bunch of EE (early exclusions) and had a bunch approved and have disputed a few and had those removed. Still no happy with my score. I am going to list everything and if you could tell me the rest of the things I can do to improve my scores. I know time is the ultimate thing but I want to do everything I can.

I have 1 credit card from open sky that has 2 late payments 30 & 60 but is currently current

I have an auto loan that has zero late payments (18 months on time)

I have 4 collections

Jefferson Capital for $5,806 drops off file September 2022

Source Receivables for $1,145 drops off file September 2026

LJ Ross for $768 drops off file May 2026

CCS Colleaction for $116 drops off file Feb 2028

I have a repo from capital one with a balance of $5,770 and drops off file September 2021

I also have some closed account not in collections

First Premier Card closed owing $538 drops off file May 2022

First Premier Card closed owing $591 drops off file May 2022

Bank of Missouri Card closed owing $458 drops off file Nov 2025

Last, I have student loans that total $73,032 that are open on one report and closed on the others right now but I am sure will be added back on because they just switched to a new servicer. But there are no late payments as I am in defferal right now

Re: What Do I Do

madmann26 — Mon, 14 Feb 2022 00:34:24 GMT

The collections are hurting a lot.

The closed accounts with a balance hurt a lot because it gets factored into utilization.

Clean this up, get 1 card and don't let more than 10% report on it and your scores will get better.

Unfortunately, this takes time and patience.

@timshifty wrote:
I need some help. I have done a bunch of research on my own and have did as much as I know how to do on my own. I have Asked for a bunch of EE (early exclusions) and had a bunch approved and have disputed a few and had those removed. Still no happy with my score. I am going to list everything and if you could tell me the rest of the things I can do to improve my scores. I know time is the ultimate thing but I want to do everything I can.
I have 1 credit card from open sky that has 2 late payments 30 & 60 but is currently current
I have an auto loan that has zero late payments (18 months on time)

I have 4 collections
Jefferson Capital for $5,806 drops off file September 2022
Source Receivables for $1,145 drops off file September 2026
LJ Ross for $768 drops off file May 2026
CCS Colleaction for $116 drops off file Feb 2028

I have a repo from capital one with a balance of $5,770 and drops off file September 2021

I also have some closed account not in collections
First Premier Card closed owing $538 drops off file May 2022
First Premier Card closed owing $591 drops off file May 2022
Bank of Missouri Card closed owing $458 drops off file Nov 2025

Last, I have student loans that total $73,032 that are open on one report and closed on the others right now but I am sure will be added back on because they just switched to a new servicer. But there are no late payments as I am in defferal right now

Re: What Do I Do

timshifty — Mon, 14 Feb 2022 01:09:12 GMT

Do you mean I should pay all of this off or ?

Re: What Do I Do

BB30 — Mon, 14 Feb 2022 02:21:54 GMT

Just my opinion but I'd work on the ones that won't be dropping off for a few years, whether collections or charge offs. Those that will drop off this year, you might want to just wait.

Re: What Do I Do

Remedios — Mon, 14 Feb 2022 03:46:41 GMT

So, you haven't done anything other than disputing correct information?

Is there any chance you can pay/settle at least the accounts that will be there for a long time? If you cannot, it will change the nature of answers so you might want to elaborate on that a little bit more.

Re: What Do I Do

TattnallTrio — Mon, 14 Feb 2022 04:10:35 GMT

I know every suggestion will be easier said than done. I haven't followed the Student Loan forgiveness closely but if they'll allow your student debt to be discharged in bankruptcy (prior to recent times it couldn't ever be discharged in bankruptcy) then I'd file Chapter 7 and start over.

If that isn't an option, I'm sure you know how to handle the student loans. I'd be willing to bet you can settle all of your debt (except your current auto loan) for $4-$5,000 and possibly negotiate Pay For Deletes.

What state do you live in? Are any of the creditors attempting to sue you? We can look to see what the Statue of Limitations are for delinquent debt in your state to determine how long before they attempt to sue you.

Best wishes

Re: What Do I Do

bass_playr — Mon, 14 Feb 2022 16:29:30 GMT

"I know every suggestion will be easier said than done. I haven't followed the Student Loan forgiveness closely but if they'll allow your student debt to be discharged in bankruptcy (prior to recent times it couldn't ever be discharged in bankruptcy) then I'd file Chapter 7 and start over. "

No disrespect intended but I would not even consider BK until and unless all other options are exhausted first. Student loans are rather easy to rework/consolidate/etc compared to other types of debt and I would not generally recommend BK for just student loans, for that reason. At least, not as a first move. Let's run down your other debts.

1--SOURCE RECEIVABLES--a quick search around the forum shows that at least up to this point this debt collector has been at least somewhat open to PFD/settling. Some have been able to get them to remove paid collections from their credit reports. I would research them on this forum and see more details about how others have had success.

2--LJ ROSS--this one is probably going to be a bit more difficult. A quick search on this forum shows a few others that have dealt with them, but the posts are not more recent than 2017. Most of those had trouble getting PFD or goodwill responses, but some did have success. Apparently, their stated plan is that they do not delete, but perhaps if you contacted them and offered payment in full in exchange for deletion, they might play ball.

3--CCS Collections--seems that people have had decent luck with PFD with these guys. It's a small balance and I would just contact them and offer full payment for deletion.

4--CAP ONE repo--you said that this is due to fall off September 2021? Is that a typo or should it already have fallen off? If that's the date showing for removal, then I would dispute immediately with the bureaus, saying that the allowed reporting time has expired and that it must be removed per federal law.

5--Closed accounts not in collections--these three have smaller balances. I would recommend, if possible, just paying them off so that they don't end up in collections. Even a smaller collection account hurts...a lot. So, if you can avoid them being placed on your credit, I would absolutely do that.

6--JEFFERSON--Larger balance, but the entry is going to fall off sooner rather than later. It's your call but if you're limited on funds, might be better to focus on the more recently started collections and debts, so that you can avoid long term damage to your credit. A paid collection hurts less and less as time goes on but it's still going to show as a collection and it will still harm your scores. Once the clock runs out on Jefferson, they can no longer report it or reinsert it on your credit, and any subsequent debt collector would be violating federal law if they do the same.

Re: What Do I Do

timshifty — Mon, 14 Feb 2022 18:09:51 GMT

Thanks for he replies

My capital one falls off this year

So I think I will start with asking some of these places for PFD and see if that works. I wasnt sure if paying them off would hurt or help my scores

@bass_playr wrote:
"I know every suggestion will be easier said than done. I haven't followed the Student Loan forgiveness closely but if they'll allow your student debt to be discharged in bankruptcy (prior to recent times it couldn't ever be discharged in bankruptcy) then I'd file Chapter 7 and start over. "

No disrespect intended but I would not even consider BK until and unless all other options are exhausted first. Student loans are rather easy to rework/consolidate/etc compared to other types of debt and I would not generally recommend BK for just student loans, for that reason. At least, not as a first move. Let's run down your other debts.

1--SOURCE RECEIVABLES--a quick search around the forum shows that at least up to this point this debt collector has been at least somewhat open to PFD/settling. Some have been able to get them to remove paid collections from their credit reports. I would research them on this forum and see more details about how others have had success.

2--LJ ROSS--this one is probably going to be a bit more difficult. A quick search on this forum shows a few others that have dealt with them, but the posts are not more recent than 2017. Most of those had trouble getting PFD or goodwill responses, but some did have success. Apparently, their stated plan is that they do not delete, but perhaps if you contacted them and offered payment in full in exchange for deletion, they might play ball.

3--CCS Collections--seems that people have had decent luck with PFD with these guys. It's a small balance and I would just contact them and offer full payment for deletion.

4--CAP ONE repo--you said that this is due to fall off September 2021? Is that a typo or should it already have fallen off? If that's the date showing for removal, then I would dispute immediately with the bureaus, saying that the allowed reporting time has expired and that it must be removed per federal law.

5--Closed accounts not in collections--these three have smaller balances. I would recommend, if possible, just paying them off so that they don't end up in collections. Even a smaller collection account hurts...a lot. So, if you can avoid them being placed on your credit, I would absolutely do that.

6--JEFFERSON--Larger balance, but the entry is going to fall off sooner rather than later. It's your call but if you're limited on funds, might be better to focus on the more recently started collections and debts, so that you can avoid long term damage to your credit. A paid collection hurts less and less as time goes on but it's still going to show as a collection and it will still harm your scores. Once the clock runs out on Jefferson, they can no longer report it or reinsert it on your credit, and any subsequent debt collector would be violating federal law if they do the same.

Re: What Do I Do

bass_playr — Mon, 14 Feb 2022 18:44:03 GMT

Paying off a collection account won't get rid of the damage to your score right away, but when it's left unpaid, it will continue to update as unpaid until it either falls off or you finally pay it. As it keeps updating, it keeps harming your score.

A paid collection, however, will have less negative effect as time goes on because the moment it's reported as paid, it stops updating. So you no longer have a "fresh" collection update each month.

Re: What Do I Do

timshifty — Mon, 14 Feb 2022 19:56:38 GMT

@bass_playr wrote:
Paying off a collection account won't get rid of the damage to your score right away, but when it's left unpaid, it will continue to update as unpaid until it either falls off or you finally pay it. As it keeps updating, it keeps harming your score.

A paid collection, however, will have less negative effect as time goes on because the moment it's reported as paid, it stops updating. So you no longer have a "fresh" collection update each month.

ok this explains it well

so it sounds like you should pay things off either way for sure unless it is falling off soon

Re: What Do I Do

OmarGB9 — Mon, 14 Feb 2022 19:58:47 GMT

@timshifty wrote:
@bass_playr wrote:
Paying off a collection account won't get rid of the damage to your score right away, but when it's left unpaid, it will continue to update as unpaid until it either falls off or you finally pay it. As it keeps updating, it keeps harming your score.

A paid collection, however, will have less negative effect as time goes on because the moment it's reported as paid, it stops updating. So you no longer have a "fresh" collection update each month.
ok this explains it well
so it sounds like you should pay things off either way for sure unless it is falling off soon

Pretty much. Best case scenario is when you can get a PFD on collections, because then it's as if the collection never happened in the first place.

Re: What Do I Do

timshifty — Mon, 14 Feb 2022 22:47:23 GMT

Do original places like Capital one or First Premier do PFD?

Re: What Do I Do

FireMedic1 — Mon, 14 Feb 2022 23:17:28 GMT

@timshifty wrote:
Do original places like Capital one or First Premier do PFD?

These two wont do PFD. Jefferson and CCS will PFD I believe. The other 2 collections. Once paid the only good side is FICO 9 doesnt keep records of collections that are taken care of.

Re: What Do I Do

OmarGB9 — Tue, 15 Feb 2022 00:16:34 GMT

@timshifty wrote:
Do original places like Capital one or First Premier do PFD?

Pretty much no.

Re: What Do I Do

simplegirl — Tue, 15 Feb 2022 02:17:55 GMT

I sent source receivable a pfd letter before and they accepted it. So i would send them a letter and see what they say.

Re: What Do I Do

HeavyResist — Tue, 15 Feb 2022 16:42:46 GMT

@timshifty I have to agree with many here. First and for most, don't consider BK until All other options are gone. It took me years to rebuild.

second, Utilization matters. Get a card, build with it, keep utilization down, get CLI's and garden.

third, with Debs about to drop off, let them. But long term ones that have several years left, consider negotiating. For example, the one falling off in September 2022 should be allowed to lapse. But the 2025 one should be looked at. I've been where you are, and knowing what I know now I might have made a different choice.

Re: What Do I Do

jrwa81 — Tue, 15 Feb 2022 21:49:58 GMT

Those collections are definitely causing some serious harm to your scores. I would start working on those first. Reach out to the collection agencies see if they will agree to settle for around 30% (that is usually the lowest most CA's will go) and agree to deletion. Get everything they agree to in writing. That is very important. Only agree to pay if they agree to delete, because if you simply pay them and they are not deleted, that will do nothing for your scores.

I know that your student loan is in deferral right now, but that high balance is also hurting you, so I would start paying on that as much as you can to lower the balance, which will also help your scores.

I'm a bit confused about the Capital One repo. You said that is due to fall off in September of 2021. That date has already passed. Are you positive that is the correct fall off date? If so, and it's still on there, you need to dispute it with the credit bureaus because it should have come off your reports 4 months ago.

You definitely have your work cut out for you and it will probably take some time to start seeing results, but it should be doable. Start with the collections and try to settle those for deletion and knock those out. Also, while you are repairing, you also want to start the process of rebuilding to establish positive credit history. Get a couple of secured credit cards and keep your utilization 10% or less and set them up on auto pay. Good luck.