topic Re: PLEASE... Help me in Rebuilding Your Credit

PLEASE... Help me

Anonymous — Wed, 10 Jun 2009 06:40:48 GMT

I have a Fico Score of 567. I want to get it up to at least 620 by November. I have 4 open accounts

Capitol One - $250

Gas Card -$724

Medical Card - $690

HSBC- $3,800

However, I also have 2 old Sears accounts ( $7,000) that were bought off by a collection agency. I made payment arangements, started following through and they started putting the account as KG on my Credit Report. In addition, those cards are from when I was married. I filed for Divorce in 2001 and it was just finalized in December 2008.

Now, I want to know if I should start by bringing my current Credit Cards down? If I should settle with the Agency that bought the Sears accounts. What will bring my score up sooner? what should I do? I am desperate...... Please Help......

Re: PLEASE... Help me

Lyythine — Wed, 10 Jun 2009 13:34:07 GMT

Well, youre question hinges on one facet. Can you come up with the money to pay off the Sears charge off in full by, September or October at the latest? If so then:

When you have the full amount to pay off the charge off, call the collection agency and arrange a PFD (Pay for Deletion) That is, Offer them the full amount to settle the account on the contingency that once paid, they will delete the account from your credit reports. Make sure, however, to get this in writing before you give them a cent, otherwise, there is nothing to hold them to their word. If this account is your only negative account, that should give you QUITE a boost in your scores almost immediately once the account is deleted.

If that is not an option, then make your payments to Sears as well as paying down the debt you currently owe on your credit cards to under 9% total util. Using this strategy, it will increase your score a bit, however, it will be slower. Im no expert in the fico scoring model, but what youre asking is doable.

If the first option is a possibility, do it as quickly as you can as this will greatly affect your score in a positive way, assuming there are no other negative items on your reports.

Good Luck!

Re: PLEASE... Help me

Anonymous — Wed, 10 Jun 2009 19:40:24 GMT

Thank you for your help....

I called the Sears Collection and they told me they are a third party working for LVNV funding. They said I can settle for less and they will give me a release letter. I asked if they can give me a written statement including the Pay of delete. They did say yes but it would be a release letter, not a pay for delete and show that to credit reporting agencies. What should I do???