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I need help on which direction to go

thornback
Senior Contributor

Re: I need help on which direction to go


@Tiffany3330 wrote:

They are reporting as 0


 

Ok so they've sold the debts to the collection agencies.    Have you been in contact with the collection agencies at all to work out payment (settlement or in full)?   Your best bet is to try to work out a PFD (Pay for Delete) with the collection agencies.   Basically, payment in exchange for deletion of the collection tradeline.    It appears, per recent threads, that LVNV has recently began deleting their tradelines after payment: https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/LVNV-Now-Deletes-upon-PIF-Settle-in-full/m-p...So this may be an easy feat for you. 

 

Of course, deletion of the collection accounts will help but you'll still be left with the two derogatory charge-offs as reported by the original creditors.    Many have had success with Goodwilling Credit One to have charge-offs removed.   I haven't heard much with regards to Indigo but it's absolutely worth trying... 

 

Credit One Goodwill Success (search results): https://ficoforums.myfico.com/t5/forums/searchpage/tab/message?advanced=false&allow_punctuation=fals...

 

And read this: 

Goodwill Saturation Technique https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-...

 

Goodwills are basically letters written to a lender requesting deletion of a derogatory as an act of good faith;  you would explain what led to the derogatory event (job loss, family woes, medical hardship, inexperience at financial management, whatever...) and plead your case for a clean start.  It often takes more than one letter before success -- but it's so worth the effort. 

 

Once you clear up your derogatories - you're fine - so this should be your primary focus.  You really didn't need the Fingerhut or Montgomery Wards installments as your student loans were already fullfilling that portion of your 'credit mix' but, what's done is done.    You don't need any additional credit prior to seeking your mortgage - you'd do best to let your current accounts age (and maintain good standing - no lates!) and let the inquiries age off (they stop affecting your scores once they reach their 365 day mark, but remain on your reports as a record for a full 2 years).   

 

As an aside:  it's much more likely Navy denied you due to having outstanding debts - Navy is not very sensitive to inquiries/credit seeking.  Unpaid charge-offs that are also recent are extremly risky - most (non-predatory) lenders would deny credit to someone that recently defaulted and have not yet paid their debt.

 

  

 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 11 of 21
Tiffany3330
New Visitor

Re: I need help on which direction to go

 
Message 12 of 21
Tiffany3330
New Visitor

Re: I need help on which direction to go

Ok thank you so much for your help.

 

Now as far from getting approved for a credit card which way should I go? I dont think I will have luck on amazon. I was trying to only do soft pulls, but I dont know if they go by most recent because I got denied by discover yesterday(on soft pull). To me, my experian looks the best out of all my credit reports.

Message 13 of 21
thornback
Senior Contributor

Re: I need help on which direction to go


@Tiffany3330 wrote:

Ok thank you so much for your help.

 

Now as far from getting approved for a credit card which way should I go? I dont think I will have luck on amazon. I was trying to only do soft pulls, but I dont know if they go by most recent because I got denied by discover yesterday(on soft pull). To me, my experian looks the best out of all my credit reports.


You should go nowhere until you pay your outstanding debts.  You'll just keep racking up denials - or get stuck with approvals from predatory lenders.   

 

Pay your debts.  Spend some time cleaning up your derogatories the best you can (you could actually achieve 100% clean credit reports & 700+ scores with a bit of time and effort)   Then, when you've improved your credit profile, you can try applying credit you actually want, from solid lenders, that will grow with you long term.   Seriously.. put in the effort to clean up your reports - you can't hide the bad with new, low limit, high APR/monthly fee credit cards.

 

*NO NEW APPS 12 MONTHS PRIOR TO SEEKING A MORTGAGE.

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 14 of 21
James_A
Senior Contributor

Re: I need help on which direction to go


@Tiffany3330 wrote:

... This is my first post and I haven't gotten the abbreviations down yet so bear with me


Abbreviations here. How to quote a post when replying (so we all can follow along & know who's being replied to) here

 

Btw, if Navy won't give you a CC -- it's probably time to slow down the apping and clean up your profile. ijs Smiley Wink

Starting Score: (5/24/2018) -- FICO 08 EXP: 643; FICO 08 TU: 642; FICO 08 EQ: 677
Current Score (3/12/2021): FICO 08 EXP: 748; TU: 755; EQ: 773
2020 Goal Score: 760 across the board


Take the myFICO Fitness Challenge
Message 15 of 21
Tiffany3330
New Visitor

Re: I need help on which direction to go

Got it, thanks. Will a payment plan make my credit score drop with the creditors? At this moment with this virus I dont want to shell out over 1k incase things get worse

Message 16 of 21
Tiffany3330
New Visitor

Re: I need help on which direction to go


@James_A wrote:

@Tiffany3330 wrote:

... This is my first post and I haven't gotten the abbreviations down yet so bear with me


Abbreviations here. How to quote a post when replying (so we all can follow along & know who's being replied to) here

 

Btw, if Navy won't give you a CC -- it's probably time to slow down the apping and clean up your profile. ijs Smiley Wink


Ah ha!!! 😂 I assumed it would have automatically quoted when I hit reply. Thank you, now I need to work on remembering all these abbreviations.... lol. Thank you to everyone who helped. I now feel confident in how to move forward!

Message 17 of 21
thornback
Senior Contributor

Re: I need help on which direction to go


@Tiffany3330 wrote:

Got it, thanks. Will a payment plan make my credit score drop with the creditors? At this moment with this virus I dont want to shell out over 1k incase things get worse


Depends. When negative accounts are updated it can cause a drop in score -  sometimes a few points, sometimes more.    This is determined by how long it's been since the last update to the tradeline.  If a tradeline goes a long time without updates, your scores begin to recover -  then, when it is finally updated again, your scores drop because it makes the derogatory seem "fresh" again. 

 

So, if your collections have already been updating on a monthly basis -  you should see little to no decrease in score once it begins updating with payments.   However, if they have not been updating regularly, you will probably see a drop with the update of the first payment -  but subsequent updates should have little to no impact. 

 

But don't worry about that too much-  your goal is to get the debt paid so the collection can be deleted.  Score drops during the payoff process will be temporary.  

 

Also -  if you don't pay it, they're bound to update with new negative notations at some point anyway.  LVNV is also lawsuit happy - the longer you go without paying the debts, the more you open yourself up to legal action. As I said before -  these debts are recent so you've got a long time frame ahead that allows for legal action to be pursued against you (this would be based on the Statute of Limitations (SOL) for debt collection in your state).

 

And when you do enter into a payment plan agreement -  stick to it; do not miss any payments and do not default.  

 

 

 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 18 of 21
Tiffany3330
New Visitor

Re: I need help on which direction to go


@thornback wrote:

@Tiffany3330 wrote:

Got it, thanks. Will a payment plan make my credit score drop with the creditors? At this moment with this virus I dont want to shell out over 1k incase things get worse


Depends. When negative accounts are updated it can cause a drop in score -  sometimes a few points, sometimes more.    This is determined by how long it's been since the last update to the tradeline.  If a tradeline goes a long time without updates, your scores begin to recover -  then, when it is finally updated again, your scores drop because it makes the derogatory seem "fresh" again. 

 

So, if your collections have already been updating on a monthly basis -  you should see little to no decrease in score once it begins updating with payments.   However, if they have not been updating regularly, you will probably see a drop with the update of the first payment -  but subsequent updates should have little to no impact. 

 

But don't worry about that too much-  your goal is to get the debt paid so the collection can be deleted.  Score drops during the payoff process will be temporary.  

 

Also -  if you don't pay it, they're bound to update with new negative notations at some point anyway.  LVNV is also lawsuit happy - the longer you go without paying the debts, the more you open yourself up to legal action. As I said before -  these debts are recent so you've got a long time frame ahead that allows for legal action to be pursued against you (this would be based on the Statute of Limitations (SOL) for debt collection in your state).

 

And when you do enter into a payment plan agreement -  stick to it; do not miss any payments and do not default.  

 

 

 


Lvnv already filed in a courthouse but they had my old address so it did not end up in a judgement. Ok I will take your advice and will be back once I have paid off these debts to let you know how my score looks. Thank you so much for your help, I hope you are doing well in the midst of all this craziness! 

Message 19 of 21
thornback
Senior Contributor

Re: I need help on which direction to go

You're welcome & Good luck -  looking forward to updates.  

 

Stay safe out there & best wishes to you & yours! 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 20 of 21
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