Reconsiderations

[Anonymous]

Okay Credit Gurus, I need some of your wisdom!

Is there a trick, magic word, secret handshake, voodoo ritual, etc. involved in successful recons? Over the past few weeks, I have tried 3 recons and have come out of it batting zero. These are the only recons I've ever attempted, so obviously I have no idea what I'm doing.

The latest one happened just a little while ago. I applied for a Walmart store card and got the '7-10' day notice. I just called the backdoor number for Synchrony that is listed on another thread, and was told there is nothing they can do; didn't even seem terribly interested in talking to me. BTW, I already have an Amazon card through Synchrony... The other two failed recons were Unify credit union (seems like a horrible place) and Amex. 

On a side note, why are some lenders so gutless with their denials? Those responses like the one I got tonight: 'thank you for applying. You will receive a decision by mail within 7-10 business days'. That response is always a denial. Why don't they show some backbone and just say it up front. It's like asking someone on a date, and them saying 'oh, thank you so much for asking me to dinner, you'll receive my decision by mail in 7-10 days', when what she really means is 'hang it up, kid. I'm way out of your league, and not even remotely interested'.

[Anonymous]

Would need some more information...

1. What are your FICO08 scores?
2. What is your credit card utilization -- overall utilization (average) and highest utilizatoin on any card(s)?
3. When were your most recent derogatories (date) and how late (30D, 60D, etc)?
4. Do you have any installment loans reporting?

[Anonymous]

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@Anonymous wrote:

Would need some more information...

1. What are your FICO08 scores?
2. What is your credit card utilization -- overall utilization (average) and highest utilizatoin on any card(s)?
3. When were your most recent derogatories (date) and how late (30D, 60D, etc)?
4. Do you have any installment loans reporting?

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Scores are ~630 across the board. My reported utilization is just under 30%; it's that high because of some closed accounts and a good standing Fingerhut account that I'm paying down. I PIF all of my current cards, so the highest utilization for active cards would be close to zero (sometimes I don't pay in time to show on that months report). Closed accounts are 100% or more due to penalties. Three collection accounts, a few CO's, and a few 30 day late pays. Other than the collections continuing to report every month, all negative marks are at least 2 years old; I haven't paid late or defaulted in over two years. I have 7-12 inquiries showing. I have two paid off, paid as agreed, payday loans (reporting as installment), and one payday loan (all from the same company) still showing as open/active, with positive payment record, even though I paid it off at least a year ago; not sure if I should try to get that fixed or not. 

[Anonymous]

You've got to get those collections paid.  Any good you are doing now is not gonna help till those collections are paid because they keep holding down your score.

Kjohn1

Valued Member

[Anonymous]

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@Anonymous wrote:

You've got to get those collections paid.  Any good you are doing now is not gonna help till those collections are paid because they keep holding down your score.

Kjohn1

Valued Member

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Man, this stuff is confusing! I've read on here several times that paying collections doesn't raise your score unless you're lucky enough to get them to agree to a pay for deletion; and that frequently involves paying their full asking amount. And negotiating with them can reset the SOL, right?

[Anonymous]

In my experience paying them off improves your score.  I've done it and mine went up some time ago.  Just depends on what all is in your file.  By paying them off, they stop reporting.  Then they get deleted anyway after 7 years.  The longer you wait the longer it will take to get deleted off.  Most lenders will forgive a collection that is 2 to 3 years old but not recent.  And certainly not collections that keep on reporting unpaid.  You've got to think, pay them off and let the collections age.  A lot of them will settle for less than full balance to. Something is better than nothing right.  That's what I told them when I negotiated my way out of bad debt.

[fltireguy]

Paying collections will help your score- they will stop updating

[AverageJoesCredit]

Id much rather have a paid collection than unpaid collection if i had to choose in only that you could always say you made a mistake but did pay it off. Some recons like with Sync just arent worth it. Their computers decide your fate. Best thing to do is keep working on your utilization, and baddies and youll start seeing the results

[Anonymous]

Thanks y'all. Guess I'm going to have to contact the collection companies. I hate the idea of dealing with those bottom feeders, but it's my own fault...

[MrsCHX]

Synchrony does not recon so don't feel bad

Definitely pay the collections if you have the funds to do so. 1) they will stop reporting, as mentioned and 2) I think many (probably not all) will be more amenable to deleting once you've paid. I started rebuilding with about 5 or 6 collections. Was able to successfully dispute 2 away due to some (actually very minor)inaccuracies, and paid the other 3. I did not have a "PFD agreement" with any of them. I paid, I asked them to delete, they did.