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HELP! First Premier and Orchard Bank Credit card paying off?

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Valued Member

HELP! First Premier and Orchard Bank Credit card paying off?

Hey guy im trying to fix my credit to get a house, and i was wondering if paying off these 2 cards which are easy to pay off help my credit?

 

First Premier - 250 (CL) and balance is 250

 

Orchard Bank - 300 (CL) and balance is 300

 

so i will pay these off since they are maxed out, and also i have 3 collections showing negative accounts, and i have 3 accounts that says potentially negative accounts. As of right now i am writing GW letters to the 3 accounts stating negative, but no luck so far! i have the money to pay the negative accounts, but im not willing to pay unless they PDF, which i have no luck in getting so far, because i know a collection still shows as a collection whether paid or unpaid.

 

Credit Score pulled from Discover Card was a 585, i need at least a 620 thanks!

 

Btw: i just bought a car 2 months ago, and when i got approved for the car my score was a 645, it dropped a lot idk why? maybe because of my debt to income ratio and the maxed out credit cards?

Credit Cards :1st Premier - $0/$250,Orchard Bank - $90/$300, Capital One - $400/$500

Store Cards : Amazon - $0/$600, WalMart - $0/$600, Victoria Secret - $0/$350, Bloomindales - $0/$800, Kays Jewelery - $0/$2800, PayPal Smart Connect - $0/$400

Gas Cards : Chevron - $0/$400
Message 1 of 23
22 REPLIES 22
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Established Contributor

Re: HELP! First Premier and Orchard Bank Credit card paying off?


@Nelly510 wrote:

Hey guy im trying to fix my credit to get a house, and i was wondering if paying off these 2 cards which are easy to pay off help my credit?

 

First Premier - 250 (CL) and balance is 250

 

Orchard Bank - 300 (CL) and balance is 300

 

so i will pay these off since they are maxed out, and also i have 3 collections showing negative accounts, and i have 3 accounts that says potentially negative accounts. As of right now i am writing GW letters to the 3 accounts stating negative, but no luck so far! i have the money to pay the negative accounts, but im not willing to pay unless they PDF, which i have no luck in getting so far, because i know a collection still shows as a collection whether paid or unpaid.

 

Credit Score pulled from Discover Card was a 585, i need at least a 620 thanks!

 

Btw: i just bought a car 2 months ago, and when i got approved for the car my score was a 645, it dropped a lot idk why? maybe because of my debt to income ratio and the maxed out credit cards?


Welcome to the forums Nelly. And congratulations on your credit journey so far.

 

I absolutely agree with you that your utilization is probably affecting your creit score by a lot. Paying down both balances will give you a nice increase in your score. You debt to income ratio plays a huge role in your ability to get a mortgage but it actually does not affect your credit score. My first recommendation will be to pay off your maxed out creit cards.

 

You should continue to work hard to get those collection accounts deleted. HOWEVER, if you are thinking about an FHA loan, all collection accounts MUST be paid before you can get a loan. This was a recent change in the FHA laws. It seems like either way, those collection accounts have to be paid but it will be better for your credit score if you got them deleted. I also agree that having the negative marks deleted will help.

 

Bottom line is that pay off your maxed credit cards. Secondly try to get the collection accounts deleted.

 

Good luck!!!!!


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Message 2 of 23
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Super Contributor

Re: HELP! First Premier and Orchard Bank Credit card paying off?

You've got several issues that you need to address, but to simply answer your question, yes.  Paying off the maxed out cards will help.


06/26/20 Mortgage scores: EX2 718, EQ5 696, TU4 no idea.
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Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 3 of 23
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Blogger

Re: HELP! First Premier and Orchard Bank Credit card paying off?

You're maxed out credit cards are hurting you a lot, but those collections are hurting you even more.

Not only will a collection still show as a collection even if paid, but you won't get a point boost from it either.

 

Pay off those credit cards ASAP.

BTW, I'm sure you need a 620 mid-score, not just 1 score at 620. And also, whatever Discover might have pulled might not even be the same bureau as what the car dealer pulled.

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Message 4 of 23
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Valued Member

Re: HELP! First Premier and Orchard Bank Credit card paying off?

Thanks guys! but yes i am going for a FHA loan and i will be paying off both credit cards today, but i was wondering i know you guys said i have to pay off collections no matter what, but i had a question what are the accounts that are called "Potentially Negative Closed"? do those balances needs to be paid off? or are those falling off my report? i dont really know what all the titles mean, as there are 3 other accounts listed "Potentially Negative" which im thinking are the newer accounts that went into collections that im trying to PDF right now.

Credit Cards :1st Premier - $0/$250,Orchard Bank - $90/$300, Capital One - $400/$500

Store Cards : Amazon - $0/$600, WalMart - $0/$600, Victoria Secret - $0/$350, Bloomindales - $0/$800, Kays Jewelery - $0/$2800, PayPal Smart Connect - $0/$400

Gas Cards : Chevron - $0/$400
Message 5 of 23
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Valued Contributor

Re: HELP! First Premier and Orchard Bank Credit card paying off?

I think there is some bad information here from some of the previous posters.

 

The original poster is correct that a collection account paid or unpaid will affect his FICO score the same.  Going for a PFD is an admirable goal.

 

However some of the posters are somewhat correct.  Mortgages are a more manual process.  A lot of underwriters will not grant a loan no matter what the borrowers FICO score is, if there are unpaid collections.  The new FHA rules do not allow qualification if there are unpaid accounts in collection above a certain amount ($1000?).

 

If I was in the borrowers' situation, I would pay down my credit cards to 0.  See where my FICO score is.  You need to get more ammo in negoiations with your collection accounts.  I am happy to give you more advice, but please list the colleciton accounts in more details.  Need to know at least the folllowing:  SOL on debt, amount, creditor, DVed?, any responses so far, etc., but don't list out any identifing information.  PFD are  common with some and take a ton of work with others.  If they know you are considering a mortgage, they will play hardball with you so don't let them know it.

               LIMITS IN CARD DESCRIPTIONS
Message 6 of 23
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Valued Member

Re: HELP! First Premier and Orchard Bank Credit card paying off?

Thanks! let me see if i can post some here:

AFNI, INC.

Potentially Negative


888-216-2408
PO BOX 3427
BLOOMINGTON, IL 61702
 Experian®Equifax®TransUnion®
 
Account NameAFNI, INC.AFNI, INC.AFNI
Account #204084XXXX204084XXXX204084XXXX
Account TypeDebt PurchaseOpen AccountCollection Account
Balance$696.00$696.00$696.00
Date Opened6/1/20106/1/20106/21/2010
    
Account StatusClosedClosedOpen
Mo. Payment   
Past Due$696.00$696.00 
Payment StatusSeriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection departmentAt least 120 days or more than four payments past dueCollection account
High Balance $696.00 
Limit   
Terms1 Month  
CommentsAccount in dispute-reported by subscriber
COLLECTION ACCOUNT
Account information disputed by consumer
24 MONTH PAYMENT HISTORY
  
2009     2010           2011     
JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJun
             KDNDNDNDNDNDNDNDNDNDKD
           OKOK120OKOKOKOKOKOKOKOKOKOK
Credit Cards :1st Premier - $0/$250,Orchard Bank - $90/$300, Capital One - $400/$500

Store Cards : Amazon - $0/$600, WalMart - $0/$600, Victoria Secret - $0/$350, Bloomindales - $0/$800, Kays Jewelery - $0/$2800, PayPal Smart Connect - $0/$400

Gas Cards : Chevron - $0/$400
Message 7 of 23
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Valued Member

Re: HELP! First Premier and Orchard Bank Credit card paying off?

ENHANCED RECOVERY CO L

Potentially Negative


800-496-8941
8014 BAYBERRY RD
JACKSONVILLE, FL 32256
 Experian®Equifax®TransUnion®
 
Account NameENHANCED RECOVERY CO LENHANCED RECOVERY COENHANCRCVRCO
Account #3144XXXX3144XXXX3144XXXX
Account TypeCollection Department / Agency / AttorneyCollection AccountCollection Account
Balance$237.00$237.00$237.00
Date Opened5/1/20105/1/20105/20/2010
    
Account StatusClosedClosedOpen
Mo. Payment   
Past Due$237.00  
Payment StatusSeriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection departmentUnpaidCollection account
High Balance   
Limit   
Terms1 Month  
Comments UnpaidPlaced for collection
24 MONTH PAYMENT HISTORY
  
2010         2011           2012 
MarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFeb
                       KD
                        
                       
Credit Cards :1st Premier - $0/$250,Orchard Bank - $90/$300, Capital One - $400/$500

Store Cards : Amazon - $0/$600, WalMart - $0/$600, Victoria Secret - $0/$350, Bloomindales - $0/$800, Kays Jewelery - $0/$2800, PayPal Smart Connect - $0/$400

Gas Cards : Chevron - $0/$400
Message 8 of 23
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Valued Member

Re: HELP! First Premier and Orchard Bank Credit card paying off?

FAIR COLLECTIONS & OUT

Potentially Negative


877-324-7959
12304 BALTIMORE AVE STE
BELTSVILLE, MD 20705
 Experian®Equifax®TransUnion®
 
Account NameFAIR COLLECTIONS & OUTFAIR COLLECTIONS & OFCO
Account #364XXXX364XXXX364XXXX
Account TypeCollection Department / Agency / AttorneyCollection AccountCollection Account
Balance$512.00$512.00$512.00
Date Opened4/1/20114/1/20114/12/2011
    
Account StatusClosedClosedOpen
Mo. Payment   
Past Due$512.00  
Payment StatusSeriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection departmentUnpaidCollection account
High Balance   
Limit   
Terms1 Month  
Comments UnpaidPlaced for collection
24 MONTH PAYMENT HISTORY
  
2009    2010           2011      
AugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJul
                       KD
                        
                        
Credit Cards :1st Premier - $0/$250,Orchard Bank - $90/$300, Capital One - $400/$500

Store Cards : Amazon - $0/$600, WalMart - $0/$600, Victoria Secret - $0/$350, Bloomindales - $0/$800, Kays Jewelery - $0/$2800, PayPal Smart Connect - $0/$400

Gas Cards : Chevron - $0/$400
Message 9 of 23
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Valued Member

Re: HELP! First Premier and Orchard Bank Credit card paying off?

CO OP ADJUSTMENT BUR

Potentially Negative Closed


800-331-0009
PO BOX 232027
PLEASANT HILL, CA 94523
 Experian®Equifax®TransUnion®
 
Account NameCO OP ADJUSTMENT BURNo Data Returned
For This Bureau
COOP ADJ BUR
Account #1230086000014XXXX1230086000014XXXX
Account TypeCollection Department / Agency / AttorneyCollection Account
Balance $0.00
Date Opened9/1/20099/2/2009
    
Account StatusClosed Closed
Mo. Payment  
Past Due  
Payment StatusPaid, was a collection account, insurance claim or government claim or was terminated for defaultPayment after charge off / collection
High Balance  
Limit  
Terms1 Month 
Comments Paid collection
24 MONTH PAYMENT HISTORY
  
2009   2010           2011       
SepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAug
   KDNDNDNDNDNDNDNDNDNDNDNDNDNDNDNDNDNDNDNDOK
                        
                        
Credit Cards :1st Premier - $0/$250,Orchard Bank - $90/$300, Capital One - $400/$500

Store Cards : Amazon - $0/$600, WalMart - $0/$600, Victoria Secret - $0/$350, Bloomindales - $0/$800, Kays Jewelery - $0/$2800, PayPal Smart Connect - $0/$400

Gas Cards : Chevron - $0/$400
Message 10 of 23
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