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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?
@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!!!!!
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.
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.
Follow my financial journey: http://www.frugalrican.com
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.
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.
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 Name | AFNI, INC. | AFNI, INC. | AFNI | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account # | 204084XXXX | 204084XXXX | 204084XXXX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Type | Debt Purchase | Open Account | Collection Account | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | $696.00 | $696.00 | $696.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Date Opened | 6/1/2010 | 6/1/2010 | 6/21/2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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ENHANCED RECOVERY CO L Potentially Negative 800-496-8941 8014 BAYBERRY RD JACKSONVILLE, FL 32256 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Experian® | Equifax® | TransUnion® | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Name | ENHANCED RECOVERY CO L | ENHANCED RECOVERY CO | ENHANCRCVRCO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account # | 3144XXXX | 3144XXXX | 3144XXXX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Type | Collection Department / Agency / Attorney | Collection Account | Collection Account | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | $237.00 | $237.00 | $237.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Date Opened | 5/1/2010 | 5/1/2010 | 5/20/2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FAIR COLLECTIONS & OUT Potentially Negative 877-324-7959 12304 BALTIMORE AVE STE BELTSVILLE, MD 20705 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Experian® | Equifax® | TransUnion® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Name | FAIR COLLECTIONS & OUT | FAIR COLLECTIONS & O | FCO | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account # | 364XXXX | 364XXXX | 364XXXX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Type | Collection Department / Agency / Attorney | Collection Account | Collection Account | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | $512.00 | $512.00 | $512.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Date Opened | 4/1/2011 | 4/1/2011 | 4/12/2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CO OP ADJUSTMENT BUR Potentially Negative Closed 800-331-0009 PO BOX 232027 PLEASANT HILL, CA 94523 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Experian® | Equifax® | TransUnion® | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Name | CO OP ADJUSTMENT BUR | No Data Returned For This Bureau | COOP ADJ BUR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account # | 1230086000014XXXX | 1230086000014XXXX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Account Type | Collection Department / Agency / Attorney | Collection Account | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | $0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Date Opened | 9/1/2009 | 9/2/2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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