Which goes first - Debt PIF or Rebuild Credit, or simultaneous?

[Anonymous]

Hi,

I read alot of the myfico.com forum discussions, but have not yet seen an answer to one of my other questions..  Which strategy is best when trying to rebuild your credit.  I currently have a little over 5K left in collections that I am currently paying off with monthly payments (i pay more if my budget allows me).  My scores are as follow:  TU - 603, EQ - 562 and EX-614. Due to identity theft, I am fighting 3 things that are on my report which 1 is showing delinquent, all of them are closed.  

My question, at what time is it good to begin opening CCs?  After I pay off my debt completely or while i'm paying off my debt?

Any advise is welcome.

Thanks!

Alexis 

[Anonymous]

Alex, You are dealing with more then looking for a CC. You might do better if you posted more info. on the credit issues thread.

I can not help you with the ID THEFT but someone that reads the other thread might be more help.

Also the other thread has much more info. on clearing credit & dealing with CA.and other issues.

Message Edited by HappyDays on 07-20-2007 02:25 PM

[Anonymous]

Thank you for your advice, I'll do that!

Alexis

[fused]

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alexismae wrote:

Hi,

I read alot of the myfico.com forum discussions, but have not yet seen an answer to one of my other questions..  Which strategy is best when trying to rebuild your credit.  I currently have a little over 5K left in collections that I am currently paying off with monthly payments (i pay more if my budget allows me).  My scores are as follow:  TU - 603, EQ - 562 and EX-614. Due to identity theft, I am fighting 3 things that are on my report which 1 is showing delinquent, all of them are closed.  

My question, at what time is it good to begin opening CCs?  After I pay off my debt completely or while i'm paying off my debt?

Any advise is welcome.

Thanks!

Alexis 

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Hi There! I would begin with this thread courtesy of Moderator Tuscani.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

[Anonymous]

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alexismae wrote:

I currently have a little over 5K left in collections that I am currently paying off with monthly payments (i pay more if my budget allows me).

...

Due to identity theft, I am fighting 3 things that are on my report

...

My question, at what time is it good to begin opening CCs?

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I would keep making the monthly minimums on the collections, stick the extra into savings, and when you have a "chunk" set aside I would send a PFD letter to the CA holding the smallest collection.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

Tailor the letter to suit your situation. I would include something to the effect of:

I have several collections which I am paying via monthly payments, but I am interested in paying these off. I would like to pay off the collection with your office, but I have limited funds and it would only be to my advantage if you were willing to delete this adverse account from my credit reports once paid. I understand if you are unable to do so, but I would only be able to continue making monthly payments on this debt while I paid off another of my collections.

Basically, you wanna wave payment in their face, and let 'em know you can always pay off someone else if they don't wanna delete. But, be nice in the process.

On ID theft, you aren't by chance paying on a collection that ain't yours and which was part of the ID theft?

Never really a time when it's too soon to acquire a CC.

[Anonymous]

Noah,

Thanks so much for your advice.  I really appreciate it.  I feel more confident now in the direction i should go!

Thanks!