Where to start?

[Anonymous]

I am looking for some advice on the next step here. I have been adamantly working on my credit for the last month with some good score improvement across the board. After Ex, TU, and Eq disputes that have been completed, and since the dust has settled, this is what I have left :
7- collections ( 4 medical (2 years old) , 1 CC and 1 online charge acct at 500 each (2 years old)
1 Auto deficiency (Santander-CO 5/18, -15,000
1 Auto deficiency (GM financial-CO 10/14- 11,000
1 Recreational deficiency (Marine One CO 5/14 7,700
Positive trade lines are:
(2) Auto loans - (1) -3 months old and current , (1) 4 years old, current with 7 late pays 30- 60 days.
Discover AU added a couple weeks ago (62% util)
SL that will start this month

137 Combined inquiries over the last 2 years (taking a much needed app break)

Which items should I tackle first and foremost ?

Scores started at
EX- 490- F8
TU- 470- F8
EQ- 460- F8

Currently
540's across the board,

[Anonymous]

You always want to start with your most severe negative items like collections and COs then work to your 60 day lates and finally your 30 day lates.  The most severe negatives are the most impactful and then most recent is considered as well.  You've got a lot to tackle there.  Keep in mind that the removal of a couple of your negative items may not result in any score gain at all due to the presence of other major negative items, so don't get discouraged.  Cleaner = better, so anything you can get off of there will only help you build momentum to get more negatives off.

[Anonymous]

Do you think that the collections out weigh the older repo chargeoffs? My question is whether or not to go after the repo chargeoffs first, since they are larger?

[Anonymous]

Would it be possible first to get all credit cards paid to zero except one (AZEO) with the remaining card reporting a small positive balance?  This is certain to have a major effect on your score, whereas removing the first several derogs (even if you succeed, and your creditors might well say no) will as BBS says have no initial impact on your score..  Paying down existing CC debt also shows your creditors that you are serious about turning over a new leaf, which may be the tipping point in their decision to remove the derogs they initially reported.

Derog removal is something you absolutely want to attempt, but I am suggesting working on CC debt first, partly since that is a thing 100% under your control, whereas derog removal is not.

[Anonymous]

Thats pretty good considering that I have 1 CO that is a Cc and they are willing to settle out as PFLO and zero balance, and also probably the same for the other charge account, which isnt a CC. The CC that I am an AU on is the one at 62 %Util with 10 years of perfect history. Maybe paying down the balance a bit would help the Util %? Its not really in my control since it belongs to a relative, unless I spring for the extra expense to pay down the balance (CL is 800 and the rev balance is around 400 I think. Should I be concerned with the Util?

[Anonymous]

When you say "severe" , are you referring to age of the delinquency on the account, or the amount owed?

[Anonymous]

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@Anonymous wrote:
The CC that I am an AU on is the one at 62 %Util with 10 years of perfect history. Maybe paying down the balance a bit would help the Util %? Its not really in my control since it belongs to a relative, unless I spring for the extra expense to pay down the balance (CL is 800 and the rev balance is around 400 I think. Should I be concerned with the Util?

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Have the relative request a CLI immediately. Discover online is simple enough to do. If approved -- highly likely with 10 years history of perfect payments -- call customer service and ask for more. A DD might solve your Util issue (Yes, you should be "generally" concerned; specific to your current situation, not so much, at present) and allow your money to be better spent eliminating the other damaging marks on your credit report. 

Good luck. 

[Anonymous]

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@AnonymousWhen you say "severe" , are you referring to age of the delinquency on the account, or the amount owed?

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Neither.  "Severe" would point to it being a "Major" negative item rather than a "Minor" one.  The dollar amount owed is not a factor here nor does the element of time impact whether or not something is a major or a minor delinquency.  Your 30 day late payments and in some cases maybe 60 day late payments are considered minors, where almost everything else like 90+ day lates, collections, COs, etc. are majors.

CGID makes a great point above in tackling your utilization issue though.  Not only would it immediately improve your scores if you were to pay it down to a comfortable level, but it would be a great look and point to add into your GW letters stating that you're in a better financial place.  That would only help your chances at the removal of negative items.

[Anonymous]

The other folks here can help you with the derogs (lates, collections, etc.).

The best way to assess where CC balances fit into this whole credit-repair scheme would be for you to list all your open revolving accounts.  They will typically be credit cards (but might be other things too).  List them as they appear on your credit report, not with the balance that shows when you log on to that card.  Something like this:

Card 1.  Balance = ____   Credit Limit = ____

Card 2.  Balance = ____   Credit Limit = ____

Card 3.  Balance = ____   Credit Limit = ____

etc.

If a card is an AU card, note that.

In a separate section list all closed accounts which have a positive balance, and indicate whether it is a loan or a card.

I like the suggestion that the owner of the account on which you are an AU request a credit limit increase.  It's also possible that the owner pays his balance as it appears on the statement each month, in which case he just needs to adjust his payments a bit to gimmick the report into showing $0.

Can you tell us the age of your oldest account, not counting the AU card?  It's possible that the AU card is harming you rather than helping.

[Anonymous]

Credit Cards-

AU- Discover - 700 CL/ 430 Balance

Closed Accounts with Positive Balance

CC- First Premier Bank - CO2016- 575 balance  CL 400

CA- Seventh Avenue-CO2017- 458 balance CL ?

AUTO- Santander- CO2018-15,500 balance

CA- Fingerhut- CO2013- 0 balance ??

Bank Account-CO2012- Balance -911

Auto/Rec Loan- CO2014 Marine One-Balance 7,700

Auto-GM Financial-CO2014-Balance 11,900

Oldest account is from 2009

AU Account is from 2010