Which approach should I take?

[Anonymous]

I'm looking to purchase my first home in March 08.  I need to increase fico scores.  Would it be better for me to work on paying off collections or paying down credit cards

[Anonymous]

pay down cc, and try to pfd collections that are reporting acurately. if any collections are inaccurate use your rights to get them accurate and then use thier mistakes to help negotiate more pfd's.

if any of your collections are med related google whychat hippa letter.

also, paying an old collection in full can have a negative score impact. i know, but fico views this as recent collection activity!

[MidnightVoice]

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dnm45227 wrote:

also, paying an old collection in full can have a negative score impact. i know, but fico views this as recent collection activity!

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But I belive many mortgage lenders need all collections paid

[Anonymous]

they can condition it in the loan and if need be the mortgage will be a done deal and they will cut the check at closing, but that still leaves 3 months to work on the baddies.

[Anonymous]

What effect if any will the pfd's have on my fico score?

[Anonymous]

pfd makes fico think the whole ugly affair never happened. can usually be good, but if a collection is your only oldest or oldest account making go away could reage you file and lower your score.