could someone guide me in the right direction?

[Anonymous]

I had a rough patch of credit a few years ago, and never got around to cleaning up my credit.

It is time to clean it up, because I am looking to buy a new house in 6 months.

Here are the details:
accounts

Care credit: opened 1/08, limit $1000, balance $1005, never late

Discover: opened 12/94, limit $1500, balance $1200, previously late a lot but not late since 9/06, account closed in 97 but still reporting every month because I am still paying down the balance.

HSBC: opened 2/07, limit $500, Balance $130, never late

Ocewn(mortgage): opened 4/98, limit $48,800, balance $44,800, never late.

Chase: opened 2/95, limit 500, balance 0, A lot of lates (settled 3/06)


COLLECTIONS:
NCO Financial:
Collection agency [?] 660yc00000
Original balance [?] $58
Current balance [?] $58
Status [?] Unpaid
Date assigned [?] Nov 01, 2005
Date reported [?] Jan 01, 2008
Date last active [?] Mar 01, 2005
Date paid [?] Not Reported
Date closed [?] Not Reported
Original lender [?] Not Reported
Account number [?] xxxxxx
Type of account [?] Not Reported
Account holder [?] Individual
Type of credit [?] Not Reported
Payment status [?] Not Reported
Largest past balance [?] Not Reported
Amount past due [?] Not Reported
Account descriptions [?] Not Reported
Collection on debt to: Dish Network

The collection agency "660yc00000" was hired to collect a debt of $136 originally owed to "Not Reported" on account number "XXXXxxxx".

Collection agency [?] 660yc00000
Original balance [?] $136
Current balance [?] $136
Status [?] Unpaid
Date assigned [?] Feb 01, 2006
Date reported [?] Feb 01, 2007
Date last active [?] Jul 01, 2005
Date paid [?] Not Reported
Date closed [?] Not Reported
Original lender [?] Not Reported
Account number [?] XXXXxxxx
Type of account [?] Not Reported
Account holder [?] Individual
Type of credit [?] Not Reported
Payment status [?] Not Reported
Largest past balance [?] Not Reported
Amount past due [?] Not Reported
Account descriptions [?] Not Reported

The collection agency "623yc06343" was hired to collect a debt of $115 originally owed to "Dish Network" on account number "XXXXXxxxx".

Collection agency [?] 623yc06343
Original balance [?] $115
Current balance [?] $0
Status [?] Paid
Date assigned [?] Jul 01, 2007
Date reported [?] Sep 01, 2007
Date last active [?] Apr 01, 2007
Date paid [?] Not Reported
Date closed [?] Not Reported
Original lender [?] Dish Network
Account number [?] XXXXXxxxx
Type of account [?] Not Reported
Account holder [?] Individual
Type of credit [?] Not Reported
Payment status [?] Not Reported
Largest past balance [?] Not Reported
Amount past due [?] Not Reported
Account descriptions [?] Not Reported
Collection on debt to: Not Reported


As of 2/21/08 my FICO was 580.
Today I paid the balances on Discover, HSBC, and Care Credit to 10% of limit.

The 2 NCO collections are medical, that I will try to pay the oc first.

Any sugestions or advice would be GREATLY apreciated.

A new mortgage is 6 months away, should I be opening new credit lines now?

[Junejer]

Hey crash, welcome to the forum. Please read the stickied thread Credit Scoring 101, if you haven't already done so.

First, you need to get your util down under 10%, you are currently at 78% util on your revolving credit. I would pay the HSBC to zero, B4 your statement cuts, so that it reports $0 monthly.

Care credit: opened 1/08, limit $1000, balance $1005, never late

This needs to get under the limit fast and if possible under 50% post-haste, under 30% within the next month or two and under 10% shortly thereafter (you are six months away from your mortgage).

Discover: opened 12/94, limit $1500, balance $1200, previously late a lot but not late since 9/06, account closed in 97 but still reporting every month because I am still paying down the balance.

Do whatever you can to get this paid off. This is killing you.

Ocewn(mortgage): opened 4/98, limit $48,800, balance $44,800, never late.

Keep up the good work. Is this a HELOC? (limit/balance)

Chase: opened 2/95, limit 500, balance 0, A lot of lates (settled 3/06)

GW letter

The 2 NCO collections are medical, that I will try to pay the oc first.

Good call. If that fails, DV the CA, before trying a PFD with them. On the paid collection, you can try a GW letter.

GL2U. Hope this helps.

[Anonymous]

Thanks ByrdMan. I have paid down discover to $200, care credit to $100, and HBSC to $50.

I am waiting to see if / how much my score will increase.

On the NCO accounts, the OC has no record of me owing this amount. Although I DO owe other (newer) bills that I will gladly pay.

How long does a collection hurt your score? does it hurt less after 2 years?

does a $0 collection hurt your score? I spent an hour on the phone with Dish Network last night trying to get this collection removed form my credit report.

Thanks again for your help.

[Junejer]

Part of the utilization is also how many accounts with balances. Typically, you want to have less than half of your accounts show balances monthly. Your mortgage will always have a balance. So payoff Discover and care credit to $0 and let HSBC report a balance UNDER 10%, not at 10% ($45 balance or less each month). You will see the maximum score increase this way.

[Anonymous]

When you are ready to deal with NCO, you can email Lisa Signore [Lisa.Signore@ncogroup.com]. She got my collection deleted from my credit report after I paid it. Just send her an email with all the details and she'll send you something back in writing.

[Anonymous]

That would be GREAT! thank you so much for the info!

[Anonymous]

I am sorry for all of the questions, but I want to make sure I don't "shoot myself in the foot".

My oldest account is Discover (see details above), it has been closed since '97 but I have been paying on it, so it has been and still is reporting. The past 18 months have been paid on time every time.

If I were to pay this off, would the account drop off of my credit reports right away? since it was closed by credit grantor in '97 due to delinquency.

How would this effect my score? it is a 14 year old account, but there is a lot of 120 / 90 / 60...etc.

Thanks in advance.