Beginning Rebuild: How to handle FP?

[Anonymous]

Hello!  I've been reading tons of information here for the last week or two as I have begun to seriuosly tackle cleaning up my credit report.  Using advice here so far I've actually raised my CR 11 points in the last week, and am waiting on four medical reports to be deleted after filing a complaint against a CA through the BBB.  I'll be sending out debt validation requests this week for some other CA reports

That being said, I have two charge-offs on my report:  FP, date reported 6/11,  and a personal loan through Lendmark, date reported 12/11.  FP says that a collection agency is handling the account, however I can deal with them.  I was offered a settlement of $648 of the $865 they are reporting, which will list the account as "Settled for less than owed, closer and charged-off."  The other option is to pay it in full, which will still be listed as "Paid in Full, charged-off."  The CSR I spoke to would not accept a counter-offer of less.  1) Should I keep trying to get a lower amount?  2) If both ways it will report as a charge-off does it make a difference whether it's paid in full or settled?

Once that is settled one way or the other I'd like to tackle the personal loan through Lendmark.  I just received a letter from a collection agency yesterday stating I have 30 days to dispute the validity of the past due balance ($3581.89).  They are asking for payment in full.  How should I handle this one?

Lastly, I have one Cap1 secured card with a $200 CL, which is about six months old.  I've started making weekly payments (keeping utilization at 10-20%).  I also just applied for and got a SDFCU secured card with a $500 CL.  I applied for a Discover IT card, but was denied and have not received an offer for a secured card as of yet.  Should I wait until my CR reflects the new score after the four collections drop off?  At that time, should I keep trying for the Discover card or apply for another secured card from someone else?

Scores:

Experian: 606

TransUnion:  589

Equifax:  632

Thanks in advance for any help or advice!

PS, I also have student loans showing as current on my account, since I am still a student.  Ultimately, my goal is to get all the bad stuff cleaned up off my CR and then start paying some of that debt down before I graduate in '17.

[Anonymous]

One other question I have is how long before I should try for the Discover IT card again?  Or, should I try for something else like a BoA card?

[Anonymous]

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@Anonymous wrote:

One other question I have is how long before I should try for the Discover IT card again?  Or, should I try for something else like a BoA card?

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I would wait a couple of months on Discover. Your scores are still in hte marginal range for them. I would suggest apping for a Cap One Platinum unsecured card. If approved, close the Secured account and app for the QS1 card.

[Anonymous]

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@Anonymous wrote:

One other question I have is how long before I should try for the Discover IT card again?  Or, should I try for something else like a BoA card?

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I would try the CapOne pre-approval tool and see what they can for you.

Best of luck!

[Anonymous]

Last night after reading this I applied for both the Platinum and QS1 unsecured from Cap1 and was approved for both with a $500 line on each! I'm pumped!

That means I have 2 unsecured cards from Cap1 and another secured from SDFCU on the way. How long should I wait, at all, to close the secured Cap1? What is the actual benefit of soing so?

[Anonymous]

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@Anonymous wrote:
Last night after reading this I applied for both the Platinum and QS1 unsecured from Cap1 and was approved for both with a $500 line on each! I'm pumped!

That means I have 2 unsecured cards from Cap1 and another secured from SDFCU on the way. How long should I wait, at all, to close the secured Cap1? What is the actual benefit of soing so?

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I'd keep it for now - unless you need the deposit to pay off something else.   Let it report - at least until you need to pay and new annual fee. Then decide.  

[Anonymous]

I contacted Lendmark today asking if they would be willing to accept 50% ($1.75k) of my balance owed in exchange for deletion. They accepted the settlement amount but not the deletion end. Should I go ahead and do this since that $3500 eats up such a big chunk of my utilization? I still have a solid 3 years remaining before it would drop off my CR. This is my biggest debt amount, aside from the student loans which are all current.

[gdale6]

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@Anonymous wrote:
I contacted Lendmark today asking if they would be willing to accept 50% ($1.75k) of my balance owed in exchange for deletion. They accepted the settlement amount but not the deletion end. Should I go ahead and do this since that $3500 eats up such a big chunk of my utilization? I still have a solid 3 years remaining before it would drop off my CR. This is my biggest debt amount, aside from the student loans which are all current.

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Since they engaged a CA I would make deal to recall the collectors in exchange for the settlement. Once its been settled and recorded as settled with 0 balance you can begin a GW letter campaign asking for removal of the TL.

[Anonymous]

Yesterday I went to Lendmark with a cashiers check to settle the personal loan account.  Everything was approved, up through the management but when the loan officer tried to close the account it got red-flagged due to it being contracted out to a CA.  Ugh!  He said they'll be able to pull it back and that I should hear from him Monday.  

However, the good news is that I have in my hands the letter from the CA I reported to the BBB with copies of the account deletions they sent to the 3 CRAs!  

Also, I signed up for the monthly subscription here on myFICO and my scores are waaaaayyyy better than I thought!

Fico 8 EQ 634

Fico 8 TU 622

FIco 8 EX 619

My three new cards are on the way from Cap1 (Platinum and QS1) and the SDFCU secured...I feel super accomplished this week!