Busy Week - Advice Needed Before Proceeding

[xecutech]

We have currently paid off 6 of 9 collections on our credit reports this week. 1 was already deleted from a GW letter today and 1 is going to fall off on it's on in November of this year. So, I have 2 more to pay off totaling $2000 with one of them being deleted per an agreement with a collection agency.

I also paid off a judgement in full this morning.

We have over $46k in Federal IRS liens with 60% off that falling off in July of this year. After that, we will be setting up payment arrangements on the balance.

My wife is still paying off student loans, and they are current. She has an AU credit card with her company and a NY&Co credit card.

I have no current credit, but the credit I do show is good, zero balance and no late marks. One of those is from 2003 and the other back in 1999, so I don't think they are helping me much.

We just came up with enough money to pay off 3 of my wife's installment loans that are current, so we are wondering if this was a good idea while trying to rebuild our credit?

I want to pay those off, so we can focus on obtaining a few credit cards and maybe a new car note.

I am mainly wondering if I am doing the right things, and if we are correct to pay off the installment loans. I think they hurt us, as the available credit and the current balance are so close, it looks like she is at 94% on those loans.

I hope I explained enough for some advice from you guys.

[xecutech]

Did I not supply enough information, or should I rephrase the question about the loans?

[ktl72455]

What are you current scores and are the true Fico Scores?

A collection, paid or unpaid hurts your scores the same, and depending on the Collection Agency, some try to be sneaky and appear as the OC ( original creditor) showing a balance etc.

A judgement, paid or unpaid hurts the scores the same, only thing with a judgment left unpaid they can attach to more things.

Paying of a loan will help a little but I would assume you have other things that are having a bigger impact on your overall credit.

[xecutech]

I tried to pull my fico here at myfico, but it said my score was too low or something like that to pull?

I have these numbers from free credit report website:

Mine:

ex 578

eq 602

tu 591

credit karma 670

Wife:

ex 631

eq 590

tu 592

credit karma 602

Hope this helps.

[RoR215]

"We have over $46k in Federal IRS liens with 60% off that falling off in July of this year. After that, we will be setting up payment arrangements on the balance."

Federal tax liens do not fall off. They only go away when the balance is paid in full, or the debt expires. The expiration date is 10 years from the date the balance was assesed to you. So, if say the balances are from anytime after June of 2003, then the liens aren't going to fall off. Now, there always seems to be some confusion on that as well. If, you filed your tax return late, say for 2003 you didn't file it until 2006, well, the expiration date is no longer 2013, it's the month after plus 10 years. So, not until 2016.

If the balance is under 50K, go with the fresh start. It requires to be set up on direct debit, but, after 3 direct debit payments are taken, then you can request the liens be withdrawn. They will send the withdraw notice to your county clerks office where they filed the lien. You will have to send the release to the 3 CRAs. Since the IRS does not report the liens to the CRAs themselves.

[xecutech]

The sol of 10 years is up on the ones dropping off. Then I have some recent ones that will need to go on a payment plan.

We had some others drop off last year from 2002.

[guiness56]

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@xecutech wrote:

Did I not supply enough information, or should I rephrase the question about the loans?

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Since they are installment loans they factor very little into her score.  Paying them off over time will establish a good payment history which would do better for you.  Once and open installment loan is paid off it no longer factors into credit mix and will just factor into AAoA.

Getting any type of CC right now will do you the best score wise.

[xecutech]

Sounds great. Working on a credit card next. Also asking for credit limit increase with the card she already has.

Things are looking up!!!

[guiness56]

The credit that was closed in good standing is most definitely helping your score.  That is how you get your AAoA and the age of your oldest account.  If one of those was to disappear your AAoA would drop drastically and your score would be dinged.

When you get a CC, for optimum FICO scoring, if you have more than one CC. let all but one report a 0 balance, the other at 9% or below.  YMMV so you can tinker around with the % to see where you get your highest score.

[RSCo]

Hi there xecutech - has the IRS threatened you or have they come to your home or work? Are you concerned about that? I just had a paid lien from 2009 withdrawn after I sent in that form to request the removal. Good luck to you. Seems like you're heading in the right direction.