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CAN SOMEONE PLEASE HELP YA BOY!

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FicoCent
Established Member

CAN SOMEONE PLEASE HELP YA BOY!

Greetings all! I come to you for opinions and advice on helping to get on the right credit track. Long story short, I fell on hard financial times in late 2019/early 2020 that resulted in me defaulting on several credit cards. Sucks because I had these cards since 2015, but since then they have all gone into collections with one of the accounts actually filing suit. The accounts were:

 

  • Discover closed on 02/21/2021 overall balance $4539
  • Syncb/JC PENNY closed on 04/03/2020 overall balance $3417
  • Credit One Bank closed on 03/10/2020 overall balance $0 (Pd on 05/10/2021. deleted under derog but still showing under closed)
  • Capital One Platinum closed on 01/21/2020 overall balance $1682(settled with lawyer for 6 @Payments@$183 w/ 4 payments left)
  • Wells Fargo/Bobs closed on 11/13/2019 overall balance $3783
  • Syncb/Walmart closed on 10/10/2019 overall balance $0 (pd through collection; deleted from derog but still showing under closed)
  • Syncb/Lowes closed on 09/26/2019 overall balance $2827 
  • Kay Jewlers closed on 12/06/2019 overall balance $323

My current Fico8 score is 569: End of 2022 Goal 650 (might be a stretch lol)

I was able to get approved for new cards to rebuild my credit:

  • Capital one Platinum opened on 07/18/2021 CL $300 balance $40
  • Merrick bank opened on 11/05/2021 CL $700 balance $120
  • Credit one opened on 07/22/2021 CL $300 balance $0
  • Missions Lane opened on 05/19/2021 CL $600 balance $95

I have a mortgage and car payments as well. 

How should i go about with the closed accounts? What are my best strategies to settle these huge balances while also trying to get them deleted and reach my goal. I appreciate any and all information and please let me know if i am missing any information. Thank you very much. 

Starting Fico8 Score: 569
Experian Fico Current Score: 672
Goal Score: 750


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37 REPLIES 37
CYBERSAM
Senior Contributor

Re: CAN SOMEONE PLEASE HELP YA BOY!

Initially I would say refinance your mortgage, get few bucks to cover all your debt and collection. If you had no late payment on mortgage history then you should be good, given average house market has gone up!







              
Message 2 of 38
FicoCent
Established Member

Re: CAN SOMEONE PLEASE HELP YA BOY!

Thank you for your reply! I was thinking the same thing, but i was under the impression i needed to have atleast a 620 credit score in order to refinance. I will be looking into that today i appreciate your advice. 

Starting Fico8 Score: 569
Experian Fico Current Score: 672
Goal Score: 750


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Message 3 of 38
dragontears
Senior Contributor

Re: CAN SOMEONE PLEASE HELP YA BOY!


@CYBERSAM wrote:

Initially I would say refinance your mortgage, get few bucks to cover all your debt and collection. If you had no late payment on mortgage history then you should be good, given average house market has gone up!


I would be shocked if the OP mortgage scores are currently high enough to refi for a good rate. Doesn't matter if there was no lates on the mortgage itself, scores are what is used to determine eligibility for a specific loan program as well as the interest rate. 

 

@FicoCent 

You need to temper your expectations of getting the OC accounts removed, it almost never happens that a lender will agree to a pay for delete 

Message 4 of 38
FicoCent
Established Member

Re: CAN SOMEONE PLEASE HELP YA BOY!

@dragontears Thanks for the advise. So my best bet is to settle the accounts and let time take its course?

Starting Fico8 Score: 569
Experian Fico Current Score: 672
Goal Score: 750


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Message 5 of 38
RSX
Valued Contributor

Re: CAN SOMEONE PLEASE HELP YA BOY!

it looks like you have 4 cards, so you can start practicing AZEO to try and bump your score up, with the goal of a mortgage refi

 

next up would be settingly the Kay Jewelers acct, as the amount is smaller

 

ultimately, you just need to keep working each account to get them all down to $0 - hopefully some of them will get deleted off, but even paid to zero gets you moving forward

 

Good Luck to you!

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Dec 29/2021 EX. 734 EQ. 739 TU 746
Nov 4/2022 EX. 726 EQ. 678 TU 706
Inq. EX 2 EQ 6 TU 6 - - CC 5x24, 2x12
Amex BCP $32k - Apple GS $19k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $25.5k - HSBC Gold - $13k - PayBoo - $9.6k - Penfed Gold - $12.5k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $8k
Message 6 of 38
FicoCent
Established Member

Re: CAN SOMEONE PLEASE HELP YA BOY!

@RSX Thanks for the advice. I just did some research on the Azeo method so im definately going to start practicing this. I appreciate the help. 

Starting Fico8 Score: 569
Experian Fico Current Score: 672
Goal Score: 750


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Message 7 of 38
Remedios
Moderator

Re: CAN SOMEONE PLEASE HELP YA BOY!

I would prioritize Discover, they are extremely litigious and I'm shocked you haven't been served yet.

Contact them and start working on a settlement because if they get a judgement, they will go through with wage garnishment and bank account lien 

"To The Left" ~ Gandhi
Message 8 of 38
FicoCent
Established Member

Re: CAN SOMEONE PLEASE HELP YA BOY!

@Remedios Thank you i was able to get on a payment plan with them. Couldnt settle because the debt is still with them, but it's my debt and im just going to pay it off. 

Starting Fico8 Score: 569
Experian Fico Current Score: 672
Goal Score: 750


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Message 9 of 38
FicoCent
Established Member

Re: CAN SOMEONE PLEASE HELP YA BOY!

*UPDATE*

I was devastated last week when my score dropped 49 points (Credit Karma TU 567). i had no idea why and then I saw those dreaded words "derogatory account/collections". Its from a Capital One card ($1553) that is now with Midland credit. 2 days later my score went back up 54 points (TU621/FICO 8 602). I was able to 0 out Capital one and Mission lane card, but i still have a balance on the Merrick. I am going to tackle this collection this week, any advice on how to settle with Midland? Are they usually tough to deal with? What amount should i aim to settle with? And do they delete once settlement is reached? Thank you guys for all your help. 

Starting Fico8 Score: 569
Experian Fico Current Score: 672
Goal Score: 750


Take the myFICO Fitness Challenge
Message 10 of 38
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