Collection account questions

[Anonymous]

I’ve been trying to rebuild my credit for about a year now. Started off with FICO Scores around a 480, now 547, 566 and 579. I have 7 collections accounts (for my ex’s cell phone bill, cable bill, etc) that are all between 2-4 years old. I am an authorized user on a family members amex with a 10k limit, have a joint credit card with 1500 limit and was approved today for Victoria’s Secret card with 250 limit. Also opened a car loan about a month ago for 20k that hasn’t hit yet. My question is; should I pay those collection accounts off, or will it not affect me either way? My goal is to be above a 640 within 6 months if that’s even possible??

[javoned]

The first thing you should do is contact the collection agencies to see if they will delete the reporting from your credit report if you pay (“pay for delete”). I had 10 collection accounts a year ago. 6 deleted upon payment, 4 did not. My score increased from about 550 to 620. So I would say it’s worth it to go ahead and pay so it can stop the negative reporting and your score can begin to increase. But it may depend on if you can get some/most of those collections removed completely.

[Thaitea007]

Do you have other bad items reporting other than just collections like charge offs or lates? It’s possible for you to get to 640, but I doubt in 6 months. For one some collection agency might drag their feet when removing from your report after payment is made. I have seen this happen. But you also need some more tradelines reporting in your OWN name. I would say try to open two secured cards one from cap 1 and discover if you have extra money. Store cards won’t give you much of point boost. FICO scores are maximized when you have 3 revolving bank credit cards reporting in your name. Also search member ABCD2199, some of the best information I have read in this forum or online about starting your rebuild. If you follow what he says, good credit is what you will get along with better money management skills all around.

[Anonymous]

I have two charge offs that were paid in full from about 2 1/2 years ago. I have one late payment from a card 3 years ago as well.

[Thaitea007]

Those charge offs are keeping your scores down for sure paid or unpaid. who are they with? And did you discuss removal for payment then. I’m guessing not since they are reporting still.

[Anonymous]

Credit one bank and BoA

[Thaitea007]

I would try goodwill letters to them for removal.