Credit Rebuilding Plan – Please Sanity Check me

[Anonymous]

Hey Everyone,

Can you all please take a look at the plan I formulated and tell me if I’m overthinking it, underthinking it or worse not thinking at all lol. Any help would be greatly appreciated.

Current Credit State

Credit Scores from myFICO (FICO 8) Equifax: 577 – TransUnion: 600 – Experian: 568

Last Late Payment: 3 Years 6 Months ago

Revolving Utilization: 103%

AAoA: 8 Years 2 Months

AoOA: 20 Years 5 Months

Late payment 30+ and 60+: 10 Accounts

Inquiries: 1 for each CRA

Judgments: Both Discover accounts and American Express Account

Foreclosure: 2016 and received a 1099 for the difference

Open Accounts

Name	Type	Balance	Limit
CREDIT ONE BANK	Credit Card	$0.00	$800.00
MISSION LANE TAB BANK	Credit Card	$0.00	$1,150.00
CAPITAL ONE BANK	Credit Card	$153.00	$5,000.00

Closed Accounts in Good Standing (sorted by when dropping off CR)

Name	Type	Age	Drop Off CR
JPMCB	Credit Card	16 Years 8 Months	0 Years 10 Months
RBC	2nd	10 Years 8 Months	0 Years 10 Months
SETF/WOFC	Auto	12 Years 8 Months	1 Years 2 Months
JPMCB	Credit Card	20 Years 5 Months	3 Years 2 Months
SETF/WOFC	Auto	11 Years 4 Months	3 Years 9 Months
BARCLAYS BANK	Credit Card	6 Years 2 Months	4 Years 4 Months

Closed Accounts in Bad Standing (sorted by when dropping off CR)

Name	Type	Balance	Drop Off CR
CITICARDS	Credit Card	$0.00	0 Years 9 Months
PNC BANK	2nd Mortgage	$88,993.00	0 Years 10 Months
DISCOVER BANK	Credit Card	$8,094.00	0 Years 10 Months
JPMCB	Credit Card	$4,048.00	0 Years 10 Months
AMERICAN EXPRESS	Credit Card	$3,944.00	0 Years 11 Months
BANK OF AMERICA	Credit Card	$13,882.00	1 Years 1 Months
DISCOVER PERSONAL LOANS	Personal Loan	$20,243.00	1 Years 7 Months
FIRST PROGRESS CARD	Credit Card	$147.00	3 Years 5 Months
FIFTH THIRD BANK	1st Mortgage	$384,519.00	2 Years 5 Months
CAPITAL BANK	Credit Card	$1.00	3 Years 6 Months

Collections

Name	Amount
I.C. System, Inc	$111
Paragon Revenue Group	$2,117

Okay… I have to admit, this feels pretty weird putting all of this personal information out here lol

Steps – Completed

• Begin doing the AZEO method and looked when the cards update the CRAs
• Received a judgment settlement letter from AMEX for 30% of the balance.
  1. I need to lookup what’s needed in the final offer letter

Steps - Planned

• Settle with AMEX for their offered amount
• Send PFD letters to FIRST PROGRESS CARD and CAPITAL BANK (I can’t believe it was charged off for a $1!). If that doesn’t work then I’ll just pay them off.
• Dispute the collections (they were the ex-wife’s accounts). If they won’t remove them, start down the HIPPA removal process
• Start negotiations with Discover to settle judgments
• Dispute the balance on FIFTH THIRD BANK mortgage. To my understanding the amount should be $0 since it was foreclosed and I was sent a 1099
• Apply for SSL to replace the paid closed installment loans (since they will also drop off my CR)
• Wait for majority of the accounts to fall of my report over the next year and a half

What do you all think? What am I missing or over doing?

Thanks already for the posts I’ve learned form and Thanks in advance for your help!

[Remedios]

Hi and welcome to the forums! 

Amex will take settlement 

Original creditors you listed First Premier and Capital do not remove their reporting. I dont think you'll have much luck there. Best you can do is pay/settle

Your wife's collections would not be on your CR. I dont know what the basis for your dispute would be. Unless we're talking about minor children, it wouldn't be on yours.

Whatever you're planning on doing with Discover, do it quickly. They WILL garnish your wages. If they already have judgement awarded, they are not going to be incentivized to go too low. You might want to get an attorney involved.

A lot of your accounts will drop off, but the ones that remain will keep your scores roughly around where they are right now, unless all of them are paid/settled.

Right now, with all the negatives ,SSL can wait. 

Good luck 

[Anonymous]

Thanks for the reply and info Remedios!

I will request the DFP once from First Premier and Capital and if they say no then I'll just pay the balance.

The collection is my ex-wife’s portion of my son’s medical bill, I paid my half. I doubt the collection agency cares which parent truly owns the debt. I'm assuming the collection is on my CR because I provide the kids insurance. I was hoping to get it off of my report.

Discover has had the judgement for around 4 years. Lucky for me, I live in North Carolina and the state doesn't allow wage garnishing for most debt.

I was hoping to get all of the balances down to zero over the next year in a half. If the balances are zero and majority of the negative items are removed would my FICO score still stay about the same?

[Remedios]

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@Anonymous wrote:

Thanks for the reply and info Remedios!

I will request the DFP once from First Premier and Capital and if they say no then I'll just pay the balance.

The collection is my ex-wife’s portion of my son’s medical bill, I paid my half. I doubt the collection agency cares which parent truly owns the debt. I'm assuming the collection is on my CR because I provide the kids insurance. I was hoping to get it off of my report.

Discover has had the judgement for around 4 years. Lucky for me, I live in North Carolina and the state doesn't allow wage garnishing for most debt.

I was hoping to get all of the balances down to zero over the next year in a half. If the balances are zero and majority of the negative items are removed would my FICO score still stay about the same?

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Collection would go on whomever is listed as "guarantor" 

So, if she put you, it's you, regardless of the fact you never signed anything.

Medical collections can be easier to remove than other types,  but that usually requires payment/settlement.

You should try and find out if that particular collection agency will delete upon payment. 

If all your collections and charge offs end up with 0 balances, there will be some score improvement over time.

I dont want to sound like negative Nancy but OC usually does not remove entire accounts. Collections removal is quite possible. 

It's best you start working on it, do what you can payment wise and dont overextend yourself. Stashing some cash can be a lifesaver. 

[sjt]

I would settle the judgment first to stop any further collection method they might use such as garnishment.