Credit dilemma

[mistasteve]

I need some advice on this issue. I have a credit score of 543 TU and 565 EQF. I have some revolving debt thats killing my score. I owe 3 CA(s) - $450, $1700 and $620. Thees are all revolving accounts and are more than two years old. When i disputed the amounts they renewed the debt as if they were receent. I disputed them because I disagreed with the balances but at this point I just want them off.

I want to know if offering a pay for deletion (in writing) to the CA will they be willing to remove this debt in exchange for payment (in writing). Does anyone know if this will work or not? I have paid eveyrthing on time since and paid off a car loan recently but it's not helping.

This is all I owe...no other balances are on my report and nothing else to pay on time.

What can I do to get my score to the mid 600's?

[john398]

Welcome to the forum, I belive it all depends on the collection agency at this point and how willing they are to do a pay for delete

[mistasteve]

So in other words, if they don't except my PFD...I'm dead? There has to be some way to raise your score with these old CO on my record?

[dodgerslv]

Unfortuanely unless they agree to PFD all you can do is pay them off (assuming they are your accounts of course) and only time will heal your score. The older they get the less effect it will have on your score and report.

[mistasteve]

What if they agree in writing to my PFD offer and still do not remove the negative item? What could I do about it?

[Johnny_Favorite]

If they refuse? It wouldn't be any worse than it already is, it will just be marked PAID and will still hurt your credit.

Why is it that if you don't improve your score you're "dead?" That doesn't seem really optimistic. Probably took years destroying your credit, going to take years to get out of it. Maybe months if you're lucky.

[gpfirestone]

When I applied for my mortgage I found out I had a very small negative from a move out expense at a place I rented that was sent to collections.  It brought my credit score down to 640 when it should have been around 730.  My banker at Morgan Stanley said I should not pay this off unless they agreed to remove it completely.  The logic here is that if you do make any payments they will update the account as paid, but then it will stay on another 7 years from that date and if you don't pay it, the tolling date for those 7 years will be when it was first placed on your credit report.

If you are going to ask them to remove it, I would offer to pay the entire amount and bring in a cashiers check that same day.  Unfortunately because you owe 3 agencies, I would contact them all and make sure they are all willing to do this.  If any of them aren't, you can contact the original person you owed the debt to and offer to pay them in return for them telling the CA that the debt should not have been put into collections.  You either need to get all 3 at once or leave them all alone and just wait it out.

[gpfirestone]

Btw, I had a great experience and they agreed to remove it if I just brought in a cashiers check for the full amount, took me a few hours, but was well worth it.

[mistasteve]

Thanks guys I really appreciate the advice!!

One more question: What about new credit? If my plan fails and no CA will accept my PFD offer. Would getting a secured credit card and keep my utilization low help my credit over time?

[distantarray]

I removed all my collections with ITS letters (intention to sue) after they illegally reported my debt without providing proper validation of my accounts and records. They had over 51 combined errors on my reports even charge off dates late payment dates and even charge off year across the board was inconsistent. 

There's many ways to deal with collections, not just a pay for delete, but if you want more info go to creditboards.com if i go into it further here the cardinal fangs of myfico won't be happy =)