Dont know what else to do...PLEASE HELP

[msdraglox]

So I have been reading the posts on here and I would first like to start off by laying all my credit dirt out:

I have 2 closed by creditor accounts that I paid off in 2005/2006 (1: Bank of America $2200 and another CITI $2000)

I have 1 account with Macys that is in collections ($1500) that Macys is not accepting my dispute since I paid and closed the account and have proof of it

And I have 6 open accounts (1 mastercard and 5 store cards: Express, Victoria Secret, Best Buy, Lowes, Macys) all in good standing but some have a few lates on them (12 months and older)

And I have a mortgage and student loans (still in deferment since I am still in school) all in perfect standings

Credit score 586

I am trying to get above a 640 so that I can refinance my upsidedown mortgage, I called all of my cards and asked for GW on the lates and got rejected by every single one. I sent out GW letters and got rejection letters back.I sent and called both Bank of America and CITI for deletions and they said no also. I sent the information about Macys account to all credit bureaus and got back denials since they said they could verify the accounts. So I called Macys and sent them the information that shows that I paid it off and requested the account closed and they said that the account was charged (1 purchase) after the date of my request and that since it is past 60 days from the transaction I can not dispute the account and that I must pay it. 

I dont know what to do. I keep reading of all the good success people have on here but it seems like I was hit with the unlucky stick. It is important for me to be able to get above a 640. In about a month or so I will have enough money saved up that I could possibly pay Macys the amount they ask but I dont feel that I should have to pay it since it is not my purchases. All accounts are showing to report until 2012 so I am kind of stuck. Do I pay Macys? If I do would it restart the date for the 7 years on my credit report? Should I promise Bank of America and CITI my first born (lol)?The sad part is that I bank with Bank of America and I even have my IRA with them and they dont even want to help. 

Any suggestions would be very helpful, and any contact information would also be of great help. 

[llecs]

Closed CCs aren't bad for your credit. If there's a balance and you are in good standing, then I'd PIF ASAP. If these were COs, then your only two options are to PIF or send a PFD and then pay. BofA are not receptive to anything and I'd PIF ASAP. Can't speak for Citi. As a head's up, once you PIF and the balance reaches $0, then the balance and the CL are removed from FICO scoring. If you don't have the $$$ to PIF, and SOL hasn't expired, then sit tight. Sending any letters to a creditor that you owe money to can get you sued.

Macys is generally easy to work with. In fact, they often reinstate CO'd accounts upon receipt of payment. If you feel strongly that you owe nothing and have proof, then you can always complain to folks like their officers, the BBB, etc.

Never ever be late again. Lates, even at 12 months, are hurting your score in a big way. Send GW letters to the CCCs that are reporting lates. Before doing so, make sure your balances are in check (might improve your odds for the GW). Ideally you'd want all but one CC to report $0 with the remaining reporting a balance of under 9%. Since they said no, send another. Also call. Be persistent but friendly.

Keep paying the loans as scheduled.

Which score is at 586 and where did you get it from?

Lenders look at all 3 FICO scores and will take the middle score (if individually applied) or the lower of the two middle scores if applying jointly.

If you pay any of your debts, the 7 yr CRTP clock as set by the FCRA will not restart. You don't have to worry about that. The only clock that can restart with a payment is your SOL. YMMV based on the state you live in.

[msdraglox]

The Macys account is the only account that is in current collections and not paid, all of the other accounts (BofA and CITI) I paid off in 2005 and 2006 and they all sit at a zero balance. I only have 2 cards that do not have a zero balance currently and they are almost maxed since I had my credit limit reduced down to what I currently owed, I am working to pay those down as well and will have them down to a zero balance at the middle of January. My credit score was pulled from MyFICO as well as Experian and shows the same 586. But in the section that says "things hurting your score" it states that I have alot of derogetory accounts and late payments.

[llecs]

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msdraglox wrote:
The Macys account is the only account that is in current collections and not paid, all of the other accounts (BofA and CITI) I paid off in 2005 and 2006 and they all sit at a zero balance. I only have 2 cards that do not have a zero balance currently and they are almost maxed since I had my credit limit reduced down to what I currently owed, I am working to pay those down as well and will have them down to a zero balance at the middle of January. My credit score was pulled from MyFICO as well as Experian and shows the same 586. But in the section that says "things hurting your score" it states that I have alot of derogetory accounts and late payments.

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All you can do with Citi and BofA is to send GW letters. They are very tough to deal with.

Utilization is the fastest way to improve your score. You should see some gains once the balance drops.

The two 586 scores are unrelated and purely coincidental. MyFICO doesn't offer Experian scores any longer (unfortunately thanks to Experian) and Experian doesn't sell FICO scores at all. You can pull your EQ and TU FICO scores from here, though. 

Once you have the $$$ for Macys, give them a call. They are usually open to reinstating your account if you PIF. You might get a free TL out of the deal.

[msdraglox]

So if I understand correctly:

1) I will have the amount to pay in full for Macy's in the middle of January but I dont feel that I should pay for this account since it was suppose to be closed. Should I send a DV letter to them now or a PFD letter to them (they claim i own $1453, but I would offer like $100 since that is suposildy around the transaction amount)

2) Lower my utilizations: This is from Equifax website were I obtained my credit report from on 12/16/2009 

Open Accounts    Total Number    Balance    Available     Credit Limit     Debt to Credit Ratio    Monthly Payment Amount     Accounts with a Balance
Mortgage            1            $28,203    $4,609         $32,812              86%                     $335                             1
Installment          9            $33,292    N/A              $35,333              94%                      $71                             9
Revolving             7            $1,873    $1,277            $3,150             59%                      $55                              4
Other                 0              $0           N/A                N/A                N/A                        $0                               0
Total                 17            $63,368    $5,886           $71,295            89%                      $461                          14

The revolving amount includes the $1453 Macys is trying to collect, Installments are my student loans (I dont understand the payment amount on that since I am still in school so I pay nothing until I am done, all of my student loans are government held). 

My question is if I am suppose to have the total amount below 9% or am I suppose to only care about my revolving utilization at 9% or lower? 

[MarineVietVet]

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@msdraglox wrote:

So if I understand correctly:

1) I will have the amount to pay in full for Macy's in the middle of January but I dont feel that I should pay for this account since it was suppose to be closed. Should I send a DV letter to them now or a PFD letter to them (they claim i own $1453, but I would offer like $100 since that is suposildy around the transaction amount)

2) Lower my utilizations: This is from Equifax website were I obtained my credit report from on 12/16/2009 

Open Accounts    Total Number    Balance    Available     Credit Limit     Debt to Credit Ratio    Monthly Payment Amount     Accounts with a Balance
Mortgage            1            $28,203    $4,609         $32,812              86%                     $335                             1
Installment          9            $33,292    N/A              $35,333              94%                      $71                             9
Revolving             7            $1,873    $1,277            $3,150             59%                      $55                              4
Other                 0              $0           N/A                N/A                N/A                        $0                               0
Total                 17            $63,368    $5,886           $71,295            89%                      $461                          14

The revolving amount includes the $1453 Macys is trying to collect, Installments are my student loans (I dont understand the payment amount on that since I am still in school so I pay nothing until I am done, all of my student loans are government held). 

My question is if I am suppose to have the total amount below 9% or am I suppose to only care about my revolving utilization at 9% or lower? 

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FICO looks at all the utilization but installment util is much less critical than revolving util. Also FICO scores not only overall util but the util on each individual card. If you can get that 59% revolving util down to the 1-9% level it will help you.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

[msdraglox]

Almost all of my accounts carry a zero balance, except that Macys account. I dont know what to do about it, its like the big gorilla in the room, if I ignore it i will still have a utilization of over 50% until about 2012 so should I DV? if I DV what exactly would they tell me back? I want to know what the purchase was since the account was supposidly closed.

[llecs]

I wouldn't DV. Besides, the CA isn't reporting right?

How did the Macys balance get so high? Have you requested statements from that point forward? Again, if the balance is legit, they'll likely reopen it for you. Plus if you pay down your util, your FICO score should go up a good 50-60 points.

[msdraglox]

So for Macy's once I saw that it was on my credit report I disputed it with all three agencies and got that the data was verified, so I contacted Macys and was told to send in my information (copy of the receipt when I paid the account in the store, copy of the check they sent me because like a dummy i overpaid them, and a copy of the next months statement with a zero balance). After that I got a letter back from them telling me that the account is valid and that the purchase was made after the dates of the receipt and check that I showed them and that since it is past 60 days from transaction I can no longer dispute this. Then they ended the letter by telling me not to contact them again on the matter and to contact the collection agency handling the debt. The problem is that THEY (MACYS) are reporting the debt not the CA, so I am stuck on who to dispute with. I would call them and ask to have the account reinstated but I already have an OPEN account with them that is in good standing, and has been in good standing for awhile now and I dont want them to close it. I only really care about it because it is the biggest balance on my credit report. 

[Anonymous]

I'm like you, my goodwills are always rejected.  But keep sending them.  I've finally gotten one to agree to delete.  Your utility is a bigger deal than you think.  I just got a 12 point jump from paying my utility down from about 17% to about %2 on one card.  12 points might seem small, but it's boosting me into that 660 range that I need for a good home loan rate.  Just be persistant.