HELP needed, I do not know how to handle CO & Collections

[seeking850]

Hello, I need help.  My FICO mortgage scores are 510, 518, and 557.  All my FICO 8s are between 600-626.  All credit cards, student loans, and a car have been paid on time for the last 4 years, with the exception of 1 late pay to Capital One and they will not budge to remove it.  I have 6 old COs that will fall off in 2025, and I have a collection from Jefferson Capital for $5400 for a car that was turned in back in 2018.  I have diputed all these items several times and no luck.  When I disputed the Jefferson Capital Item, I asked for proof that Jefferson legally had the right to collect this debt, since I had also received notices in the mail from 3 other collection agencies for the same debt.  Each time all I got in response from the bureaus was a statement that the information was validated.  How can I get this item removed?  I desperately need to raise my FICO 5, 4, and 2 ASAP.  My scores have not moved in the last year.  What am I doing wrong?  My aggregate credit card balances are about 40% utilization.  Any help is appreciated.

[FireMedic1]

Welcome @seeking850 

First no more disputing. Each time it comes back verified its listed as fresh even though its older. Scores take a hit. Only way to get scores up is pay down and settle the CO's so they'll report $0 balance. You can call and work out a settlement payment. You can offer like 30%. They will go higher. Or if you have the funds to pay it right then. Do so. The monthly updating will stop and then they'll age off in 2025. Getting CO's removed is next to impossible. They'll stay on your reports. Mortgage lenders like to see no past debts owed. Really no other way around it.

[seeking850]

Thank you.  I guess I will have to look into trying to negotiate those COs.  As far as the collections, I have heard that it may help me to withdraw the dispute?  Is this a thing?  Much appreciated.

[seeking850]

Sorry 1 more question- is it true mortgage lenders will not look favorably is the accounts are settled for a %?  or will that impact any potential score increases?

[RSX]

they only care that the account is Zero 

partial settlement is not a negative

your credit util at 40% is not helping your scores either - you should see some points as that % drops down

[FireMedic1]

List out who the collection agencies are please. You may have one that (PFD) pays for delete and dont know it. You settle and they wipe it off your reports.

[seeking850]

Jefferson capital $5400

midland credit management $636

franklin collection $507 (this one has disappeared from 2 bureaus and I suspect it will from the 3rd as well since I recently received correspondence from a different agency on this debt). Currently disputing with original creditor AT & T for equipment I returned.

[Blender]

I hope others can help you, but its very normal for your score not to be moving. Mine stayed in a 10 point range for over 2 years bc I had several CO/COL and so I learned that only time will heal them scores.

[FireMedic1]

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@seeking850 wrote:

Jefferson capital $5400

midland credit management $636

franklin collection $507 (this one has disappeared from 2 bureaus and I suspect it will from the 3rd as well since I recently received correspondence from a different agency on this debt). Currently disputing with original creditor AT & T for equipment I returned.

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Those 2 will delete if settled or paid in full. Not sure about Franklin. AT&T is a bear to work with for deletion. But you could say Im trying to purchase a home and like for it to be deleted if I pay.