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@Anonymous wrote:Here are the collections amounts and creditors:
- Collection (Green Mountain Energy) - Date last active September 2016 / Amount $716
- Collection (Just Energy Texas) - Date last active September 2016 / Amount $107
- Collection (Comcast) - Date last active July 2016 / Amount $136
- Collection (The Cash Store) - Date last active March 2015 / Amount $1,139
- Medical collection (AMCOL Systems Inc) - Date last active June 2014 / Amount $373
- Medical collection (Commonwealth Financial) - Date last active August 2013 / Amount $139
- Charged-off Revolving Furniture Account (WS Badcock) - Date last active April 2013 / Amount $900
Ok, here's what I would do (assuming all collections are valid), asking for PFDs, of course. You want to take care of the newest ones first-
1. Pay off Just Energy ASAP
2. Pay off Comcast ASAP
3. Pay off Commonwealth Financial ASAP
4. Pay off AMCOL Systems ASAP
These aren't big $$ accounts, so your scores should jump once these come off, because FICO takes into consideration the number of accounts as well as amounts owed. We don't want to apply for any credit cards until these come off & your scores move up.
5. Pay Green Mountain Energy. If you can't do it in one payment, work out a payment plan to pay off ASAP.
6. Pay off The Cash Store ASAP. If you can't do it in one payment, work out a payment plan to pay off ASAP.
7. I would pay off WS Badcock last (looks like it is scheduled to fall off your reports by April '20)
I'm assuming most of these collections are showing on you EX report, correct?
Yes, all are reporting to Equifax... here's the breakdown:
Question: If Pay For Delete (PFD) is not granted, should I still pay the collection? In that case, it would remain on my report as a paid collection. Not sure if that would help my FICO?
Question: If Pay For Delete (PFD) is not granted, should I still pay the collection? In that case, it would remain on my report as a paid collection. Not sure if that would help my FICO?
May not help your FICO, but it will help for future credit requests.
A paid collection is always going to look better than an unpaid collection that keeps updating negatively every month. Once they are paid they stop updating, and can then begin to age off...
@Anonymous wrote:A paid collection is always going to look better than an unpaid collection that keeps updating negatively every month. Once they are paid they stop updating, and can then begin to age off...
Got it. Thanks for the advice.
I wish I could help you more. But now I see it has to do with business credit vs. personal credit. Which I have no experience with. I wont lead anyone in the wrong direction. Best of luck!
It sounds like you are in Texas, based on the collections you have. I had several of the same collections as you, and I got them removed fairly easily. If you get them removed, you should easily see a 30 point jump.
Immediately send out a Texas Debt Validation letter to each of these collection agencies! You can search the forums here to find the letter, adjust it to fit your information, and send. Most of these collectors will simply remove the debt from your credit report within 30 days. Make sure its the TEXAS debt validation that you send out.
Good luck!
From experience, I say pay off Derogatory Accounts and collections etc first. That should boost your score significantly. Keep in mind "payment history" makes up 35% of your Fico score.
Also, it will be diffcult to get approved for a prime Credit Card with your Fico scores, maybe sub-prime Credit cards but I don't recommend it. I say a prime secured card that will graduate is a good option, but paying off those collections are priority one.
@Anonymous wrote:
- Collection (Utilities) - Date last active September 2016 AMOUNT? TO WHOM?
- Collection (Utilities) - Date last active September 2016 AMOUNT? TO WHOM?
- Collection (Comcast) - Date last active July 2016 AMOUNT?
- Collection (The Cash Store) - Date last active March 2015 AMOUNT?
- Medical collection - Date last active June 2014 AMOUNT? TO WHOM?
- Medical collection - Date last active August 2013 AMOUNT? TO WHOM?
- Charged-off Revolving Account (Furniture Store) - Date last active April 2013 AMOUNT? TO WHOM?
Fill us in on amounts, please. What is the SOL for the state you live?
^^^THIS!!!