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Help! Credit in the 500s with many new charge offs

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Help! Credit in the 500s with many new charge offs

Hello I'm in need of some advice I was unemployeed for about 5 months and my credit cards really got away from me and i wasn't responible enough to make arrangements when i first lost my job. But here's my situtation I would like to be able to get my score back to the 700s but there is so much outstanding debt I'm not sure how to get there. Here is a run down of what I have below.  I want to be able to buy a home in the next 8-12 months and i have about $800 I can put towards old debts a month outside of my normal payments.  Any advice will be appreciated on if I should even pay these COs or not. I am leaning towards paying them but of the ones i've already paid they have done nothing to increase my score but i read that if I want a mortgage I can't have any charge off debt. Thank you all in advance for your help.

 

Current Score: 4/21/19

TU: 522

EX: 544

EQ: 530

 

Salary: $95000

 

Banking:

Currently Bank with USAA and Navy Federal for everyday usage.

 

Positive Accounts(Opened):

 

Care Credit: $290.00(Bal). $800 CL

Cap 1 Secured: $250(bal). $510 CL

Gettington Card: $0(bal). $300 CL

Milestone Credit Card: $0(bal) $300 CL was 90 days late(now current)

PenFed Credit Lline: $466(bal) $500 CL

Total Visa: $173(bal) $300 CL was up to 90 days late (now current)

 

American Honda Finance- $34,000($710/month no lates)

Cap 1 Auto- $12,892($410/month no lates)

 

Student Loan- $66,000( was deferred but started making payments again 150)

 

CO Accounts(All showing Bals holding up my utilization):

 

Amazon Card- $149 (Scheduled to be paid 5/3)

Target Card- $388 (Scheduled to be paid 5/3)

CFNA Card- $898 (no plan yet on this one)

Credit One- $532 (No plan yet)

First Premier- $852 ( No plan yet)

First Premier- $756 (No plan yet)

Cap 1 Unsecured- $2344 (no plan yet)

Nordstrom Card- $884 (paying 150/month for 6 months on month 2 currently)

Walmart- $638 (no plan)

Sams- $436 (No Plan yet)

PDQ Service Medical- $455 (No plan Yet)

Bloomindales Card- $0 (paid CO)

Macys Card- $0 (Paid CO)

 

Regional Acceptance(voluntary repo)- $8433 from 11/2013 still showing opened

 

 

 

Message 1 of 6
5 REPLIES 5
Community Leader
Mega Contributor

Re: Help! Credit in the 500s with many new charge offs

Hi and welcome!

 

Your score will not increase by much until those COs are resolved, even with positive accounts reporting.  If they are updating (even just one), it will hold your scores down. 

 

Are they still with the OC or have they been referred to collections? If so, which CAs? Some may be amenable to PFD. 

 

If they are not falling off any time soon, your best option is to pay and with $800 a month, you can do it in reasonable amount of time if you wish to do so. 

 

As far as medical collection goes, I took a liberty of copying and pasting @gdale6  suggestion on how to handle those, so here it is 

 

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if insurance can be billed, if not then
2. see if you qualify for Charity Care, if not then
3.  ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help

 

 

EX 759 EQ 774 TU 753


Message 2 of 6
Contributor

Re: Help! Credit in the 500s with many new charge offs

Are the Amazon and Target bills going to be completely satisfied May 3rd? If so, great. I assume these are all with the original creditors so I’d just hit them as hard as you can, quickly. I’m not sure if this is the best approach, but I love instant gratification of crossing stuff off the list, and slowly paying down bills doesn’t motivate me as much as eliminating one at a time. So here is what i’d do:

I’d pay the minimum on everything, to avoid any more late payments, except I would take the extra $800 and combine it with the $150 you are currently paying Nordstrom. Knock that out and then you have $950 toward debt next month (unless for some reason Nordstrom is much lower interest than the rest). Use that $950 to wipe out two more debts the next month. Add each paid off bill’s minimum payment to what you have to pay off debt with the next month. You could try and ask the creditors to remove the tradeline or take off some lates in exchange for PIF.
FICO Scores
5/20/2019: EQ - 568 TU - 591 EX: 589
Message 3 of 6
New Member

Re: Help! Credit in the 500s with many new charge offs

They are all currently with the OC. I'm calling around trying to establish a monthly plan to see if that will prevent it from going to external collections.  I will try the suggesstion with th emedical debt also. Thank You.

Message 4 of 6
New Member

Re: Help! Credit in the 500s with many new charge offs

Yes, Amazon and Target will be paid off on 5/3.  I'm like you I get more gratification paying items off in full so I am trying to pay the ones that are less than 500 completely off each pay period to check them off. I didn't ask Amazon or Target or Macy's or Bloomingdale's for a Pay for deletion is it too late to go back and ask them for that now?

 

Message 5 of 6
Contributor

Re: Help! Credit in the 500s with many new charge offs

Great! I’m glad I’m not the only one who needs the gratification of checking them off the list as opposed to paying each slowly over time. I’d just end up feeling like i’ll never dig out.

As long as you pay the minimum due each month you won’t be sent to collections. Don’t let any go to collections! Then just roll whatever minimum payments from accounts you have paid off into what you pay toward the next one. Some go after the smallest balances first and some go after the highest interest. I’m sure there is a way to figure out what is cheapest over time.

You’ve got this! It may be too late to do anything about the ones already paid off, but it certainly wouldn’t hurt to write letters asking for goodwill adjustments. There is a lot of info on this here! I haven’t tried it yet as I’m in the early stages too, but there are a lot of success stories posted in this forum!
FICO Scores
5/20/2019: EQ - 568 TU - 591 EX: 589
Message 6 of 6
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