Help needed please. I need to get mortgage ready.

[Anonymous]

I could really use some advice. Like many, my business ranked in 2011/2012 and I defaulted on all my credit cards. Lexington Law cleared some things up but I have 2 chase collections that are killing me! Date of last payment was April and May 2012 . They are both high amounts. I can't pay them off entirely at this time, but should I try to get them settled? I was in the 600s across the board until one reported date of last activity had changed from Nov 2011 to April 2012 and my score dropped 56 points for both together. I'm beyond frustrated and don't know what to do. I have a car loan now, since Sept 2014 , and 2 credit cards in good standing and just got a 3rd with captain one. Never late on any of them. I keep utilization under 10% on one and 0 on the second. Plan to do the same with the 3rd. Am I basically doomed until Chase falls off in 3.5 years??? Thanks so much.

[Anonymous]

---

@Anonymous wrote:
I could really use some advice. Like many, my business ranked in 2011/2012 and I defaulted on all my credit cards. Lexington Law cleared some things up but I have 2 chase collections that are killing me! Date of last payment was April and May 2012 . They are both high amounts. I can't pay them off entirely at this time, but should I try to get them settled? I was in the 600s across the board until one reported date of last activity had changed from Nov 2011 to April 2012 and my score dropped 56 points for both together. I'm beyond frustrated and don't know what to do. I have a car loan now, since Sept 2014 , and 2 credit cards in good standing and just got a 3rd with captain one. Never late on any of them. I keep utilization under 10% on one and 0 on the second. Plan to do the same with the 3rd. Am I basically doomed until Chase falls off in 3.5 years??? Thanks so much.

---

Is Chase reporting a CO and unpaid balance on both accounts?

[Anonymous]

Yes.

[Anonymous]

Then you need to get it settled. Is it passed SOL in your state?

[Anonymous]

No, not yet. SOL is 6 years here.

[Anonymous]

how much are the accounts?

[Anonymous]

5300

[Anonymous]

This is a tough one. Its always risky to try to settle inside SOL, but then again its risky inside SOL no matter what you do. Settling it would get it to  $0 balance which wold help score if its skewing your UTI.

Maybe some other folks can chime in as to how likely Chase may be to settling.

[Anonymous]

I have no idea why all of a sudden they updated the date of last activity from Nov 2011 to April 2012. That's what dropped my score on Equifax.. It hasn't done anything yet to the other two bureau scores.

[Anonymous]

---

@Anonymous wrote:
I have no idea why all of a sudden they updated the date of last activity from Nov 2011 to April 2012. That's what dropped my score on Equifax.. It hasn't done anything yet to the other two bureau scores.

---

What dropped your score is the fact that they updated. Really has nothing to do with the reported DOLA, just the fact that they updated the report, which causes FICO to see it as "fresh" and if it has not been updated in a while it drops your score. DOLA is not a part of scoring.

They might be trying to "get your attention" by updating after a period of dormancy.