Help with improving my score

[Anonymous]

My credit rating is in bad shape right now (TU545 - Ex567 - Eq561).  I have recently opened one credit card with a limit of $250 and zero balance hoping this would help my rating climb, and I also am an approved user for a home depot card, limit of $3000 balance of $850.  However on my credit report I have many charge off accounts that I think are preventing me from getting a better rating.  Is there anything I can do to remedy this? I would like to pay the CA that hold the charge off accounts but the figures don't match what my records are... What should I do?  Not sure if it's really worth my while to pay these old accounts and wondering if I should go the verify and then PFD letter route. Thanks!!!

[llecs]

DV the CAs. If they verify and you agree, then send a PFD.

If the associated OCs to the CAs are reporting $0, then all you can do is to send a GW.

Paying these accounts (CAs) will not improve your score. Infact, your FICO scores (you can only get TU and EQ) would drop some.

[Anonymous]

So what is the incentive to pay the CA's if my score could drop?  I've heard it looks good to some lenders but most don't care

[llecs]

There is no incentive pay. Per FICO scoring, a paid CA is just as bad as an unpaid CA. Doesn't matter if you owe $0 to $10,000, the damage is the same. Sometimes it is worse if the CA updates the TL to change the DOLA or "updated" date. FICO will often read the CA as a newer CA and drop the score. These dates almost always change when you pay them.

YMMV based on lender. I've read quite a bit over at the Mortgage board and many lenders don't require you to pay a CA and some actually discourage it, probably because of the potial for a score drop. Of course, this is why we recommend the DV-PFD route. If they accept and a payment is made, then the CA will remove it resulting in a score gain.

[Anonymous]

Okay thanks I think I get what you are saying here... Basically only pay if they are willing to delete the complete record... Don't accept an updated record it to paid.

Any other advice on how to increase my scores? thanks!

Message Edited by Chikn30 on 03-25-2009 12:37 PM

[llecs]

Other than removing CAs and removing or fixing OC accts, the only other thing to do is to GW any OC account reporting any lates. Other than that, pay all of your CCs below 9%. Make sure you have a good mix of credit and let everything age.