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In need of guidance

In need of guidance

I recently decided I need to fix my credit. I am 27 with two kids and one one the way. I have a great job and would like to buy a home, the only thing holding me back is my credit. I recently pulled my report from all three bureaus and found what all I need to fix, I'm just not sure how to go about it. I have a repo from a few years back that was recently charged off with a balance of $4200.00. I was able to come to a settlement for $1300 and just paid that. I did get in writing that it would bring that account to a zero balance. The other big thing is Financial Control Services. I owe them around $1k. I called them and they aren't willing to take any settlement, or pay to delete. How do I go about paying these old debts off and will doing any of this help my credit score any? I also do not have any revolving credit, just a $10k installment loan. I did speak with my bank and they are going to help me obtain a secured credit card. My current score is 520-580 depending on the bureau, and I need at least a 620 to purchase a home. Any help and guidance would be greatly appreciated.

Message 1 of 3
Moderator Emeritus

Re: In need of guidance

Hello and welcome to the forums.


You're in luck, you've come to the right place.  Once that old Repo is paid/settled, send them a GW and see if they will delete.  It's a paid debt, so no harm in that.  As for the other from Controlled Financial, can you pay that?  Once it's paid, you could send them a GW also.  This might work, it might not, but it would probably have to be paid anyway for a mortgage, and if it's paid and has some age on it, it might look better to a UW.


Getting that secured card from your bank is a great step.  You need to build while you clean and revolving accounts make up about 35% of your scores.  With a little gardening, that account will help you get other accounts.


Hope that helps some.  Let us know if you need any specific help and we will be here for  you.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 3

Re: In need of guidance

Thank you. I have been reading many conflicting stories on paying off these old debts most saying that it won't help at all to pay them in let them just fall off of my credit after so many years. I have the funds right now to pay off eveything that is derogatory on my credit. I figured I owe the money, It is my responsibility to pay it, I just wanted some confirmation that paying them will in fact help me reach my goal of becoming a home owner in the near future.

Message 3 of 3