@Anonymous wrote:I have been trying to fix my ridiculously bad credit for about a year now, and its been....frustrating. Last year when i started I was low-mid 500's.....I am now at low-high 500's. I had a good number of student loans in default....I consolidated them, got them out of default and am keeping them in good standing. Shockingly this knocked my credit score down about 60 points. I assume this has to do with altering my credit history length, but honestly half the time I can't figure out a rhyme or reason. I try to do the fiscally responsible thing and somehow it lowers my score, meanwhile opening up credit lines increases it etc. I'm just at an impasse with this nightmare. I have collections on my account. I see advice to pay them off, then advice not to pay them and wait them out. Some say paying them will negatively affect my credit by changing the date on them, some say it wont change at all, some say it will improve my score. Honestly, the ones I have paid seem to be a crap shoot on the effect. I feel like I'm just blindly groping at the unattainable. I opened a 1 year self credit builder loan, paid it on time every time and it has since been paid off and I just opened a 2 year one to replace it also paying on time. I have the associated self credit card with a 500 limit that usually has a zero balance as I use it but pay it off before the statement date every month. I opened a capital one platinum with a $500 limit that I also keep paid off, and a secured opensky card with a 200 limit, which was bumped to 250 without an additional deposit also stays paid off. I also got a car loan so I could add in another kind of credit, and make those payments on time. Yet my score has been staying basically static. What am I doing wrong? I really just need to understand what's going on and would appreciate any advice I can get.
You have three credit cards, an auto loan and a self-lending loan. Sounds good to me. Now you need to just wait without apping (in the garden) and let those accounts age. While that is going on, then you need to write goodwill letters to possibly get rid of the bad remarks.
Also you mentioned some charge-offs or collections. Those have to be dealt with because each month they report it keeps your score down. Who are they with as some will pay for delete or PFD. I personally just did a couple of those this past few months.
Also, you'll want to let at least on cc report a small balance every month or it will appear that you're not using credit. Having all cards report a zero balance every month actually causes a scoring penalty. Seems messed up but that's how FICO rolls.
Hang in there.
@Anonymous wrote:Oh my....my collections list is extensive. I'm paying 1 down currently. I'm kind of frozen on the rest. Not sure which to pay 1st, if I should be paying them etc. I keep getting conflicting info.
02/21 my most recent from a hospital visit before I moved that I forgot all about. Suprise...I have 8 americollect accounts being reported (which is lovely since its 1 hospital visit but broken down into multiple parts) $1200 or so in total I would definitely save up that total then write a PFD letter for those especially since it is one hospital stay with multiple bills.
07/17 Midland funding/messerli and kramer- $1311- I made an agreement and pay $125 a month. I think that they will PDF you can research the ones that will on here.
07/17 LVNV $578
01/17 Diversified adjustments $613
7/17 portfolio recoveries $436 They will PFD done that myself
9/17 advantage collection pros $510
Definitely I would write them asking if they would PFD and work it that way. It is a process but you can do that while you whittle away time in the Garden letting those CCs age. Also let one report a balance of something.
There are those on here that know more than me but a Paid in Full collection is better than an active collection. A PFD is better than a PIF collection. Sometimes you just have to PIF and let them age as they get older they impact less. So pay what you can and let them start aging while you garden and grow those CCs. Each month that goes by those bad accounts get farther in the rearview mirror. It is a marathon not a sprint and it is very hard to do. Good luck in your journey
I settled with LVNV & the account was removed from my credit reports.
