Need a little help getting started

[Anonymous]

Ok. I am ready to start my ascent to credit greatness. I have some issues for sure, but I am optimistic and ready to work. I have a little capital coming my way as well, so I may be able to move some old debts. I did get a secured credit card from Cap1 last month and intend to pay in full and faithfully if it kills me. I need to deal with the following issues and if anyone has any input, I would appreciate it. My Equifax is 551 and I want to go to at least 650 and then up from there.

Here is the debt I have:

1. Tribute CC - Authorized User  - $1251 bal. Acct is closed. Last activity Sept. 2008
2. AFNI-Bloom (Nextel?) - $1412 bal. Collection Acct. Last activity June 2006 - Have offer letter to settle for $100.
3. Midland - (Not sure) - $773 bal. Collection account. Last activity Feb. 2007 - Offer settlement 25 - 50%?
4. Lvnvfundg - (Not sure) - $607 bal. Collection account. Last activity Mar. 2007  - Offer settlement 25 - 50%?
5. Continfin CC - Charged off/Sold (maybe Midland above?) - 0 bal now, but was $569
6. Plainscomm CC -  (maybe lvnv above?) Charged off, but doesn't say sold . 0 bal now, was $451 bal at one time.
7. HSBC Bank CC - $0 bal. - was $180. Charged off/sold. Last activity Mar. 2007. Do I try to pay this?
8. HSBC Bank CC - $0 bal. - was $252. Charged off/sold. Last activity Feb 2007.Do I try to pay this?

Have 2 recent inquiries on Equifax - Cap1 for new secured card and Avis Rent a Car.

Collections:

1. Embarq (Phone company) - $437. Last active Dec. 2009. Can pay this as it is new. PFD?
2. BrightHouse (Cable) - $83. Says sold and 0 bal. Last activity Mar 2007. - Can pay this as well. PFD?
3. Total Card - Same as Line 6 above. - Unpaid Status. If I pay this should I try for PFD for both entries?
4. Nextel - Same as line 2 I believe, but the bal only shows $438. If I settle for $100 with the offer I have, should I try for PFD?

Had a BK in March 2002. Not much can be done but wait for it to drop. Any suggestions on how to tackle this mess? I am in a rent to own situation and would like to buy the property in 12 months. I will have capital to make some settlements soon. Any help or suggestion is much appreciated.

[Anonymous]

I also have a question about using my credit card. I have a $500 limit. If I use $400, but pay it off that month, does that hurt me?

[Anonymous]

1. Tribute CC - Authorized User  - $1251 bal. Acct is closed. Last activity Sept. 2008  Any OC account with a balance is hurting you twice.  Once for the CO/collection, once for the balance.  It is fairly new and I would try to pay it.

2. AFNI-Bloom (Nextel?) - $1412 bal. Collection Acct. Last activity June 2006 - Have offer letter to settle for $100.  See if they will delete.  They may want more than $100 to do that.

3. Midland - (Not sure) - $773 bal. Collection account. Last activity Feb. 2007 - Offer settlement 25 - 50%?  Ask for a PFD

4. Lvnvfundg - (Not sure) - $607 bal. Collection account. Last activity Mar. 2007  - Offer settlement 25 - 50%? Ask for a PFD.

5. Continfin CC - Charged off/Sold (maybe Midland above?) - 0 bal now, but was $569  Since it is sold, pay the CA and ask for GW removal.

6. Plainscomm CC -  (maybe lvnv above?) Charged off, but doesn't say sold . 0 bal now, was $451 bal at one time. If it shows a 0 balance, it has been sold.

7. HSBC Bank CC - $0 bal. - was $180. Charged off/sold. Last activity Mar. 2007. Do I try to pay this? I would.  It's not much and the paid balance will be removed from your utilization.

8. HSBC Bank CC - $0 bal. - was $252. Charged off/sold. Last activity Feb 2007.Do I try to pay this?  Same as 7.

Have 2 recent inquiries on Equifax - Cap1 for new secured card and Avis Rent a Car.

Collections:

1. Embarq (Phone company) - $437. Last active Dec. 2009. Can pay this as it is new. PFD?   Can't hurt to try

2. BrightHouse (Cable) - $83. Says sold and 0 bal. Last activity Mar 2007. - Can pay this as well. PFD?  If they sold it, is there a CA?  They legally cannot take your money

3. Total Card - Same as Line 6 above. - Unpaid Status. If I pay this should I try for PFD for both entries?  What is the DoFD?  You can try a PFD but it will only take care of the CA entry. If they accept, you would need to send a GW to the OC.

4. Nextel - Same as line 2 I believe, but the bal only shows $438. If I settle for $100 with the offer I have, should I try for PFD?  You can try.  Again, it will only take care of the CA entry.  You would need to GW the OC.  Sometimes offering the full amount will get you further.

Had a BK in March 2002. Not much can be done but wait for it to drop. Any suggestions on how to tackle this mess? I am in a rent to own situation and would like to buy the property in 12 months. I will have capital to make some settlements soon. Any help or suggestion is much appreciated.  What type of BK?

As for the CC utilization, as long as you pay it before the balance posts to your CR you should be fine.  Otherwise, you will be hit with 90% utilization on the card.

[RobertEG]

Ditch the AU account. It is an apparent albatross.

Try to make PFD offers on the COs and CAs, but realize they have no responsibility to accept a PFD, or even to respond.

They can just chuck them in the trashcan.

PFD offers have four major components, in my opinion,  for chance of acceptance.

1. How much is the debt

2. Who owns the debt

3. Has the date of 7 1/2 years from DOFD on the OC debt expired (credit reporting leverage), and

4. Has your controlling SOL for legal defense expired, should legal action ensue

Be aware that a PFD offer may be an invitation to sue.  Many just summarily recommend a PFD offer, but any PFD offer is not without peril.

The higher the debt, and the longer the period that remans until credit report drop off date, or expiration of your SOL, the hgher your risk in a PFD.

On the flip side, the lower the debt, the closer of immediate expiration of CRA reproting expiration, or of SOL expiration, the more leverage you have in a PFD offer.

Your choice.  No clear advise here.

[Anonymous]

Thank you for your assessment. I will look over each one and see if I can make it work. I will update the progress as I go.

[Anonymous]

Thanks! I will be careful with each. I will try not to contact them unless I am ready to PIF. It's worth a try to do the PFDs, but if I have to pay it, then I will at least work out some plan to do so. To get my mortgage in the short sale, I was told that I do not have to satisfy all in full, buty I have to have agreements to pay for anything open. The total of everthing isn't real scary. If I get rid of the AU account, that's $1200 off the total right there. And if I settle the one for $100, it will at least read settled/paid to the lender. The little ones for 180 or so bucks are not a real challenge to pay either. Thanks again.

[Anonymous]

Paying them will not help your score.  Paid and unpaid are looked at in the same negative way by FICO.

If your end goal is a higher score, try for the PFDs.

What type of BK and has it been discharged?

[Anonymous]

Thanks! That was just what I needed. The BK was a Chap 7. It was disharged March of '02. So I have a couple years left to have it drop off.

[Anonymous]

Quick update. I got a collection letter today from RJM Acquisitions for $147 for Wachovia Bank. They offered to settle for $44.39. I called and asked if they were reporting the debt, because I do not see it on my credit reports. She told me yes. I asked how it would be reported and she says "as Paid In Full". I told her I was in the middle of a real estate transaction and that I would like it deleted. She immediately said "OK. We will send you a letter for the payment in full and also a deletion letter". So I guess RJM is pretty easy to work with! Not that I ever want to work with them again .

Also I got an offer from Jefferson Capital who is purchasing my debt from Midland (HSBC credt card). The amount is $599. They offered to give me an unsecured credit card and transfer the balance to it. Once $300 is paid, I will receive the card and they will also credit me $60. The credit limit would be $270, with a $25/mth payment to kill off the rest of the debt. The new credit card would be another tradeline, since I have only one good tradeline at this time. So I took the deal, but I am paying the entire balance. That way the $270 line is open and my utilization won't suffer. I'll put $25 a month on it and pay it off every month to build some history. They also will increase the limit several times in the first year. I would have liked a deletion, but they don't own the debt yet. I may have to PFD Midland since the report will say they sold the debt when the PIF payment is made. I hope Jefferson doesn't report as a collection, since it's paid before they even get it.

[Anonymous]

Another update. Got my deletion leter from RJM, but it says it was contacting Transunion and Experian. Did see EQUIFAX, so I will have to check to see if it is there. Disputed 3 baddies with Transunion and got all three deleted. Had a foreclosure in 2002 and it was supposed to be deleted in 9/2009. The Tribute Account where I was an authorized user was also deleted. This should help utilization right? It showed a balance of $1251 on a $800 limit. Wasn't helping at all, so I would rather it gone. Also deleted the $83 Brighthouse collection, which stated paid on the other reports, but still showed open on TU. Surprisingly, it took less than 24 hours to get them deleted. I was thinking a month at least!