Optimistic this community can help me...

[Anonymous]

Hi there,

I am brand new to this community and feel inspired to see such compassion amongst strangers. i hope to receive the same. Like many, I  made idiotic decisions in college and pretended my atrocious credit was not real. The last several years have been a wake up call because i cannot get approved for anything and am realizing the consequences of my actions. With that being said, I am ready to put this to bed and fix this once and for all. I am ready to pay the following creditors "in full" and am just seeking the best way to go about doing so (do i send a debt validation letter to the creditor even if i know i owe that amount? do i pay first and then request a deletion?) I do no want to get sued so i really want to just pay and be able to sleep better at night but i worry this will reset my negative marks back an additional 7 years? Can someone please give any guidance? I appreciate any support and help and want to thank you all for not judging me

Accounts:

Cach LLC - Nordstrom 

First Premier Bank

Capital One/ LVNV

Elan Financial/Northland 

Victoria Secret/Commenity

[Anonymous]

Hi and welcome, you’re definitely in the right place.

First off, go to www.annualcreditreport.com and order your free reports from all three major bureaus. Then go to www.creditchecktotal.com and buy a one week trial for $1 to get your scores (get them and cancel so you don’t get into a monthly subscription). Go through your reports and make sure you recognize each listing as your own.

What we will need to help you is the following for each tradeline in your reports:

Original creditor
Collection agent or other current debt owner (if not the OC)
Status of debt (chargeoff, active but late, etc)
Type of credit (loan, credit card, etc)
Credit line vs current balance
Date of first delinquency (aka the DOFD, the first month it went late and never recovered)

If you can provide this info, we can help. An example of all this would look like this:

Discover credit card
Chargeoff, debt owned by Discover but being collected by Midland Collection Management
Credit line $2000
Current amount owed $2355
DoFD 8/2017

With this, we can help you approach your debts in a way that gives you the best odds for fixing things correctly and with the shortest-possible lasting consequences.

And remember, we don’t judge here - many or most of us have been there, done that. Very few people get credit right the first time. Tap into our experiences, read voraciously in the forums here, and you’ll be back on track and on course to repairing your profile. It takes time and can take considerable effort but it CAN be done.

[Anonymous]

I agree with imthedevil checking your reports ensuring everything is accurate. You find anything inaccurate Dispute it. It would be helpful to have more information but in the case you don’t want to divulge I would recommend calling. I would call to see if they would do a pay for delete and if they will send the letter prior to payment. If they say no keep calling. You might reach someone who will work with you. Sometimes companies don’t budge and you have to pay and hope they delete it later. Goodwill letters would be used in that case. As far as who you contact it depends on who owns the debt. Some people only contact debt owner, in my experience I contacted both but ultimately worked with the OC as I had a long-standing relationship with them. 

[josedcolon70]

Hi backonmyfeet123!

I admire your courage to come here and seek help.  I also applaud your decision to take responsibility for your financial dues.

I have so many questions but first, I am wondering - when was the last time you reviewed your credit report?

JDC

[OneBrokeMan]

I was in a far deeper hole than you at one point. I had a home foreclosure and filed bankruptcy and had collections and so forth. Between the three credit bureaus I had approximately 36 negative items on my reports. Much of it was the same accounts being reported accross all three reports.

Here is my current status (from Experian) as of October 17, 2018

Open Credit Cards	4
Open Retail Cards	2
Open Real Estate Loans	0
Open Installment Loans	2
Total Open Accounts	8
Accounts Ever Late	0
Collections Accounts	0
Time Since Negative	Never
Average Account Age	6 Years 11 Months
Oldest Account	23 Years 9 Months

One of the open accounts above is a 2.64% used auto loan via Lightstream on my Porsche Cayman. There is light at the end of the tunnel.

My current FICO score is 786. A few years ago it was in the low 500s. My highest FICO score was 794. I used a credit repair service. I also had to pay a separate attorney approx $800 to deal with a second mortgage company. Saved me thousands.

I received an AMX via USAA with a $10,000 limit. Several months ago I requested a $3000 increase. To my surprise my new limit is now $20,000. Again, my situation was far worse than yours so you will be okay.

MyFICO community is a great resource so you have come to the right place IMHO. There are different approaches to deal with credit issues. They all have one thing in common. You have to be pragmatic, you have to be strategic, and you have to be patient.

One tip that also helped me that often gets overlooked is this: I asked my mother to add me to one of her oldest revolving accounts in good standing. She did, which aged my credit. In return I paid off the balance even though I would have done so regardless because I love her. I do not carry any balance on that card so she is does not have to be concerned about a late payment.

Also, as my FICO score was improving I took out a 3 year personal loan for $8000 (amount is not important). I left the money in my savings account and paid the loan off in seven months versus 3 years. It cost me a few hundred dollars in interest but my FICO score shot up exponentially. 

Charge offs can be removed fairly quickly, not instantly. I even had my foreclosure and bankruptcy removed from all three major credit bureaus. I financed my Porsche as a strategic step toward obtaining another mortgage in the near future. The interest rate is so low on the used car loan I have no complaints. I will pay it off early too.

I hope this info is of some use to you.

[Anonymous]

Wow thank you so much for making me feel a little bit better about myself today. I am very new to understanding credit and even the terminology so forgive me and excuse my ignorance if I sound dumb at any point during our correspondence! Here is the info below:

Original Creditor: Capital One

Collection Agency/Current Debt Owner: LVNV FUNDING LLC

Amount: 967.00

Status of Debt: Placed for Collection

Type of Credit: Credit Card (now listed as Debt Buyer)

Credit line vs. balance: Credit line limit is not known or shown on report

Date of First Delinquency: placed for collection in 11/22/2017

Notes  (per credit karma)” Account info disputed by consumer; meets FCRA requirements

Original Creditor: Nordstrom Bank

Collection Agency/Current Debt Owner: Cach LLC

Status of Debt:  In Collection

Amount: 795.00

Type of Credit: retail credit card (now on my credit report it is listed *loan type- Listed as Deby Buyer)

Credit line vs. balance: 795.00 is the balance the limit is not shown on my report

Date of First Delinquency: placed for collection 09/25/2015

Notes  (per credit karma)” Account info disputed by consumer; meets FCRA requirements

Original Creditor: Comenity Bank/ Victoria Secret

Collection Agency/Current Debt Owner: Comenity Bank/ Victoria Secret

Status of Debt: Charged Off

Amount: $801.00

Type of Credit: Credit Card

Credit line vs. balance: Balance= $801; Limit= $750

Date of First Delinquency: 8/2014 (late payment; first delinquent action reported)

Maximum Delinquency of 120 days in 06/2015 and in 07/2016<

Notes: CBG CLOSED BY CREDIT GRANTOR and unpaid balance charged off

Original Creditor: Elan Financial Service

Collection Agency/Current Debt Owner: Northland

Status of Debt: Charged off

Amount: $ 8044 (Charged off Amount states: $6,230)

Type of Credit: Credit Card

Credit line vs. balance: Balance is $8000

Date of First Delinquency:  07/2013 first delinquent action reported)

Note: (This was opened opened on my report shows 6/1/2010—shouldn’t this be coming off soon?)

Original Creditor: First Premier Bank

Collection Agency/Current Debt Owner: First Premier Bank

Amount: 478.00

Status of Debt: Charged off

Type of Credit: Credit Card

Credit line vs. balance: Balance of 478 and limit of 300

Date of First Delinquency: 1/2015 (late payment- first delinquent action reported)

[Anonymous]

thank you for your support and advice!

[Anonymous]

thank you for your kind words and support. I reviewed it in september after avoiding it for years and pretending it did not exist. I started researching and reading and debating whether or not to use a credit repair service or to try to send letters on my own but have been pulled in so many different directions (some people say NOT to attempt a PFD letter because it could wake a sleeping bear, others swear by it, etc.)

no idea where to start or who to ask

[Anonymous]

wow so it is possible to really change my financial situation. i am so inspired by your growth and success and i am committed to being in a better place like you are in the future!! 

thank you for your kind words and support.

[OneBrokeMan]

UPDATE: today (October 20, 2018)

EXPERIAN FICO 8 Score is 803. I finally cracked the 800 first time in my life.

TRANS UNION FICO 8  Score = 762 (note: does not reflect my recent AMX and MC payoffs yet)

EQIFAX FICO 8 Score = 758 (note: does not reflect my recent AMX and MC payoffs yet)

END UPDATE

Absolutely. You have a couple of options. Let your finances be your guide. If you have the money to pay them off, I am no expert but I say do it since the balances are not that high. You may be able to negotiate a smaller payoff amount.

Once the status of an account becomes static versus dynamic, you can then work to have it removed from your credit report as if it never happened. Some people Do It Yourself (DIY). Yours are fairly simple so that may work for you. Mine was so complicated and numerous I paid a top-notch service $99 per month for over a year. Home Depot was pretty stubborn but the service got it removed too. 

When I saw the Bank of America judgement removed (foreclosure) I was stunned and elated. The second mortgage company was more challenging since BofA got the house and resold it (I kept it in great shape even though I knew it was going to be foreclosed. I also kept paying the landscaping service. They sold it at a great price due to the upkeep) so BofA did not fight too hard to not remove their info. That is why I hired an attorney to fight the second mortgage company. I paid much if not all of the principle before I stopped making payments but the interest rate was high. After my attorney shut them down and the account went static as a charge-off, the credit service was able to have the charge-off removed.

I have since kept up on all of my payments. You will be just fine as yours seem pretty strait forward. If you can afford the $99 month credit service I used (or a cheaper one), they shouldn't have a problem with your accounts. Also, you can try DIY first for a few months. Let your finances determine your direction. Items only have the potential of returning if another action occurs, which is why I suggest taking action to make them static such as pay them off or let them go into permanent collection if you don't think they will come after you in court. Collections can be removed too.

Again, I am no expert, which is why I hired experts so I could focus on my life and career versus trying to save money with DIY. There are less costly services but make sure you read reviews if you choose to try one. I went with one of the most expensive ones due to their reviews and the number and complexity of my negative items. You may get away with a less expensive service IF you ever choose to try one as you are in much better shape than I was. You are going to be fine between six months to a year if you put forth the effort.

I had one troll in this forum knocking my use of the service. He feels everyone should DIY no matter the circumstance. I refute singular thinking. You have options. DIY appears to be a viable option in your case because your creditors are similar and few, and the amounts are low. Mine required a level of finesse and focus for a duration I wasn't prepared to give. I wasn't going to sit around responding to 14  different creditors some of which required a legal response from the attorney who works at the credit service I used. So there is no single way to address the issue. Each person is in a situation unique unto themselves. My method worked for me even though it may not be the best method for someone else.

I say all of this to say don't allow anyone to control your actions. Don't allow me to tell you the only thing that works is a service (which would be false). Don't allow others to tell you the only thing that works is DIY. Evaluate your situation and make the best decision for your unique circumstances. The fact that you are here shows you are beginning to take control of your situation. Many people simply give up (I don't blame them as you can feel a sense of hopelessness or being overwhelmed) so you are already far ahead of the pack.

Always remember, the US government (politicians Dems and Repubs) bailed out the finacial institutions and auto manufacturers with approx, $1 Trillion USD funded by our income tax dollars. Their CEOs kept their mansions, private planes, and yachts while working stiffs were foreclosed and left to fend for themselves. Therefore I have ZERO issue with removing negative items on my report from the very institutions my tax dollars bailed out in the first place. "Too big to fail" was the con used to justify the bail out. Those same institutions are even bigger today thanks to our tax dollars.

Richard Fuld (CEO Lehman Brothers) was paid $600 Million after Lehman Brothers went bankrupt, which led to thousands of employees losing their jobs. So do not feel bad at all as you were not bailed out by these corrupt politicians people love so well. Just think, they layed off thousands of people just to pay one CEO $600 Million. That is what the bailout did for the nation, protected the lifestyles of the rich and famous with our tax dollars and left the working stiffs to the wolves. So don't you or anyone else in your situation dare feel bad or guilty at all. I don't hate rich people. I do hate people being tossed into the street while their overlords do not skip a beat in their lifestyle due to the tax revenue from the people being tossed into the streets.