Please help me decide what to tackle first?

[Anonymous2]

Hi,

I need help with a game plan to maximize my  credit score impact. Not sure which problems to prioritize for biggest FICO gain. 

I’m working on cleaning up a big mess (I had sudden disabling health issues pop up in 2019 long before Covid… went from working major hours to 0 hours. I paid my cards as long as I could (few months)  hoping my health would improve enough but it was years later before I could work again and only limited hours. 

FICO 8 score

TransUnion 630

Experian 615 (recent 7pt increase from 608 due to $895 collection removal) 

Equifax 590

My goal: hoping for 670 ASAP (next few months) as I badly need to replace my ‘07 RAV4. Only had one car loan paid off in ‘07 or ‘08 - never late, but not on any reports any more. I think EX is my best shot- haven’t found many auto loans only pulling TU. EQ looking more hopeless. 

Capital one FICO 8 credit wise simulation claims I would see a 20 point jump on TU if I pay off 8k/debt. Is it usually close to accurate? I can settle that amount for $800 with Chase.

I appreciate any help.  

So, here’s what I’m working with-

No bankruptcies or public records. 

Old accounts- 

MIDLAND CREDIT MANAGEMEN

Collection/Chargeoff

$4,416 Balance

Barclays debt

EST. Removal- 9/26

TU/EX/EQ

Their mailed offer is only a settlement in the 3k range- not an option

Planning to ask them for verification of debt and their ability to collect it- not disputing validity though or should I just try a better settlement offer?

PORTFOLIO RECOVERY

Collection/Chargeoff

$2,818 Balance

Capital one debt

EST. Removal- 8/26

TU/EX/EQ

Haven’t seen recent settlement offers.

Planning to ask them for verification of debt and their ability to collect it- not disputing validity though or should I just try to settle?

Portfolio recovery 

Collection / charge off 

$895 balance 

EST removal 8/25 

This one has been early excluded from TU and Ex- only reporting on EQ. 

NATIONWIDE CREDIT CORPOR

Collection/Chargeoff

Utility debt 

$419 Balance (plan to contest this with the creditor- they actually owe ME over $500! The nerve.) Will not PFD. 

EST. Removal- 11/26

Reports on EQ and TU not EX.

CITICARDS CBNA

Credit Card

Collection/Chargeoff

$0 Balance (no settlement or payment- IRS form received.)

EST. Removal- 6/26

BANK OF AMERICA

Credit Card

Collection/Chargeoff

$0 Balance (no settlement or payment- IRS form received.)

EST. Removal- 5/26

JPMCB CARD SERVICES

Flexible spendinq credit card

Collection/Chargeoff

$12,167 Balance

EST. Removal- 5/26

SYNCB/PPC

Credit Card

Collection/Chargeoff

$3,545 Balance

EST. Removal- 3/26

JPMCB CARD SERVICES

Flexible spending credit card

Collection/Chargeoff

$2,217 Balance (This has been settled for less and will show $0 in a few days.)

EST. Removal- 7/26

DISCOVER CARD

Credit Card

Collection/Chargeoff

$7,147 Balance (sued me, never served, closed the lawsuit but haven’t sent the IRS form saying they let the debt go- so no SOL apply but there’s no judgment.)

EST. Removal- 6/26

AMERICAN EXPRESS

Credit Card

Collection/Chargeoff

$3,123 Balance

EST. Removal- 8/26

BARCLAYS BANK DELAWARE

Credit Card

Collection/Chargeoff

$0 Balance

EST. Removal- 9/26

CITICARDS CBNA

Credit Card

Collection/Chargeoff

$0 Balance (no settlement or payment- IRS form received.)

EST. Removal- 6/26

JPMCB CARD SERVICES

Credit Card

Collection/Chargeoff

$0 Balance (settled for 10%)

EST. Removal- 6/26

JPMCB CARD SERVICES

Flexible spending credit card

Collection/Chargeoff

$6,075 Balance

EST. Removal- 7/26

JPMCB CARD SERVICES

Credit Card

Collection/Chargeoff

$1,698 Balance

EST. Removal- 7/26

All of the chase cards have 10% settlement offers. All debts are past statute of limitations except Discover. 

In good standing- never late

Ally-

Opened 4/25

$47 balance / 1K line

Always on time 

Capital one-

Opened 9/24

$0 balance / $400 line 

Always on time

Wells Fargo mortgage-

Opened 4/2012

Balance approx 150k

Never late

Wells Fargo personal loan

Opened 4/25

$260 balance (currently reporting $520 but should update in a few days) / $520 line 

Should I pay this off or do the last 2 monthly payments to have it show more on time payments?

Never late 

Authorized user-

Discover - $139 balance / $7,900 line

Opened 10/2001- never late

Doesn’t show on EQ

[JoeRockhead]

Welcome to the forum. 

You provided a lot of information, which is great, but one important detail you left out is how much extra money you have to throw any of this debt.  It would help you get more specific advice if people know what you have to work with. 

[Anonymous2]

Hi,

I have around 3-4k to work with immediately I think but since I'm working I will have a few hundred/month extra going forward. 

[Patient957]

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@Anonymous2 wrote:

... I badly need to replace my ‘07 RAV4. 

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Lemme guess... burning massive amounts of oil.

Capital one FICO 8 credit wise simulation claims I would see a 20 point jump on TU if I pay off 8k/debt. Is it usually close to accurate? 

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Others might disagree with me, but in my experience the score simulators that are actually FICO products are reasonably accurate.  This includes the simulator here at MF and also the new FICO score simulator provided by Capital One.

[JoeRockhead]

This is kind of a tough one.  On one hand, You have quite a high amount of outstanding debt and not enough to wipe it all out.  Many of the accounts appear to be revolving credit cards which, in addition to the reported charge offs and collections, is having quite the negative effect on your aggregate utilization. Unfortunately it will continue to do so until they reach a zero balance, and/or they become time barred from being reported. 

Even if you did have enough to wipe them all out.  The charge offs and remaining collections reporting would still be hurting your scores quite a bit.  While you can challenge the validity of the debts, you'll see a little gain in scores as these adverse accounts come off your reports, but you won't fully get all your points until they all vanish.  You also want to be careful not to make partial payments on the debts, promise to pay the debts, or acknowledge ownership of the debts.  Any of these things can reset the SOL.   In essence, I just don't feel like there's enough you could do in the next 2 or 3 months that would change things significantly. 

On the other hand you're really close to all these accounts ageing off your reports within the next year or so when you'll end up with a completely clean slate.  Some might suggest making repairs to your existing car to keep it going, some might say to buy a decent used car.  If you just have to have a newer car in the immediate future I'm sure some might recommend using your available cash put down on the car to reduce the amount you're going to finance being as it stands now, you'll be looking at a not so favorable interest rate. 

From there, they might recommend that you just wait it out.  Ask for Early Exclusions (EE) from the credit bureaus in accordance to what their particular policies are on EE.  When your reports are looking more favorable in 12 to 18 months from now you can look at refinancing the car at a much better rate.

You're doing about as much as you can with the credit you have in good standing, so keep that up.  I'd recommend you pay off the WF loan.  It will stay on reports as a positive account for many years. 

[Anonymous2]

Thanks for your thoughts.

I went ahead and paid off the WF loan- hopefully they will report it on the next update and haven't missed it for this month.

do you think it would make a bigger impact to focus on getting rid of the 2 collections on EX or paying off a larger amount (by settling) of the chase charge off debt? I could settle all of the remaining 22k of chase debt for $1,900ish. (Already paid $200/2k)

I know getting to 670 in 2-3 months is a bit of a pipe dream but I'm staying hopeful. I will have a co-signer on a loan (800+ credit score)  which will help but it would still do a lot of good interest wise to have it over 670. Unfortunately most of the reliable older suvs (like a 2015 rav4) they still want like 18k for right now with high miles- it's insanity. But for a variety of reasons I don't think I can wait a year though I agree that would be the best case scenario.

also should I start with having them verify the collection debt or just move right into trying to settle it?

[FicoMike0]

You paid off the recent loan, that's good. As for the older debt, as @JoeRockhead pointed out, you're not paying that all before it ages off. Better to save every dollar you can toward a vehicle.  You don't say what's wrong with the car. Maybe fix it, or live with it.

Sometimes we go with the vehicle we need vs what we want. Does it have to be an suv? Why? 

[FicoMike0]

As far as scores, do azeo on present accounts, utilization is probably killed due to old debts. You could likely get 30 points from a ssl.

If you have a cosigner, doesn't that help rates?

[JoeRockhead]

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@FicoMike0 wrote:

As far as scores, do azeo on present accounts, utilization is probably killed due to old debts. You could likely get 30 points from a ssl.

If you have a cosigner, doesn't that help rates?

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@FicoMike0 being there's an open mortgage, a SSL would be ineffective so it shouldn't be considered. 

[FicoMike0]

your right, joe. I was grasping at straws, lol. Maybe fixing the car is easier than the credit.