Like many others on the forum, I'm trying to rebuild my credit. My current situation... Derogs: Capital One Secured Card $318 (charge-off, "closed at consumer request"), Guaranty Bank $916 (in collections with ADS), and a medical bill $334. All of theses became delinquent between 2011-2012. I also have five student loans totaling $16, 489, all of which are current with 100% on-time payments since they've been in repayment in 2013. The only score I've seen recently is on CK, which just bumped up a few points to 590.
I'm not sure where to start with my charged-off accounts. I've heard that if you pay Capital One in full and then dispute the debt, they typically don't respond and the account would therefor be removed. I understand they don't like to budge in terms of PFD's. Has anyone had luck with that method?
As for my Guaranty Bank account, the agency it's with has not followed the FDCPA. I never received a letter, and didn't notice the newly reporting account until after a month of it being reported. Also, when I called (never confirmed or denied owing the debt) there was no mini-miranda although we discussed possible repayment plans IF this debt is valid. Looking through my papers the original amount when the account was officially closed with Guaranty bank was $561.53 (ADS is reporting an original balance of $776). I have no paperwork indicating the balance at the time of charge-off however, and the bank never reported to any credit bureaus. This is the second agency the account has been with as far as I know. Possible dispute?
The medical bill is something I plan on paying at the end of the month. Is this CO something creditors would see? I'm also going to apply for a secured card through Wells Fargo, who I've been banking with for over two years with no issues. I've researched the pros and cons of opening that card with them and it seems worth it for building credit, although I understand graduating the unsecured and increasing my limit may never happen, or could take years. Any help is greatly appreciated.
Oops, I realize there is a section specifically for rebuilding credit. Mods feel free to move the thread.
On the charge off you should definately pay it off cause that is killing your score.
As far as secured goes, I would recommend Bank of America as it does graduate and you can even get it upgraded to the 1,2,3 Rewards Card. I would also recommend the SDFCU secured as it has no credit pull. Lenders typically like to see at least 2-3 revolving accounts on your credit file. So, I would recommend taking a look at opening 2.
Before you pay the medical bill follow the HIPAA process and you can Google that.
Also, when you pay them off, ask if they will agree to remove it from your credit. May work and doesn't hurt to ask. But make sure you get it in writing.
Send a DV to ADS to the validity of the debt can be ascertained. I would also offer PFD's to Capital One and the medical debt. The medical debt could also be addressed using whychat's method (Google is your friend).
Keep in mind that if Capital One doesn't accept the PFD, and you decide to pay, the CO status will remain and it's likely your score won't improve (it may actually decrease).
I will send the DV asap. Also, I've looked a little bit into Why Chat's HIPAA method and will be using that for my medical debt as you suggested. The Capital One debt is a little confusing to me. It reports as closed at the consumers request, but I never specifically closed the account. I'm not sure how that remark effects my credit. I'll try the PFD, but working for them I know there can be little success doing that.
Looking through the forums I decided to look up the agency collecting on my bank debt and make sure they had a license to collect in MN. This is what my search returned:
License Number: 40154178
Original Issue Date: 04-07-2009
Effective Date: 01-17-2012
Expiration Date: 06-30-2012
Looks like they aren't licensed to collect in my state. They haven't sent me a dunning letter (or a letter at all) or placed a call to me, the only action they've taken is reporting the debt to the CBs. Also, on Transunion the Loan Type is reported as Collection Agency/Attorney, but I don't believe they are a law firm. Do I have any ground to dispute and request removal through the CBs with any of this?