Rebuilding credit Need next steps..... Any advice?

[bowens2c]

Ok so my transunion FAKO is 591. I had an increase last month form 541 so at least its going up. Equifax is like 580. Experian. I hate them dont we all is the lowest like 560. I have  about 7 negative accounts that are derogatory in collections. 2 are midlands. 2 are seventh avenue and grandpointe. if I pay them they will only mark as paid collection which will update my report but still be negative and that wont help me. I have a zzounds collection account.$270 they will only update as paid collection once paid. captial one collection for $400.  Thats all of the negative.

Positive

 secured loans, $1000, $1000, $300, $500, $500, $400

2 unsecured loans $325

$1000

Fingerhut freshstart $180

7 student loan accounts deferred.

I just want to know what would be the best way to get a big boost in my score in about 3 months

I want to pay my collections but it willnot hlep my score. It will only bring it down.

should I just leave the on there. I have disputed before and they validated them

I cant get approved for any credit cards

My mom has a lane bryant card and dressbarn. SHould I get her to add me as an authorixed user on them both? She only has a $50 balance on one and the other she doesnt even use.

Would a secured card be my best move? Thank you all so much nd I love my fico forums.

[AeroKrix]

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@bowens2c wrote:

Ok so my transunion FAKO is 591. I had an increase last month form 541 so at least its going up. Equifax is like 580. Experian. I hate them dont we all is the lowest like 560. I have  about 7 negative accounts that are derogatory in collections. 2 are midlands. 2 are seventh avenue and grandpointe. if I pay them they will only mark as paid collection which will update my report but still be negative and that wont help me. I have a zzounds collection account.$270 they will only update as paid collection once paid. captial one collection for $400.  Thats all of the negative.

Positive

 secured loans, $1000, $1000, $300, $500, $500, $400

2 unsecured loans $325

$1000

Fingerhut freshstart $180

7 student loan accounts deferred.

I just want to know what would be the best way to get a big boost in my score in about 3 months

I want to pay my collections but it willnot hlep my score. It will only bring it down.

should I just leave the on there. I have disputed before and they validated them

I cant get approved for any credit cards

My mom has a lane bryant card and dressbarn. SHould I get her to add me as an authorixed user on them both? She only has a $50 balance on one and the other she doesnt even use.

Would a secured card be my best move? Thank you all so much nd I love my fico forums.

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Welcome to the forum! 

So it seems the only way to increase your score is to have them deleted, a pay for delete (PFD). A paid or unpaid has the same affect so neither is beneficial, other than getting them off your back. If you are able to pay them all off, only do it via PFD. Since I do not know the ages of these collections, I would assume they are still withing SOL for your state. As for zzounds, I would constantly send PFD letters and hopefully one CSR will agree to it. I've even gone as far as filing a dispute via BBB to have a paid collection removed. BBB route is hit or miss. But if they still won't budge after a month or so, your best bet is to just pay it off then start sending a lot of GW letters hoping they'd remove it. One benefit of paying off an account is it's easier to explain to a future creditor your willingness to pay your debts now than trying to explain an unpaid debt.

which reports are these reporting in? If they are only reporting to select CRA's, you can just try to apply for CC's that pull from reports that have the least amount of collections. Or successfully PFD the other accounts and just sidestep zzounds, and apply for CC that don't pull where zzounds is reporting. This is a trick people do when they are trying to balance out their inquiries...avoid an app that will pull on a report with the highest inquiry. The same logic can be applied too

[IamB2]

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@bowens2c wrote:

Ok so my transunion FAKO is 591. I had an increase last month form 541 so at least its going up. Equifax is like 580. Experian. I hate them dont we all is the lowest like 560. I have  about 7 negative accounts that are derogatory in collections. 2 are midlands. 2 are seventh avenue and grandpointe. if I pay them they will only mark as paid collection which will update my report but still be negative and that wont help me. I have a zzounds collection account.$270 they will only update as paid collection once paid. captial one collection for $400.  Thats all of the negative.

Positive

 secured loans, $1000, $1000, $300, $500, $500, $400

2 unsecured loans $325

$1000

Fingerhut freshstart $180

7 student loan accounts deferred.

I just want to know what would be the best way to get a big boost in my score in about 3 months

I want to pay my collections but it willnot hlep my score. It will only bring it down.

should I just leave the on there. I have disputed before and they validated them

I cant get approved for any credit cards

My mom has a lane bryant card and dressbarn. SHould I get her to add me as an authorixed user on them both? She only has a $50 balance on one and the other she doesnt even use.

Would a secured card be my best move? Thank you all so much nd I love my fico forums.

---

Hello, and welcome.

it sounds like you already have taken a few steps to credit repair. Loans are considered installment loans, and thus are rated differently. The next step, as you mentioned, should be to look into Secured Credit Cards. There are a couple of companies who offer secured credit cards. OpenSky Visa doesn't even do credit checks. (Google Secured Credit Cards no credit check).  After about 6 months, you may be able to qualify for other cards. But that would be my next step.

Remember, scores are partly based on the Mix of Credit. At this point, besides the baddies, you only have one type of open credit that is opened.

After getting at least one secured credit card, I would work really hard on persuing a PFD (Pay For Delete). If that doesn't work, I would still pay the debt (or make payment arrangements) and then send out Good Will letters to have that removed. This can (and likely will) be a grueling process. But persistance is key. Most companies will not agree to a PFD, and you may have to take a chance to pay it and then persue the Goodwill route.

A debt is a debt and it has to be paid sooner or later. If you chose to pay the baddies on your report, I would start with the ones that are the most recent. Remember, baddies lose their teeth with age, so newer ones are hurting you the most.

Hope that helps and best of luck to you.

PS

See if you can get true FICO scores to see where you really are.

[Lechte]

If all your CA's are reporting monthly, or have recently reported...paying them now will not affect your score.   Once they are paid...the CA stops updating, and in time they won't be hurting your score as much.   If you have the money to pay in full..as others have said, I would be overly persistent with the PFD letters.   If going for a mortgage...a paid collection is a lot better than unpaid.  In a lot of cases...lenders will make you pay those collections before approval.