cancel
Showing results for 
Search instead for 
Did you mean: 

Two collections, what to do?

tag
JBinBigD
Established Member

Two collections, what to do?

What to do about these two baddies, considering I want to get my score from 600 to 640 ASAP for a mortgage.

 

1.  Macy's CC with DoFD of 02/2007.  Account is a CO with $482 balance.  Wait for it to fall off next year or offer 50% PFD?  Since this account is six years old is it hurting much?  I'd like to buy a house in July of this year.

 

2. CA $259 from 01/2010.  It was a checking account that I left with a zero balance and they charged fees until it got to $259 then sent it to CA.  Dispute?  PFD?  Should I contact the OC or deal with the CA?

 

Also,would it help within 6 months to open another secured credit card and keep a low balance?  I currently have just two open revolving accounts:  auto loan and secured CC.     The two open accounts have 20 months of no late payments, before that just a handful including one 60-day.  AAoA is about 5 years.  My current reported balance is $263 out of $600 CL on the first CC.

Message 1 of 2
1 REPLY 1
guiness56
Epic Contributor

Re: Two collections, what to do?

Pay down the CC and let the balance report at 9% or lower.

 

An auto loan is not revolving it is installment and plays a very small part in FICO scoring, unless of course you miss a payment.

 

I wouldn't apply for any new credit this close to applying for a house.  The inquiry would drop your score, so would the new TL when it reports.

 

If the CO from Macy's is reporting a balance and CL it is hurting your score.  Paying that off would help utilization.  The CO will still be there but show paid.

 

I would first contact the OC about the collection account.  Ask if they would recall the debt from the CA if you paid in full.  They don't have to and some say they can't but it has been done.  I would find out how your account has a negative balance when you left it with a zero balance.  If they won't or can't (because it has been sold) work with you, DV the CA.  If they validate, ask for a PFD.

Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.