**Update 10/19** Future guidance needed

[Anonymous]

I have been reading a ton on these forums.I finally pulled my numbers to see my starting point using credit check total. 

(Fico 8)

Experian: 587

Equifax: 591

TU: 605

Amount Debt: Fair 55% 6 accounts w/ balance

History: Fair 7 lates/2 negatives

Length- Exceptional average: 10 years/1 month  Oldest: 21 years/3 months

Amount of Credit: Good.   Inquiries in year: 2  Last opened: 1 month (auto)

Mix: Very Good 1 open card, 1 real estate, 1 loan (all current)

No collections

Before really reading the forums I started working on the debts I knew were bad. I have 3 charge off accounts.

**I have a Chase account I set up a payment arrangement on. It’s reporting as a charge off/failure to pay every month. They agreed to a set amount for 10 months. I am on my 3rd payment. Should it be not be reporting as some kind of payment? 

**I had a Best Buy account charged off. Reached a settlement with them and paid it. Status as of 1/19 “Legally paid in full for less than the full balance.”  But reporting each month as FP (failure to pay). Am I correct in that FP is not really a reporting code, so really no biggie as long as $0 balance reporting. 

**3rd charge off that I have not tackled yet. Reporting monthly 121% with 2400 owed on 2000 limit. 

I am tacking my debt to get utilization down and paying all on time. This will take time, but there is a plan. In the meantime, should I be reaching out to Chase and Best Buy in these account statuses? 

All advice is welcome. I know I can’t fix it all at once but want to be sure I am doing what I can while paying down these balances and letting on time payments add up. 

**Also should I be looking to add more accounts at this time or no? I feel like my file is thin but not super interested in opening accounts unless they are needed to play the numbers. I have 1 auto (current no lates) 1 mortagage (current/2 - 30 lates in 2017) 1 CC (current 66% utl no lates)

My goal for now is 640.

[simplegirl]

Since your chase account is closed every time you pay on the payment plan it will say failure to pay because I’m on a payment plan with a discover charge off and it says the same thing for me. Are you on a payment plan with Best Buy to? I would say sending a goodwill letter would be your next option.

[Anonymous]

The Best Buy was paid a lump sum settlement in November 2018. I understand it will show as paid charge off (unless I can reach a kind person with the power to GW) but the reporting each month should have stopped when settled, correct? It does show a $0 balance. 

[simplegirl]

If your not paying on it monthly the reporting should have defiantly stopped after you made that lump sum payment.

[Anonymous]

I have read 3 revolving and 1 installment loan is ideal in rebuild. Installment is covered with auto and mortgage. I am AU on 1 card. Do you think it would be best to be added as an authorized user on husbands synchrony/care credit account (no lates 65% utl) or apply for 2 smaller cards and keep usage minimal? 

[KJinNC]

I am early in my rebuild process, so this should be taken as just a second opinion, not expert advice. I would not want to be on a card with 65% utilization if I could avoid it. I would rather have a card with a $200-$300 limit and utilization between $0 and $20 or so.

[Anonymous]

KJinNC that was my thought too. 

ETA: although it has a over 3 year good payment history.  So good payment history vs. utilization. 

[Anonymous]

I paid one card down to 65% and for a 13 point bump..putting my lowest report at 600! I know it’s a baby step but I will take it. 

I also got got an offer in the mail on one of my ugly accounts: 

**3rd charge off that I have not tackled yet. Reporting monthly 121% with 2400 owed on 2000 limit. 

It is from a collection agency , although no colllections show on my report. They offered $900 to settle. My gut says pay it to get that marked to $0 and before CA reports. OR should I try to pay directly to original creditor? I had been talking to them about options. Would it be silly to try and offer less? First delinquent payment was 3/2017. I know what they have offered is generous but it’s still a lot of us. 

Do you think a good bump can be expected from resolving this? 

[gdale6]

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@Anonymous wrote:

I paid one card down to 65% and for a 13 point bump..putting my lowest report at 600! I know it’s a baby step but I will take it. 

I also got got an offer in the mail on one of my ugly accounts: 

**3rd charge off that I have not tackled yet. Reporting monthly 121% with 2400 owed on 2000 limit. 

It is from a collection agency , although no colllections show on my report. They offered $900 to settle. My gut says pay it to get that marked to $0 and before CA reports. OR should I try to pay directly to original creditor? I had been talking to them about options. Would it be silly to try and offer less? First delinquent payment was 3/2017. I know what they have offered is generous but it’s still a lot of us. 

Do you think a good bump can be expected from resolving this? 

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That is a good offer, I would make a deal witht the CA to pay it in exchange for it NOT reporting. Hard to say what the Fico bump would be I would expect some as utilization will be going down. The OC will be updating to a 0 balance over several updates then it can begin to age, once its at 0 that would be time to begin your GW letter campaign trying to get the TL removed.

[Anonymous]

Settled and done. I am so relieved to have my 3 charge offers settled and soon reporting zero balance owed. I am going to let this hit and then start GW letters. I only have one credit card right now. Actually I am AU on husbands card. Should I try for 1-2 cards to carry zero balances on? I am so hesitant to apply for cards. I don’t want the hits on inquiries but will do it if benefit outweigh the hit. Looking at Discover It card.