Where to get started

[fixinup]

Hello Everyone,

Looking for info on where to start my climb out of a sinking hole.  Ran into some financial hardships this year that left me with plunging myfico scores of 540 TU, 519 EQ, and 600 EX (based on Quizzles scoring; not sure how reliable).   Here's what I'm looking at on the reports:

TU and EQ I have a First Premier Credit Card Charge Off of $448 last dated activity of  Dec. 2011, Closed Jan. 2012, last status report to CRA May 2012 ;  additionally these two credit reports have one cell phone bill collections account of $959 assigned in Aug. 2012. 

Experian only lists the First Premier Charge Off  with the same info; no collections accounts

TU and EQ list my credit history as 6 years and EX (from Quizzles account) doesn't list the my credit length.

With the specifics out of the way my questions are:

1) Although I could be wrong; the collections account could be older than 7 years, how can I get specific and accurate info on that account.  And if I find out that its at the 4 to 5 year mark is it worth settling that collections account.

2) Given that my First Premier Charge Off is relatively new is it worth paying off the debt.

3) Anyone know of good credit union that will accept my application with these credit scores and that offers secured credit cards and/or secured or credit builder loans

Any info would be greatly appreciated.

[RobertEG]

Since your primary derogs are charge-offs and a collection, the very first thing I suggest is determining the DOFD on the OC accounts.

The DOFD determines when it will be excluded from your credit report, not any other dates, such as when the charge-off occured, when a CO or collection was reported, or any other updated reporting by the OC or the debt collector.

The DOFD, depending upon your state SOL statute, may also be the date of commencement of the SOL period on the debt, giving you an idea whether successful legal action can now be taken for its recovery.

As with the potential for legal action, it is not all just about current score impact.  Also make sure it doesnt get worse.  Many charge-offs are routinely sold to debt collectors, resulting in an additional collection compounding the CO.  Paying the OC before a debt collector becomes involved wont improve your current score, but it might prevent further hemmoraging.

[fixinup]

Thanks RobertEG

Again the charge off is releatively new,  if by DOFD you mean the date when the card was first tagged as being 30 days late on payment that would be Nov 2011.

Also the charge off is still held by the credit card company but you are right I need to begin thinking about paying if off... But should I just pay it off without aksing to have the charge off removed or should I go through the process of submitting a letter requesting a removal for payment.  The credit card company is First Premier, I dont the success rate with them.

As far as the coillection.. How would I go about getting the DOFD.. contat the collections agent or the cell phone company? 

Also, still in the market for a credit union with "open" membership that will accept my credit scores, any ideas?

[madmann26]

The DoFD is the date that an account went negative and never recovered, aka, considered not recoverable by the company. It is usually a series of lates, 30, 90, 120, 150 then CO. In this series, the DoFD would be the first 30 day late.

[fixinup]

Thanks madmann26

So then yeas, I'm correct the DOFD for the credit card account began in Nov 2011.   I get conflicting advice from the internet,, should I a) pay this off in exchange for a removal or reclassification as  paid off, b) just pay it off without going thru the process of trying to get a removal/chamge of status,, or c) just move on a attempted to get another secured card and start working on raising my score.

Just looking for the best way to start the process of getting my scores back into the 600's

[madmann26]

The issue with the CC debt is that the amounts are being factored into your utilization, which is killing your score. Your score took a few different hits when the account went negative, another when it's charged off. The biggest thing now that is holding your score down is your utilization. Get that utilization down, get some new revolving debt, keep the utilization down to 9-10%, pay on time and watch what happens.

It does get discouraging from time to time, however, read the forums as they're filled with tons of success stories. I myself, have brought my FICO score up about 50 points since starting this journey about a month ago.

[fixinup]

Thanks again madmann26

As far as utilization that charge off was my only card so it  definitely went above the avaiable credit.. so again, bare with me, should I pay that one card off and then start looking for another or just start looking at another secured card and let that one just fester on my CR

[madmann26]

Pay it off. If it's a CO account, find the CA that owns it and more times then not, you can negotiate for pennies on the dollar. I negotiated some of mine for as low as 60% of the balance.

You can also try a PFD with the CA, sometimes you get them to bite, sometimes they don't. Often times you end up having to pay a negotiated settlement, then GW them to death to get them to delete.

[fixinup]

Right now it looks like the CO still in the hands of First Premier and not a CA.. the only collections account on my CR is for an old ATT cell bill that ciould be possibly 4-7 years old.  Should I get on the phone with credit card company and start hashing out a deal.. it First Premier.. not the greatest card so I'm not sure how they'll respond to updating the report in exchange for a pay off

[madmann26]

Call them. If they have sold it to another company, they will tell you and provide you with the info.