quick pdf questions please help!!!

[Matthewibe]

thank you soo much for this information, as a teenager I was dumb and acquired a lot of collections!!!!  I am currently 10,166 in collection debt and would like to pay them off in full all at once I do have the funds now to do that... I also have 946.00 in credit card debts which I plan to pay off in full also even though they are all current, and a car loan that is current and no lates with 3,000 left that I will continue to make the payments on... My question about how long does it usually take to clear up my credit score if I use the PFD letter and do pay in full all at once, on all collections??  I am recently married we do rent a house but, I do not want my wife to be like that guy on the freecreditreport.com commercial.. I am trying to purchase a home soon, because I am leaving for Afghanistan, sometime later in the year, (I am in the ARMY reserves) and would like to buy a home for my wife before I go, just in case something were to happen to me w/ insurance the house could be paid off and I know she would be ok financially. I was just wondering the timing on cleaning my credit score and deleting all collections off of my report, because I can pay ALL of them in full right now!!! my current score on all credit reporting agencies is 513 do you think it could rise quickly paying it all at once?? I have saved 15000 to do so.

thank you very much for listening I know this is a long post but I am very worried about my future financially ,because I would not like to leave behind a bunch of immature mistakes I made at the age of 18 for my wife to deal with.

 after all is said and done I would be left with 59,000 for a down payment on a house would that help too??

Thank You

I also forgot to mention I have several agencies on all three credit reports, reporting the same collection amount.  One is bank of america that said it was sold to another company? how do I know who to pay? and how to get bank of america to take off my closed account that was sold to another agency??

Message Edited by Matthewibe on 02-22-2009 04:05 AM

[llecs]

Thanks for serving. Congrats on the future debt paydown. WTG!

CAs typically take 30-60 days to update. My experience has been inside 30 days for updates.

Focus on the CAs first as they are damaging you the most. I would first lay everything out and figure out who is collecting for what.

If there is a CA who isn't collecting for anyone listed on your reports, then send off a DV. If they verify and you agree with the balance, then fire off a PFD.

If there is a CA listed as well as an OC, then very likely the OC is listed at $0 and the CA is listing the balance. If so, then DV the CA and if they verify and you agree, then send a PFD. For the $0 balance OC, all you can do is to send a GW asking them to either remove or to fix the lates (keep an eye on AAoA when doing this).

If there is an OC listed with no CA, then all you can do is to send a PFD or a modified PFD asking then to remove lates, baddies, etc. (watch out for your AAoA).

A $59,000 down payment will certainly help.

[Matthewibe]

exactly what is AAoA???? sorry Trying to learn as much as I can?? so does that mean if I pay all CA's lets say monday, and then pay off all of the credit cards on tuesday, I can raise my score dramaticaly within a month???

[llecs]

AAoA is average age of accounts. If you look on page 2 or 3 of your FICO report then you may see it listed. It is the average age of all your open and closed OC accounts (SLs, loans, car notes, mortgages, CCs, charge-offs, etc.) but does NOT include CAs or PRs. The age is calculated from the month and year it was opened. Add all your ages up and divide it by the number of accounts you have to equal AAoA. It is always rounded down to the nearest whole number.

For example, lets say you have 3 CO'd accounts that are 10 years each and 3 CCs you opened within the past year. The total age is 10+10+10+1+1+1=33. 33 divided by 6 accounts is over 5 years. Rounded down your AAoA in this example would be 5 years. If you PFD your oldest accounts (10 years each) then your AAoA drops from 5 years to 1 year (or less). While removing the COs help, your AAoA takes such a beating that your score could actually drop. DW's FICO score dropped when she removed a CO once. It was one of her oldest accounts. Basically if the account in question is older than your AAoA, you'd want it fixed rather than removed. If younger than AAoA, then removing it is a good option.

Paying the CCs will result in a gain for you. You'd see that change once those CCs report which would likely be within 30 days.

Paying the CAs without a PFD will not help your score any. However if they accept a PFD and you pay and they remove, the change could occur within 30-60 days.

[Matthewibe]

is there a company that I can use to deal with the CA's to pay in full and get them off of my report or no???

I was speaking with my aunt and as much as everybody cant stand CA's she runs one that collects medical bills she says when people call that they usually always delete from credit reports, but usually when debtor speaks to them over the phone??  She said she gets PFD letters all the time and they are so used to getting them that it is kind of a pain in the A$$!! Sorry I have so many questions I just want my credit cleard up ASAP  There is not one account on my collections list that is over 6 years old either...

[Matthewibe]

If I get a hold of original creditors and pay them will it be easier to get CA's deleted from my CR????

[haulingthescoreup]

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Matthewibe wrote:
If I get a hold of original creditors and pay them will it be easier to get CA's deleted from my CR????

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It's often pretty easy to do this with medical collections, but with others, the OC's often refuse to deal with you.

If you do find one that does, be sure to include it (in writing) as part of the PFD agreement that they are to take the collection back from the CA. Once they do that, the CA no longer has the right to report. But as I said, this is not very common with medical collections.

Worth a try, though.

[Matthewibe]

I spoke with Allstate Financial today and was told that they will delete it from my report as long as I pay them first I told them well Im not going to pay them first. He called back 10 mins later and said why dont you want to take care of this and I told them that I will not give them the money first I want it in writing that they will delete from my credit report if I pay in full.

[llecs]

WTG on standing your ground. If you read and read and read you'll see many a story where the CA said the exact same thing. The debtor would pay and the CA wouldn't delete after making the promise to do so. If they were really serious about honoring a pay for delete agreement, then they'd agree to it in writing.

[Matthewibe]

the pfd letter went out to them today now, HAHA he even told me I would lose rank in the Army for it. I laughed at him and actually sir I have  secret security clearance as I am an Combat MP in the army so you can lie to me all you want the army already knows what my credit is they check it once every 3 months!!!!