Fastest way to 700+ score? Please help!

[Anonymous]

Thank you ! I will eagerly wait. I am hoping I can incorporate the Discover it into the mix but my main goal is to hit 700 and onward as soon as I can and I can be as disciplined and patient as required. I read many of your other articles and comments here and can see a of couple mistakes I have made already like too many store low cl cards. Anyway at least I know better now.

Thanks again I look forward to hearing from you soon

[SouthJamaica]

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@Anonymous wrote:

I am new here and learning. Here is my question. I have about $3,000 in total debt owed in collection accounts on my fico8. My question is what happens to my scores if I simply pay them off in one fell swoop? Is there something else preferable ?  What would gain me the most points in the least amount of time?

I have only had 2 or 3 late payments more than 30 days depending on which of the top 3 reports you are looking at but never more than 3 and never less than 1 year and 10 months ago. 

I also have very recent credit of Comenity bank cards (5 of them all with limits of 250 each) to include Ann Taylor Ny & C Victoria secret Coldwater and Boscov's

and the following credit cards

Surge with a 500 limit (maxed)

Opensky with an 800 limit (maxed)

First Premier with a 300 limit (maxed)

Milestone with a 300 limit on the way to me as I wrote this

all a couple months or less old. Thoughts of what is best to do to hit my credit score goals?

Unless advised otherwise I plan to by months end or in December to pay off all cards and close 3 of the 5 store cards since I believe the low CL's will hurt me moving forward in more ways than one. I also plan to pay off all collection accounts and maybe try PFD (pay for delete) as I have learned by reading on this site which I am very thankful for. I am wondering if I am on the right track?

Please help with any and all tips or suggestions

Thanks in advance I greatly appreciate any help

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1. Yes pay off collections, and of course if you can get pay for delete by all means do.

2. For now, don't close any credit card accounts unless they charge an annual fee.

3.  Maintain all but one of the cards at a zero statement balance, with the one card reporting a small statement balance.

[Anonymous]

Thank you I replied to you yesterday but do not see it here so I am replying a second time I hope I am not too redundant. Thank you for all your information and input it will be useful and I will put it to sue shortly especially looking at all the options available as you advised.  I made a long list of all my credit cards and credit history as I know it and hope you have seen it. 

I am planning to do your "Pay off all your cards except one, and leave just a small balance on that for instant-in-time FICO score maximization" I think that all by itself will bring the score up several points. I used the simulator and it shows I would stioll be in the 500 range albeit the upper 500 range but at elast I would be on my way out of the 500's and on the way to the 600's. 

I will check out the areas as you mentioned and go from there. Thank you again sincerely for your help and input I will be applying it soon and I know it will help me on my journey Thanks again!

[Anonymous]

I wanted to share a little more information I thought would help better plan my path to 700

Average age of accounts

EQ- 1yr and 5 mos

EX- 10mos

TU- 1yr 3 mos

Age of oldest account

EQ- 6 years 9 mos

EX- 3 years 7 mos

TU- 5 years 1 mo

[Anonymous]

Those maxed cards are a red flag in every way for me to see -- it's hard to give guidance until those are actually paid down to AZEO, versus "planning to pay it down".

Maxed cards are 80%-90% of the time a signal to me that a person isn't living by a budget.  Before you can repair your credit and rebuild your credit, you need to have a budget that isn't just on paper but lived by.  Focus on that first.  No amount of credit repair and rebuilding will help if within 6 months of hitting 700 you're back to living beyond your means.

If you think you have a budget, you should consider doing my reverse budget program.  In fact, I highly recommend everyone do it for the past 12 months, and then monthly do your catch up reverse budget for the previous month.  Doing it correctly will tell you what you're doing wrong in terms of high spending, low income, etc.  Jump on that and see what you see, then adjust your spending/income to fix it immediately.

If you can't live by AZEO during your entire rebuild process, you won't rebuild well and you'll find yourself back to where you started (or worse).  I've been on credit forums now for almost 15 years and I constantly see rebuilders who are back in 2 years with bankruptcy help requests.  That's why I wrote my "Triple Whammy" process!

[Anonymous]

ABCD1299-

Thanks for your input of basically telling me to stay on budget. I have that part figured out and plan to be consistent now.

You said “

Those maxed cards are a red flag in every way for me to see -- it's hard to give guidance until those are actually paid down to AZEO, versus "planning to pay it down".

I am not sure where I said pay down when in fact I said payoff by end of December. Again here is my exact statement

“Unless advised otherwise I plan to by months end or in December to pay off all cards and close 3 of the 5 store cards since I believe the low CL's will hurt me moving forward in more ways than one. I also plan to pay off all collection accounts and maybe try PFD (pay for delete) as I have learned by reading on this site which I am very thankful for. I am wondering if I am on the right track?”

 Thanks again for your reply I will read and review what usable information you sent me. I am very thankful you took the time to share your opinions. Based on other replies, my reading in depth here on the forums and research I plan to do the following,

1. Pay off all my debt except one card and carry an approx. 8% or less balance.
2. Still reviewing the best thing to do but more than likely close 3 of the 5 store Comenity cards but still not sure if this makes the most sense. Maybe I will keep but 5 from same bank has me wondering if I dont close maybe later the bank will ??!! Again still researching. 
3. Fund a secured Discover card in the amount of $2,000-2,500
4. I will not use any cards except one and see what happens over the course of the next several months while my credit ages. I am guessing based on my AAOA I will need at least 7 months to see significant score change
5. Keep about 5 total cards since 5 gets you to the next tier than having only 3 and the 5 I plan to keep will be 2/5 Comenity cards I currently have, the Discover the opensky and one other maybe chase BOA or ? but some bank card other than the typical predatory cards
6. I will try for PFD on my collection accounts and if not pay them off as well and I believe that in itself will raise my score as well. I may hire a local reputable credit attorney to do this on my behalf to ensure it is done effectively. 

A combination of the above plus not applying for new credit for the next several months and giving time for my inquiries (even of only a few) time to age should do my scores a world of good maybe not 700 but my guess is close to it. I think if I do the above and nothing else it will grow my score 

Thank you for your help and guidance to all who reply and replied I feel confident I am on the right track. I will continue to read research learn and stay disciplined.

Thank you again respectfully

[Anonymous]

 kitty_kat

Thank you kitty kat I agree looking back I should not have opened the predatory cards but felt until discovering this site I had no other real choice but now I know better and am learning 

I do plan on using Discover as a “daily driver” As far as yours “only” being 200 at least you are on the way and in that regard we are the same

Best of luck to you too and your credit goals and thanks again for taking the time to write me and giving me input. I appreciate it!

See ya at 700!!

[Anonymous]

SouthJamaica-

Thank you for your advice and guidance. I plan to use your information to help me on my path to 700 and I have updated on my latest reply my intentions but I decided to close the accounts with annual fees as you suggested. Thanks again your help means a lot to me and my goals. I will update my scores etc as time allows thanks again !

[Anonymous]

Revelate

Thank you for your help. I did have other questions in regards to more specific items of my credit and will take your advice and “Post over in Rebuilding the specifics of your collections;” for the reasons you gave. Thank you.

I have posted as maybe you have seen my complete credit profile for all the world to see on this same post I felt as if I was baring my credit soul so to speak. I do plan to pay all my cards and debt as you have suggested and leaving only one with a small balance.

As far as the lates and collection accounts I will first offer a PFD and regardless will pay them in full. I am thinking about hiring an attorney to handle that end of it just so I am taken seriously and I am assured the wording of the PFD is correctly done.

I will also look into the shared secure loan technique that you referred me too. One more thing in particular that I did not give much thought to and that is the quality of new accounts and not just random stuff. Seems so basic but never really thought about it so thanks for letting me know it turned a light on and has a whole new outlook for me Thank you. Yes I will try GW’s if needed as well. Your thoughts and input have been the most helpful.

Respectfully thank you. I took all you said to heart and will be following up. I believe my path to 700 is much brighter than it was just a few days ago due to the your help as well as input of others and research on this forum

Thanks for your time and information it will change my life and I know it and thought you would want to know as well

Thanks again!!

[Anonymous]

This is simple!

3 easy steps and you should be on the right track.

ONE. Send in goodwill letters to the collection agencies and start a settlement with them. Do not pay anything until they agree to remove the collection from your report. You can look up templates online. Just be polite and professional. Explain that your credit report does not reflect your current financial habits and that you are looking to acheive (insert goal, home etc.) Do this for the collections and for the late payments. If you had a hardship you definately want to share that.

TWO. Dont let your maxed our cards report "maxed out." Start only letting 8% maximum report to the CRA. Learn when your statement closing dates are and make a plan to lower your overall utilization.

THREE. Easiest one of all. Do not close your accounts. Especially with a low overall limit, closing even one card will have more bad impact than good. Unless you are paying to have the cards, i would highly recommend keeping them in a sock drawer. 

Best of luck!