Need advice.

[Anonymous]

So I am trying to fix my credit. I have a bunch of collection accounts on my report from a few years ago. I am in a position that I am able to pay them all off but I am trying to find out if I do this will the 7 year clock be reset? I am showing a 642 with TU but CK shows 562. I want to get a loan for some medical stuff my wife needs done but got denied for one.

[Anonymous]

Good job in posting here to deal with it!

1. Ignore Credit Karma scoring, it's FAKO.  Not real.  TransUnion was penalized millions this year for telling people that same score is useful.
2. Check with your medical provider right away about payment options and payment arrangements for your wife.  Many hospitals and clinics offer them. You may have to talk to 3-5 people before finding one who can guide you to their payment arrangement department.  I've helped friends arrange $50,000 in medical treatments over time with 0% interest.
3. Post your open accounts (CCs, loans) and your derogatory accounts as well as the DOFD on each.  We can give you advice from there.  Get your information from your REAL PAPER REPORTS, not from Credit Karma.

[Anonymous]

Ok I will work on getting that info, but unfortunately the office performing the surgery is a few for service place. They have to be paid in full before they will do anything. On the good side my insurance has agreed to pay for the surgery but i have to pay up front and will be reimbursed. So I only need the loan for a short time. I will get all my figures this evening and post it so you guys can better advise me

[Anonymous]

How many other clinics have you called to get pricing and payment options?  I have had insurance for 25 years but never once used it.  Not once.  When I broke my arm, I called around 30 clinics in a row and found one who would take care of it for $150 including cast removal if needed.  My insurance price would have been $1600 + copay, so it made more sense to pay cash.

If you're paying cash up front and getting reimbursed, you should specifically demand a "cash payment rate" instead of the insurable rate.  Then have insurance reimburse you for that price.  Don't pay the insurance rate when you can negotiate a hefty cash discount.  My last medical need had an insurable rate around $5000 but I had it done for $400 cash rate and never asked insurance for a penny because I prefer to have zero claims status.  I had to call dozens of clinics and outpatient centers to find the best cash rate but it was worth it!

[Anonymous]

Unfortunately the surgery she needs done (on her jaw) is rather intensive and this is the one out of 3 places that will do it and this is the cheapest of the 3. Plus we have great insurance and have never had an issue using it

[rmduhon]

The credit reporting time period (aka 7 year clock) cannot be reset. It is based upon the Date of First Delinquency (DoFD).

[SouthJamaica]

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@Anonymous wrote:
So I am trying to fix my credit. I have a bunch of collection accounts on my report from a few years ago. I am in a position that I am able to pay them all off but I am trying to find out if I do this will the 7 year clock be reset? I am showing a 642 with TU but CK shows 562. I want to get a loan for some medical stuff my wife needs done but got denied for one.

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You should pay them all off, and then start sending verification letters to the bureaus which will accelerate them falling off your reports.

You might want to call the collection agencies and try to get them to agree to remove the derogatory report once you pay; some might agree to that.

[Anonymous]

Ok so i looked up my reports and most of the collections say the will drop off in 2018 and early 2019. These are mostly 20 - 150 dollars medical collections. I am in a position to pay them all off or drop my credit utilization from about 90% down to 1% which would be my best option. Speaking broadly of course since I can't type all my stuff out right now on here to paint a better picture

[medicgrrl]

If you pay down the utilization to 1% you'll get a good score bump, but I don't know if that'll be enough to compensate for the unpaid collections.

I would call the collection agencies and be upfront that your wife is in need of surgery and that you are requesting their assistance by deleting the account if you pay in full. If they agree, get it in writing.

You'll still need to pay the utilization down though. Can you afford to pay it down to 29% and pay off the collections?

[Anonymous]

Yes I think I could pay down to 29% and pay the collections. Like I said most the collections are very small like one is $12. They are medical bills.