Credit Advice

How to improve credit score after settling debt/charged off accounts

Good question? +1

A little over 2 years ago, I settled 9 credit card balances (3 with chase, 3 with B of A, 1 with wells fargo, 1 with citibank and 1 with capitol one). I went through a debt settlement company. Man, I wish I did not do this, but I did. I settled the debts due for approximately 50cents on the dollar and did not settle until the accounts were many months past due. Some of the accounts were charged off and I think one went to a collection agency. The largest balance I settled was a ~$24K b of a line of credit for ~$12K. The other 8 acct I owed anywhere from $4k to $7.5K and again settled for approximately half that. The accounts are reported as settled on my credit report. I now have a great job, and have money. My FICO is 646. I desperately want to improve my credit score so I can buy a house with good terms and so I can refi my house at a lower interest rate. So I have the money to try and pay off the amounts I previously settled. Although I know in your blog you mentioned this can be very difficult if not impossible (you said Citibank is a beast and CapitalOne is tough). I want to know if you have any advice. If you know of anything that could help me. Or any resources that could help me. I also have no current credit card accounts and was told getting a credit card even if secured and using it and paying it regularly could help. I have education loans that I have a 100% on time paymeny history with and a mortgage that I have a 100% on time payment history.
Thank you for your time and any help

Asked by dogface1978 3 months ago Flag this Question