Credit Advice

From what I know it is very unlikely you will be able to buy a house without paying the collection account off.  The thing is many people say if you pay them off they lower your score initially.  In my experience it did not lower mine and I paid alot off.  It does not raise it either though.  As far as the collection agency goes some buy the debt rather cheap.  The older the cheaper.  Some collect in house.  I always tried to pay the original creditor.  However if the debt is sold then they cannot collect the money.  In house works on a commission like while the other types are working on straight profit.  I would dispute the debt if you could and say it is not yours.  If they cannot provide proper documentation then they cannot keep it on your report.  Dispute it through the collection company though.  Credit bureaus do a crappy investigation.  It will come off after 7 years but if you make a payment your reset that 7 year  window.  If it is close you may want to let it go.  If not then just pay it.    As far as orchard bank.  Not a good card regaurdless of reviews.  I would try capital one.   My friend was declined online only to get a card with a 500 dollar limit a week later.  He only had like a 540 credit score.  Just go through there sight.   www.capitalone.com after you get that and make another payment then apply for a second one and sit tight for a while.  They will be the best credit limits with the least fees.

I have learned that using my credit card and paying it off in full when the bill comes in does not increase your credit score or build your credit up.  I have found the best way to raise your credit is to purchase and make the mimimum payment on time each month till it is paid off.  Its best if you can make a purchase with no interest but make sure to pay if off before interest free period is over.

 Yeah I'm pretty sure neither one of those answers is accurate. Old debts are just that "old" they are not affecting your score anymore, just when it went into collection.  I would just concentrate on improving it now with what you have and what you can get, secured cards. They are a lifesaver for some trying to improve. I have been after my man for over a year to get a secured c.c. and he refused to pay someone to give him credit. Duh, you have to if you have screwed it up yourself or it will never get better. I was hesitant on getting a c.c myself and as soon as I did imy score went up 11 points instantly after a couple of months of using it and paying way more than the minimum it went up another 70 points. So in less tha 6 months it went up like 81 points from mid 500's to med 600, this was my first c.c in years though. We too are planning to buy a home this year and he finally got a secured card from Wells Fargo and hope he can get it up to 620 before November, he should be able too. You can too! We applied for a mortgage last year and nothing was said about my older debts except the older they get the less they hurt. Hope that helps. Good luck with a mortgage, I look forward to it as well.

thank you very much for the info!!! i really appreciate it.