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Maury2423

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Need help with rebuilding my credit...
Hello everybody, I am new to the board and need a bit of help. I want to thank everybody in advance for any tips and help that is provided, it's greatly appreciated!!!



I am planning on buying a house in the coming years but I drastically need to fix my credit. I pulled my credit reports yesterday and this is what I am working wtih....



1. Capital One - Credit Line was $500 and the current balance is $657, the account shows as "charged off" and the DoFD is 08/2015



2. Capital One - Credit Line was $1300 and the current balance is $1693, the account shows "charged off" and the DoFD is 12/2015



3. Comenity Bank/ Express - This account shows "Paid, Closed $438 written off"



4. First Premier Bank - Credit Line was $300 and the current balance is $427, the account shows "charged off" and the DoFD 11/2015



5. Kohls - Credit Line was $300 and the current balance is $427, the account shows "charged off" and the DoFD is 01/2016



6. Wells Fargo Bank - This account shows "Paid Closed"



7. A collection account for a medical bill for $426, this account shows me it will be falling off in 01/2018



8. Another account from collections for $69, this account shows me it will be falling off in 03/2019





I have no idea where to start or how to go about this, I have the money to pay most of these account in full right now and I am willing to do this but from my understanding that may not improve my score much. So, I don't want to just pay the money right now if it's not going to help my score. I don't know who to contact, how should I contact them)email, phone,or mail) or what should I say when I do contact them. If you were in my shoes, what would you do?





Again, ANY HELP will be greatly appreciated!!

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You listed $4137 in bad debts. This total IS factored into your score (along with any "good" debt you may have). By paying the collections, you will reduce your total amount of debt substantially, which MAY have an impact on your score just because it's such a large amount. Then again, if your score stayed the same that wouldn't surprise me.
Improving your score isn't the only reason you should consider paying all these bad debts though.

The score by itself isn't the whole picture--the content of your credit report is just as important. Creditors look at the score, then they look at what's actually in the report. When they come to the collections part you better believe they will be looking at whether they were paid or not. If they weren't, you will look at best irresponsible and at worst like a crook who racked up all these debts with no intention of paying them off. If they are paid, they will assume you are an honest person who had a run of rotten luck. I know which type of person I'd be more apt to extend credit to.

You said your bank might not even approve you for a secured card. How about a credit builder loan? They literally have nothing to lose with a 100% secured loan. You give them $500, then they loan you that amount and you pay it off in monthly installments. When the loan is paid in full, you get your $500 back. If you pay off this loan successfully, then they may consider the secured card. 

As for who you contact to pay these bad debts off, I see they are mostly charge-offs with a balance still owing. That means they still own the debt, and they can still try to collect, they can still sell it to a collections agency, and they can still sue you for it. Contact the original creditor by phone, be nice, offer to pay in full or in two or three large payments, and ask if they would change the notation from "charged off" to "paid and closed." They might not, but it doesn't hurt to ask.

Reply by
Maury2423

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Thank you very much for your reply!

I contacted Capital One and Kohls and I paid off my debts with them that they still owed. Neither one of them agreed with the "Paid and Closed" notation, so I just paid them in full.Now, one of the Capital One accounts was sold to a CA, but Capital One is still reporting a balance owed with them and the CA has not reported anything as of yet. I actually have another account with First Premier Bank that has done the same thing. What should I do about this? Is that something I should dispute with the CBA about the balance being reported by the OC and should I contact the CA and try to come to some sort of agreement to pay them in full and they not report anything to the CBA?

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You really do need to read the articles on this site so you can get an understanding of how credit works and the information provided here is excellent. You also need to understand the "Statute of Limitations on Collections" for your state and how &  when it may apply to you.  Also learn about negotiating a "Pay for Delete"  agreement and this must be done in writing.  Make it your goal to NEVER go over your credit limit and to pay your accounts in full every month.  As you build your credit make sure your usage is no more than 10%.  The ideal credit situation is to have a large amount of credit available, low usage & reliable payment history.  Then you will be able to get a loan when you need it at a low interest rate. I went from a primarily cash only basis to building a good credit score and was able to get a new card at low interest rate a year ago, and I'm on a fixed income.   

Reply by
Maury2423

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Thank you very much for your response.

Unfortunately about this time last yr I lost 70% of my pay and I was very irresponsible when I was making good money, and I didn't save much. So eventually the credit card bills caught up to me which is why my cards are all over the limits, and now I am in the predicament that I am in. Now that I have a very good job, I have learned my lesson about not saving and I have more than enough to pay off my debts in full. I am going to try the PFD letters with all the creditors, hopefully it works but it doesn't I will be paying the debts in full with the creditors. Do you know what kind of difference that can have on my credit report/score? From my understanding, a secured card is a great way to go to help rebuild your credit but my bank is telling me that they may not even accept me for that based on my credit score.

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