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eoneanddone

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No open credit...lots of collections
My credit score is horrible! 430. I lost my job last year and had a couple things go into collections and my car repossessed. I had just rebuilt it up to around 630 from my previous past. Frustrating. Single mom. Sometimes I have to steal from Peter to pay Paul.

I have some money saved and quite honestly not a whole lot of debt (outside repo) Will paying off my collections...at least recent...help? I need this to be better and quickly. I'm trying to find housing and its so competitive that I'm drowning in worry.

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You're right, buying a chouse is competitive.. For the lenders :) ! Sure.. Lots of people are going for houses, and sure you might think "Well my credit is ****, they won't work to work with me", but the truth is, there are so many mortgage lenders out there, all of them will want to work with you, so you won't take your business elsewhere lol.  Honestly, paying off a collection can increase your score, it can also drop your score.  It really just depends on a case to case basis, and there is not a way to tell unless you use a good calculator, the ones on here, and other sites are junk.  Your best option?  Offer a "Pay for Delete", meaning you pay the debt, and they're willing to delete it.  Call and ask them, if they refuse, ask to speak to a supervisor.  Most collectors will delete it, if you pay it, especially medical debt, those are the most easy to get removed.  At the end of the day, the debt collectors job... is to recover money.  Trust me, you just have to be persistant to get it removed.  WIth that being said, if your Credit Report literally only consists of a repo and collections, well, some "Debt", bad or not, is better than no debt.  Having no accounts at all can sometimes result in "no score" being generated when you go for a mortgage application.  Keeping in mind, all lenders, car lenders, housing lenders, credit card lenders, all use different "modules" and "score calculators", so any score you see anywhere, might not be what actually turns up.

Recap:

1.) Any collections you are willing to pay in full, call and ask for pay for delete.  Talking to a debt collector will not extend your statue of limitation, but paying will, even if it's just a dollar.  So don't start paying, unless you want to pay it in full.

2.) After you have this cleared up, consider getting a "Secured" Credit Card, or asking a family/friend who has a card in good standing, to add you as an authorized user to their card.  This can "simulate" a fake score, meaning their card will appear on your report with good history, etc, but meanwhile, you really aren't liable for it.  Some lenders will allow you to go for mortage loans for this, some will ask you have it removed to see your "True Score".

Anywho, credit or no credit, despite Utilties/rent etc not appearing on your report, some lenders will do "Supplements" and "Supplement" your rent/utilitiez as "Alternative Credit" to show good payment history.  This will get you a loan with a bad interest rate, similar to if you had a bad score anyways, but you can always refinance down the road when your score improves.

If you need any more help, have questions, etc, Feel free to let me know! :)

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