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Repairing my credit dilemma...

Date: Thu, 06/24/2010 - 22:30

Submitted by Roth Rim
on Thu, 06/24/2010 - 22:30

Posts: 5 Credits: [Donate]

Total Replies: 10


Hello All! I have been reading so much that I started to get confused, so im hoping for better clarification here.

I am currently in the process of improving both mine and my fiancee' credit scores.

i recently pulled our credit reports and scores.

he is 24 negative accounts, most of the are charged off and 4 in collection status. and only good standing accounts are his student loans. - score 524

as for mine is very similar, i have 17 neg accounts, 3 collections, student loans in good standing, a tax lien (that im fighting-posted prior to me turning 18) and a judgement. - score 514 and just opened a secure credit card.

I will be mailing out PFD's to many of the creditors. however, where do i start? do i just bulk mail my PFD's and wait to see who responds. most of the negative accounts are older then 4 years and neither of us have used our credits since we delinquent.

can anyone guide me to what i need to do, or which accounts i should pay first. should i request a validation of debt prior to mailing the PFDs? would a PFD increase my score? does it matter which goes first a collection account or a charge off?

i am sorry for all the questions. i am very confused.

Thank You
Roth


Hi Roth,

First of all can you tell me the state you live in? As you have not made any payments on the accounts for 4 years, the Statute of Limitations (SOL) may have expired. SOL is the time limit within which the creditors can sue you for not paying the debt. SOL varies according to state. Once, the SOL expires, the creditor or collection agnecy won't be able to win a lawsuit against against you. However, the debt will still be collectible.

Coming to the charge-offs, you will have to ask your creditors to pull back the account from the collection agnecy. If the creditors pull back the account, you will have to first get a payment agreement with them. Then, you can send in the PFD letters.

As for the collections, you can directly send in the PFD letters. However, if you are not sure about any of the debts, you can send the debt validation letters to the collection agencies.

Use your secured credit card to make small purchases. Then make ontime payments on the card. This will improve your credit score. Along with this check your credit reports regularly for the updates on the paid accounts. You should send all letters through certified mail, requesting a return receipt. You can use the return receipt proof to dispute any discrepancies on your credit report. Also keep copies of payment proofs.

Thanks


lrhall41

Submitted by lisawhite9 on Fri, 06/25/2010 - 05:22

( Posts: 91 | Credits: )


Hi Roth, no, filing disputes cannot affect your your score negatively. If the negatives are removed through the dispute process, your score will rather improve. However, if you open a new credit card even if secured, it will initially hurt your credit score. As you apply for a new card, the creditor will pull your credit report. This is known as hard inquiry, and this lowers your score by some points.

Thanks


lrhall41

Submitted by lisawhite9 on Wed, 06/30/2010 - 05:27

( Posts: 91 | Credits: )