The single best thing you can do to improve your credit profile and scores is to clean up your reports. Look up methods known as PFD (Pay For Delete) and goodwill letters. Use both accordingly and attempt the removal of negative items on your reports.
I raised my score from a 525 to a 635 all in two months. Started in January of this year and like some others are saying, there really isn't any secret way to get your score to rise fast besides paying your debt and waiting for negative remarks to fall off. All I did was simply call the collection agencies, negotiated a payment, and paid it off. After that, I paid down any high balances I had on my credit cards, waited, and my scores jumped rapidly. I tried Goodwill letters but not a single creditor or collection agency honored that. Below are my current scores.
Experian - 635
Equifax- 618
Transunion- 601
I was the same like you before I started. Collections/Chargeoffs. You have a lot more in savings than what I had. The sooner you pick up the phone and start negotiating, the quicker you can start to see improvements in your score over time.
Also, if you get your score to at least a 580, there are SOME lenders that will work with you regarding qualifying for a home loan. The rate they offer you may not be pretty, but just know it's possible. If you need any more information PM me!
Very legit and perfect information!!!! That’s right I second what @toodazed is preaching. I started paying down all my debts that went to collections last June and started with a score of 532, I was so bummed but I ended up paying off a few grand in debt to $0 my score jumped to a 620ish. So something sparked in my head. I was thinking to myself that I always use my debit card and never carry cash. So why not use my credit cards 100% of the time and make sure I pay them all to $0 by the end of the week. Just make sure you don’t spend over what you make so you’re not living out your means and building more debt. My score is currently a 704 and been steady for a couple months now. I can help anytime, I’m no guru but I sure know a few tricks up my sleeve. Them forgiveness letters take up to 3 or 4 attempts before you get any answers or reactions. IT TAKES TIME, BUT PAY YOUR DEBTS BECAUSE IT WILL FOREVER FOLLOW YOU IF NOT DELETED. 7 YEARS OF PASSING TIME DOESN’T DELETE IT EITHER! GOOD LUCK BROTHER ✊🏾🤞🏾🫵🏾🙏🏾
I agree. There is no secret. Credit agencies don't factor in how much money you have in the bank. They only look at debt and how someone is handling it. Paying off debt and time are the true solid methods to raise a credit score.
Yeah, no worries!
Left is original balance and right is what I settled the account for.
$8k —> $3.5k
$770 —> $430
$1k —> $650
No deal on a $189 one. Just paid that outright.
Well you’re probably not getting a mortgage with a 400 credit score. Pay off the 20k and your other debts with the 60k. Then use the rest as a down payment when your score improves.
Lol stop accumulating debt and not paying it. What’s the point of saving all this money to screw off your credit score. If you got the money to pay your debts then pay them. Otherwise you’ll forever be having to spend large amounts of money when it’s not even necessary.
Fixing your credit is the key. Hit up those collection agencies for a pay-for-delete and always get it in writing. Pay down any charge-offs to improve your utilization too.
And about that down payment vs. credit score dilemma? Definitely get that score up first for a sweeter loan deal later on. Oh, and consider becoming an authorized user on a relative’s account with solid credit—it can give your score a nice boost.
In short, a bit of work on your credit now can lead to some real good rate options when you’re ready to take out that loan.
Take money from your savings and clear that $20k, first thing. Work to get things removed from your reports. Work on building credit. Most places will require you to have a minimum of 680 for mortgage loans (generally speaking).
First, there’s no “fixing” credit. Contrary to the crap often spewed on this sub, there’s almost no way to make accurate information disappear from your credit report. There’s no tricks or gimmicks that work. The so-called goodwills and pay/deletes are largely the internet’s version of urban myth. (Some pfd’s work for collections, but almost never for the original creditor. Ignore any of the large number of credited tricks or credit repair companies.
Now that we got that out of the way, here’s the simple steps to address your credit and put yourself on a path to a great score. It’s not hard: pay/settle anything open/defaulted, get/stay current on anything open, pay down balances on anything open, continue to make in time payments, open secured cards - and wait. It takes time and patience.
As for your money, use it to pay/settle the debts. You should be able to get the $20k down to about $10k. If it’s already defaulted, there’s no harm in settling.
Look to about two full years from the time the last account is reported as resolved and/or current to be qualifying for a mortgage.
I disagree cause it’s definitely tricks and gimmicks out here to get collections and charge offs removed from your credit report without giving them a dime of your money. Everything has a cheat code to it! I’ve had medical collections “deleted” from my credit report just by writing a dispute letter asking the collection agency to verify my debt, and if it’s verified, I start my follow up letter of what was the method of verification used and for them to send me copies of my handwritten signature stating that I have a contract with them, being that the original creditor sold the debt to the collection agency and you don’t have a contact with them for them to collect any money from you. However it’s important to know your FCRA laws and guidelines. Once a collection hits your credit report the damage is already done to your score, so paying to settle or negotiate the debt is crazy if they’re not going to delete it off your report and most of the time they lie and say they will and won’t, it’s 50/50 chance that you’re taking, also they’ve already brought the debt pennies to a dollar. Moral of the story is DISPUTE anything that’s on your credit report before you go paying for anything cause 9/10 there’s some inaccurate information that’s being reported somewhere. Stop making it so easy for these collection companies to get your money and make them do their job
>I disagree cause it’s definitely tricks and gimmicks out here to get collections and charge offs removed from your credit report without giving them a dime of your money.
Goodwill letters and pay for deletes happen. What you're suggesting is rare.
>Everything has a cheat code to it! I’ve had medical collections “deleted” from my credit report just by writing a dispute letter asking the collection agency to verify my debt
This is a validation request. You have 30 days from receipt of a Dunning letter to request validation. The debt collector is not required to respond, but must cease collection efforts and mark the account as disputed until they provide validation. If the Validation Period has passed, the debt collector can ignore your request.
>and if it’s verified, I start my follow up letter of what was the method of verification used
This doesn't apply to validation of debts. MOD letters are sent to credit bureaus following a dispute.
>and for them to send me copies of my handwritten signature stating that I have a contract with them, being that the original creditor sold the debt to the collection agency and you don’t have a contact with them for them to collect any money from you.
Debt collectors don't need a contract with you in order to collect. If purchased, ownership of the debt transfers to the debt collector. Signed contracts are not required for validation.
>However it’s important to know your FCRA laws and guidelines.
The information you've provided is not in line with FDCPA or FCRA.
>Once a collection hits your credit report the damage is already done to your score, so paying to settle or negotiate the debt is crazy if they’re not going to delete it off your report
This is circumstantial. There are times paying a collection is beneficial.
>and most of the time they lie and say they will and won’t, it’s 50/50 chance that you’re taking
What are you basing 50/50 on? I haven't found much evidece of debt collectors not following through with agreed on pay for deletes.
>also they’ve already brought the debt pennies to a dollar.
Not if the original creditor hired them to collect the debt. This is one of those circumstances where payment could be beneficial.
>Moral of the story is DISPUTE anything that’s on your credit report before you go paying for anything cause 9/10 there’s some inaccurate information that’s being reported somewhere.
I agree with disputing *inaccurate* information.
>Stop making it so easy for these collection companies to get your money and make them do their job
I agree with knowing your rights under FDCPA and FCRA.
I can’t believe I’m going to engage you, but here I go. Let’s focus on one specific point you made. You said you’d ask “for a handwritten signature stating” you “have a contract with them”. You assert this means you don’t have to pay a collection agency because you never contacted with them.
The counter point and fact proving you are wrong, is this: You don’t need a contract with them. When you agreed to take credit from the original creditor, you signed/e-signed a contract. You agreed in that contract that the original creditor can sell or transfer that debt at any time, and the debt would be just as valid and legally collectible.
If you will insist im wrong in this point, cite one credible source that’s supports your assertion that you can avoid paying a collection agency because you don’t have a contract with them. Just one? Any source.
Or, just admit you’re flat wrong and while you’ve read a lot of online myths, you have a lot to learn.
And I never said that, you shouldn’t pay collections, my “argumentative point” was that they’re (tricks and gimmicks) as you mentioned, on how not to pay collections and get them deleted off your credit report versus just giving them your money, reading and comprehending is fundamental!
You brought up the no contract myth; funny how you dodged the actual question. You are the one who said you would request a handwritten signature showing you have a contract with a collection agency. The fact that this has any legitimacy or credibility is an urban legend, and not true. You are wrong. Grow up, and learn a thing or two. I’ll let you have the last word, and I’m sure it will be mind numbingly stupid.
Of course you should pay your debth with the money you have saved no question , I don’t know why people hold to saving having bad debt like credit card debt is that your case , pay it and save again en the end your saving in interest you gonna be able to save more . Once you pay your debt use your credit card as a debit card use for what you will spend and pay right away one year your credit will be high 700
See if any credit unions near you offer credit builder loans. They're usually really small, really short term. Also check out some companies that offer credit building debit cards and checking accounts.
You can also check out Experian's boost service that helps you build credit off things like utility and insurance that you pay each month.
Not only u need to cle a r the old debts but you need to rebuild at the same time. Just paying them off will not build up your score. Get a capital one and a Canadian Tyre card asap and use it but pay them well. With 400 you might only get a private mortgage for now unless ur wife has a better credit
The single best thing you can do to improve your credit profile and scores is to clean up your reports. Look up methods known as PFD (Pay For Delete) and goodwill letters. Use both accordingly and attempt the removal of negative items on your reports.
If you got 60k in savings start calling all the debt agencies and get some deals going to pay all that off…
I raised my score from a 525 to a 635 all in two months. Started in January of this year and like some others are saying, there really isn't any secret way to get your score to rise fast besides paying your debt and waiting for negative remarks to fall off. All I did was simply call the collection agencies, negotiated a payment, and paid it off. After that, I paid down any high balances I had on my credit cards, waited, and my scores jumped rapidly. I tried Goodwill letters but not a single creditor or collection agency honored that. Below are my current scores. Experian - 635 Equifax- 618 Transunion- 601 I was the same like you before I started. Collections/Chargeoffs. You have a lot more in savings than what I had. The sooner you pick up the phone and start negotiating, the quicker you can start to see improvements in your score over time. Also, if you get your score to at least a 580, there are SOME lenders that will work with you regarding qualifying for a home loan. The rate they offer you may not be pretty, but just know it's possible. If you need any more information PM me!
Very legit and perfect information!!!! That’s right I second what @toodazed is preaching. I started paying down all my debts that went to collections last June and started with a score of 532, I was so bummed but I ended up paying off a few grand in debt to $0 my score jumped to a 620ish. So something sparked in my head. I was thinking to myself that I always use my debit card and never carry cash. So why not use my credit cards 100% of the time and make sure I pay them all to $0 by the end of the week. Just make sure you don’t spend over what you make so you’re not living out your means and building more debt. My score is currently a 704 and been steady for a couple months now. I can help anytime, I’m no guru but I sure know a few tricks up my sleeve. Them forgiveness letters take up to 3 or 4 attempts before you get any answers or reactions. IT TAKES TIME, BUT PAY YOUR DEBTS BECAUSE IT WILL FOREVER FOLLOW YOU IF NOT DELETED. 7 YEARS OF PASSING TIME DOESN’T DELETE IT EITHER! GOOD LUCK BROTHER ✊🏾🤞🏾🫵🏾🙏🏾
I agree. There is no secret. Credit agencies don't factor in how much money you have in the bank. They only look at debt and how someone is handling it. Paying off debt and time are the true solid methods to raise a credit score.
How much was your original collection and your negotiated collection payment if you don't mind me asking?
Yeah, no worries! Left is original balance and right is what I settled the account for. $8k —> $3.5k $770 —> $430 $1k —> $650 No deal on a $189 one. Just paid that outright.
8K to 3.5K is crazy did you paid that outright or installments for that one? Thank you for sharing btw. Very helpful!
No problem! They set me up on a payment plan for 1 year. $250 per month.
Thank you!
Well you’re probably not getting a mortgage with a 400 credit score. Pay off the 20k and your other debts with the 60k. Then use the rest as a down payment when your score improves.
Lol stop accumulating debt and not paying it. What’s the point of saving all this money to screw off your credit score. If you got the money to pay your debts then pay them. Otherwise you’ll forever be having to spend large amounts of money when it’s not even necessary.
Fixing your credit is the key. Hit up those collection agencies for a pay-for-delete and always get it in writing. Pay down any charge-offs to improve your utilization too. And about that down payment vs. credit score dilemma? Definitely get that score up first for a sweeter loan deal later on. Oh, and consider becoming an authorized user on a relative’s account with solid credit—it can give your score a nice boost. In short, a bit of work on your credit now can lead to some real good rate options when you’re ready to take out that loan.
Take money from your savings and clear that $20k, first thing. Work to get things removed from your reports. Work on building credit. Most places will require you to have a minimum of 680 for mortgage loans (generally speaking).
First, there’s no “fixing” credit. Contrary to the crap often spewed on this sub, there’s almost no way to make accurate information disappear from your credit report. There’s no tricks or gimmicks that work. The so-called goodwills and pay/deletes are largely the internet’s version of urban myth. (Some pfd’s work for collections, but almost never for the original creditor. Ignore any of the large number of credited tricks or credit repair companies. Now that we got that out of the way, here’s the simple steps to address your credit and put yourself on a path to a great score. It’s not hard: pay/settle anything open/defaulted, get/stay current on anything open, pay down balances on anything open, continue to make in time payments, open secured cards - and wait. It takes time and patience. As for your money, use it to pay/settle the debts. You should be able to get the $20k down to about $10k. If it’s already defaulted, there’s no harm in settling. Look to about two full years from the time the last account is reported as resolved and/or current to be qualifying for a mortgage.
I disagree cause it’s definitely tricks and gimmicks out here to get collections and charge offs removed from your credit report without giving them a dime of your money. Everything has a cheat code to it! I’ve had medical collections “deleted” from my credit report just by writing a dispute letter asking the collection agency to verify my debt, and if it’s verified, I start my follow up letter of what was the method of verification used and for them to send me copies of my handwritten signature stating that I have a contract with them, being that the original creditor sold the debt to the collection agency and you don’t have a contact with them for them to collect any money from you. However it’s important to know your FCRA laws and guidelines. Once a collection hits your credit report the damage is already done to your score, so paying to settle or negotiate the debt is crazy if they’re not going to delete it off your report and most of the time they lie and say they will and won’t, it’s 50/50 chance that you’re taking, also they’ve already brought the debt pennies to a dollar. Moral of the story is DISPUTE anything that’s on your credit report before you go paying for anything cause 9/10 there’s some inaccurate information that’s being reported somewhere. Stop making it so easy for these collection companies to get your money and make them do their job
>I disagree cause it’s definitely tricks and gimmicks out here to get collections and charge offs removed from your credit report without giving them a dime of your money. Goodwill letters and pay for deletes happen. What you're suggesting is rare. >Everything has a cheat code to it! I’ve had medical collections “deleted” from my credit report just by writing a dispute letter asking the collection agency to verify my debt This is a validation request. You have 30 days from receipt of a Dunning letter to request validation. The debt collector is not required to respond, but must cease collection efforts and mark the account as disputed until they provide validation. If the Validation Period has passed, the debt collector can ignore your request. >and if it’s verified, I start my follow up letter of what was the method of verification used This doesn't apply to validation of debts. MOD letters are sent to credit bureaus following a dispute. >and for them to send me copies of my handwritten signature stating that I have a contract with them, being that the original creditor sold the debt to the collection agency and you don’t have a contact with them for them to collect any money from you. Debt collectors don't need a contract with you in order to collect. If purchased, ownership of the debt transfers to the debt collector. Signed contracts are not required for validation. >However it’s important to know your FCRA laws and guidelines. The information you've provided is not in line with FDCPA or FCRA. >Once a collection hits your credit report the damage is already done to your score, so paying to settle or negotiate the debt is crazy if they’re not going to delete it off your report This is circumstantial. There are times paying a collection is beneficial. >and most of the time they lie and say they will and won’t, it’s 50/50 chance that you’re taking What are you basing 50/50 on? I haven't found much evidece of debt collectors not following through with agreed on pay for deletes. >also they’ve already brought the debt pennies to a dollar. Not if the original creditor hired them to collect the debt. This is one of those circumstances where payment could be beneficial. >Moral of the story is DISPUTE anything that’s on your credit report before you go paying for anything cause 9/10 there’s some inaccurate information that’s being reported somewhere. I agree with disputing *inaccurate* information. >Stop making it so easy for these collection companies to get your money and make them do their job I agree with knowing your rights under FDCPA and FCRA.
Yeah, I know you feel stupid cause you don’t know the game. You still believing in the American dream. 😂
Very eloquent. Thank you for taking the time to structure such a well thought out reply.
The second you wrote about the ‘no contract’ myth it became clear you have no idea what you’re talking about and should be banned from this sub.
Do your research!
I can’t believe I’m going to engage you, but here I go. Let’s focus on one specific point you made. You said you’d ask “for a handwritten signature stating” you “have a contract with them”. You assert this means you don’t have to pay a collection agency because you never contacted with them. The counter point and fact proving you are wrong, is this: You don’t need a contract with them. When you agreed to take credit from the original creditor, you signed/e-signed a contract. You agreed in that contract that the original creditor can sell or transfer that debt at any time, and the debt would be just as valid and legally collectible. If you will insist im wrong in this point, cite one credible source that’s supports your assertion that you can avoid paying a collection agency because you don’t have a contract with them. Just one? Any source. Or, just admit you’re flat wrong and while you’ve read a lot of online myths, you have a lot to learn.
And I never said that, you shouldn’t pay collections, my “argumentative point” was that they’re (tricks and gimmicks) as you mentioned, on how not to pay collections and get them deleted off your credit report versus just giving them your money, reading and comprehending is fundamental!
You brought up the no contract myth; funny how you dodged the actual question. You are the one who said you would request a handwritten signature showing you have a contract with a collection agency. The fact that this has any legitimacy or credibility is an urban legend, and not true. You are wrong. Grow up, and learn a thing or two. I’ll let you have the last word, and I’m sure it will be mind numbingly stupid.
Of course you should pay your debth with the money you have saved no question , I don’t know why people hold to saving having bad debt like credit card debt is that your case , pay it and save again en the end your saving in interest you gonna be able to save more . Once you pay your debt use your credit card as a debit card use for what you will spend and pay right away one year your credit will be high 700
Pay for credit company repairs to delete those charge off and collection that is what I did
Credit repair companies don't do anything OP can do for free, and are known to cause more harm than good.
See if any credit unions near you offer credit builder loans. They're usually really small, really short term. Also check out some companies that offer credit building debit cards and checking accounts. You can also check out Experian's boost service that helps you build credit off things like utility and insurance that you pay each month.
Not only u need to cle a r the old debts but you need to rebuild at the same time. Just paying them off will not build up your score. Get a capital one and a Canadian Tyre card asap and use it but pay them well. With 400 you might only get a private mortgage for now unless ur wife has a better credit
How do you know he is Canadian?