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I don't even know where to start!


Heath
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Okay, I was led to this board by a friend that used a lot of the tactics here to clean up his credit. My scores range from about 535-600 and my wife is in about the same area. I was recently transfered by my job to an area where I can afford to purchase a home on my salary. So I went in to talk to a mortgage broker (I knew I wouldn't be walking out with a loan) about what I would need to do to purchase a house. She pulled and merged our credits (damn Idaho Law) and we sat down and went through my report. Now, first off, the stuff on my credit (the majority of it is legitemate) is killing my scores. I have some old collections which I have no issues with paying (just need to get the money). I would however like to try and get them off my reports when I get them paid off. I made the debt and feel I should pay it and I'm okay with that, but still I'd like to try and get if off there after its paid. I have maybe 5 or 6 items like that. A couple of things I need to dispute the amount that they say is owed, one is an old cap 1 acct my wife had and we started disputing with them back when it said $400 now it says $1400!!! So I don't even know where to start on that one... We have a time share that ran 30 days behind for a long time and thats killing us too... That is just about caught up again too though, but the lates were pretty recent and it ran late for about a year, but they're reporting over two years!!! My credit card balances are all close to maxed out... Providian $2000 out of $2300, I have three cap 1's that are close to maxed and my household bank is also close to maxed out. My wifes Orchard bank is close to maxed too... We also have a revolving for a furnature store for about 3K out of $4800... Now EVERY acct we have has lates at one time or another some of the lates are recent, but most are old... My truck pmt has been on time for over a year now :) but it was pretty bad for a while too... Right now my plan of attack is just pay off the collections, pay down the cc and close a good majority of them and make sure that damn time share stays caught up because I found out it actually shows as a freakin mortgage on our credit!!! The broker is convinced that she can get me in a house in 2-4 months if I can get the collections paid off, I think she's smoking to much crack if she's serious... I don't know how she thinks my score will jump 60 points (need it over 600 median) in just 4 months just by paying those off... My Debt 2 Income ratio is really good she said...

So other than my current plan of attack I'd really like some ideas, thoughts, advice, recomendations as to what I can do to get our credit reports looking better so we can get into a house!

I've been reading this board and the website for two days and there is just SO MUCH info here that it is really overwhelming! I'm thinking pay the collections then dispute them through the CRA's to try and get them off my credit. With the mortgage for the time share I need to dispute how many times it shows as 30 days late....

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i'm pretty new here too. it is overwhelming!

but i think you shouldn't pay the collections until you get in writing from them to "pay for deletion." and make sure the collection agencies can prove they have a right to collect the debt and the statue of limitations hasn't run out for your state. at the top of the page, click on "debt validation." they have sample letters that you can send. i have to send three tomorrow to start my journey. i want a house too. i'm going crazy in this neighborhood. good luck!

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First, I understand about wanting to pay your debts, but that won't help your score. What is important to FICO is that there were collections in the first place. In fact, once you pay a collection it is much harder to delete it.

What you are dealing with here is a legal issue. This is a world where everything is backwards and things only happen if you can prove that they happened.

Validate everything first. Then, if (and only if) the debt can be proved yours, you negotiate a pay for delete. If they can't prove you owe the money, then you don't. To do otherwise is to damage your credit for the next 7 years.

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Just to add to what divemedic said...its admirable that you want to pay your debts, but remember...you don't owe the collection agencies anything. If you did have a CC that was charged off, then the US Taxpayer has already compensated the CC company for their "loss". The CA paid pennies on the dollar for your name and SS# and some of the details of the original debt, and MAYBE the right to continue to hassle you. Make them prove they have the right person, the right amount, and the right to collect in your state...or tell them to go away or you'll sue.

You're better off to use your money to pay your existing debts than to pay collectors. Unless they delete their TLs on your CRs, there just isn't any good reason to deal with them...and you might be able to make them go away through the DV process rather than giving them money they don't deserve.

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Welcome Heath!

Just take a deep breath and start reading as much as you possible can on the boards. I would reccommend reading for a number of days before you even start tackling everything. Take it one step at a time. Have a plan of attack on all of your baddies and keep persisting... it WILL pay off. :) Good Luck! -Jenn

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  • 1 month later...

Go to the main board where the different topics are at...go to the message board labeled "debt validation while your in the middle of it"...I think that is how it goes but you'll see it. The very first, and only, sticky has a flowchart on what to do. Follow that, as you get replies, come back to this site and show what the replies were and get some advice and then just keep going. I had 13 accounts deleted, two verified, and a judgement vacated using the process. It's a good process, check it out and ask questions if you are confused.

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Send DV and as soon as you get the green cards back, send the disputes to the CRA's :) Good luck! -Jenn
I disputed with the cra first did I do it wrong. ????

You will be ok.. as previous posters said.. take a look at the flowchart.. do what you can... keep pluggin away. Persistance is key :) Good Luck! -Jenn

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Also...not intending to defeat the purpose of upping your credit ratings, but you can always look for owner-financed houses-for-sale; often times you can find a great deal with creative financing, and no high bank interest or broker bite. If you lucked out, you could then take a modest home-improvement loan (check your city and county - they might offer 0-to very low interest improvement loans for a variety of reasons) and pay down/off your credit cards...

I think it's great to repair our credit, but we should also be wary of thinking it and the money mongers, are our only path to anything. They're not. :wink:

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