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I am already getting discouraged


shllby1
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I am new and I am trying to get things cleaned up, 13 collection accounts, I have disputed some. My question is if I just pay some of these off will it help our score at all. I checked DH score about 3 months ago and it was 582 now its come down almost 100 pts. I am so upset because when I pulled the annualcredit report it is showing all these reported each month and I just want to get the balances down to try to pull the score up. Will this help? Thanks.

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I am new and I am trying to get things cleaned up, 13 collection accounts, I have disputed some. My question is if I just pay some of these off will it help our score at all. I checked DH score about 3 months ago and it was 582 now its come down almost 100 pts. I am so upset because when I pulled the annualcredit report it is showing all these reported each month and I just want to get the balances down to try to pull the score up. Will this help? Thanks.

Paying some of the debts will not improve your credit rating. In fact it will decrease your credit score rapidly.

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It depends on how old the debts are. There's a lot of info we'd need to really give you an opinion. Usually, it seems partially paying off collections simply renews the debt, making it appear recent. A collection dated last month is FAR, FAR, FAR worse than a collection dated 3 years ago, regardless of how much is owed. Your best bet may be to negotiate full payments for the collections one at a time, with a requirement that they delete the negative information after payment posts. But, it isn't that simple. Some here would suggest you talk to the original creditor first and pay through them. Good luck. Read, read, read.

Oh, and don't get discouraged yet. Credit repair takes time... lots and lots of time. Years, even.

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So I should not pay off any of these that are in collections?

I'd pay them if you have to (if they're within SOL).

I just called about an old debt and when it re-reported, my FICO dropped 24 points on EX and 10 on EQ.

On the other hand, I've had really large gains. It will go up.

DO NOT WORRY ABOUT SCORES DURING THE REPAIR PHASE.

If you do, you won't get anything done.

Your goal should be "as clean a report as possible." The cleaner it is, the easier rebuilding will be.

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I would not pay ANYTHING until it is validated, and it is determined to be within SOL. Even if it is within SOL, and the JDB or CA can validate, try to get a PFD. From worst to best, here is how to handle those pesky negative TL's:

The worst rhing you can do is get a paid collection or CO. They are almost impossible to get rid of, and they hurt you as much or more than an unpaid CO or collection. Now you have less money AND bad credit.

The next most hurtful thing is to do nothing, unless the TL is within a year of falling off your report. If that is the case, move on and worry about that TL last. You have bad credit this way (untill it falls off), but you get to keep your cash. The other down side to doing nothing is that if the TL is within SOL, you risk judgment.

Next to that is getting that all elusive PFD. Good for your credit, bad for your wallet. The major pitfall here is that if a JDB or CA agrees to PFD, the OC and any other previous holders can report it as a "collection/CO sold or transferred" because they did not agree to the PFD. Make sure the PFD agreement is in writing BEFORE you send them ANY money. Remember that payment of any sort can reset the SOL. Make sure the PFD agreement covers this as well.

A step up from PFD is having to go through all of the steps, and taking them to court. This can be difficult if you don't know what you are doing, and screw it up. Then again, with a little practice, they will be paying YOU.

The next step up is a corollary to the suit: you dispute and write letters, getting the delete. By far the easiest to do, especially on debts from 3-6 years old. The catch? It doesn't always work, but it mostly (about 75% of the time) does. You should always do this before you offer any sort of payment, if for no other reason than to preserve your legal rights.

The easiest, of course, is to not let things go to CO or collections to start with, but you already know that.

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