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jjohns39

Need help with first step. DV or what?

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Ok I desperately need some direction here. I am really new at this and at this point I have done so much reading that I am just overwhelmed. One moment I have a plan of action, the next I'm completely confused.

My situation is I have several old accounts; most of which are 6 to almost 7 years old. I am in the process of trying to clean up my credit in order to buy a home but I need to address these negative accounts before getting a loan. I have a couple of charged off accounts as well as some medical bills. All of which are from 2005-2006. I have researched Credit counseling and credit consolidation, and from what I have read thus far it looks as though I should avoid them all together and work on this myself. That brings me to where I am now. I have been reading all the info I can on this site and I just need some help on what step to take first. I live In CA and on 90% of my negative accounts they have already gone well past the SOL. I also understand that just because they have past SOL doesn't mean that they will be taken off of my report. So that is my question to you all. Is there a way to get these negative accounts taken off of my report? I have read about the "goodwill Letter" and DV and I am hoping that there is something that I can do to get these accounts removed from my report. Would sending out either of these letters help at all?

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They come off your report about seven years after first default (when you missed your payment). If they are out of statute, you know that for a fact, and your realize you have an absolute defense if sued, then you can't really screw this up.

As long as you don't make a payment to restart the statute of limitations and every statement starts with, while I dispute this alleged account and debt in their entirety, and them whatever, you can't mess this up.

With that said, I'd just let them fall off your report. You would be surprised with how little it will help your report if they are removed, since they are so old.

I will say this, while no way I would do it, if you offer a pay for delete on a debt past the statute of limitations, you have a great shot at them agreeing. Again, NO WAY I would do this, but just answering your questions.

DV is out, but you could send dispute letters and they might not want to mess with the disputes on something so old and just let them fall off your report. If you do start working on the 90% out of statute, and that makes changes to your credit report, expect the 10% that are not out of statute to come calling looking for their part of the money from the sucker. Not calling you a sucker, just telling you what the collectors will consider you if you start paying off out of statute debt.

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coltfan,

Thank you so much for the info!

So if you are saying that the old charges will have little effect on my score if they are removed, would you put all of your focus on cleaning up the other 10% that are still reporting? The only newer accounts that I have are all medical and the total for all of them combined really isn't that large of an amount. My thought is to contact each of these creditors to see if I can get the amount owed lowered and just pay them off in full. Would this be my best bet in improving my score for the short term?

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Would this be my best bet in improving my score for the short term?

Not unless you get a pay for delete out of it. In fact, it can actually hurt your credit score in the short term because the activity on the account (payment) will bring the account more current than it really is.

You run a risk with anything in statute. Generally speaking if your offering to pay and it's in the ballpark they can agree on you're fine. However, it raises a huge red flag is you contact them out of the blue looking for ways to get the account off your credit report.

They know that people that are not getting ready to need credit don't just wake up one morning, get out their checkbook and call a collection agency looking to pay them some money.

They will have leverage if the account is in statute and you call them out of the blue. They will use that leverage to try and get as much out of you as possible. Of course there is always the possibility they will say you pay us 100% in 30 days or we are suing you.

It's a risk when the account is in statute. If the balance is low then of course your risk goes way down, but it's still there.

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