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Bad Credit /Long Road Ahead


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Hi all,

 

My credit scores are shot!! I have 4 charge offs Nordstrom/Target/CareCredit/CapitalOne.

I also have about $50k in Student Loans (Good Ol American Education)

 

Should I pay the collections off? I just received a letter from Care Credit to pay the balance and they will report as Paid in Full. I think I'm going to take it.

Where do I start to begin building my credit back Up?

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To expand on Hegemony's comment....

 

FICO 09 disregards any collection matters that the consumer has paid in full. (source)

So, as the new model gains traction over the next few years, paid will become much more beneficial than unpaid.

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Ok so for today's world it has no benefit but for future it will..

 

As far as building credit.. where do I start since I have the collections still reporting

 

For any decent advice we're going to need more info.

 

What are your current FICO scores (true FICO, not Vantage from Credit Karma, etc)?

What are your current open tradelines with balances and limits (or starting blanace for installment loans)?

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If you can negotiate a PFD it will be immensely more beneficial in either FICO system, however. But yes, more info needed, and help will be incoming.

 

On the collections, DOFD, if you're in or out of SOL, how much is owed, if the ability to pay them off is there (So you can go PFD routes), etc.

 

If you have any currently open credit, be it installment loans or revolving credit cards: What are they, when were they opened, and Limits vs balances?

 

Have you ordered paper copies of all of your credit reports directly from the CRAs?

 

Are those student loans in default, or are they kept up with/paid on time?

 

There's just a start, but likely you're looking at starting to rebuild with secured credit cards while working on clearing up the rest, generally speaking, though each person's case is different. :)

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