So I've gotten my self into a bit if debt over the years during my years in college, not a whole lit, but enough for me not able to get any kind of home loan. So I called all the collectors on my report, and have gotten settlements for them all, my question is should I pay the settlement amounts or should I pay them in full? And I've read about asking for a pay to delete, but so far they all seem relectant to give me any kind of proof that they will delete the items once paid. One of them said that by law they must report it as paid in full if it is. What steps do I need to do to get all this stuff deleted, and should I do settlements? How long will I have to wait to get new credit cards in order to raise my credit score?
The important thing to remember is that while paying off/settling your debts is the right thing to do, it won't necessarily improve your credit score. A "paid" collection is essentially just as damaging to your credit score as an "unpaid" collection, although paid or settled debts will certainly be looked upon more favorably by an underwriter. Anyway, you may want to try convincing the CA to sign a nondisclosure agreement as part of your deal. That way they are still abiding by the law, but they'll be legally bound to not report on the details of your situation to the CRAs. I've never actually done this myself, but others have suggested it around this forum and I like the idea in theory. Make sure you get any agreements in writing before paying a dime! In regards to getting new credit cards, that will depend on the strength of your credit score. You may need to start over with a secured credit card first and then graduate into an unsecured card as you build positive payment history and your credit score improves. Do you know your current FICO scores?
I got my report from experian. It was 538 I believe. What should I say to convince them of doing a pay to delete? They act as if it isn't possible at all. I figured if they would want thier money, than they would have no problem with the agreement.
That's probably not your FICO score. If you got your credit report and credit score from Experian, that score is a FAKO generic score. Anyway, if that score is in the low 500s, I'll assume your FICO scores are somewhere in the 500s too. That puts you in the bad credit territory (below 600), which means your best options are going to be card offers from the likes of Orchard Bank or First Premier. When you feel like you're ready to begin building your credit again, get a new card, use it sparingly, always pay your bills in full, and do your best to quickly move up to better cards with less fees, etc as your credit score improves. These cards are meant to help you start building credit again, but they are in no way the type of card you want to let hang around in your wallet for a long time. Regarding your negotiations, tell them you want your settlement to include a non-disclosure agreement. If you're pushing hard and they're still stonewalling you on the PFD, this might be an option that allows both of you to get what you want.
