I have money and want to fix my credit

It would be helpful if you list the type of accounts you have on your credit report that you want to fix.

Sometimes you can negotiate a pay for deletion, but not all creditors do that. Sometimes racking up violations will help you in deleting your file. Remember also that part of credit repair is establishing new lines of credit that builds positive credit history. If you give more detail, I'm sure people can help you.

Jen

 

Are all of the accounts shown on your reports yours?

Are the amounts claimed due accurate? Or can you even determine that from your own records?

How important is improving your scores in the relatively short term (next 2 years)?

 

I am not an expert here. I will have some ideas, but please, continue to seek others' advise.

First, I think it might be a good idea to not let any of them know you came into money. I think it will hurt negotiating.

You don't mention dates for those accounts. If some are out of statute of limitations (SOL) then they are easier to get removed. You have to check your state's SOL and compare with dates on each of your items. You look at the date of 1st deliquency to use to count for SOL.

The account where you got a note on the door sounds recent and most likely not out of SOL. However, there are some "lawyers" that play hard ball with accounts that are old. If they took it to court, you'd receive a notice from the court about a hearing or a judgement. Since you didn't mention getting those, it may have been a collection tactic, but here is where you need better advise. If it is just a collection attempt, again, check for SOL, and if it's still inside SOL, begin to look for errors. (this is true for all acounts that are inside SOL).

The double entry sounds like it could be out of SOL, because one is listed "unknown" and that sounds to me that it is old, which would make the other entry old too. But you need those dates to know for sure.

Something to keep in mind is that once you become active with your accounts or CR, such as filing a dispute, it wakes up other creditors. Even if others are out of SOL, they will try anyway. I think your first move should be carefully planned.

Get those dates and check against SOL. You might be able to deal with less accounts after that. Then with the accounts still in SOL, look for errors on the accounts themselves and in the CR of those accounts. If there is even the slightest tiny error, there is an approach to that. If reporting is 100% accurate, there is a different approach. So you need to gather that information first, I think.

Start keeping files and records. You have recent CR's. Save them. Save everything you do in your efforts. You may need the documentation later.

In some cases, you may be able to get a "pay for Delete" (PFD). To do that, you should work with the OC, but there are steps to take in that process, so don't do anything with that until you have the steps for that.

My advise at this time is to gather that info I mentioned, then start to plan the next step. This will take time. Months, and typically at least 1 year, on average it seems 1-2 years. Sometimes you may be able to a lot of good in the early stages, then it could slow down and take time in the last stages. Could be more or less depending on your situation. Keeping good records over all of that time will be crucial, so start organizing that now. Start to get yourself set up for the process.

Also, being careful about building good credit in that time will be helpful. And being sure that you don't add more bad credit is needed as well. Depending on your credit score will depend on what credit to apply for to start building good credit.

Congrats on your winnings. I wish you good finacial decisions for long term success.

 

Alright, here is what I would do.

1. Educate yourself about your consumer rights and make sure you know the validation and verification process well before you begin. Worst thing you can do is start disputing things and eventually wake a sleeping giant.

2. How long ago was your charge offs and collections? If it's been more than 2 years, making payments would tank your FICO score.

3. When you start disputing, only tackle 2 or 3 accounts at a time. Disputing all your neg. accounts at the same time wil raise a red flag.

4. Look at all your neg. accounts, see which ones a reporting incorrect info, and you can use that info to dispute with the CRAs.

5. Process will be different with a CA vs. the OC. Start with the easiest such as paid collections and accounts you know are incorrect. Many CAs will not validate and you will be able have them removed easier.

6. Most money you will spend at first will be on certified mail and printer paper

 

I would advise to sit tight and do nothing to address these for a little while longer. I know that sounds odd, but often after a few years (give or take), companies don't have record of the account anymore and by that time they may be "no longer reporting that itme" and you can get it deleted because they are no longer reporting it. That can generally be true after about 2 -3 years. To take an action now may wake them up and have them be more active. To be quiet and wait a little while longer (maybe until they have aged to 3 yrs) and then dispute as not yours, you have a better chance at the company no longer reporting it and getting it removed. I'd wait 6-12 months as opposed to fighting for 1-2 years and may or may not be further ahead.

In some cases, even after some time, it may not get removed, and you'll have to deal with them in other ways. Also, do you know the SOL in your state? Waiting another 1 yr may have them out of SOL. That may be the most effective way to use 1 year, waiting quietly for time to help you. In that year, you could alkso be sure not to add any more negatives and otherwise have a good credit record (paying thisng on time, etc) One year could be a good friend. One year of safe investing even a little of that money could have you gain more as well. (maybe a little in stocks, maybe a CD)

But see what others say to this.

 

Well, if you're not going to wait it out as my above post suggested, and to answer your question, I think you request validation as a first step. Everything through CM/RRR, save everything.

But I hope others can advise on my suggestion. It seems to me that you are anxious to get it done, and I understand that completely. But sometimes the best and most effective way to accomplish what you are trying to do is with patience. Taking any action, even validation requests, can wake up others and have some become more active with you, and then you may add other dragons to slay.

Please take some time to see what others here have to say about waiting just a bit. (I could be wrong, but at least wait long enough to hear from others)

 

If your goal is deletion of the collections, you may not have to even go the PFD route. Send a DV letter to the CAs and as you get your green card back assuring the CA has received them, send a dispute to the CRAs where the debt is immediately. This puts the burden on the CAs to validate the debt and you will know if they have any proof, many times they don't and the account falls off. the ones that are properly validated, you can then try to PFD.

I would leave the charge offs alone. Most will not PFD, but you can search this board and others what these companies have done previously. I don't remember if you have any paid collections, but those may also be easy to fall off. Just keep good records and rack up violations. The more you have, the easier they fold.

Make sure you put a limited c&d in the letter, otherwise your phone will ring off the hook....

 

You send it to the CA first. Once the green card is returned to you, send your dispute to the CRAs for that particular account. That way you enforce the 30 deadline from both ends and the CA usually is stuck not responding to the CRA of they haven't validated with you.

The OC are a little different since they don't have to validate, just verify and the laws are a bit different. Sometimed PFD is better if the company has a history of accepting them or if the debt is old, wait for SOL to run out. When you talk about large amounts, they may be nasty. Good luck

 

The charge offs are the ones I'd worry about the most. If you start validating the large amounts, it usually sparks the OCs interest and they ,might sue you. Start with the small amounts. I have found that baddies that are 2+ years old, count less and less toward your FICO score if you have enough new positive accounts. Get rid of the small amounts, and start applying for new credit. Make sure your new accounts are spotless. Part of credit repair is time, not just having the available cash....