Hi â?? I am helping a friend try to repair her credit, which headed south in her senior year of college and was later devastated when she went for almost 6 months without finding a job after she graduated. All of the accounts on her credit report have been written off and she has been contacted by collection agencies for most if not all of them. Luckily, she is now working and willing to pay off any and all debt, but wants to pay them off in the order that will benefit her credit rating the most. There are several types of listings on her credit report and we are trying to determine the best course of action. I list them below, and I would sure appreciate advice on how to start what I am sure will be a long and tedious journey of cleaning up her credit. 1. There are several accounts she simply does not recognize and does not believe are hers. Should we start with the CRA and challenge these as â??Not my accountsâ? or is there a better option? 2. There are about a half-dozen accounts that are being reported by the original creditor, although several collection agencies have contacted her about these accounts. No collection agency has filed an entry on these accounts, only the original creditor. These accounts are all small accounts under $300 and she could pay these off almost immediately. Should she: (A.) pay them and then work to get the entry removed? (B.) contact the original creditor to work a deal to pay them off in return for removal of the entry? (C.) Contact the collection agency and work a deal for the same thing? (D.) Start a validation process with either the original creditor or the collection agency. (In which case I have lots more work to do? 3. There are three major credit card accounts that are being reported by the original creditor that are fairly large ($2,000 - $2,500) and she cannot just pay them off, and would have to either negotiate a reduced payoff or make several payments. How should she go about these? 4. There are several accounts that she has paid off and appear as charge-offs that were eventually paid. How can she go about getting these items off? I realize these are basic questions, and I have done several long days of research and have devised a game plan but I want a few opinions before I proceed. Thanks,
