We are currently under imminent domain where we live and we have until this Spring to find a house so we can take advantage of the benefits for being a homebuyer, otherwise, rent again. I have not checked the score recently but I am fairly certain the score is below the 620 that is needed to get approved for a mortgage. Currently, I have the money to pay off all of the debts but I am not sure how to go about it. I have one credit card with Capital One that doesn't show neither close or charged off but it is 120+ days past due. Should I pay it down 30% if they let me leave the account open? or settle? I also have an Amazon Store Card that they closed. I was told that they would settle for 60% ($690). I asked for a letter stating such first before agreeing to go ahead. Other then these two collections, all I have on the account is a revolving installment for our truck. Would this be something I should go ahead and pay off? Would it jump my credit up significantly if I did? I have never been late on this and only owe about $2,000 on it. Please help. Really would like to get credit score up there within 6 months if possible and buy a home for my family. Thanks in advance.
I would paid down the Capital One card completely and try to keep it open if possible. If you have a long payment history with that card, closing it could hurt your score even more. The Amazon store card I would settle and see if they will remove the collection completely after you settle the debt. Removing the item completely will give a increase in your score. I would not pay off your truck completely right now. Unless you need to pay it off to qualify for your home loan. This can be determine after speaking to mortgage broker or bank about your debt to income ratio. If your truck payment is your only open account right now you need to keep it open and active. If you still need help with your credit score you can always ask your friends or family member to add you as an authorized user to one of their existing credit cards. Make sure they can maintain a low balance (10% or less of the credit limit) and the card has perfect payment history. The longer the payment history and the higher the credit limit the better the results will be. Thanks! Heather with BoostMyScore.NET
Welcome to Creditnet Momallica! Bring the Capital One card current and see if you can get them to remove the late pays. If you have the money, I would pay off the entire balance. You definitely want to keep this card open and in good standing if possible. Regarding the Amazon store card, remember that settling the debt isn't going to do much for your credit scores. A paid settlement is still a negative mark in the eyes of FICO. If you can can negotiate removal of the account in return for payment, that's the ideal outcome. Finally, there's no reason to pay off the truck early. Paying it off early won't improve your scores, but keeping it open and active while making regular on-time payments will continue to add positive payment history to your credit reports. Good luck! Please come back often to keep us updated and hopefully we can help you along the way as you prepare to buy a home.
Capital One won't pay for delete. Account isn't listed as close on credit report but I was notified that it can not be used again as it is suspended. I plan on paying in full. Is there something else that I should do or say? We found out his credit score and it isn't pretty. These plus the truck (which we never made a late payment on) are the only things on his credit report. Would getting a secured credit card help his score go up? I have yet to call Amazon and initiate removal of collection if I pay in full.
I thought you said the Capital One card wasn't closed? If it is and you want to pay it off in full, at least try to negotiate a "Paid in Full" status. Also, a secured credit card is definitely a good way to start building some positive payment history which will in turn improve his credit scores. The Capital One Secured MasterCard is a popular option with a low annual fee of $29.
