Posted on: 09th May, 2013 06:03 am
My wife and I are looking to improve our Credit Score to put ourselves in position to purchase a home. Our scores are just above 500. She has collections whom need to be paid on her CR, I have 2 credit cards that are at about 90% maxed combined.
I know paying my credit cards down or off would increase my score a great deal. I also know we need to pay her past debts and pay the collections. Which one should be the #1 priority? We have a sizable sum of money we just earned and need to know what to do with it.
After something is reported to collections, does your score go up if you pay them? How much does it make a difference to pay the collections?
Thanks!
I know paying my credit cards down or off would increase my score a great deal. I also know we need to pay her past debts and pay the collections. Which one should be the #1 priority? We have a sizable sum of money we just earned and need to know what to do with it.
After something is reported to collections, does your score go up if you pay them? How much does it make a difference to pay the collections?
Thanks!
Obviously your scores are going to require some time and work to get you in position to buy a home (640 or higher). As far as the paying the collections, bear in mind that paying collections that are more then 2 yr old can HURT the credit score. It is best to dispute all collections (must be done correctly) to see in verifable. FCRA requires that all reported info is verifable regardless of the circumstance. After the dispute process you can then negoitate with the collection companies to settle the amounts owend for less then the total. Once they have been settled you can then re dispute these accounts (correctly) for there removal.
Go to "myfinancialeducationservices.com/credit-education/credit-rebuilding/" for more info on credit rebuilding education
Go to "myfinancialeducationservices.com/credit-education/credit-rebuilding/" for more info on credit rebuilding education
Can you help me understand the disputing of collections? How would I do this, and what do you mean by disputing? The marks on her Credit Report are true, and went unpaid.
Welcome josh,
You can check out the given page to know how you can dispute the collections:
"http://www.dummies.com/how-to/content/how-to-dispute-your-debt-with-a-debt-collector.html"
You can check out the given page to know how you can dispute the collections:
"http://www.dummies.com/how-to/content/how-to-dispute-your-debt-with-a-debt-collector.html"
The disputing of the collections is not about challenging whether or not you did or did not pay, i about determining whether or not the credit reporting agencies can verify or validate that the information they are reporting is accurate and meets FCRA guide lines.
You must remember these are billion dollar privately held or corporate companies (Experian is foreign corporation) that profit from selling your information to banks, finance companies, insurance companies and whoever else is willing to pay them for your information.
Finally the burden of proof lies with the credit reporting agencies, so again regardless of the situation if the information is not verifiable, erroneous, and obsolete or misleading it must be deleted. The FCRA gives the consumer the RIGHT to dispute any and ALL information that is being reported....PERIOD.
Now you must do this correctly or you risk the chance of either verifying the information or minimizing the results.
You must remember these are billion dollar privately held or corporate companies (Experian is foreign corporation) that profit from selling your information to banks, finance companies, insurance companies and whoever else is willing to pay them for your information.
Finally the burden of proof lies with the credit reporting agencies, so again regardless of the situation if the information is not verifiable, erroneous, and obsolete or misleading it must be deleted. The FCRA gives the consumer the RIGHT to dispute any and ALL information that is being reported....PERIOD.
Now you must do this correctly or you risk the chance of either verifying the information or minimizing the results.