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  1. #1
    Registered User New Member
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    Did I make the right decision to not pay 600 for credit repair?

    Okay guys! I have lurked in this forum in the past, I have not visited very often lately. Long story short, I am on a very intense quest to purchase a house by August. I called a local mortgage company in town to run my report and see where I currently stand. He was extremely friendly, has excellent local reviews and I am 100% that when I am able, I would like to work with him to purchase a home.

    I currently track my score on credit karma, and it is a 578, and on my capital one credit tracker site, which is about 570. He pulled my actual FICO today, and the middle score is 549.

    My credit report looks like this:

    Credit cards:
    1 (about 5 years old) - 750 limit
    1 (about 5 years old) - 400 limit
    1 (about 1 year old) - 1000 limit
    1 (about 6 months old) - 300 limit
    1 (about 6 months old) store card - 1000 limit

    They are all in good standing, but all at their limit. I can pay them off in the next month and a half easily.

    I have 4 negative items on my account (2 of them only show up on trans union):

    * 244.00 charge off from progressive (now with a collection agency)
    * 240.00 medical charge off (now with a collection agency)
    * a couple of medical bills (about 1000 each) - with a collection agency (these are the two that only show up on transunion)



    He stated that he has a program where I pay 600.00 and he helps with getting items cleaned up/removed. I would be tempted to do that if my credit looked like what it did a couple of years ago, in which I probably had 15 items in collections, but they have fallen off.

    My plan is to pay down the credit cards to below 30% utilization and then see if I can do a pay for delete on the two 240 dollar-ish items. Do you think this would raise my score from the 549 it is currently to the approximate 600 I would need to get a mortgage?

    I'm sorry if this is long-winded. I wanted to give as much detail as I could. Thanks!

  2. Did I make the right decision to not pay 600 for credit repair?
  3. #2
    Registered User New Member
    Posts
    16
    Quote Originally Posted by HouseQuest View Post
    Okay guys! I have lurked in this forum in the past, I have not visited very often lately. Long story short, I am on a very intense quest to purchase a house by August. I called a local mortgage company in town to run my report and see where I currently stand. He was extremely friendly, has excellent local reviews and I am 100% that when I am able, I would like to work with him to purchase a home.

    I currently track my score on credit karma, and it is a 578, and on my capital one credit tracker site, which is about 570. He pulled my actual FICO today, and the middle score is 549.

    My credit report looks like this:

    Credit cards:
    1 (about 5 years old) - 750 limit
    1 (about 5 years old) - 400 limit
    1 (about 1 year old) - 1000 limit
    1 (about 6 months old) - 300 limit
    1 (about 6 months old) store card - 1000 limit

    They are all in good standing, but all at their limit. I can pay them off in the next month and a half easily.

    I have 4 negative items on my account (2 of them only show up on trans union):

    * 244.00 charge off from progressive (now with a collection agency)
    * 240.00 medical charge off (now with a collection agency)
    * a couple of medical bills (about 1000 each) - with a collection agency (these are the two that only show up on transunion)

    He stated that he has a program where I pay 600.00 and he helps with getting items cleaned up/removed. I would be tempted to do that if my credit looked like what it did a couple of years ago, in which I probably had 15 items in collections, but they have fallen off.

    My plan is to pay down the credit cards to below 30% utilization and then see if I can do a pay for delete on the two 240 dollar-ish items. Do you think this would raise my score from the 549 it is currently to the approximate 600 I would need to get a mortgage?

    I'm sorry if this is long-winded. I wanted to give as much detail as I could. Thanks!



    HouseQuest,

    How old are the progressive and other negative items? Was your first late payment or report to a credit agency over 7 years ago? I used Lexington Law and they removed a bunch of items. They basically do the same work that you can do on your own but they had a set process and mailed all of the dispute letters.

    Given you only have 4 items I would craft a dispute letter. Anything with the collection agency reporting you can also threaten the CFBP if they don't remove the item or settle and remove from your FICO score. One of the biggest areas that collection shops have a hard time verifying is date of first default. If you argue that your account was in default earlier than they may have they may actually remove the negative credit inquiry just to be safe.

    Overall it seems like you have done your research. There is no way to say exactly where your score will go but if you are below 30% utilization and can settle those 4 items it will for sure jump pretty quickly. If you can at least get rid of Progressive, there are new rules for medical debt that perhaps your score might improve enough just with progressive being settled.

    Good luck.

    Jack

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