I get email quite a bit, and I also respond to posters on multiple forums offering my opinions on credit repair and rebuilding. None of my advice should be construed as expert, these are soley opinion and should be taken as such. I decided to start posting some of the questions I receive in the form of a reader mailbag. I will be posting a new reader mailbag every Tuesday! If you have questions, please feel free to drop me an email!
I purchased a car from Carmax about seven years ago, and one time in the 5 year loan, I was 30 days late. This happened 4 years ago. Is the best way to remove this a goodwill letter to Carmax? This tradeline shows up on my Equifax and Experian reports.
If you are looking to have a squeaky clean credit file? Sure. If you are looking to improve your standard FICO score, however, you need not worry! This account will stop impacting your credit score after two years, unless you are looking towards your Auto-Enhanced FICO score, and in this case it will have minimal impact.
I have an unpaid collection to United Collections for a medical bill. My original plan was to use a pay-for-delete letter, but I have heard that these are more rarely accepted, recently. What is the best way to handle this one? This tradeline shows up on all 3 reports.
It never hurts to send the pay for delete letter, although you are correct, many companies are refusing to accept those. A more seldom used tactic, which is starting to gain steam, is one I personally used with United Collection Bureau. I paid the entire amount I owed to UCB (in my case, it was a small collection) and then sent them a good will letter asking for deletion. They complied. I understand people are hesitant to pay collections before getting agreement on deletion, but you have a better chance at removal with good will if you pay in full. Keep in mind, I only did this after all pay for delete attempts were refuted.
I am applying for a new job, and the minimum credit score is 675. I have 2 collection accounts that are reporting a balance. I also have 5 charge off that will report until 2015, and an auto repossesion from 2009. In an effort to start rebuilding, I opened a Credit One Bank credit card which has been open for 13 months, and Capital One card which has been open 9 months, and I have no balance on either. In addition, I was added to 7 cards as authorized users, all showing zero balance. My FICO score is currently 636 on Equifax (purchased through MyFico.com). What can I do to raise my score fast?
Your situation appears pretty tough depending on how fast you need to apply for this job. You would need to either A, remove all collections accounts with pay for delete, B, Good will all the charge offs, or C, remove that repossesion if at all possible. If the repossesion is paid, you may have some look with a good will adjustment. Removing one collection, or one charge off, will not really help your score. Paying collection accounts will also not help. You will get a few points if you actually carry a balance on one of those cards, and a few more points if you remove yourself from a handful of those authoized user cards, as FICO is probably dinging you for having too many open charge cards. I don’t think that will get you 50. If I was in your situation, I would try like a maniac to get the repossesion removed. That will get you close to where you need to be. Good luck!
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