Credit Repair Advice – Your Questions Answered

You have questions. I have answers.

Rules: Those who comment get their questions answered first.

Q: What am I Doing wrong?
I just paid off a $1200 collection that has been on my credit for 5 years. I plan on paying down two more cards this Thursday that are over their limits. The only other negative item on my report is my truck which has a number of late payments reporting. Everything else is either 0 balance or paid in full. Please let me know your thoughts. – Shane

A: Without looking at your credit report, here's my best advice.
When paying off collections you can negotiate the terms. If you pay in full you may be able to get the item removed from your credit report all together. If you settle for less than the full amount, you may be able to negotiate a "paid in full" remark. Still, paying it off is better than having it open.

You're plan to pay down the debt is solid. Stick with it.

Regarding the late payments on the truck, I would ask the lender to remove the worst offense. If you have 30's and 60's reporting, ask them to remove the 60. As long as you're communicating with them and you've been making timely payments since your late, many will work with you.

If they resist, ask for a detailed payment history. See if they're reporting the late dates accurately. You'd be surprised how often they make mistakes.

If I had your credit I'd look into your debt ratio, inquiries, ratio of credit cards to loans, etc.

Did I miss anything?

Post your comments below.

Best,
Signaturebd