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Elen
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Subject: How to better my credit
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Thu Sep 02, 2010 6:02 am
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Hi,
I just found out that my credit score is 608. This is due to a two-year old MasterCard debt of $6,245. The card has since been closed.
I am determined to fix the situation. The card was given to me by my bank when I first started school. It had a $5,500 limit on it. What should I do? Should I talk to the bank directly? I heard paying a collection agency is the worst thing you could do?
Or should I try and get a new card to have some open credit and promptly pay it off?
Any advice would be greatly appreciated. |
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Aaron
Joined: 08 Feb 2010
Aaron's page
Posts: 2675
48566 Magic Points
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Subject: improving credit
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Thu Sep 02, 2010 8:10 am
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Hi Elen,
| Quote: |
| What should I do? Should I talk to the bank directly? |
Yes, you should talk to the bank directly and request them to reopen the account. First check out if the account is still with the creditor or has it been handed over to a collection agency. If it is with a collection agency the creditor will have to pull back the account (if not sold off to the collection agency).
Also, request the creditor to agree to "Pay for delete" agreement (PFD) in lieu of the payment. With PFD the negatives get deleted.
Thanks,
Aaron
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cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 1455
6339 Magic Points
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Thu Sep 02, 2010 11:03 am
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do you have all your credit reports?
what state are you in?
what is the original creditor and the name of the CA?
what is the date of first delinquency? 30 days after last payment
paying a CA is not always the worst thing. you should know that the original creditor is unlikely to settle for less or PFD. Contact the tradeline furnisher whether they are the OC or the CA. If don't find a way to settle this, they could get a judgment against you that would ruin your credit for years
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CMRRR Templates
How to PFD, OPT-out, Complain, etc
All credit articles at EHOW |
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Elen
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Subject: improving credit
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Thu Sep 02, 2010 12:23 pm
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Hi,
I checked the TransUnion credit report. I am in California, and the date of first delinquency is June, 2009.
Should I get another card? |
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cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 1455
6339 Magic Points
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Aaron
Joined: 08 Feb 2010
Aaron's page
Posts: 2675
48566 Magic Points
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Subject: improving credit
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Fri Sep 03, 2010 9:32 am
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Hi Elen,
Even if you get another card, you should first try and pay off the dues on the closed account. Request the bank to reopen it.
You have a not so good credit score. So, I don't think it will be possible for you to get an unsecured credit card. With the new rules in effect the banks won't allow you one. Even if you get a card, the interest rate charged will be high. Thus, it is better to get a secured credit card.
Thanks,
Aaron
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