Hello I am 28 years old and i will be buying my first house in the next 8 months i hope. I have been working on my credit for the last 4 months by opening an installment loan,credit card,merchant card. All of these accounts have been paid each month and in good standing. I have some collections on my credit that i was unable to get removed. I have been looking into tradeline credit accounts but it will cost me some money to get them added. That's no big deal if it will work. If not should i just pay off all the collections first. What would be the best move for me. Again i know either way will cost money and that's no big deal but i need to do whats best for me short time to get my scores back up there. Here are my scores as of now.
WHAT SHOULD I DO? PLEASE! IM LOST AND WANT TO MAKE THE RIGHT CHOICE!
Trans Union Experian Equifax
547 603 514
Here is a breakdown of my report!
TransUnion Experian Equifax
Total Accounts 23 13 23
Open Accounts 15 3 4
Closed Accounts 8 10 19
Delinquent 1 0 0
Derogatory 16 8 15
Balances $4412.00 $2197.00 $4527.00
Payments $25.00 $111.00 $111.00
Public Records 1 1 1
Inquiries(2years) 12 4 15
Hi,
Welcome to the Forum :)
Just paying off the collection account will not help to improve your credit score. You must come to a pay for deletion agreement with the collection agency. You must send them a "Pay for Deletion Letter" through certified mail, with a return receipt requested. Even if you are trying to settle the debt with the CA, you can request them to remove the debt account from your credit report. I think they may agree, if you are offering a lump sum payment.
To improve your score quickly, you can request a close relative to add you as an authorized user to any of their credit accounts that has an excellent credit history. By doing this you will have 2 benefits. They are as follows:
1)It will increase the length of your credit history.
2)The excellent payment records will be reflected on your credit report.
The older the account on which you're an authorized user, the better will be the impact on your credit score. While you are trying to increase your credit score, remember to make timely payments for all your current bills.
First thign you need to do is stop openign anynew accounts that will have really bad effect on yoru report
Pay all the cards on time
Do nto use too many of yoru credit cards