Subject: need c redit score to be 620 in six months
Thu Aug 05, 2010 10:27 pm
We just applied for a HUD loan and have a credit score of 614. The agent sent us to a debt consumer counseling service to boost our score. I am very hesistant on agreeing to pay off these old debts. I can get a 2300 dollar judgmant to show as paid, since i have the receipt of paying it two years ago. Another debt will automatically drop off in 3 months. That leaves only six negatives left and four of those are charged off. Do I really need to agree to pay of these debts, I actually already live off a tight budget with no room for errors. I mean she is only talking about 6 more points after all. The only other thing is a truck that got repossed in 2005. It shows i owe 13,000 on it. My total debt is 18,000.
I hired lexington law firm a year ago and it cost 70$ a month. My credit score went from 460 to 614 in the last year. Unfortunately my rent has gone from 500 to 750 and I am stuck in a lease. Any ideas or advice is greatly wanted.
It is better to pay off the debts. Even if your score increases, but you don't pay off the debts you can fail to qualify for a loan. However, before you start making payments to any off the debt, find out if the Statute of Limitations on these debts has expired. You can then try to dispute those items off your credit report.
I can get a 2300 dollar judgmant to show as paid, since i have the receipt of paying it two years ago.
Yes, you should do this immediately.
You can also get the charge-offs removed if you pay off the debt with the original creditor or lender. For that you will have to request the original creditor to pull back the account from the collection agency. However, not all creditors agree to this and this will also depend on the account sell off.
You can try repairing your credit on your own, rather than joining any credit repair s4ervice. You can rather forward the money that you will pay toward the credit repair service, to unpaid accounts. Before making the payments also request the creditors, and colelction agencies accordingly to agree to "Pay for delete" (PFD) agreement. With PFD the negative items get deleted from your credit report.
You can also get added as an authorized user to a relative's account who has a good credit score. This will increase your score in short time.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.