Frustrated with the whole credit score.

I can understand your frustration.

However, no matter what the circumstances are with that collection account, simply understand that to other potential creditors it suggests that if they loan to you they may be left with an uncollectible debt.

You've been seeking prime credit with a sub-prime score. You can expect to be declined until your scores are solidly in the mid-600's (and for some of these creditors, in the high-600's).

Resolving that collection will go far to boost your score. I'm not suggesting that you should pay it if it's not valid, but you need to weigh the consequences if you don't. If it is valid, do whatever it takes to settle it. You can ask that the collector and the original creditor remove the adverse reporting ... people have had mixed success with this.

A collector may offer to settle for partial payment. This is to be avoided unless you have solid assurance that the collector will, at minimum, report the debt as "paid satisfactorily" and not "settled" (at less than full value). A "Settled" notation is almost as damaging to your credit as not paying -- it still represents risk to a creditor considering your application that you won't pay them in full.

There are other ways by which to attempt a "quick fix" of the reporting of this debt. Read these forums extensively for discussion of them. However, if the debt is reasonably fair (in other words, you may dispute aspects of it but that basics of the debt are accurate) I recommend that you deal with it directly.

Another reason your score suffers is that it appears you have a relatively limited credit history. For this reason, any reported delinquencies will depress your score significantly.

One measure you can take is to request a "good will" clear of the Bally's delinquencies. As this likely indicates, you request that Bally's extends you the courtesy of clearing the past delinquencies -- in consideration of your settling the arrears and ideally being a good customer. Such requests meet with mixed success, but it's well worth the effort.

You write them and simply make the request on the basis I suggested. Being polite and expressing regret for the delinquencies are key success factors. If there are clear circumstances that led to the delinquency, explain them. However, for the strongest consideration of your request, keep your letter as BRIEF as possible. Any discussion that extends beyond presenting the simplest of facts will tend to work against you.

Time is the greatest credit score healer. You have two revolving accounts on which you can continue to establish positive history as well as an installment loan. It's of paramount importance that you continue to make timely payments.

Be advised that your credit score can take a considerable hit if you maintain balances that exceed 50% of your credit line. With your limited limits, I expect this is a factor in your current scores. The nice thing is that any impairment to your score on this count can be immediately improved if you pay down your balances. Unlike adverse past history, you don't drag past high balances around as an anchor when it comes to your scores. The scores weigh most heavily your current credit utilization. In addition, credit increases that will likely be granted down the road if you maintain positive performance will help here as well.

For the time being, you have sufficient credit from which to begin improving your credit situation. I don't recommend applying for additional credit until your scores improve into the mid-600's. There are subprime cards with hefty fees that you would likely be approved for at this time. I recommend avoiding them.

If you establish two years of positive experience, I would fully expect that your scores will move into fairly strong territory (high 600's). If you're able to resolve the collection, by paying in full if not other means, your prospects for a strong score improve considerably.

Regards
Richard

Hello, 'Guest'..maybe I can help with this one. My score is 540. I agree with, Richard...no 'quick fix', to raise a Credit score. It takes time. Last October, I got a loan financed, through Citifinancial..they really work with those who have bad credit. My score was a 600, back then. The vehicle was a good, used Jeep Cherokee. I love it!! However..since then , I have applied fro some credit, through credit cards, banks, etc...trying to get loans through 'high credit' related sites. Denied..everyone of them. What I DID NOT know is that every time someone checks your credit, your credit score decreases a few points. If you have ALOT of people/ companies checking your credit, the score will go WAY down. If you ALREADY have a loan, credit card, etc, on your credit...'keep with it'. trying to aplly for ALOT of credit in a short amount of time can decrease your score. If you are looking for a credit card, I would recommend the 'Imagine' card. They DO work with 'low credit scores', and they debit a payment ( $20.00) from your account, each month. It is a $300.00 credit limit. As you keep paying the credit card, it will show,( to the credit comapny) you are resonsible enough to make payments, they will increase your limit to $350.00. You don't have a 'high' credit limit, so..you won't run into 'millions of dollars' in credit card debt ( 'lack of a better word', for this explanation, but, I think you get my point). As time goes on, and you 'keep up with payments', with accounts you ALEADY have, your credit score WILL increase. Hope this helps.

sd, OP posted this almost a year ago. It isn't necessary to resurrect dead threads.

Sorry...i din't look at the date it was posted.