How to better my credit

Submitted by Anonymous (not verified) on Thu, 09/02/2010 - 06:02
Forums
Credit repair

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.

Aaron

Hi Elen,

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

Thu, 09/02/2010 - 08:10 Permalink
cinnamngrl

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

Thu, 09/02/2010 - 11:03 Permalink
Elen (not verified)

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?

Thu, 09/02/2010 - 12:23 Permalink
cinnamngrl

A new card will not help you or hurt you if are able to qualify.

what is the name of the card. is it with a collection agency? if so which one?

Thu, 09/02/2010 - 17:52 Permalink
Aaron

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

Fri, 09/03/2010 - 09:32 Permalink