pfd vs letting item fall off and PFD question

Submitted by Anonymous (not verified) on Sat, 08/14/2010 - 14:23
Forums

I want to clean up my credit w the goal of buying a home in 2 yrs. There are several credit accounts that will fall off right before I want to purchase my home. Does it make sense to attempt a PFD if they will fall of by the time I need good credit? Also on my credit report for a single debt I have a negative from the original creditor and the collection agency will the PFD remover both negatives? Please help

Hi aniyah,

There are several credit accounts that will fall off right before I want to purchase my home. Does it make sense to attempt a PFD if they will fall of by the time I need good credit?

Yes, it is better to try and remove the negatives before they fall off of their on. However, if there's only a couple of months left before the fall off you may wait. Moreover, whether you can at all do the PFD will depend on if you have paid off these accounts. If you haven't paid off these debts, you can request a PFD. Otherwise, you will have to try removing these through a Goodwill letter.

Also on my credit report for a single debt I have a negative from the original creditor and the collection agency will the PFD remover both negatives?

No, if you make payment to original creditor you can negotiate a PFD with him and the negatives entered by him will get removed. On the other hand, if you make payments to the collection agency, you will have to negotiate a PFD with them and the negatives entered by the collection agency will get removed.

Hope this helps.

Regards,

Aaron

Mon, 08/16/2010 - 07:07 Permalink