Credit Repair/Improving Credit
Thank you for your time and consideration in answering my question. I am 29 years old and have poor credit due to significant debt that is in collections. As a young single mom - I had a period of significant illness and was uninsured. All of the collection accounts are medical and range from 2 to 6 years ago. I would like to 'clean up' my credit as I would like to purchase a home in the coming 3 years or so. I have been insured medically and have NO outstanding unpaid medical debt since 2011 with the exception of the previous collection accounts. I have excellent car credit and one department store card that is in good standing - as are my student loans.
What is the best way to 'improve' my credit rating? I have requested a copy of my credit history from all 3 bureaus and have written down each negative #collection# account. If I settle for 50%, I could pay off more than 1/2 of the number of accounts in one swoop but the total of all accounts is roughly $16,000. The accounts I have considered offering a 50% settlement on is only about a 1/4 of this total. Should I pay them off in TOTAL one by one and schedule payment plans for the 3 large amounts or offer settlements as I am able to save the money necessary?
Will doing so improve my credit, or will I have to wait the full 7 years anyway?
Again, thank you.
While the information is more specific to Texas there are some good techniques for credit here:
I think if a creditor is willing to accept an settlement for a deletion and the collection is less than 2 years old than it will help your credit score. Settling items that are closer to 6 years old may not help you improve your credit score enough to justify the funds to settle. I think it is important to pay your debts when you can.
I think another important element that is missing is a major bank credit card. Even a secured credit card would most likely help in improving your credit.