DLA of the ten derogatory accounts

I’m trying to decide on the best course of action to improve my credit score as quickly as possible.  Like everyone else, right?  Here’s a quick overview of my situation:  There are 14 accounts on my credit report, 10 of which have negative history on them for late payments and serious delinquency.

The good news is that my credit situation has drastically improved, and I have paid all of the account to zero balance except for one.  This same creditor (it was a credit union) has three accounts listed on my report.  I had two accounts with them – an auto loan and a credit line.  I’m not sure why the three accounts, but the one that shows a balance doesn’t even have an account number.  The balance is around $3500.  I should also note the date of last activity was July, 2006.

My question is what is the best advice on how to handle this account that would best affect my score quickly?  They haven’t tried to collect on this in over 4 years.  It doesn’t seem likely that they would start now.  But the balance of the account makes my revolving credit ratio appear to be 100% because all of my other accounts are zero balance and closed.  I have read about pay for delete letters.  Is that possible in this case?  If so, how much should I offer them for settlement?  Are there any better solutions?

As it stands, my credit score is 609.  I’m looking to purchase a house as soon as possible.  I need at least a 620 to get there.  Any thoughts on how long it would take to raise my score to 620?

John

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John,

When is the most recent date of last activity, or DLA of the ten derogatory accounts that you have?

The negative item you still have showing you state has a DLA of July 2006 but you should know that by so paying it today would drop your score considerably as your DLA will now be April 2010.

You may want to see if you are even still required by law to pay the original debt which may assist you with attaining a “pay for delete” scenario (but I doubt it).  A link to the statute of limitations on a state by state basis can be found here.  

http://activerain.com/blogsview/377048/chart-for-statute-of-limitations-debts 

In regards to the derogatories that still remain and have at least six months since the DLA I would recommend disputing the negative items on your own (after careful research on the pertaining laws) or hiring a credit repair company to handle the credit repair dispute on your behalf.  In the honor of shameless self-promotion I would be glad to offer you enrollment into our services her at HTDI Financial Consumer Division.

I hope this helps and please contact me if you have any questions.

Very respectfully,

Brian C. Aber

Vice President of Marketing
HTDI Financial
877-877-4834 x704

Charter Board Member
National Association of Credit Services Organizations
866-976-2276