Credit score

[Duffy0611]

hey guys my name is Jeff my credit score is pretty low I have a few personal loan accounts that are open all in which are under $1,000 what's on my credit report is that's some of these are $60 some of these are around $300 and one or two of them are around $800. All of the accounts in question have been sent from the creditors to the collections agencies. But I have multiple loans that have the same credit collection agency. Question 1 would it be possible or even smart to see about consolidating them into one account for that certain collections agency or just leave them as multiple open accounts? Question 2 once it's been sold to the credit collection agency how do I see what the account originated from to make sure it was actually a debt of mine and not a mistake on my account? And last but not least when it comes time to pay these off what raises your credit score faster paying off the smaller ones all at once first or starting out with the bigger loan accounts and making payments

[Anonymous_ · Accepted solution]

You have asked several questions regarding personal loans and collections. You might benefit from credit counseling.

See https://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor

See also https://ttlc.intuit.com/community/lower-your-debt/discussion/6-best-ways-to-get-out-of-debt-and-achi...

[kylechadwick79]

Jeff,

Q1:  You will not be able to consolidate your accounts in collection with the collection agencies.  The only way you could do this is if you get a personal loan from a bank or credit union.  However, since you have several collections your credit probably isn't good enough to get approved for this. 

Q2:  I would recommend contacting the collection agencies ans asking them to provide you with this information.  I would also recommend getting a copy of your credit report to compare it to.  You can get a copy of your credit report at https://www.annualcreditreport.com.  You can also go to Credit Karma which will provide the reports and give you tips to improve your credit.  Keep in mind that their "score" is not a FICO score so it's just a ballpark.

Q3:  Your best option for improving your credit is to pay off all of your collection accounts as fast as possible.  If you call the collection accounts and tell them you want to "settle the debt" they will take less than the full balance to satisfy the debt (usually about 30-40% off).  Then you will need to work on establishing good credit history.  You can open a small credit card (or even a secured credit card) and maintain good repayment history.  The combination of getting rid of bad history and adding good history will improve your score.  You may also want to consider getting some credit counseling.  Many credit unions offer this to their members for free.  If you want to learn it on your own you can check out some books, podcasts, or you tube videos on this topic.  One of the most popular authors on this topic is Dave Ramsey.

Best of luck to you!! 

[tylibra1984]

Delete my credit Score off turbotax cuz it dropped my score.