Each scenario is a teaching tool. Names and details are fictional, but the patterns are based on what we see in
real client files every day. As you read, ask yourself: “Where am I in this story?”
Tanya earns strong income as a travel nurse, but between assignments she lives on her credit cards.
She has five cards, all sitting between 70–95% used, and her score is stuck in the low 600s.
Question
Tanya pays large chunks toward her cards every time a new contract pays out.
She asks: “If I’m paying thousands, why won’t my score jump?”
Answer
Tanya’s issue is a mix of
reporting timing and
usage behavior:
- Balances are reported around the statement date, not the day she makes a payment.
- Because she runs the balances back up between contracts, her utilization stays high most of the month.
- She also has a couple of recent 30-day late payments, which continue pulling her score down.
MMDS Strategy Insight:
For someone like Tanya, we would:
- Lower each card’s balance to under 30%, and ideally under 10% on at least one major card.
- Plan payments around statement dates so the bureaus see lower balances.
- Set automatic minimum payments to prevent all future late marks.
- Create a contract-based income cycle plan so she stops maxing out cards between assignments.
Marcus proudly paid off two credit cards he’d had for over eight years. Excited, he closed them.
The next month, his score dropped by 90 points.
Question
Marcus asks: “Why did my score go down when I did the right thing?”
Answer
Marcus did a financially good thing, but a credit-damaging thing:
- He closed two of his oldest tradelines, shortening his credit history.
- His available credit decreased, making his utilization appear higher.
- He removed “paid as agreed” history that helped strengthen his score.
MMDS Strategy Insight:
We usually advise:
- Keep old cards open — age matters.
- Use zero-balance cards occasionally to keep them active.
- Plan closures only when part of a strategic credit plan.
After a difficult divorce, Rochelle ended up with an eviction on her report.
She wants to buy again but feels “blacklisted.”
Question
Rochelle asks: “Do I bother trying now, or do I wait seven years?”
Answer
Waiting seven years without action means missing seven years of opportunities.
With the right plan, Rochelle can:
- Review how the eviction is reporting — many contain factual errors.
- Negotiate a settlement if needed (helpful for manual underwriting).
- Begin building new positive tradelines to change her overall risk profile.
MMDS Strategy Insight:
One negative mark doesn’t end a mortgage future — but the rest of the file must be rebuilt intentionally.
Devon pulled his credit report and found a collection account tied to a credit card he swears he never opened.
Question
Devon asks: “If this isn’t mine, how do I prove it and get it removed?”
Answer
Fraud or mixed files require documentation:
- Pull all three reports using a service like IdentityIQ to compare data.
- Check for incorrect addresses, name variations, or merged profiles.
- Dispute with supporting documents — ID, proof of address, and FTC affidavit or police report if needed.
MMDS Strategy Insight:
One dispute letter is rarely enough. A structured paper trail and follow-up schedule is key.
A couple wants to buy a home in 9–12 months. One partner has great credit; the other has high utilization and a few
late payments from two years ago.
Question
They ask: “Should we apply now and see what happens, or wait?”
Answer
Applying too early can hurt:
- Higher rates.
- More lender conditions.
- Hard inquiries with no benefit.
A smarter plan:
- Build a 6–12 month clean-up schedule.
- Lower utilization before pre-approval.
- Decide whose file should lead the application.
MMDS Strategy Insight:
Timing is strategy — not luck.
Some clients come in with everything: collections, late payments, maxed cards, anxiety, and confusion.
Question
They ask: “Should I dispute first, pay things off, or try to raise my score?”
Answer
The first step is not a dispute or payment — it is building a
full picture:
- Pull all three reports so we aren’t guessing.
- List debts by type: revolving, installment, collections, judgments.
- Sort “urgent” issues from “strategy” issues.
MMDS Strategy Insight:
This is why the assessment exists — the order matters, and it should be planned, not guessed.
Jada is 27, has always paid cash, and has no credit cards, loans, or history. Her score shows as “N/A” or very thin.
She now wants to buy a car in her own name.
Question
Jada asks: “Is having no credit the same as having good credit?”
Answer
No credit is not the same as good credit. Lenders can’t see how you handle payments, so they often:
- Ask for larger down payments.
- Offer higher interest rates.
- Require a co-signer to feel safe.
MMDS Strategy Insight:
For “virgin credit” clients, we often:
- Start with one starter credit card or secured card.
- Use it for small monthly bills and pay in full each month.
- Consider a small credit-builder loan if appropriate.
- Build 6–12 months of clean history before major applications like auto or home.
Lionel filed Chapter 7 two years ago after job loss and medical issues. The debt is discharged, but his score is low
and he feels “marked for life.”
Question
Lionel asks: “Is there any point in trying to rebuild while the bankruptcy is still showing?”
Answer
Yes. Bankruptcy is a major negative, but lenders also look at what you’ve done
since it happened:
- Have you kept everything current after discharge?
- Have you added new tradelines that are being paid on time?
- Is your utilization low on any new credit you’ve received?
MMDS Strategy Insight:
For post-bankruptcy clients, we usually:
- Pull all three reports and verify discharged accounts show correct $0 balances.
- Add 1–2 small tradelines (secured card, credit-builder loan).
- Create a strict budget so no new late payments appear.
- Map a 2–4 year plan for future goals like home ownership.
Keisha has three credit card charge-offs from 4–5 years ago. Two have been sold to collection agencies. She wants to
clean up her report but is scared of “waking up” old debts.
Question
Keisha asks: “Should I pay these charge-offs, settle them, or just leave them alone until they fall off?”
Answer
The best move depends on:
- How old the debts are and the statute of limitations in her state.
- Whether they are reporting with the original creditor, a collector, or both.
- Her near-term goals (e.g., mortgage in the next 12–24 months).
MMDS Strategy Insight:
For charge-offs, we help clients:
- Review each account’s age, balance, and reporting details.
- Decide which accounts, if any, to settle strategically.
- Negotiate in writing and document every agreement.
- Balance “clean-up” with the risk of re-aging or triggering new collection activity.
Omar uses credit cards for everyday living: groceries, gas, bills. All three of his cards are at 85–95% utilization.
He pays on time, but the balances never really move.
Question
Omar asks: “If I’m never late, why is my score still low?”
Answer
Payment history is only one part of the score. Utilization (how much of your limit you use) is another major factor:
- High utilization signals risk and dependency to lenders.
- Scores may stay depressed even with perfect on-time payments.
- Dropping utilization can move a score faster than almost anything else.
MMDS Strategy Insight:
For clients like Omar, we typically:
- Target getting each card under 50% as a first step, then under 30%.
- Shift some expenses back to cash or debit while we pay cards down.
- Consider increasing limits strategically after balances are lower.
- Pair payoff plans with a realistic, written monthly budget.
Terrence ignored old collection letters. Now his paycheck is being garnished for a judgment he barely remembers
receiving paperwork for.
Question
Terrence asks: “Can I stop this garnishment and fix my credit at the same time?”
Answer
Garnishments come from a court judgment, which is more serious than a regular collection:
- Stopping or reducing a garnishment often requires legal action or negotiation.
- The judgment itself can scare lenders more than the original collection.
- Ignoring it usually leads to more fees and a longer repayment period.
MMDS Strategy Insight:
When a client is facing a garnishment, lawsuit threat, judgment, or collection activity involving legal documents,
the next steps must be handled with precision and awareness of the legal process.
In these situations, MMDS keeps the service fully in-house by referring clients to our
AMM Legal Documentation Support Division. With the support of our experienced team of
paralegals, we can prepare, structure, and manage the documents required for:
- Settlement negotiations
- Payment arrangement proposals
- Hardship statements and legal correspondence
- Requests for relief or pauses in collection activity
For clients who prefer a
self-help option, we also offer guided legal documentation support.
This allows clients to manage the process themselves while using our team for preparation, drafting, and strategy —
saving hundreds of dollars by reserving attorney involvement only when it becomes absolutely necessary.
Mia had surgery without full coverage and ended up with several medical collections. She’s paying what she can, but
feels like nothing changes.
Question
Mia asks: “Should I focus on medical collections first, or my credit cards?”
Answer
Medical collections often have different treatment than regular credit cards:
- Some newer scoring models weigh medical debt less heavily.
- Hospitals and providers may offer hardship programs or financial aid.
- Open, maxed-out credit cards can hurt utilization more immediately.
MMDS Strategy Insight:
With medical debt clients, we:
- Check for any billing errors or insurance corrections first.
- Contact providers about hardship or charity care options.
- Prioritize keeping current accounts (like credit cards and auto loans) in good standing.
- Develop a realistic payment or settlement plan that doesn’t starve their basic living costs.
After job loss, illness, or divorce, many clients come to MMDS once the emergency has passed. The damage is done:
late payments, collections, maybe a repossession—but income is finally stabilizing.
Question
They ask: “Where do I even start putting the pieces back together?”
Answer
The first step is not perfection; it’s clarity:
- List every debt by type, balance, and status.
- Separate true emergencies (lawsuits, garnishments) from older damage.
- Protect current housing, transport, and income first.
MMDS Strategy Insight:
In rebuild situations, we:
- Design a 12–24 month plan instead of trying to fix everything at once.
- Focus on a few key score drivers: on-time payments, utilization, and removing errors.
- Introduce new tradelines cautiously, only when the budget can truly support them.
- Use regular check-ins so clients don’t slip back into survival-mode spending.
