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Credit Rebuild! No credit score / recent credit history.

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SLR72689
Frequent Contributor

Credit Rebuild! No credit score / recent credit history.

Where to start...

 

While I'm cleaning up the mess I've made with my credit, I am also trying to help my boyfriend clear up his. While everyone is trying to get a mortgage for a house, we just want an apartment but wouldn't get one with our scores. Pathetic, I know.

 

Backstory: Long before we met, he was engaged and had a mortgage with his ex fiance and some joint credit card accounts. Needless to say, their relationship didn't end so well and the mortgage went into foreclosure and some credit card accounts were charged off.

 

I pulled his Equifax report earlier this month. He hasn't had any credit activity since 2009. He, like many others including myself, didn't realize what you can do for your credit once it's been damaged so he just let it be and didn't think twice about it.

 

3/1/2013: I finally convinced him to go to the bank I bank at and open a secure credit card. We were told he has no credit score due to the inactivity.

 

Now here's my question: is it easier to improve your credit with no score than to improve your credit with a bad score? There are some negatives on his report.

 

1 foreclosure, 2 charge-offs, 2 paid collections - I'm looking into these and seeing if these are related to the CO's; if not related, I will have him send GW's and for the CO's I will have him send PFD.

 

Some other questions: 

 

  • Is there anything he can do about the foreclosure? I have no knowledge when it comes to foreclosures/mortgages. It reports a $0 balance and a DoFD as 10/2009.
  • He has a credit card that is paid off and closed but has some 30, 60 and 90 day lates. GW to get the late removal or just try to get the entire TL deleted?

  • He used to be an authorized user on his mom's AMEX card. It was reporting from 2002-2009 and was never late. If he becomes an AU again, will that help with his credit average account age and length of credit history? Right now his average account age is 6 years. 

AND... now that he has applied for the secured card... what would his next steps be?

 

 

THANKS in advance for any advice or suggestions you may have!! Smiley Happy

 

Message 1 of 9
8 REPLIES 8
dodfire
Valued Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.

It sounds like you have done your homework. Start with the collection accounts DV and PFD.

You should try the GW for the paid accounts with lates.

The secured card will help start the rebuild process and if he can get back on the AMEX that will also be a help.

As for the forclosure....someone else might be able to give better information. As to my knowledge there really is no way around that one.

*8/10/13
Message 2 of 9
SLR72689
Frequent Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.


@dodfire wrote:

It sounds like you have done your homework. Start with the collection accounts DV and PFD.

You should try the GW for the paid accounts with lates.

The secured card will help start the rebuild process and if he can get back on the AMEX that will also be a help.

As for the forclosure....someone else might be able to give better information. As to my knowledge there really is no way around that one.


I have done my homework! Smiley Happy

 

I googled the collection agencies and one is being reported as closed. Can he dispute it and since they obviously won't verify it .... theres a chance it could be deleted, right? But I just don't know what his reasoning for the dispute would be.

Message 3 of 9
dodfire
Valued Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.

If it is a valid debt then it should not be disputed. The account shows closed but does it show paid? Have you sent them a DV??

*8/10/13
Message 4 of 9
SLR72689
Frequent Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.


@dodfire wrote:

If it is a valid debt then it should not be disputed. The account shows closed but does it show paid? Have you sent them a DV??


I'm actually trying to help my boyfriend clean up his credit so I don't know how valid the debt is. He doesn't remember. He has a memory of a goldfish. Isn't it too late to send a DV? 

 

It's reporting a $0 balance and paid. OC is TCF National Bank.

 

I'm assuming since it's from TCF, it was from an overdraft fee/charge of some sort.

 

Actually... now that I'm looking at it, the DoFD is 9/2006. Would that be scheduled to fall off this year? Says it was paid 5/2010.

Message 5 of 9
guiness56
Epic Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.

With a DoFD of 9/2006 the exclusion date would be March 2014 at the latest.

Message 6 of 9
guiness56
Epic Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.


@SLR72689 wrote:

Where to start...

 

While I'm cleaning up the mess I've made with my credit, I am also trying to help my boyfriend clear up his. While everyone is trying to get a mortgage for a house, we just want an apartment but wouldn't get one with our scores. Pathetic, I know.

 

Backstory: Long before we met, he was engaged and had a mortgage with his ex fiance and some joint credit card accounts. Needless to say, their relationship didn't end so well and the mortgage went into foreclosure and some credit card accounts were charged off.

 

I pulled his Equifax report earlier this month. He hasn't had any credit activity since 2009. He, like many others including myself, didn't realize what you can do for your credit once it's been damaged so he just let it be and didn't think twice about it.

 

3/1/2013: I finally convinced him to go to the bank I bank at and open a secure credit card. We were told he has no credit score due to the inactivity.

 

Now here's my question: is it easier to improve your credit with no score than to improve your credit with a bad score? There are some negatives on his report.

 

1 foreclosure, 2 charge-offs, 2 paid collections - I'm looking into these and seeing if these are related to the CO's; if not related, I will have him send GW's and for the CO's I will have him send PFD.

 

Some other questions: 

 

  • Is there anything he can do about the foreclosure? I have no knowledge when it comes to foreclosures/mortgages. It reports a $0 balance and a DoFD as 10/2009.
  • He has a credit card that is paid off and closed but has some 30, 60 and 90 day lates. GW to get the late removal or just try to get the entire TL deleted?
    Is the only thing adverse about the card the lates, it wasn't CO'd or a collection?  If that is the case, the lates will come of 7 years from their occurence.  Once the last one comes off it will become a positive TL and stay for up to 10 years from the date closed. 
  • He used to be an authorized user on his mom's AMEX card. It was reporting from 2002-2009 and was never late. If he becomes an AU again, will that help with his credit average account age and length of credit history? Right now his average account age is 6 years.  If he becomes AU on a positive standing account it will help temendously.  When you become an AU you get instant history.  Therefore, he would be able to have a score generated based on the AU account alone, as long as it is 6 months or older.

AND... now that he has applied for the secured card... what would his next steps be?

 

 

THANKS in advance for any advice or suggestions you may have!! Smiley Happy

 

 

 


 

Message 7 of 9
SLR72689
Frequent Contributor

Re: Credit Rebuild Questions! No credit score / recent credit history.

3/4/12: He was approved for the secured credit card with a $400 CL. We have a start!

 

I am also calling and having him added to my Best Buy account that is in good standing to hopefully give a FICO score sooner rather than later. I'm being smart about it though - he won't actually be using the card, just soley being an "authorized user" for the sake of helping his credit. Smiley Happy Well, at least I hope it helps. It was opened in 2007, currently has $391 charged with a limit of $1,305. No late payments ever.

 

Back to the waiting game...

Message 8 of 9
DRE123
Member

Re: Credit Rebuild! No credit score / recent credit history.

Some will tell you that paying off old debt will not improve your score or go off. True, it will not go off your report unless you can get a pay for delete, however, if you can get an agreement that they change to paid in full, it CAN raise the score. My personal example, I paid off a charge off and then just today I went to refresh my reports and I see a 10 point jump wooooo hooooooo. Its important to get it in writting. I simply sent a pmt and had put on the check that by cashing/depositing they agree to report a paid in full. Alos, keep current on what is new credit, and use the snow ball effect to help pay every thing off. As far as the closed account that is paid, you have nothing to play ball with. I too am trying to clean up things and I checked on that myself and so to get that done will be tricky. If you find out how, I would love to know....

Message 9 of 9
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