Credit Rebuilding

Anonymous · ‎01-01-2016

I am 24 years old. I made some bad relationship/financial choices in 2010. I would like to buy a house (~$150K) in approximately one year so I am starting to build my credit and get all these marks taken care of.

February 2015 I had a score of 501. I have 13K of debt.

9 months ago I established a payment plan of $5 per month to get my student loans out of default to go back to school. When they reported to the credit bureaus at the end of November my score jumped to 579. I applied for a credit card last week and was denied causing my score to drop one point to 578 according to Credit Karma.

My debt in collections was not paid ever and is as follows:

Apartment Complex - $5600
Medical - 4 @ $3000 total
PhoneX2 - $900
Ticket(No fare on train) - 5 @ $230 each
Electric Bill - $350

My current(on time payments) debt:

Student loans - $3000

I have 4 accounts, 2 are current school loans, 2 are closed for non payment from school loans in past. Then the 13 collections listed above. I have never owned a credit card or a loan besides school loans. I am not sure how to go about rebuilding my credit other than paying the $5 each month and getting a secured credit card. Anyone care to give some input on my situation and some advice?

RobertEG · ‎01-01-2016

The significant date of collections for purposes of credit rebuilding is the date that you first went delinquent on the debt with the original creditor, and therafter remained delqiquent until the collection was reported. That date, called the date of first delinquency (DOFD), governs when the reported collection must be excluded from your credit report, and thus will no longer affect your credit score.

What is the DOFD on each collection?

Anonymous · ‎01-01-2016

@Anonymous wrote:
I am 24 years old. I made some bad relationship/financial choices in 2010. I would like to buy a house (~$150K) in approximately one year so I am starting to build my credit and get all these marks taken care of.

February 2015 I had a score of 501. I have 13K of debt.

9 months ago I established a payment plan of $5 per month to get my student loans out of default to go back to school. When they reported to the credit bureaus at the end of November my score jumped to 579. I applied for a credit card last week and was denied causing my score to drop one point to 578 according to Credit Karma.

My debt in collections was not paid ever and is as follows:
Apartment Complex - $5600
@Anonymous - 4 @ $3000 total
PhoneX2 - $900
@Ticket(No fare on train) - 5 @ $230 each
Electric Bill - $350
My current(on time payments) debt:
Student loans - $3000

I have 4 accounts, 2 are current school loans, 2 are closed for non payment from school loans in past. Then the 13 collections listed above. I have never owned a credit card or a loan besides school loans. I am not sure how to go about rebuilding my credit other than paying the $5 each month and getting a secured credit card. Anyone care to give some input on my situation and some advice?

What credit card did you apply for? Where did you get the scores from

Anonymous · ‎01-01-2016

These dates are pulled from my TransUnion report and they are in order of when they will drop off. These dates are approximately 7 years from when the debt went delinquent, therefore the debts will be removed one year prior to the dates listed according to Oregon law regarding the collection of debt as Oregon has a 6 year SOL.

Medical #1 - 03/2017

Sprint - 04/2017

Medical #2 - 04/2017

Medical #3 - 04/2017

Apartment - 06/2017

Medical #4 - 07/2017

Electric - 07/2017

T-Mobile - 02/2018

Ticket #1 - 06/2018

Ticket #2 - 02/2019

Ticket #3 - 04/2020

Ticket #4 - 08/2020

Ticket #5 - 02/2021

Then I have two school loan related accounts that were closed because they were transferred to another department at the Department of Education. They say

"Current; Paid or Paying as Agreed" with a zero balance and date opened as 02/01/2010 and date closed as 05/15/2012. It doesn't say anything about when it drops off on those two.

If I wait until 07/2017 then the remaining 6 collections will total $1586 as it sits today. Only $436 of that is accruing interest.

The ticket for not having fare on the train are not my doing. I lived in Hawaii during that time. My father has the same name so it is possible that the tickets are his and it is a clerical issue. Either that or someone stole my identity for the purpose of some risky train riding, lol. I challenged those charges with TU today so I am hoping they will drop them. If so then I will try for a PFD with T-Mobile and wait out the rest until close to the date of removal then try for PFD's with minimal payment. Who knows, they may take 25% on the debt or something just so they can get something for it since they know that they would otherwise not get anything..

Anonymous · ‎01-01-2016

To be honest, I do not remember which card it was. I was doing a bunch of the pre-approved credit card offers then tried another that was not. I'll start writing all these down.

Anonymous · ‎01-01-2016

@Anonymous wrote:
To be honest, I do not remember which card it was. I was doing a bunch of the pre-approved credit card offers then tried another that was not. I'll start writing all these down.

It should be in your reports under the inquiries.

Anonymous · ‎01-01-2016

I just checked and it doesn't show any new inquiries so it might have not been a hard inquiry. The point drop may have just been from having so many accounts in collections. It updates in 6 hours(I'm using the free Credit Karma service).

Anonymous · ‎01-01-2016

I also just looked into Oregon law regarding the length of time a debt remains valid and it is 6 years which means that all the dates I listed above are one year later than when the debt i required to be removed from the credit report. I'll go edit that section to reflect that in cae others are reading.

elim · ‎01-01-2016

@Anonymous wrote:
I also just looked into Oregon law regarding the length of time a debt remains valid and it is 6 years which means that all the dates I listed above are one year later than when the debt i required to be removed from the credit report. I'll go edit that section to reflect that in cae others are reading.

I think you read the Statute of Limitations is 6 year (the amount of time you can be sued for the debt). The collections will still stay on your reports for 7 years.

Anonymous · ‎01-01-2016

Ah, good to know. I misread the information.

In that case I've got another year and a half so I'll probably just wait it out then try PFD with the 2018/19/20 debts. That just gives me longer to put money aside for a down payment on a house.