Reply
Member
Posts: 13
Registered: ‎11-16-2013
0

Disabled & Need to Rebuild my Scores

Hi all! I am single and was confirmed disabled in August 2010. I was never really credit savvy before this as I was young and stupid. The light bulb finally came on when I was 24 and then boom I no longer could work, back in 2007. So I had to go through the Social Security process but as we all know it can take years to be approved, as it did for me. So for 2 years all 6 of my credit cards went unpaid, even though I did have credit protection on most of them. One of them went into judgement. So fast forward to last year.....

 

I decided apartment life wasn't all it was cracked up to be and I wanted something to call my own. I applied for a very low mortgage to my credit union, <$20k, whom I belonged to for a decade, and was declined. The sent me the reason and shockingly my score was in the high 400's. I decided it was time to pull all of my reports and see what the damage was. Over six accounts in collections, most of whom I had no idea, and one judgement. I sold my car, which is the only thing I could pay off with my lump sum, and decided to get a cheaper and older car while paying off my debt. After $7k of debt being clear, previously over $8k, plus over $30k of my student loans being forgiven, my score has only improved a measly 38 pts. Currently 509 Fico, was 524 in May. 

 

I am now at at my wits end. I have no money and unfortunately had to get another car payment after being duped into getting a cheaper but older car with a complimentary rolled backed odometer. Please help! I am so sick of this one bedroom apartment I can scream!! Also, my fico simulator isn't looking that great as well. Any help would be appreciated!!!

 

Sincerely,

 

A desperate woman

Fico: Beginning 506 (11/2013)
Present 616 (04/2014)
Goal 700 (but will settle for 640)
Valued Contributor
Posts: 1,307
Registered: ‎09-30-2013
0

Re: Disabled & Need to Rebuild my Scores

@Princess9483, you came to the right place for advice. Did you get copies of your credit report from all three sources? Start there....Do you have unpaid items that can be paid for deletion? This is a long process, but you can do it. 



Starting Score: May 2013 EQ: 577 TU: 537 EX: 555
Current Score: EQ: 600 TU: 644 EX: ??
Goal Score: ALL 720+

In the Garden Until August 2015 Last App Sept 2014
border="0"Take the myFICO Fitness Challenge
Senior Contributor
Posts: 10,080
Registered: ‎09-24-2013
0

Re: Disabled & Need to Rebuild my Scores

 

 

 

Do not give up!!!!!!!  You are doing everthing right!!  Change the way that you are seeing things, look at this temporary setback as simply a challenge and continue to move foward .   You have done the hardest part already, taking ownership  by paying down a huge chunk 7K of your debt,  and having 30k of student loans forgiven, That is great and shows that you are focused!!   You brought your score up from the lower 400s to 524 (that takes a lot of effort) just think of this as the first part of your plan to clean up your credit.

 

The next thing you should do is to find out what else is left on your credit that is affecting your scores.  (even when you pay off some of your debts they do not fall off of your report, they remain for a period of time)  Look to see what remains on your report, if the debt is paid off you can try to send GOODWILL LETERS to the creditor to see if they will remove it off of your reports.  If the debt is not paid off you can also send PAY FOR DELETE LETTERS ( creditor agrees to delete the debt from the credit bureau for a specified one time payment....GET THIS IN WRITING BEFORE YOU PAY ANYTHING!!)

 

Have you applied for new credit cards ect.. (these can cause inquiries on your report that will take  as much as 5 points per inquiry) You mentioned that  you applied for a mortgage, that will definatley cause you to lose some points.(mortgage companies usually shop for the best rates which can cause a lot of inquiries (this is only temporary)).

 

Do not give up, use the fact that you want to move out of your 1 bedroom apartment as your motivation to keep improving your credit scores.  There is a wealth of information on these boards and a lot of people with knowledge who have been where you are and will be glad to help you in your journey :smileylol:

 

Remember ask away  about the letters or anything that you are unsure of and we will be happy to lend  a hand, hope to hear from you  again soon.

.
Member
Posts: 13
Registered: ‎11-16-2013
0

Re: Disabled & Need to Rebuild my Scores

@newmomnewme Yes I have copies from all credit agencies. I am currently trying to get the remaining 3 collection accounts corrected since one of them were suppose to be paid for by credit protection, as well as the judgement that has been already paid. I do have 2 others, with low balances, that can be "paid for deletion." I wish I had known about this before I paid the others off. My main problem is finding the money to pay these off. Even though they are low balances, $500 and $130, I am on a fixed income, $975/month, with no savings and no chance of going back to work. Any suggestions?

 

Fortunately all of these collection accounts will expire within 3 years, but that seems like a long way from now. 

 

@alvon123 What are Goodwill letters and what is the chance my old debtors will accept these? I have applied for new credit earlier this year but I am trying to stay away from applying until my current 6 inquiries, including my application for a mortgage and my current car loan, are gone. 

 

Thank you both for your encouragement! 

 

P.S. I have noticed that even though my student loans were never late and now have a $0 balance, there is a negative mark beside them. Does anyone know why? Thanks again!

Fico: Beginning 506 (11/2013)
Present 616 (04/2014)
Goal 700 (but will settle for 640)
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Disabled & Need to Rebuild my Scores

Member
Posts: 13
Registered: ‎11-16-2013
0

Re: Disabled & Need to Rebuild my Scores

@guiness56 It does not.

Fico: Beginning 506 (11/2013)
Present 616 (04/2014)
Goal 700 (but will settle for 640)
Regular Contributor
Posts: 161
Registered: ‎10-11-2013
0

Re: Disabled & Need to Rebuild my Scores

I have two entries on my credit reports for my school loans that were discharged through disability also. I have the original servicer who is reporting, and the Department of Education. I ended up in default on my loans so my loans do reflect that in the payment history, and the status is "claim filed/or assigned to government". The discharged Dept. Of Edu. loans show up positively on my report. I have no idea if the old lender/servicer of the loans are supposed to even still report tho.
I know you have items you're wanting to payoff, but have you considered a secured card to build credit while you're working on your baddies?
Beginning Scores 9/13: EX 651, TU 639 Short term goals: Scores in the mid 700s 1/15 TU08 701
CapOne Quicksilver $4000 | Sallie Mae World Mastercard $4400 | Barclaycard Rewards Mastercard $2500 | Amex Everyday $6000 | Discover It $2500 | Walmart Mastercard $6000 | BofA Cash Rewards $1200 | CareCredit $700 |
Gardening as of 1-14-15
Regular Contributor
Posts: 161
Registered: ‎10-11-2013
0

Re: Disabled & Need to Rebuild my Scores

Forgot to mention, my bank did a soft pull for my secured card. Maybe your bank could arrange something like that for you
Beginning Scores 9/13: EX 651, TU 639 Short term goals: Scores in the mid 700s 1/15 TU08 701
CapOne Quicksilver $4000 | Sallie Mae World Mastercard $4400 | Barclaycard Rewards Mastercard $2500 | Amex Everyday $6000 | Discover It $2500 | Walmart Mastercard $6000 | BofA Cash Rewards $1200 | CareCredit $700 |
Gardening as of 1-14-15
Member
Posts: 13
Registered: ‎11-16-2013
0

Re: Disabled & Need to Rebuild my Scores

zsepthenne I have tried to apply for a secured loan through Capital one to no avail. From my understanding, a secured loans means you have to front at least $300 of your own money for this loan? Unfortunately if I had that I could payoff most of what debt I still owe.

 

I have made the student loan inquiry to MyFico via email, since like I said, there was never any late payments nor anything derogatory ever on any of my student loans. Hopefully they will have an answer for me by next week since there is no basis for a negative indicator. Thank you for your advise though.

Fico: Beginning 506 (11/2013)
Present 616 (04/2014)
Goal 700 (but will settle for 640)
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.