Hello! New to MyFico and want to rebuild credit to buy a house and car in 2013

[Anonymous]

First off, HELLO from SoCal!  

Here is my story in a nutshell. Husband and I started a business in our early 20s. Company folded, we were stuck with a lot of debt which we are still repaying. We are trying to get back on track and rebuild credit to buy a home in 2013. I just pulled up my Experian credit report and my score is 582! Eeek. 

I have 7 Potentially Negative Items on my account, one of which is an open credit card account which I have been making payments on 'on time' for the past 10 months. 

The other 6 negs. are:

1) I have two school loans (a direct federal loan and a loan through the school),

2) a $40 library fine!! (ugh) with Unique National Collections

3) an HSBC Charge off

4) A CA that bought my HSBC account (Portfolio Recovery Associates)

5) And my car loan through Wells Fargo which is now paid off but shows three late payments

I have 5 accounts in good standing. Two are credit cards which I need to pay down, I am using 80% of my available credit. 

Here is what I need to know, if anyone could provide some insight. I would like to know how I can get the charge off's off my credit report, it isn't paid, but I'm willing to pay a settlement. I've heard about the DV process, is it something I would attempt with the original creditor (HSBC)? 

How do I handle the library thing, it seems so ridiculous. I turned in the books, just late. 

Would anyone recommend a credit repair service? Or how do I start fixing my credit? 

My goal is to be part of the 700 club! 

Thanks in advance. 

[-Cain-]

Are the $40 with Unique due to late fees or was that for the book itself? If for the book and the account is paid, it should fall off within 1 year of when account was settled. If the $40 are for late fees, you'll have to pay the library the fine and wait 1 year. There is a similar thread about library collections posted today. Also, read this...

http://collectionagencydebt.blogspot.com/2010/08/unique-national-collections.html

[Anonymous]

The book was returned, so the $40 is for late fees.  I have not gone in to pay the fee because I just discovered it yesterday, but I will do so asap! Thanks for your response! 

[-Cain-]

No prob, good luck with your other GW projects. Others will chime in and offer help/advice from experience as well!

Oh, and welcome to the forums!!

[thankfulheart]

I am still learning myself so will comment with what little knowledge I have...

First, where did you get your EX score?  They don't sell their true score anymore, so it could be a "FAKO" which is pretty much worthless.  Since your goal is home ownership, it would behoove you to sign up for the scores from MyFICO so you can monitor EQ and TU as well. Mortgage lenders look at the middle of the three.  

Second, see if you can PFD the library fee.

Third, GW the car lates (and don't stop at a single rejection, keep going for the "yes" answer)

Fourth, pay down the CCs as utilization really messes with your number.

Finally, DO IT YOURSELF. Do NOT deal with a "credit repair service".  They do not care about your credit as much as you do.  You are your own best advocate.  Sometimes it's hard work and time-consuming, but it will be well worth it when you see your score climbing and know that YOU did it.