Good morning,
I will start off by saying that I have made many mistakes and I am not going to make excuses for them. I make a really good wage now and can afford to pay off any debt that is owed and will do what it takes to qualify for a mortgage for me and my family.
Last year I made the smart decision to work on my credit. I made a huge mistake though. I didn't research how to do this properly and I contacted all of the debt collectors on my credit report and paid them in full. The problem is, I will still be dealing with them for the next few years. I thought I was doing the correct thing.
At the beginning of November, I contacted my bank(Regions) and let them know that I would be interested in purchasing a new home(I have already found the home and need to purchase it before they put it on the actual market.) I was informed that a co-buyer option was not available like with a car, so the fact that I have a co signer with a 780 FICO score doesn't matter. So I finally realized that it was all on me. I will outline my credit report and please give me any comments as to how I should of better handled this or if I have made a mistake. I have read so much and researched online for hours and hours. I understand gardening, but I really need to do what I can to get in the best shape possible to be able to apply for a mortgage at the end of January 2015.
12/7/2014: MyFICO: Exp: 583, TU: 566, Equ: 577.
Negative Items on Credit Report and how I am trying to resolve them:
2 Loans through NelNet - Student Loan Debt. I have three late fees from Aug. Sep, Oct 2013. Three first 2 shows 120 days and 1 showing 90 days in Oct.
- I contacted NelNet through the contact form on the NelNet webpage informing them that I was under the impression that I was under forebearance during the period. ( I had previously been under forebearance and had reapplied. I never received a notice that I was denied so I assumed that I was still under forebearance.)
--- 12/5/14 Response from NelNet, They emailed me requesting a copy of my credit report and an outline of the mistake. I sent it to them and will hope for the best.
Civil Judgment from Chase $1208.
I contacted the court and was referred to a lawyer. I still have yet to get the court to give me a copy of my "public" record on this.
I spoke with the CO and was informed that the amount was different. I requested a statement in the mail that I could use to compare to the public record and potentially pay off of. The CO refused to send me anything and said that I could only pay over the phone.
I sent a letter to all three credit bureaus with this information and asking them to reinvestigate to verify this debt and the amount that is owed. The certified letters should arrive tomorrow(12/8/14).
Collections:
Midland Funding LLC:
$356 - Account still shows as opened on Equifax even though closed and paid in full. I sent a letter to Equifax asking them to please change the status to closed. I also sent a similar letter to midland funding to have them submit the correct information to Equifax.
First Collection Services:
Paid in full $601 regarding local college debt. Contacted the credit bureaus and the creditor because this debt was a part of a student loan repayment and is included in my student loan debt. There was a squabble between the college and NelNet, but I have this included in my nelnet debt. I sent a letter to the collector on this one to please have this removed from my score. I will contact the credit bureaus if I do not hear back from the creditor.
Penn Credit:
Paid in full ($115) I shouldn't have paid this, but I did. This is regarding a utility bill. I paid this company even though I had to pay the utility company as well to have the service turned on at a new home. This is from Jan 2013. I sent a letter to Penn Credit to have them to contact the credit bureau and have this removed.
Enhanced Recovery LLC(Sprint phone related)
$468(Paid in Full in 1/5/2014) Sent letter to creditor to have debt removed from bureaus. This debt was legal, but the amount I paid was far more than what was owed and the value of the cellphone.
Eos CCA(ATT Mobile)
$296(Paid in full 1/5/2014) Account is from 8/12/2012. Sent a letter to EOS CCA regarding having the debt removed since it was paid in full and the last payment made on the original account was over seven years ago.
RGS Financial(Medical Bill from Dentist Office)
$89(Paid in full 1/5/2014) Sent letter to RGS Financial asking for it to be removed since it is so small and was paid in full almost a year ago.
Revolving Accounts:
Entergy, I had a charge off many years ago over 5 years ago related to an entergy bill where I had a levelized billing agreement. I sent a cerified letter to Entergy requested the account status to be paid in full since they did require me to pay the balance when I reactivated lighting at a new location. I was hoping to get this adjusted to pays as agrees to turn a negative to a positive, but not sure how to word that.
Inquiries:
12 inquiries in last year. 11 of them have to do with going to 1 car dealer and being there for two hours. I made the stupid mistake of trying to get the best interest rate I could on a new vehicle. I ended not even purchasing a new vehicle. I sent out letters to all of the inquiries that I had besides the ones that resulted in actual credit being given. I just requested in a certified letter to either remove the inquiry or provide signed evidence where I gave their company permission to run my credit.
I was reading that I need at least 2-3 credit cards on my credit report. I do not wish to apply for something and be denied, so I now have a capital one secured card. I made the first payment on 12/3/14 for exactly 30% of the limit and also avoided having an fees. I applied to do for the opensky card and will have it by Friday. I will do the same where I pay exactly 30%. Capital One has yet to report my first payment. I contacted support today and was told that it could take 30 days after first payment to appear on report, but that they would contact their credit department and try to speed the process up.
The positives currently on my report:
My Student Loan Payments are all positive and up to date besides the three negatives late last year.
My Truck Payment(over 2 years old) is perfect and never been late on it.
Aarons Rent(since 2008 paid off) Shows positive on Experian and Equifax but they didn't report to TransUnion. I doubt I can do anything about this though.
That is really it. I have mostly tried to avoid using credit or credit cards since I have been able to afford them. It is funny how that works. Please advise me in anything else that I can do. I am willing to throw money at this and do what it takes. I am an accountant and small business owner so I know how to properly write letters and speak with representitives.
Thank you all in advance. Any help would make a huge difference for me and my family.
-Drew
