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Hey I'm new to the forums and had a few questions

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Anonymous
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Hey I'm new to the forums and had a few questions

Hey everyone, I'm just joining and had a few questions to get my credit back on track.

I'm just turning thirty and I'm trying to get a better hold on my credit and things like that. So right now my credit is sitting at crappy 578 with these blemishes on my credit.

Two collections opened in the last six months for a total of 300 bucks and my credit car is kinda maxed at 460 out of 500 bucks.

So my question is where to start? Do I pay the collections and get them to remove them from my credit? And bring my balance to about 200.00 bucks?

I'm hoping to get a 7,000 (used g35 lovely car) car in maybe Feb or April and was hoping to be financed for it to better strengthen my credit. Any thoughts? Thanks guys just trying to learn better to take better care of my family in the future
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Hey I'm new to the forums and had a few questions

Your answer is simple. If you are sure you owe the collections are they are verified, send Pay-For-Deletion letters for the collections. Otherwise you can dispute them as not yours or inaccurate and possibly having them deleted. Deletion is the ideal outcome. Pay down credit card to less than 10%. Since those are your only baddies you are very close to having zero baddies!! 

Message 2 of 6
Anonymous
Not applicable

Re: Hey I'm new to the forums and had a few questions

Awesome thanks for the help. In your opinion do you think I should try to pay for my car purchase right out? Was gonna wait until tax time and sell my current Car to fund the purchase or wait until the collections are taken care of and wait for the credit score to go back up and get a loan to bolster my credit more?
Message 3 of 6
Anonymous
Not applicable

Re: Hey I'm new to the forums and had a few questions

Having an installment loan for a car will certainly help your credit file.

Message 4 of 6
Lemmus
Established Contributor

Re: Hey I'm new to the forums and had a few questions

...your best bet is to join a local CU and start making regular deposits in a savings account there in the amount you anticipate your future car payments will be ...make those regular deposits your first priority and don't touch the money ...you're showing the CU that you can make regular payments so that when you ask them for an auto loan (after your credit is fixed) they will be more inclined to do so ...would also put that tax return in the CU savings when you get it.

 

...next, get your CC utilization down to under 10% and keep it there ...you can spike it temporarily if necessary but pay it down again before the statement date.

 

...then start on your CA accounts ...assuming they are valid your only leverage is offering to PIF for deletion from the CRAs ...many CAs are hard-nosed and won't do PFDs but money talks and most will ...your worst case is that you PIF and the CRAs reflect that ...still much better than unpaid collection accounts.

 

...once your CRA records are "fixed" to the extent possible and you have a stable CU deposit history, go talk to the CU loan officer about a car loan ...if necessary you can offer your savings account as security ...you can always get a loan from a dealer but with your credit history you'll pay a usurious interest on it, your CU will give you a MUCH better deal on a loan than anywhere else and you'll have taken a major step in building your credit history.

 

...and once you've made several loan payments as due, it will be time to go back to the CU loan officer and ask for a CC with a decent credit limit ...from that point on you're on the road to a full credit recovery ...hth


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Message 5 of 6
Anonymous
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Re: Hey I'm new to the forums and had a few questions

Funny thing is im signing up for my jobs credit union right now. Time wise what's the best time to ask for a loan? Was hoping by March April. Also just deposit my tax money into the credit union account?
Message 6 of 6
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