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Member
Anonnamus
Posts: 30
Registered: ‎06-30-2013
0

Hi there! Newbie here who is a credit moron...

[ Edited ]
Hello! I've been a lurker here for several weeks and am amazed at how much I have learned from y'all. For the first time ever, I'm motivated to raise my credit score. I honestly believed because I trashed my credit when I was really young, it would haunt me for the rest of my life and there was no way out. Then I learned negatives only stay on your credit report for seven years. Woo hoo!

What started this epiphany was the fact I was approved for a brand new car. I was shocked, I tell you! I decided if I could buy a car, I could buy a house. I pulled my free credit reports, and they appear to be written in some form of English. I decided to go to a mortgage officer at my bank and have her do a hard pull of all three credit scores (I'm not going to buy for a year so I can clear my credit). EQ is 636, EX is 602, and TU is 532. Since they take the middle score and their minimum requirement is 640, I figure I will need the entire year! Anyway, she looked at my credit report and recommended that I file bankruptcy. She said a bankruptcy only lasts two years, and it's possible to have fantastic credit shortly after?

My problem is this. I have about twelve negative items on my credit report, all collections or charge-offs. Nine are due to fall off next year. The rest I can pay right now, though I'm hesitant because I hear that it will restart the seven-year clock? I'm trying to raise my score by next year, so what do y'all recommend? I have two installment loans (an auto loan and a signature loan I opened a couple of years ago to start building credit) and two credit cards. I just opened a secured card through my bank with a $1000 CL and I am an authorized user on my mother's card...which I had no idea of until I pulled my report. All my debt, including what will fall off next year totals around $5000, I think.

I'm ashamed that I am just now learning about credit and how anyone can bounce back. Many of my negatives are just stupidity on my part. Well, ok, all of them are. A part of me apparently assumed I could single-handedly take down these companies by withholding my $350 payment. Hey, that didn't work. For future readers, don't try that.

Wow. I'm long-winded and didn't have much to say. Can y'all help me? Am I a hopeless case, or will it be possible for me to get into the 700s? My newest negative is from 2009, so I'm hoping those aren't making too much of a difference anyway. You guys are awesome. :-)

Edit: By the way, how is everyone getting updates on their credit scores? I can see myself getting as obsessed with my credit score as I am with my scale when I'm on a diet.
Regular Contributor
qd
Posts: 158
Registered: ‎04-02-2013
0

Re: Hi there! Newbie here who is a credit moron...

Bankruptcy for $5000 in debt seems like an odd recommendation to me.  I would look at each report one at a time and tackle all the baddies on them one at a time.  PFD those you can afford to pay and GW those that are already paid but still reporting negatively.  A lot of progress can be made in a year.  You are on the right track though so that is a very good thing.  I think many of us here get obsessed with our credit so you are not alone there.  I use eliminateidtheft.com to monitor any changes to all three reports on a daily basis.  This is good while you are working on improving your reports.  The scores are no good, but the alerts and reports are worth it for me.  I think letting your new credit age and working on removing negative items on your report will get you where you want to be without filing bankruptcy.

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Hi there! Newbie here who is a credit moron...


Anonnamus wrote:
Hello! I've been a lurker here for several weeks and am amazed at how much I have learned from y'all. For the first time ever, I'm motivated to raise my credit score. I honestly believed because I trashed my credit when I was really young, it would haunt me for the rest of my life and there was no way out. Then I learned negatives only stay on your credit report for seven years. Woo hoo!

What started this epiphany was the fact I was approved for a brand new car. I was shocked, I tell you! I decided if I could buy a car, I could buy a house. I pulled my free credit reports, and they appear to be written in some form of English. I decided to go to a mortgage officer at my bank and have her do a hard pull of all three credit scores (I'm not going to buy for a year so I can clear my credit). EQ is 636, EX is 602, and TU is 532. Since they take the middle score and their minimum requirement is 640, I figure I will need the entire year! Anyway, she looked at my credit report and recommended that I file bankruptcy. She said a bankruptcy only lasts two years, and it's possible to have fantastic credit shortly after?  A BK will affect you for longer than 2 years.

My problem is this. I have about twelve negative items on my credit report, all collections or charge-offs. Nine are due to fall off next year. The rest I can pay right now, though I'm hesitant because I hear that it will restart the seven-year clock? I'm trying to raise my score by next year, so what do y'all recommend? I have two installment loans (an auto loan and a signature loan I opened a couple of years ago to start building credit) and two credit cards. I just opened a secured card through my bank with a $1000 CL and I am an authorized user on my mother's card...which I had no idea of until I pulled my report. All my debt, including what will fall off next year totals around $5000, I think.    Paying off the debt will not restart the 7 year CRTP clock.  Looks like you have some good rebuilding accounts, garden those well.

I'm ashamed that I am just now learning about credit and how anyone can bounce back. Many of my negatives are just stupidity on my part. Well, ok, all of them are. A part of me apparently assumed I could single-handedly take down these companies by withholding my $350 payment. Hey, that didn't work. For future readers, don't try that.   Yup, we learn the hard way.  :smileyhappy:

Wow. I'm long-winded and didn't have much to say. Can y'all help me? Am I a hopeless case, or will it be possible for me to get into the 700s? My newest negative is from 2009, so I'm hoping those aren't making too much of a difference anyway. You guys are awesome. :-)   Your baddies have some age, that will help.

Edit: By the way, how is everyone getting updates on their credit scores? I can see myself getting as obsessed with my credit score as I am with my scale when I'm on a diet.  CMS guide  The link there will give you some info on places to get your reports and scores.

GW anythin that's paid off,  and I totally agree that $5k is not an amount to BK for, seems way to excessive to me.  If you need help with a particular TL or creditor, make a post on here and we'll see what we can do.

 


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Frequent Contributor
Countingpennies
Posts: 464
Registered: ‎02-14-2013
0

Re: Hi there! Newbie here who is a credit moron...

Hello Newbie! I'm not an expert on the fine details of credit repair, but just wanted to tell you, if you hang out around here for awhile, you will no longer be a credit moron. After you've read some of the come-back stories, you will realize you are not in such bad shape. You've already taken the first steps.

Start reading some of the stickie threads to get a better understanding of scoring, and credit repair.

Bankruptcy sounds like very poor advice for $5000. Depending on your income and expenses, getting rid of this debt should be very doable. BK will affect your credit for up to 10 years, and should be a last resort consideration.

I use EliminateIDTheft/MPM also. USAA is another option for daily credit monitoring. EIDT is about $12.95/mo, USAA is currently $22.95 mo., unless you can negotiate that down with a CSR. The scores are not FICO, but you can watch how they are trending, and keep an eye on all 3 credit reports as you are working on your baddies.

Keep reading, and asking questions and you'll be ready for a house before you know it.
Member
Anonnamus
Posts: 30
Registered: ‎06-30-2013
0

Re: Hi there! Newbie here who is a credit moron...

Thank you for the replies and words of encouragement! I will start with the most recent negatives, and work my way backwards. I thought filing bankruptcy was a little much. Should I call the CA first and ask for a PFD, or should I just send a letter without calling? Some of the previous CAs in the past I've dealt with seemed a little shady...especially since they've called my place of employment in the past posing as an FBI agent and telling my boss I would go to prison if I didn't pay their bill.
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Hi there! Newbie here who is a credit moron...

If you know who those CA are you can file complaints against them and sue them.  What they did is a huge no no.

 

I would write them and ask for a PFD.  If they agree, ask them to correspond in writing. 

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Hi there! Newbie here who is a credit moron...


Anonnamus wrote:
Thank you for the replies and words of encouragement! I will start with the most recent negatives, and work my way backwards. I thought filing bankruptcy was a little much. Should I call the CA first and ask for a PFD, or should I just send a letter without calling? Some of the previous CAs in the past I've dealt with seemed a little shady...especially since they've called my place of employment in the past posing as an FBI agent and telling my boss I would go to prison if I didn't pay their bill.

     These types of CAs are what we refer to affectionately as "Bottom Feeders".  They use these types of tactics because they have no legal way to enforce payment.  Typically these are debt that have passed the SOL.  


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Member
Anonnamus
Posts: 30
Registered: ‎06-30-2013
0

Re: Hi there! Newbie here who is a credit moron...

Well, I did my first dispute today! I disputed a TL through TransUnion because I've never seen the account before. I'm not sure if I was supposed to send a DV or stop at the online dispute form with TU. I have so many negatives on my CR, it's hard to know where to start. On a brighter note, my scores have increased once my secured credit card reported!

EQ 649
EX 622
TU 532

Unfortunately, I cannot buy a house until I pay off every negative, they tell me. So boo to that. Tell me, when will I start finding this fun? Lol
Member
Anonnamus
Posts: 30
Registered: ‎06-30-2013
0

Re: Hi there! Newbie here who is a credit moron...

It's funny you say that, Shogun. Those CAs were just as unethical as the OC, a payday loan company. I will never EVER make that mistake again!

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