Just Getting started

[trece1025]

Hello all, I have been a member since 2008 and have tried to read all the I can to help us(my hubby and I) to rebuild our credit, but honestly I am so confused on what is the best action to take. We have several collections, several paid judgements, and some steady credit accounts. Currently my hubby score is 532 and my score is 450. We want to get ourselves lined up to purchase a home. We also have 2 judgements that we are paying on monthly. One of the judgements have a bal of 6700.00(repo) and 1163.00(cc). We have current auto loan with Santander and 3 credit cards that are paid on time. We filed bankruptcy in 2005 and sold our home in 2007 due to lost job. We are now in a place where we can pay off some debt. We would like to settle the old debt, none of the debt is pass the SOL here in Indiana. I wanted to know if we can send letters offering to paid 25% of the debt in exchange for PFD. If this is possible. We do current owe about 8000.00 or so in outstanding debt, so we received a bonus of 2200.00 and wanted to use this money to make offers to clean up our credit. Any advice and suggestions that you can offer to help us rebuild our credit and lives. Thanks

[Creditaddict]

Well the good news is, you can pretty much only go up from here.

What is the date of your last negative?

Are you currently revolving balances on your current credit cards?

Something is bringing your scores way down and I understand you have bk and judgements, but if your current stuff is good, you should still be seeing your scores going up as the bad stuff ages longer.

[Creditaddict]

oh I forgot, you filed ch 7 bankruptcy?  How many accounts were included in that bk?

Do they report "included in bk, $0 balance", and not show any lates?

[trece1025]

Thanks Creditaddict for your response. We did check all the items that were included in the Bankruptcy. So I am not sure why my score is so low. Please help.

Thanks

[haulingthescoreup]

Hi, trece.

Pull up your most recent myFICO reports. What are the negatives on screen 2, over on the left? (Don't worry about the positives; they're mainly there for warm fuzzies. )

The negatives that are listed are the factors that are hurting your scores the most. Some can't be fixed, and they will require the tincture of time to fix. But others can be addressed.

The first-listed negative is the most important in hurting your scores, and then they go in descending order.

If you can let us know what these factors are, we might be able to let you know where to focus.

[RobertEG]

Accounts included in the order of discharge of BK cannot post any new derogs, as the debt is discharged unless you default..

However, discharge of BK does not requrie any removal of credit reporting of prior delinquencies that occured on the accounts.

Take, for example, a sample account history to make the point of CR damage, and when it goes away:

On a sample OC account reporting:

30-day late    11/2003   (would continue to report until after 11/2010)

60-day late   12/2003   (would continue to report until after 12/2010)

90-day late   1/2004   (would continue to report until after 1/2011)

120-day late  2/2004  (would continue to report until after 2/2011)

Charge off    3/2004   (would continue to report until after 5/2011, assuming a DOFD of 11/2003)

Collection     4/2004  (would confintue to reporrt until after 5/2011, sgain assuming a DOFD of 1/2003).

That would total 6 derogs on this one account, all still afffecting credit scoring.

Multiply that by the number of accounts showing similar derogs, and the credit scoring impact can become huge and long lasting.

If you have an unfilled debt, chances of a PFD acceptance go down sharply should you offer anything less than 100% of the debt owed.  Sure, give it a shot.

I would not venture a guess upon their acceptance.