12-12-2012 09:28 AM
Hi folks, I have a real mess.
Im renting a house with agreement to buy it by Feb, thinking my score would improve by then.
Im a 566, 570, 577 (Or close to these).
A. I have a new fed job since aug and began paying all collections right away. Then new ones started popping up from canceled health ins.
B. My auto payments have been on time for three months, have been late in the past.
C. I dont have any credit cards.
D. I owe Midland $900, they reported multiple times as Midland, midland credit co. 3-4 dings for one bill. from 2011/12.
Dont know if I should pay them or not. They will not delete.
E. I have Tristate collections, for a CPAP sleep air machine posting 3 times to my CR for $800 and seperately $2500 also.
I have paid the original source of the debt since, and they claimed im paid in full at $800, promised to mail me a receipt and a letter stating
that "Due to the circumstances, this bill was placed to collections in error" (Hoped this would allow me to have the 3 agencies delete. They bs me
on the phone and never even mail me a receipt. This was 30 days ago.
F. A mortgage rep reccomended a credit help co. and Im paying them $40 per month. Dispute, mail, etc. 60 days ago and havent so much as gotten a letter
from Exp, Eq, or Trans.
G. Im drowning in a $500 per month auto payment. I printed my report from USAA monitoring for an auto dealer. They offered me a good trade in and much lower
payments on a vehicle but from what I understand I should not disturb my current payments or ding my credit in hopes of obtaining a mortgage any time soon.
Fortunately I have been able to work 7 days a week and be aggressive towards past debt, so on. Now im not sure of the right things to do from here.
I guess thats quite an introduction, and Hi!
12-12-2012 09:44 AM - edited 12-12-2012 09:45 AM
Welcome to the forums!
I'd suggest reading the following:
What Steps do I take, DV, PFD or GW
Credit Scoring 101
First off congrats on the new job and for taking control of your finances. So, continue to pay everything on time, that's a no brainer. Now, let's take a look at those collections.
I see you have Midland. How old is the debt? Do you know the DOFD or the SOL of your state? Sometimes knowing this information can give you a bit of a bargaining chip. You should DV them, I know it's not timely, but Midland usually responds to the DVs and may this would clear some of it up.
I'd do the same with Tristate collections, plus you've stated that you've paid the OC. DV them, see what they send back and then that might give you a better idea of the direction to head in.
As far as the car loan and the lack of revolving accounts, if you plan on applying for a mortgage in Feb., hopefully you will have these CAs cleaned up by then, then no, I really wouldn't apply for more credit or refinance at that time. I would get everything in order however to refinance and maybe get a CC or two after the mortgage closes.
Let us know how this is going so we can help. Good Luck!
12-12-2012 09:52 AM
Most mortgage lenders want to see on time payments for 12 months. With that being said,
Focus on getting the derogs off of your credit and come to the rationalization that fixing all of this won't happen overnight.
12-12-2012 10:38 AM
I guess I will be reading the forum posts about PFDs etc. The company I pay doesnt seem to be doing much and cant even give me a solid answer on pay or not to pay.
Midland in particular seems very tough when it comes to deleting and claims they simply do not delete at all ever. Id like to find out how anyone has accomplished that one!
All remaining debts are well within the SOL.
I want to pay but obviously looking for PFD.
12-12-2012 10:39 AM
I would definitely find out exactly what is owed before paying. Seems like there's some dupes on there.
12-12-2012 10:54 AM - edited 12-12-2012 10:56 AM
Fire that company immediately they are doing nothing for you that u cant do on your own.
Ive had over 5 collections deleted and 2 charged off First Premier accounts deleted this MONTH ALONE!
All you need to do is take your time do a lot of research on these forums and google. And do the work yourself. This way you know what progress youre making. I have the same goal, I would like to get a mortgage after a year and am working towards that goal.
Search these forums for those collections you have on your report to read what experiences others have had dealing with those agencies. I am currently dealing with Midland as wel and they are tough. So instead of dealing with them I have decided to take a different route and take on the original creditor (Tmobile).
A lot of the accounts that came off I simply sent DV (debt validation) letters to them and they could not verify and have deleted off my reports.
This is MUCH more effective than disputing credit bureaus.