Oh boy....552 TU score.....yikes!!!!!

[mauirain]

Oh Boy.....I just paid for my TU score here on myfico.....and yikes.

I have some very bad baddies!!!

2 medical bills unpaid....about 900.00

one judgement for a auto repo.......5000.00........unpaid.  I know   I have to face the music....

Target credit card....paid off and closed..

and about 5 collection bills total owed about 1000.00

no credit cards at all and no auto loans.

Where do I start????

I am trying to sift thru all this awesome information here, but it gets confusing.  I want to eventually be able to get a home loan, just don't know where to start.  TU is at 552     I am afraid to awaken any sleeping giants.......  I have paid off two collection bills in the past few months, but that was before i read about PFD...oh well maybe i can try GW with those.  I am wondering if I should just go see a lender, get humiliated, but then see if they can give me some ideas on how to make my credit better.  I am willing to pay things off, just can't do it all at once.  I am also very afraid to contact the judgement holder......scared to death is more like it.  Should i deal with the collections first, so they don't turn into judgements.  should I just let the old ones fall off.....a few will fall off  in early 2011 and 2012.  I am a single mom who has paid my rent on time for the last 12 years.  I am tired of paying rent, I just want to get a house of my own.  Should I try and get a secured credit card thru my bank to try and get some credit moving????   oh well, off to more reading and research.  Aloha everyone and good luck to you all.

[chasmith]

I think you're thinking correctly, you need to deal with the baddies carefully, and also if you can, start some positive records.  To get a mortgage you need a score above 620 but you'll also have to have no open collections on your report.  As the collections age they won't hurt your score as much.  So since you'll need some time to clean up the open items, if you can build a couple of positive tradelines that will also help.

You might try setting aside $600 to open two secured cards at $300 each, but don't run more than 9% utilization on one of the two each month.  Pay before the statement is due to get the balance reporting where you want.  This will start showing a positive record - if two at $300 is too much, start with one.  Orchard Bank and CapitalOne would be possible lenders, or a credit union.  Some folks do a double-play with a credit union.  Deposit money in savings account, use that savings account to secure an installment loan.  Then put the loan proceeds into another savings account to get a secured credit card.  You'll get the biggest return from two low-utilization credit cards, adding an installment loan gets a third positive TL and some points for credit mix.

You haven't said how old some of these are, if near the Statute of Limitations and not being actively pursued possibly you let them age out of SOL, and at 7 to 7.5 years they fall off your credit report.

If you aren't being actively pursued on the judgment and some of the baddies, deal with the actives first.  Try to work one at a time, in writing only, to PFD - doesn't have to be in full.

If there's not a basis for contesting the judgment, at some point you'll have to pay it, nothing prevents you offering a small settlement, or a payment over time.   Especially if you wind up paying it in full, try to get a written agreement that they will vacate the judgment - that would help get it off your CR instead of just showing satisfied (paid).

[mauirain]

Hi and thanks for the advice and encouragement.  I have made the move and contacted the Judgement holder.  I just could not handle the pressure of having that hang above my head any longer.  With them being able to legally garnish my wages, I was living in a state of constant fear of will this be the day the make their move.  So I did contact them.  My total debt with them was 11,000 with  court, attorney and interest fees.  I settled with them for 3,800.  I will be paying that off with my tax refund.  I will go into their office and pay and at that time she said she will give me the letter of satisfied judgement.  The thing I did wrong was not asking if they would consider vacating the judgement.  I should have asked them if they would agree to that.  Is it too late to ask them at the time I take them the payment in person.  I feel like if I ask, I will be pushing my luck.  If anyone has any advice, that would be wonderful.   Also, I am trying to deal with one bill at a time..  I will check into the secured loan and the secured card, I hope that can actually work...hmmm.  Doesn't hurt to try.   Well again, thanks for the reply and good luck to you all as well.