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Questions About Rebuilding My Credit

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ba6412
Established Member

Questions About Rebuilding My Credit

Good Afternoon,

 

I recently had 9 counts of debt on my credit report hurting me.  5 of them were collections servicing companies.  I recently paid them all off to a $0.00 balance.  2 of them allowed me to do a 'Pay for Delete'.  The other 3 did not.  

 

I also had a judgement on my report.  I recently paid that off through the Law firm that handled it.  I took the proof of judgement to the court and got that taken care of.

 

I also had student loans that I had already rehabbed and then defaulted on again for a total of $13,000.  Since, I could not rehab them again, I paid them off in full.

 

I now have everything on my credit report paid off in full.  My questions are as follows:

 

1.  How can I get some of these things removed from my credit report?  The 3 collections agencies that did not allow me to do a pay for delete, how can I get those removed?  I heard I may need to write a letter to the 3 bureaus?  I know the judgement will stay on my record for 7 years, however, how can I get the student loans removed from my credit reports? 

 

2.  I have everything paid off.  My credit score is poor (just under 500).  I want to buy a house 1 year from now.  What are the best steps?  I don't have any assets.  Which credit cards should I buy, etc.?  How can I get myself to where I need to be in 1 year?

 

Please, any help would be greatly appreciated.

 

Thank you everyone and Happy Thanksgiving!

 

-Jim

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Questions About Rebuilding My Credit


@ba6412 wrote:

Good Afternoon,

 

I recently had 9 counts of debt on my credit report hurting me.  5 of them were collections servicing companies.  I recently paid them all off to a $0.00 balance.  2 of them allowed me to do a 'Pay for Delete'.  The other 3 did not.  

 

I also had a judgement on my report.  I recently paid that off through the Law firm that handled it.  I took the proof of judgement to the court and got that taken care of.

 

I also had student loans that I had already rehabbed and then defaulted on again for a total of $13,000.  Since, I could not rehab them again, I paid them off in full.

 

I now have everything on my credit report paid off in full.  My questions are as follows:

 

1.  How can I get some of these things removed from my credit report?  The 3 collections agencies that did not allow me to do a pay for delete, how can I get those removed?  I heard I may need to write a letter to the 3 bureaus?  I know the judgement will stay on my record for 7 years, however, how can I get the student loans removed from my credit reports? 

 

2.  I have everything paid off.  My credit score is poor (just under 500).  I want to buy a house 1 year from now.  What are the best steps?  I don't have any assets.  Which credit cards should I buy, etc.?  How can I get myself to where I need to be in 1 year?

 

Please, any help would be greatly appreciated.

 

Thank you everyone and Happy Thanksgiving!

 

-Jim


First thing you need to do is begin re-establishing new credit. I would suggest starting with getting a secured credit card from Open Sky, then when that shows up on your reports, apply for Capital One Platinum. If approved apply for their QS1 immediately. If Capon does not approve you for their unsecured Platinum card, then apply for their secured card.

 

As for the derogatories on your report, you will want to request good will deletions of them from the collector and creditors that are reporting them. 

Message 2 of 5
ba6412
Established Member

Re: Questions About Rebuilding My Credit

Thank you Norman for your reply.

 

I will start by applying for the credit cards.

 

I also plan to ask the collection companies to have them removed for good will.

 

What do you think I should do about my student loans?  They are all paid off now, so how can I get them removed?  (One of them defaulted after rehab, that is why I had a judgement, but I also just paid that completely off).

 

Do you think I have the ability to buy a house in a year.  I know I won't qualify for an FHA, but possibly a Conventional?  I don't know how it works, because I will be a first time home buyer.  I make enough money now to afford it, I just need to know how to rebuild properly.

 

Thanks again for your help.

 

-Jim

Message 3 of 5
Anonymous
Not applicable

Re: Questions About Rebuilding My Credit

the leftover items can stay on your report 7 years + 180 days from the DOFD (date of first default)  You need to find out when the DOFD is so you know when things will naturally come off your reports.   No point in expending energy if something is about to fall off anyway - especially since you already paid everything.

 

Send GW letters to the places you can to try to get them to remove.  This can take SEVERAL letters to SEVERAL places within a company - don't expect it to be easy.

 

The Judgment - you could contact the attorney you paid and ask if they will VACATE the judgment now that it is paid in full.  They MIGHT file it for you and the you will have an order from the court that makes it like it never existed.  You can then use that to remove from your reports.

 

Work on building new credit - that will do amazing things for your scores.    To go FHA you are going to need at least a 620 and conventional at least a 680.  Go read up in the mortgage forum too - they are really great in there as well.

 

Also - look into a credit union (SDCU) hope I got that right.....anyway - you can usually get a secured card through them as well as a shared/secured loan.   This will add to your mix of credit - you take the loan for $500 over 36 mos...payment is like $15/mo - then use the loan to get a secured cc.  That gives you two forms of credit - adding to your mix - with the same funds.....Bang for your Buck!

 

Good Luck.

 

Message 4 of 5
Anonymous
Not applicable

Re: Questions About Rebuilding My Credit


@ba6412 wrote:

Thank you Norman for your reply.

 

I will start by applying for the credit cards.

 

I also plan to ask the collection companies to have them removed for good will.

 

What do you think I should do about my student loans?  They are all paid off now, so how can I get them removed?  (One of them defaulted after rehab, that is why I had a judgement, but I also just paid that completely off).

 

Do you think I have the ability to buy a house in a year.  I know I won't qualify for an FHA, but possibly a Conventional?  I don't know how it works, because I will be a first time home buyer.  I make enough money now to afford it, I just need to know how to rebuild properly.

 

Thanks again for your help.

 

-Jim


FHA would actually be easier to qualify for than conventional. It really just depends on how lucky you are at getting things removed. Some people are amazingly good/lucky and make very fast progress. Me, ehh not so much.

 

I would recommend approaching the rebuild process as a minimum 2 year project.

Message 5 of 5
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