Rebuilding from the ground up

[Anonymous]

My credit got really trashed in 2010. Since then all my accounts have been bought by Junk Debt Buyers who insist on payment plans I cannot afford and/or settlement amounts that I also cannot afford. Accordingly, there have been NO new accounts or credit inquiries added to my credit file in almost 6 years - NOTHING. I have plenty of TL's but they are all closed. I have no credit cards with open lines and all installment loans with the exception of my mortgage are paid off. The mortgage will be paid off in 4 months.

The Statute of Limitations on suit in my State is 6 years. My income consists 100% of items that either Federal or State laws forbids attachment of, so I have not been sued and it looks like that will remain. In about 6 months I reach SOL for all debts. My provable income consists of Social Security and Pensions and they total about $40,000 a year.

My cars both have close to 200,000 miles on them and I anticipate they will be dropping dead in the not-too-distant future. My FAKO score on Credit Karma is 648 TU and 646 Equifax. On Credit.com my scores are 648 on Vantage 3.0 and 691 on their proprietary model. Doing nothing my scores go up about 4-6 points a year by themselves.

I have no intention of ever having a credit card again.  I don't need one - My bank has a Mastercard branded debit card with $10,000 in the account at all times. I do expect to need a car loan or two in the not too distant future.  What can I do to qualify for the "well qualified buyer" status with that history?

[Anonymous]

Addendum - in checking my credit reports, the only auto finance TL I have is a loan taken out in 2006 and paid off early in 2008 with never a late payment with Honda Finance. That is the only auto loan I have had in the past 20 years.

[Anonymous]

Since all the baddies are 6 years old, in another year and a half FCRA takes them off my credit file by law. What can your company do (for a fee) that FCRA doesn't do in a year and a half for free?

[Shogun]

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@Anonymous wrote:

Since all the baddies are 6 years old, in another year and a half FCRA takes them off my credit file by law. What can your company do (for a fee) that FCRA doesn't do in a year and a half for free?

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To handle any confusion to this post as it no longer makes sense, there was a poster who was offering credit help that posted on this thread.  Since that is a violation of terms, it was deleted and the person was banned from the site.

Now to answer your question, nothing.

[Anonymous]

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@Anonymous wrote:

My credit got really trashed in 2010. Since then all my accounts have been bought by Junk Debt Buyers who insist on payment plans I cannot afford and/or settlement amounts that I also cannot afford. Accordingly, there have been NO new accounts or credit inquiries added to my credit file in almost 6 years - NOTHING. I have plenty of TL's but they are all closed. I have no credit cards with open lines and all installment loans with the exception of my mortgage are paid off. The mortgage will be paid off in 4 months.

The Statute of Limitations on suit in my State is 6 years. My income consists 100% of items that either Federal or State laws forbids attachment of, so I have not been sued and it looks like that will remain. In about 6 months I reach SOL for all debts. My provable income consists of Social Security and Pensions and they total about $40,000 a year.

My cars both have close to 200,000 miles on them and I anticipate they will be dropping dead in the not-too-distant future. My FAKO score on Credit Karma is 648 TU and 646 Equifax. On Credit.com my scores are 648 on Vantage 3.0 and 691 on their proprietary model. Doing nothing my scores go up about 4-6 points a year by themselves.

I have no intention of ever having a credit card again.  I don't need one - My bank has a Mastercard branded debit card with $10,000 in the account at all times. I do expect to need a car loan or two in the not too distant future.  What can I do to qualify for the "well qualified buyer" status with that history?

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Honestly, not much if you are unwilling to open at least one credit card account. The truth of the matter is that credit scoring is mostly about credit cards, and if you are unwilling to play that game, then its going to be next to impossible to push your scores up. BUT - the good news is that you may not even have to play the credit game at all. With 40k of net income, and a nearly paid off house, I would not even consider car loans. I would simply toss $1000-$1500 into savings each month, until you are ready, and trade the cars in (or private sell them) and pay cash for a newer model.

Thats how I see it.

[Anonymous]

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@Anonymous wrote:

My credit got really trashed in 2010. Since then all my accounts have been bought by Junk Debt Buyers who insist on payment plans I cannot afford and/or settlement amounts that I also cannot afford. Accordingly, there have been NO new accounts or credit inquiries added to my credit file in almost 6 years - NOTHING. I have plenty of TL's but they are all closed. I have no credit cards with open lines and all installment loans with the exception of my mortgage are paid off. The mortgage will be paid off in 4 months.

The Statute of Limitations on suit in my State is 6 years. My income consists 100% of items that either Federal or State laws forbids attachment of, so I have not been sued and it looks like that will remain. In about 6 months I reach SOL for all debts. My provable income consists of Social Security and Pensions and they total about $40,000 a year.

My cars both have close to 200,000 miles on them and I anticipate they will be dropping dead in the not-too-distant future. My FAKO score on Credit Karma is 648 TU and 646 Equifax. On Credit.com my scores are 648 on Vantage 3.0 and 691 on their proprietary model. Doing nothing my scores go up about 4-6 points a year by themselves.

I have no intention of ever having a credit card again.  I don't need one - My bank has a Mastercard branded debit card with $10,000 in the account at all times. I do expect to need a car loan or two in the not too distant future.  What can I do to qualify for the "well qualified buyer" status with that history?

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I was like you, until I needed an auto loan two years ago.  I got approved for one with an outrageous interest rate; it was this that made me realize that I needed more credit than an auto loan.  To maximize FICO scoring you need 3 tradelines such as bank cards and 1 installment loan.  Your FAKO scores are not a reliable indicator of your true FICO scores since most lenders use the FICO scoring model.   Exercise care in regards to the money you have in the bank ( I don't know the laws in your state in regards to whether your bank account could be subject to garnishment or not); those JDBs are horrible individuals and how they find out information is scary.  Your best bet for now might be to pay cash for a reliable used car so as to not have any additional credit activity that would alert them (since they are probably SPing you every month)  to the possiblilty that you might have assets to pay off the collections;  then when the collections fall off your report look at getting your score up and purchasing new vehicles.  Good luck and be careful. 

[Anonymous]

Thanks for all the help. I am now the proud owner of a brand new car. Cash price $16K, put $3K cash plus $1K trade into the deal. My Auto-enhanced scores ended up 594 to 626 depending on the CRA used. I ended up with an 8.9% loan for $12K for 3 years. It will be paid off in half that time. I guess 25% down helped.