Steps.

[AhoyKevinz]

Hello everyone! I am new to the forums, although I have been lurking around for a month or so now unregistered.

I'm 22, and got in a bad situation a few years ago with my mom having some major medical issues. 

I'm looking to repair/rebuild my credit. I'm now finally in a situation where I can do so, and dedicate funds torwards doing so. I've been slowly researching ways I can build my credit, as this is all new to my (They really don't teach this stuff in high school!)

I figured these forums would be a great resource/tool for me to use and getting the help I need to start taking the right steps to better my score, and everyone does seem to be friendly and non judemental. 

So the good news(Not that it's really good news), I only have one one negative thing on my credit report. It's was a cell phone through verizon, I can afford to pay it off in full, but I would like to explore options for a PFD, or figure out what is the best way to handle this.

The bad news, I was an idiot and never contacted verizon or have able to had the funds to pay them until now, and the account has been reporting against my credit for over a year now. 

Story on this one, I signed a 2 year phone contract with Verizon, had the money to pay for it and then some stuff came up in the family, and I got behind on it and was immature and didn't contact anyone about it.

So I am just wondering what is the best way to go with this ? Try for a PFD ? or just pay it in full ?

Currently, I am looking at getting a secured credit card, and making a secured loan to atleast start building some credit and getting some good things on my credit history, and building my score up.

Is there any companies you guys would recommend getting a secured credit card from ? Also would a secured loan just through my bank be fine ?

Also I've spent hours researching how to build my credit, but it seems as if I get the same advice on every page, secured loan, secured credit cards, and store credit cards. 

Is there any other routes I can take ?

I'm looking to invest 3-4k over 6 months into trying to repair my credit.

Thank you for anyone reading and responding. 

[ezdriver]

"Also I've spent hours researching how to build my credit, but it seems as if I get the same advice on every page, secured loan, secured credit cards, and store credit cards."

It's because ther are no "magic bullets". It is difficult to rebuild your credit profile without tenacious committment to takeing the small steps and being patient because TIME is a critical component. Those components you list are the very ones that I have been using to rebuild my own credit. They are being recommended because they work. You can get started or you can wait for a "better" solution this ain't goinna come. Good luck.

[AhoyKevinz]

Well, I didn't mean it in that type of was as for a "magic bullet"

but for example browsing the forums a bit, I saw a post about a "Credit builder loan"

which is something I have never heard of. So now I am looking into credit unions that offer that out.

But I never had any intention on making those things seem like they don't work, I am already exploring options to get things like secured loans, credit card, etc etc. I just wanted to know if there was more I could do.

Sorry for any confusion.

[guiness56]

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@AhoyKevinz wrote:

Well, I didn't mean it in that type of was as for a "magic bullet"

but for example browsing the forums a bit, I saw a post about a "Credit builder loan"

which is something I have never heard of. So now I am looking into credit unions that offer that out.

But I never had any intention on making those things seem like they don't work, I am already exploring options to get things like secured loans, credit card, etc etc. I just wanted to know if there was more I could do.

Sorry for any confusion.

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Hi and welcome to the forums.

With bad or less than good credit, or even no credit,  you have to start somewhere.  That is why the use of secured CC and loans are suggested.  They work like normal loans and CCs but are much easier to get if your credit isn't that good.

Do you have copies of your CR from annualcreditreport.com?

ETA:  I see you mentioned Verizon.  Is there a collection agency reporting also?

[AhoyKevinz]

I get my credit report from Experian, although I am planning on switching to Myfico.

Yes there is a collection agency, Enhanced Recovery Company. On my CR it says 

"Verizon wireless
Potentially negative closed"

it has been reporting as KD on my credit report since octover 2013.

I want to resolve this, but waiting for some advice on what I can really do in the situation.

[AhoyKevinzz]

I had to make a new account to register to pay for the ficco, so just a heads up my name now has two z's.

[guiness56]

First I would get all 3 of your reports from annualcreditreport.com.  You get one from each CRA free every 12 months.  This is the federally mandated site for free consumer reports.

These come directly from the CRAs and are much more accurate and detailed than those from a monitoring service or a 3 in 1 from another CRA.

I would contact Verizon and see if they still own the debt.  Ask if you pay them directly will they recall the debt from collections.  If they do recall the debt the CA would have to delete.  I would also try to get something in writing from Verizon.