Suggestions?

[Anonymous]

I am in the market to purchase a new car sometime towards the end of August and hopefully with 0 down. I pulled my credit in June and have since paid off $1400.00 in pastdue bills.The bills are as follows:

First Premier CC-$597.00 (was out of work and couldnt pay it) sent to collection 6/07

Southern California Edison $37.00

Old hospital bill $150.00

Sprint PCS $167.00

Time Warner $289.00

SBC $95.01

so i paid all of that off and have only 3 things left on my credit report.

Hospital bill-$3474.00 (which i dont think ill ever pay)

Hospital bill $2000.00

I have no credit cards and no real way to rebuild my credit now. My cell phone is in my parents name and at my apt. I'm not on the lease or any bills. I just rent a room. I pulled my credit today and I have a 599 at EXP and 548 at EFX/TUS. Which is slighty better than it was before.

Do you think there is any hope for someone like me to get a car with 0 down? I was looking in the 14k range.

[Anonymous]

You need to get on the ball with the GW letters...you should not have paid...without trying to PFD first...go to the OCs first...and see if they would be willing to pull the account out of collections...that sometimes easier with the utility bills...than with a charge off...if the OC tells you...you have to deal with the CA....send the CA...a GW letter...asking for removal...something like this...GOOD LUCK!!!...

Name

Address

Date

CA Name

Address

 Account number: XXXX

Dear XXXX:

I am writing to see if you would be willing to make a “goodwill” adjustment to your reporting to the three credit reporting agencies. The above reference account was placed with you for collections by "OC Name" in XXXX. I paid the account in full on XXXX.

Because I have paid the account in full, I would like you to consider deleting the account from you records and stop reporting to the three credit reporting agencies. I had no idea about this collection company because I have received no letter from you regarding this. As soon and I found about out about this collection from pulling my 3 in 1 credit report. I contacted you and paid as soon as I could.

I are in the process of purchasing a car and currently my scores are too low to do so. I have a 30-60 day time frame to get my scores up. I have been paying all items on my credit report and because this one is already paid all I can do it hope you will delete which will increase my score a lot. Your customer service representative suggested that I write you for a “goodwill adjustment.”

Sincerely,

[Anonymous]

thanks! Any tips on how I can rebuild my credit in my situation?

[Anonymous]

How old are these paid debts?

If older than say, 3 years, I would try to DV them. Chances are fair that if they're 3 years or older, the CA will fail to DV and will then have to remove them.

Otherwise, GW your heart out on the paid debts ... someone, somewhere might have a heart and extend some goodwill your way!

As to CCs, you can try HSBC/Orchard. Our scores are near yours and we were approved for $300 each. They do a "soft inquiry" to preapprove ... and honestly, I haven't seen anyone get turned away by them. AFAIK, they report to all 3 bureaus.

Also, you can try Crown Jewelers ... they've been giving out $2500 CLs with no credit check (you just need your name, social, etc ... and an income, of course). They report to TU & EX.

Last but not least, you can always try getting a secured card. You plunk down anywhere from $300 to $1500 and you have an "instant" credit line that will one day, graduate to an unsecured card.

To get a car loan far easier, try opening a savings/checking account at your local Credit Union. Wait a few months, and then apply for the car note. The rates you pay won't be pretty, but they tend to be more lenient in extending credit than "traditional" banks.

Each of those methods are wonderful for rebuilding your credit! Rebuilding and repairing is NOT impossible!!

Best of luck!!!

[gdtobefree]

First Premier CC-$597.00 (was out of work and couldnt pay it) sent to collection 6/07

Southern California Edison $37.00

Old hospital bill $150.00

Sprint PCS $167.00

Time Warner $289.00

SBC $95.01

GW these people and beg for their forgivness for being late and not paying sooner and ask to have them removed.

1st Premier will not remove it I bet, BUT, IF you can find someone to sweet talk and get them to at least remove all the negative remarks, and report PAID and not paid AFTER CO, this will be a POSITIVE mark for you in your loan process.

Hospital bill-$3474.00 (which i dont think ill ever pay)

Hospital bill $2000.00

How are these reporting? Have they been sent to CA's yet?

read up on your HIPPA laws.

 599 at EXP and 548 at EFX/TUS. Which is slighty better than it was before.

It is so hard to say if you will qualify for 0 down, in my past experiences I have not seen 0 down with those score (I really really don't mean to pop your bubble). Now, you may be able to get 0 down with a co signer with EXCELLENT credit, and I mean score in the high 700's.

There are several other ways to buy a car with those scores, BUT it does involve a down payment.

The more you put down the better your chances of getting approved are better and your note won't be as high, there are lenders that will let you buy down your interst rate as well, BUT that also involves money down when you sign.

I have been in your position before and had to use my father as a co signer, he loved the fact that he helped me, but I didn't, I was 26 at the time and divorced with a BK discharged 5 yrs before.

My best advice, get a credit card or 2 and let them age, go to a local bank that you have dealt with an see if they will let you have a small loan, put that money ina savings account and let them take the payment out of that savings account, 1. it will never be late, 2. you have a palce to sock away a little extra money for that down payment.

[gdtobefree]

Actually credit unions usually put a ceiling on thier interest rates usually around 8-9 %

BUT the length of the loans are a little shorter then finance companies.

[Anonymous]

Not ours.

I believe our interest rate was 12% (this was RIGHT after a charge off) and it's a 5 year loan.

But then, I think I'm biased on this because 5 years is the longest I've ever heard of ... am I wrong?? Not really up on loan terms!!!

[Anonymous]

I dont really understand the goodwill letter thing. Sorry, im new. I send a letter to the collection agency asking them to delete it from my credit report? I dont really understand how that works. Or i send it to the original creditor? I paid off things in collections recently. Everything was about 3 years old. Sorry, please help

[Anonymous]

You send it to whoever you paid...

[Anonymous]

Is it better to send the gw or letter or to try and call them?