Terrible Credit - Need Help ASAP!!

[CM7887]

I'm 24 years old and because I was/am STUPID, my credit is shot.  Five years ago I had a Bank of America credit card with a $600 limit.  I was paying it off in full every month, until I lost my job.  At that point I just stopped paying it and tried to forget about it because it was stressing me out so badly.  Long story short, it got up to $1,300ish with interest and was charged off as bad debt.  It's now with a collections agency, who tried to sue me.  I ignored every letter I got from them and the court (terrible, I know) and recently got a letter that the suit was withdrawn.  The reason on the withdrawl was "Unilateral Action of Both Parties" No judgements show up in my report from this site, which is one good thing I suppose.  I'm getting serious about repairing my credit because I want to return to school to finish my education in 2-3 years and I'll probably need a student loan.  Not to mention it would be nice to get a house someday.  My credit scores are as follows:

TU - 498 FICO

EQ - 578 FICO

EX - 553 FAKO

Accounts:

Bank of America - $0 balance - Charge off - Opened 1/2007

Verizon Wireless - $83 - Collection Account - Opened 1/2008

Lvnv Funding - $1,265 - Collection Account - Opened 2/2008

Collections:

Medical - $115 - Assigned 12/21/10

A credit report I have from a year or so ago has a couple other small things (one of them is $18 from my freakin' local library, that I don't even go to!) that aren't showing up on my reports here.  

My boyfriend and I have $5,000 coming to us and I'd like to use this money to get rid of these monkeys on my back, I just don't know the best way to proceed.  I have no credit cards or bills aside from my car insurance payment.  I don't even have a bank account because I have $303 in dispute in ChexSystems.  When I get paid, I cash my checks using my 15 month old daughter's savings account.  My cell phone, rent, utilities etc. are all in my boyfriend's name.  It's truly embarrassing and I'm ashamed of myself.  I want to fix this but I don't know where to start.  I know the first step is getting out of ChexSystems, but if I pay the $300 is that even a guaranteed out?  I know the information can stay there for as long as 7 years.  If it's marked as paid will I be able to get a secured credit card?  That's literally the one and only thing I can think of that will get me out of this hole I dug for myself

Any advice greatly appreciated!!

[Anonymous]

I'm not the best person for advice on the best way to proceed.  But I can definitely offer support and relate because I was in a similar place a couple years ago.  I have been over 2 years without any derogatory marks and have brought my credit from ~500 up to 600-630.  It takes a lot of patience, and the vow to not miss any more payments or not let anything else go to collections.

I agree it always felt easier to just ignore these things, but you are doing the right thing by addressing them now.

As for advice, I personally think you are in decent shape.  You have way less derogatories than even I do.  I would start by sending lots of GW letters to BoA.  I have read they don't usually do it, but it can't hurt to try.  Look around these forums for contacts with them to send to.  As for the Verizon account, try to offer them a PFD.  If they won't accept it, you can choose to either pay it, or wait for it to fall off (7 years after it was last paid).  Keep in mind a paid collection hurts your score just as much as an unpaid one.  Do what you think is morally best with regard to that.  I have read that FICO is very forgiving of collections under $100, so that probably isn't hurting a lot.

As for the LVNV, that is the biggest issue to address.  Definitely try to PFD that, and I have seen lots of topics about that company specifically on these forums.  Research the best way to get in touch with the right people and hope for the best.  Whatever you do, don't let any of these become judgements, as those are the worst.

Lastly, the biggest thing hurting your score I think is that you have zero positive tradelines.  Do you know someone that has a credit card with a great payment history and low utilization percent?  If so, see if that person will add you as an authhorized user on their account.  They don't even need to give you a card.  If they do this, their whole account history will go on your credit.

Also, definitely get a secured credit card.  Lots to find here about the best ones to get that report to all 3 bureaus and have lower annual fees.  Make sure you use it every once in a while and keep the balance low, and always pay it on time.  Just opening your first CC will probably jump your score by a lot.  Best of luck to you.  I'm sure other people with more experience will also offer you lots of great advice!

[CM7887]

Thanks for your reply, I really appreciate it.  It's nice to know that someone in a similar situation has managed to find a way out

If I try to PFD LVNV, don't I have to worry about them trying to sue me again?  I did a quick search for them on here...it looks like they're pretty stubborn.

My boyfriend will probably be willing to add me as an Authorized User, provided it doesn't negatively affect HIS credit.

[Anonymous]

They could try to sue, yes. Only ever do DV and PFD when you have cash in hand. Sometimes it can wake a sleeping Giant. You mentioned, though that you have the cash. If they deny the PFD and threaten to sue, you should be able to negotiate a settlement for half off or so. Worst case scenario, you pay in full to avoid a Judgement.

As for an AU, it will not affect his credit at all, unless you get a card and run up his bill. He can even add you and never give you a card if he feels more comfortable. Make sure he has a good payment history and keeps his balance down a bit. A bad credit card won't help you much.

Either way, also take like $500 of that cash you are getting and open a secured card in your name. You also want to start building your own history, in addition to piggy backing.