Rebuilding Your Credit

[gottadobetter]

Hello,

I'm new to this wonderful forum but there is a lot of information to digest and I'm ready to take a baby step. Here is my current financial situation:

• large balance on a student loan but it is current 
• one active CC with a balance of $229/$300
• late payments on my auto loan
• one CC (delinquent for a year) with a balance of $463
• a CU loan with a balance of $95/$2000 (SOL 01/2013)
• an apt collection that has been validated  but I don't agree with the amount owed $1901(SOL in 03/2013)
• another apt collection $525 (same apt as above) that is listed as a joint account with a 13 yr old minor who did not sign the lease. (SOL in 03/2013)

I received a college degree in 2009.  I'm thankful for my part time job and one child but my funds are limited and very precious to me.  Currently, I trying to pay active CC down, remain current on auto loan and validate $525 apt collection joint with minor.  I only have about $100 extra a month to start this process.

From what I understand my util is killing my scores (its at 93%).  How should I lower that (I only have one active CC)?  Will a delinquent CC accept $100 payment plan for 4 months?  How do I get them to accept this offer?  GW letter?  Paying the delinquent CC will make it current and lower my scores but my util will decrease.  Please advise.  Although I have 3 accts whose SOL is in the near future, they will remain on my CR.  What affects will they having if I choose not to pay?  PFD is not an option because the money is not there.

I can see the light at the end of the tunnel.  I just don't know which tunnel to take to safely get there.  Please help.

[KevinBlock55]

Your validation of the collection with the minor most likely wont work. They may list anyone that is included on the lease. Many leases request information on minors. They wont report on his most likely. If you are somewhere stable, the apt collections can wait but most landlords running a credit check will not accept someone with a balance owing somewhere else. Otherwise, you may need to resolve these first. I would try to bring the CC current. You disclosed you've been late for a year. Try to resolve that and get that reporting OK. Keep paying the minimum on the current card and refrain from using it. Good luck

[RobertEG]

The one that jumps out at me is the CC that has been "delinquent for a year."  Of concern, not only because of past delinquencies, but the potential to become much worse.

Delinquent accounts beyond one year are entering into the realm where creditors will consider charging off the debt, and/or placing it for collection.

Are regular payments, even though not bringing the account current, being made?  That might stave off their determination that the debt has become uncollectible.....

[gottadobetter]

Thanks KevinBlock and RobertEG for responding.    My plan is to lower the UTIL on the active CC and I just read the that delinquent CCC has a program where you  can re-activate the card after paying it off.  I will be calling them to discuss that option.  Again thanks for your thoughts.