What's the best next move?

meeklo062704 · ‎02-26-2014

I acquired bad credit from a 100% commission job, but am currently in a much better situation, and trying to fix my irresponsibility from those days. I haven't received an official score, but credit karma have me a score of 614.

I have a car loan in my name that I've had since June 2011, the payments have been perfect, and it pays off this June. Then I have 5 negative trades. One is from Time Warner for $274, one is a tax lien that I am making payments on (1099 gets ya every time), then 3 medical collections. The 3 medical accounts are kind of ridiculous because it was one ER visit that they broke into 3 accounts. I tried to get them to remove the 2 small accounts in exchange for full payment, but they were quite unpleasant. So it became a judgement that I have been paying on since December.

So my concern now is that I'll have my car paid off soon, so I'll have no open positive credit, just the derogatory accounts. I was approved for a secured card from Capitol one before, but they wouldn't accept payment from my Chase Liquid card number, because they only accept from the routing number. Since I'm on a plan with the IRS now, I can open an actual account to pay the deposit on it.

My plan was to open the secured card, and use it to post the Time Warner account in exchange for removal from my CR. I'm looking for some advice or suggestions as well. Will my car look better on a report while its still open as opposed to closed and paid perfect?

gdale6 · ‎02-26-2014

@meeklo062704 wrote:
I acquired bad credit from a 100% commission job, but am currently in a much better situation, and trying to fix my irresponsibility from those days. I haven't received an official score, but credit karma have me a score of 614.

I have a car loan in my name that I've had since June 2011, the payments have been perfect, and it pays off this June. Then I have 5 negative trades. One is from Time Warner for $274, one is a tax lien that I am making payments on (1099 gets ya every time), then 3 medical collections. The 3 medical accounts are kind of ridiculous because it was one ER visit that they broke into 3 accounts. I tried to get them to remove the 2 small accounts in exchange for full payment, but they were quite unpleasant. So it became a judgement that I have been paying on since December.

So my concern now is that I'll have my car paid off soon, so I'll have no open positive credit, just the derogatory accounts. I was approved for a secured card from Capitol one before, but they wouldn't accept payment from my Chase Liquid card number, because they only accept from the routing number. Since I'm on a plan with the IRS now, I can open an actual account to pay the deposit on it.

My plan was to open the secured card, and use it to post the Time Warner account in exchange for removal from my CR. I'm looking for some advice or suggestions as well. Will my car look better on a report while its still open as opposed to closed and paid perfect?

For the tax lien file form 12277 to have it withdrawn if you qualify for it. The car loan only helps with mix of credit and with payment history, it will help both open and closed. I would app for a different secured card Cap-1 doesnt unsecure. Check out your local CUs to see if they have such a card, BoA has one that can upgrade to an unsecured.

meeklo062704 · ‎02-26-2014

Unfortunately I won't be able to get the lien off for a while. From the years where we made too much with penalties and interest, it got to around $20,000. I'm just grateful they're letting us make comfortable payments without worrying about a levy so I can actually have a back account instead of a prepaid card.

I'll probably end up going with capital one since they approved me before, and they don't report as a secured card. I also found a website that sells guitars on credit, guaranteed approval, and they report to credit upon request. So my hope is to pick up 2 good accounts, and knock off a collection in the span of a couple of months.

My 2 questions are these... My 3 collection accounts that went to judgement that I'm paying on is still showing the 3 accounts and no judgement. If the judgement shows up, will the 3 collections stay on or go away? Second, what's the best way to go about getting an account removed by paying the amount due? The Time Warner account has been in collections since 2010. I've has collections come off before in around 5 years. How common is that?