topic Re: Starting the journey in Rebuilding Your Credit

Starting the journey

Anonymous — Sun, 26 Feb 2012 05:20:16 GMT

Hi everyone. Although I have been reading and learning on this board for a while I figured now is the perfect time to make my first post. Over the past year I have spiraled out of control. Had to find odd jobs just to pay car insurance and health insurance "just in case" (I have never been sick or anything in my life that would require health insurance knock on wood). Well I have finally started a job that my extremely qualifed resume helped me out with. I will now have well more than enough money per month to get back on track as well as full benefits. With this new job I should be completely debt free by September of this year. My credit score is rock bottom at 525...all of my accounts have not been touched/paid in at least 8 months.

I currently have:

Capital One $2,400

Amex: $2,500

Visa: $800

Macy's: $800

Verizon : $2000

Student Loans: $3,000 and $14,000

Chase: $1,100

With that said I can go back to paying more than the minimums on all of my accounts. Even though they are all deliquent and are in collection agencies I do not know where to start. I was just going to write checks and send some money with some of the old invoices that have been piling up. I am shying away from paying each off all in one shot because I would rather have it show that I pay timeley each month rather than have the history gone. I also want all of these negative marks to eventually be deleted. So my question is do I write letters first to all of the accounts saying I am back on track and can pay off everything in full over x amount of time? Do I just resume sending checks each month like nothing happened? Or do I not do anything until I get in writing that they will comply with removing the bad marks.

Any help would be greatly appreciated. I know you all have seen 100's of these threads but maybe someone can help. This board is a great peer group and hopefully I will learn the correct way to approach this climb out of the hole I put myself in.

Thanks in advance!

Re: Starting the journey

corymcd88 — Sun, 26 Feb 2012 05:26:03 GMT

@Anonymous wrote:
Hi everyone. Although I have been reading and learning on this board for a while I figured now is the perfect time to make my first post. Over the past year I have spiraled out of control. Had to find odd jobs just to pay car insurance and health insurance "just in case" (I have never been sick or anything in my life that would require health insurance knock on wood). Well I have finally started a job that my extremely qualifed resume helped me out with. I will now have well more than enough money per month to get back on track as well as full benefits. With this new job I should be completely debt free by September of this year. My credit score is rock bottom at 525...all of my accounts have not been touched/paid in at least 8 months.

I currently have:
Capital One $2,400
Amex: $2,500
Visa: $800
Macy's: $800
Verizon : $2000
Student Loans: $3,000 and $14,000
Chase: $1,100

With that said I can go back to paying more than the minimums on all of my accounts. Even though they are all deliquent and are in collection agencies I do not know where to start. I was just going to write checks and send some money with some of the old invoices that have been piling up. I am shying away from paying each off all in one shot because I would rather have it show that I pay timeley each month rather than have the history gone. I also want all of these negative marks to eventually be deleted. So my question is do I write letters first to all of the accounts saying I am back on track and can pay off everything in full over x amount of time? Do I just resume sending checks each month like nothing happened? Or do I not do anything until I get in writing that they will comply with removing the bad marks.

Any help would be greatly appreciated. I know you all have seen 100's of these threads but maybe someone can help. This board is a great peer group and hopefully I will learn the correct way to approach this climb out of the hole I put myself in.

Thanks in advance!

What is Verizon and Visa? What cards?

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 05:27:48 GMT

Verizon was my cell bill and the Visa was a chase card

Re: Starting the journey

annielorie — Sun, 26 Feb 2012 05:29:13 GMT

Hello Long islander1 Im from Long Island myself. First of all don't pay anything just yet. If your not an organized person get to it. Things you will need. Binder. Collect all of the overdue letters and collection actions that you have at this moment. Next get all three credit reports as well as Innovis. That is your start. It is a long and tedious process but rest assured it can be accomplished. Slow and steady...and real polite wins the race. I'll give you a list in about 30 minutes. Don't fret ANNIELORIE

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 05:39:15 GMT

oh I forgot to ask..should I even bother getting one of those Orchard bank credit cards? I know the limit is only 200 and the initial fees are like $90...but I can use it just for like $20 of gas a month to show i am using credit and paying it off every month...or should I pass on that?

Re: Starting the journey

corymcd88 — Sun, 26 Feb 2012 05:48:02 GMT

@Anonymous wrote:
oh I forgot to ask..should I even bother getting one of those Orchard bank credit cards? I know the limit is only 200 and the initial fees are like $90...but I can use it just for like $20 of gas a month to show i am using credit and paying it off every month...or should I pass on that?

I would give it a try you never know you may get a card that you don't need to put any money to. Try soon Capital One is going to tack them over soon. I have one in less the 12 mounts I got a CLI of $150.00 I know it is not much but better then nothing. You don't know what you will get when you merge over to Capital One.

Re: Starting the journey

annielorie — Sun, 26 Feb 2012 05:53:50 GMT

Longislander1 are all the credit cards closed and were you late on all the last eight months

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 05:54:02 GMT

i just tried..its a 200$ min deposit after you send the application. that can wait...

Re: Starting the journey

annielorie — Sun, 26 Feb 2012 05:57:31 GMT

still there??

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 05:59:53 GMT

yea all of the accounts are closed..i hadnt made any payments in the past 8 months

Re: Starting the journey

annielorie — Sun, 26 Feb 2012 06:02:30 GMT

okay you need to know what they are all reporting on your credit reports have you pulled them yet?

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 06:05:44 GMT

yes all 120+ past due..only 1 was a charge off...

Re: Starting the journey

annielorie — Sun, 26 Feb 2012 06:09:14 GMT

are all the accounts at collections or still with credit card companies

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 06:10:30 GMT

all in collections...some nastier than others...

Re: Starting the journey

annielorie — Sun, 26 Feb 2012 06:17:51 GMT

You should first contact by phone original creditors and try to appeal to their sense of goodwill. There are alot of options. Not trying to blow you off but have early day tommorow. I promise ill send you a note with step by step instructions. If your persistent it is possible to get the deliquencies off and hopefully maintain some of the credit that you had 8 months ago. Ill chat with you in am .

Re: Starting the journey

llecs — Sun, 26 Feb 2012 06:24:38 GMT

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

OP, I'd mail each PFD letters. If after an attempt or two with each, I'd pay it off and GW later. If you opt to settle, get it in writing.

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 06:32:46 GMT

thanks for those links...I assume all responsibility and will pay all of them in their entirety. Just needed to know the steps to know that I wont be paying them off and then the original creditors never speak to me and help me out when I need them off my report.

Re: Starting the journey

llecs — Sun, 26 Feb 2012 06:50:54 GMT

That's what PFDs are for. You are asking in writing from them an agreement that they'll delete in exchange for paying it off (either PIF or offer a settlement; either way the end result is the same...deletion). They don't have to accept. AFter a couple of tries with each, I'd then either PIF or get a settlement offer in writing to pay at a lesser amount. I wouldn't spend too many weeks/months PFDing them because the interest will rise and lates will be added and it exposes you to a CA or even being sued in some cases. On your list, CapOne are nearly impossible to get a PFD with (I'd PIF now). Chase is open. Verizon is a mixed bag. Amex is patient. I've seen success with MAcys. Not sure on your Visa or SLs.

Re: Starting the journey

Anonymous — Sun, 26 Feb 2012 06:53:50 GMT

they are all in collections as of right now...and capital one did try to sue me until I settled with their collection agency that i would pay them back in full.

Re: Starting the journey

Anonymous — Wed, 14 Mar 2012 01:08:06 GMT

Hi. Not to butt in ...I just wanted to add to the good advice...I have worked for every Main Credit Card except Discover...I'm currently in card collections too..now what happens (for most cards) is once your account is 4 months behind it gets suspended or closed. Then once it gets to the last dat of that 7th month...it either stays as an "in-&ouse" write off...or goes out to those agressive 3rd party collections...but at this point there is not any more late fees or intrest accruing on your accounts!!! But each collector...(like me for instance!) But I'm not the FAKE lawer calling with court threats!

Buy the way representing like an atterny who threatens legal action over a debt like. Credit card is aginst the Fair Debt Collections Practice Act...it is ILLEGAL! But many crooked 3rd party collection company's actually get away with this because the NAME of the collection company....just their NAME is something like...."The Law OFFiCE of Jones, Salas, and Burk!..." its not even a law office! Or they may use the term " our FIRM". Its crap and they can't. Make u pay one dime. ....what I sugest for you...look at the dates of these debts.....then look at the amounts....pay them in full!!

From MOST RESENT to OLDEST! That way your old debit that's been on your credit for 5 or 6 years...its about to go away on its own....but your new issues starting with last WEEK then last month then back more....if you pay them one buy one IN FULL! You saved your current credit items paid off your items for the past ....let's say...2-5Years....then your old stuff will roll off...you need to pay in full and ask them to take off some of the late fees! Once an account is past that 7th delinquant it is wasting the time of the company and not making them anymore money! So most of the time they still try to get the full Bal but are actually able to waive up to one late fee per month that you got hit with! Look at it like this a late fee of 35.00 on a 300.00 crapy credit card over the 7 month time frame I mentioned earlier would show that you OWED 545.00....the collector will always follow the same aproach that we are trained! TRAINED to do...1st ask for the BIF (balance in full). Unless you just got a big check, died, filed for bankruptcy, or got into a Consumer Credit Counseling...then you don't have that much...2nd.

We try to break up that full bal in to 2 payments...most of the time that don't work either. So we then try 3 payments which. Using the 545.00 amout looks like. 3 payments of 182.00 looks ok could do it...but maybe not you may be out of work and getting a tax check so you figure you will try and catch up....you are upset with that 545 amount because you only. Truly charges 150 and paid an activation fee of 100.00 and a one time processing fee of 50.00...so you tell me howunfair that is...you didn't spend all of that...then I remind you that we called you many many times to see if we could work out a hardship plan or offer a way to get you caught up....BUT YOU DIDN'T WANT TO RETURN THE CALL...cause you didn't have any money...so you ask me for a settlement!!!! THAT is SOOOOO bad!

A settlement shows the credit beur that YOU Had a 545.00 owed debt! And didn't pay it all...you paid a percentage of the FULL 545.00 ...we always start high...90 % would be 490.50...hey looks like I took a little chunk of you debit...maybe you want to try and convience me to make it even lower...so I look at either 85% or just skip down to 80% so it appears a lot came off...80% would be 436!! Or 75% 408.75...see that seems way down so you take it...now you just agreed to not pay the full debt. And it gets reported ...you will not ever get credit from that crapy card company again cause you really kind of still owe...However...Get those fees reversed instead! I had said earlier up to 1 per month that you were late...that could be 35X how long you have been behind...say 7 months...that is. 545-245=300!! And that's not a pmnt plan and definaly not a settelment...BALANCE PAID IN FULL! You credit can be restored with that company....but you just have to convience your collector to waive fees! Tell them a settlement is not an option!

But as I said before...start with you most current and go back...don't start making small pmnts with an old debt..you actually end up keeping listed as past due for longeron you credit report....10 closed past due accounts on payment plans like 19.00 a month for a year adds up to228 for that 6ear plus you still go back to reg pmnts a chance to RE-fall past due...see 545.00 - 228....is still a bal of over 300...you didn't even cut that in half! And that was just on card of say 10...I'm sure they wouldn't be exactly the same...the balances and rates will very...but if all 10 are like this "exsample" then you just payed around 200 a month to still be in debt with the same companies...But if you applied that 200 to one account. For 2 months and got a few late fees waived...then Paid in full on you credit report.

On account is done with and by the years end you plucked at least 5 pastdue delinqant accounts and theyshow PAID IN FULL! I'm sorry I wrote you a book.....really....I had a death in the fam...and just can't sleep right now...so this gave me something to do....I truly hope you just print this and take a calcuelator and look at how credit companies present making you a deal and giving you a break.....then look at how it CAN be done! Waive late fees! No Settelment ever! Pay one account off at a time because after 7th month of late no more fees are being added! This is what I know with credit Cards! Not other bill types...funny...ill tell you now 18 years of card services for several major credit card companies and I DO NOT WANT ONE OF THOSE everagain! Let me know what you think...