topic What more can I do....? in Rebuilding Your Credit

What more can I do....?

jleigher — Fri, 08 Jun 2012 23:57:16 GMT

This is my first post, I am really hoping to get some friendly advice on how I can get my scores higher.

I am attaching photos of my situation to hopefully get clear responses but here are the bullet points:

Bankrupcty filed in 2004
Two collections for medical stuff I have no clue as to what they are
Student loans paid on time (38k)
Car loan (new) paid on time (15k)
Secured CC with $56 balance on report (currently paid off) that had a couple months of late payments and therefore a flag is shown

I want so much to buy a house. I have stable income and long term employment. Do I just have to wait for the bankruptcy to fall off?

Scores EQ 621 TU 634 EQ 584(potentially FAKO?)

Thanks in advance for any assistance or advice.

Thank you!!!

Re: What more can I do....?

LIGHTNIN — Sat, 09 Jun 2012 00:11:12 GMT

Hi and Welcome to the forums

Start with pulling your FREE CR's from (ACR) annualcreditreport.com. they tend to have more info on them, then ones from a 3rd party.
The CR's from ACR, come directly from each of the CRA's. You can pull 1 Free CR from TU,EQ and EX every 12 months.

This way you can find out, who the OC is for the medical CA's.

When did the lates happen with your CC?

Re: What more can I do....?

jleigher — Sat, 09 Jun 2012 00:13:33 GMT

Ohh ok, I'll do that!!

Nov/Dec 2010, Dec 2011, Jan 2012

Re: What more can I do....?

jleigher — Sat, 09 Jun 2012 01:55:20 GMT

Thanks for your advice Lightnin! I found the address and phone number of the collection account for $53 and paid it...but assume it will stay on for 7 years? The second one is paid, but has a date of 2008...I assume it's going to stay on there for 7 years...?

I don't know of anything else I can do to raise my credit. :-/

Re: What more can I do....?

llecs — Sat, 09 Jun 2012 02:02:23 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.

I'd send GW letters to CapOne asking them if they wouldn't mind removing the lates.

Either send PFD letters to the CAs or contact the medical office and ask them to recall the debt in exchange for a payment. Some medical docs are open to that.

Re: What more can I do....?

jleigher — Sat, 09 Jun 2012 03:03:40 GMT

Awesome feedback, thank you!

I have completed the GW letter for Capitol One and tracked down an address for the medical doc. I can't find a phone number online but hopefully I can find it. Any suggestions on what I should do if the doc office is no longer in business? Do I just pay the debt to the CA?

I'm off to read more, but one more question: for the paid CA account is there some kind of GW letter you can send asking them to remove the record earlier than the 7year SOL?

Thanks!

Re: What more can I do....?

jamie123 — Sat, 09 Jun 2012 03:56:02 GMT

You need to get some credit cards reporting. Even if you can only get secured cards, you need to get them NOW! Three cards would be best.

MAKE SURE YOU ALWAYS PAY THEM ON TIME AND IN FULL!

DON'T RUN A BALANCE!

And a question if I may?

How in the heck did you allow a credit card to go into default with only a $53 dollar balance in the first place?

Re: What more can I do....?

jleigher — Sat, 09 Jun 2012 05:12:35 GMT

Well, I'll do nearly anything to raise my credit, except acquire more credit cards....it's a philosophy thing.

The CA is not a default on a credit card, it's a medical bill that I didn't know I had until I ran my credit today...and it's paid off as of today to the OC, so maybe the collection will fall off my reports.

Thanks for your input and for the question, if it were a defaulted CC it would be a very valid question to ask.

As for the lates on my Secured CC...well, this is not to excuse, but I had two trains of thought that were way off:

Thought 1: A secured credit card doesn't really affect my credit score; its secured, so it isn't something tied to credit worthiness...

Thought 2: If I can't pay the whole balance, don't pay anything (obviously tied into #1)

Had I known then what I know now, the stupid $15 a month minimum wouldn't have been given a second thought. *big deep sigh.

Re: What more can I do....?

rckstrscott — Sat, 09 Jun 2012 07:06:36 GMT

@jleigher wrote:
Well, I'll do nearly anything to raise my credit, except acquire more credit cards....it's a philosophy thing.

The CA is not a default on a credit card, it's a medical bill that I didn't know I had until I ran my credit today...and it's paid off as of today to the OC, so maybe the collection will fall off my reports.

Thanks for your input and for the question, if it were a defaulted CC it would be a very valid question to ask.

As for the lates on my Secured CC...well, this is not to excuse, but I had two trains of thought that were way off:

Thought 1: A secured credit card doesn't really affect my credit score; its secured, so it isn't something tied to credit worthiness...
Thought 2: If I can't pay the whole balance, don't pay anything (obviously tied into #1)

Had I known then what I know now, the stupid $15 a month minimum wouldn't have been given a second thought. *big deep sigh.

I hear you badly want to buy a house! Congrats! Big step, I just did so myself. I had 19 collection accounts, 2 judgments, a tax lien and no credit in Oct 2010 and I just closed, so it is totally doable! When is the timeframe?

Collection companies can and will continue to report even if you pay the OC. There is nothing against that, the only thing they have to report is the $0 dollar balance. You might want to contact the OC and see if they will request the collection company remove the listing. They get their commission regardless of if you pay the OC or them, so you may have luck.

If you have already paid the other collection, yes, GW letters may do the trick, Who are the collection companies in questions? We might have some contacts to help you out, thats kinda what all of us do around here anyway. I got 16 accounts removed one way or another, so I may personally even have a contact for you.

Capital One is kinda silly with GW requests. How old are the lates? And what kind of lates? if they are only 30 day lates, they stopped impacting your credit score after 2 years. How old are the late payments?

-scott

Re: What more can I do....?

LIGHTNIN — Sat, 09 Jun 2012 13:18:24 GMT

@jleigher wrote:
Awesome feedback, thank you!

I have completed the GW letter for Capitol One and tracked down an address for the medical doc. I can't find a phone number online but hopefully I can find it. Any suggestions on what I should do if the doc office is no longer in business? Do I just pay the debt to the CA?

I'm off to read more, but one more question: for the paid CA account is there some kind of GW letter you can send asking them to remove the record earlier than the 7year SOL?

Thanks!

I believe you meant to say CRTP (Credit Reporting Time Period). In the beginning here, I was confusing SOL with CRTP also.

I know all of this info is alot to take in, but the more you read the more you'll understand it. For me, taking notes helped.

CRTP and SOL are two different thing.
CRTP has to do with CR's. SOL has nothing to do with Credit reporting,it's the legal side of a debt.

CRTP (credit reporting time period) is the length of time an item reports on a CR.
Most negatives stay on a CR for 7yrs, CA's stay for 7.5 yrs, Starting from the DoFD.

SOL (Statue of Limitations) is the legal time limit a creditor has to sue and win. Most states it's 3 to 6 yrs, some states it's longer.
You can Google, to find your states SOL. But be careful..
As you know, not everything on the web is correct, use a reputable source to gather your info.

Once a debt is passed your states SOL, you can use passed SOL as a defense.
Also check your state laws, in some states, the SOL can be re-set by a payment or written acknowledgment, etc.
A creditor can still try to collect on a debt forever or until paid.

Re: What more can I do....?

llecs — Sat, 09 Jun 2012 23:34:31 GMT

@jamie123 wrote:
You need to get some credit cards reporting. Even if you can only get secured cards, you need to get them NOW! Three cards would be best.

MAKE SURE YOU ALWAYS PAY THEM ON TIME AND IN FULL!

DON'T RUN A BALANCE!

And a question if I may?

How in the heck did you allow a credit card to go into default with only a $53 dollar balance in the first place?

IMO, 3 CCs makes up the minimum base for a great credit mix. OP indicated that he/she is getting a mortgage. I'd advise against adding more if OP were to get the mortgage inside a few months. Otherwise, I think he/she would benefit by adding a couple more. I don't think OP indicated to us when they wanted a new mortgage.

As mentioned, OP's CC didn't default. He/she paid late. But in being on here, I've seen several stories where a poster let a small balance CC default. That's usually due to shelving the CC with a $0 balance, and forgetting about an annual fee.

Re: What more can I do....?

jleigher — Sun, 10 Jun 2012 00:52:53 GMT

thanks Lightnin! I know a few of these acronyms will get me in trouble until I get it down. Great explanation

Re: What more can I do....?

jleigher — Sun, 10 Jun 2012 00:56:41 GMT

llecs -

At this point, I am just saving money for a down payment for a house and waiting for my credit score to be high enough to qualify for a mortgage. I tried in March and was told my median credit score at that time was too low to get a loan (571). I could probably have a lender run my credit again to see if their score matches the scores I've pulled for myself but I wanted to do everything in my power to rebuild my credit before going that route. I can't say I have a goal as to WHEN I'd like to buy a house but a dream would be in the next six months.

Thanks for all the advice, this board is pretty great.