topic Re: Non traditional college grad - a few problems in Rebuilding Your Credit

Non traditional college grad - a few problems

Anonymous — Mon, 11 Jul 2016 15:50:52 GMT

Short version of my story: went to school starting in my late 20s. Already had bills and an adult life, but the transition to school brought my annual income from about 35k to about 15k. In the last few years I have had several missed payments, several collections and many new student loans. I have recently graduated and am earning a solid income of about 70k / year gross. I have about 1400 a month in expenses between rent/loan payments. i currently have about 65k in federal financial aid, and no other debt. I have 5 collections equaling about 2500 dollars total. I currently am on my folks credit card which had a high revolving balance (around 85 percent) and have an on time payment history of approximately 85 percent. I am trying to determine the best route to getting back on track. Obviously my collections should be paid. They are all legitimate collections. Should I attempt a PFD or simply make the payments and attempt a GW letter after? If so, should I pay in full or attempt to settle? I assume it would be wise to take my name off of the credit card with high utilization? It's not my debt and my parents have no problem taking my name off. Finally, I have been approved for a Capital One secured credit card. I have the option of sending a larger deposit for a larger credit line. Would this be advisable?

/novel

Thanks in advance for any help!

Re: Non traditional college grad - a few problems

Anonymous — Mon, 11 Jul 2016 17:27:38 GMT

I would get the cap one secured with small limit, 300-500. After 6 mos or so it will be given a 300 increase. Then app for BOA secured. Cap One wont unsecure but BoA will. In another 6 mos app for capone unsecured and close secured capone. Leave BoA to unsecure on its own.

Search your charge off and collection agencies here to see if any do pay for deletes.

Re: Non traditional college grad - a few problems

RobertEG — Mon, 11 Jul 2016 17:39:48 GMT

Are your federal student loans curretly delinquent, or have they been returned to paid as agreed, good standing?

If delinquent, you should look into rehab of the loans, which can, upon successful completion, result in removal of the derogs.

Additionally, derogs on federal student loans do not become excluded under the normal credit report exclusion periods until the loans are returned to good standing.

Re: Non traditional college grad - a few problems

Anonymous — Mon, 11 Jul 2016 18:49:11 GMT

Thankfully all of the student loans are in good standing as they were in deferment

Re: Non traditional college grad - a few problems

Anonymous — Mon, 11 Jul 2016 19:18:20 GMT

@Anonymous wrote:
Thankfully all of the student loans are in good standing as they were in deferment

You need to establish your own cards - as stated above, Cap One would be a good start.

Re: Non traditional college grad - a few problems

MrsCHX — Mon, 11 Jul 2016 19:21:55 GMT

If you gross $70k (~$5800/mo) and have $1400 in fixed living expenses, you should easily be able to pay off that $2500 within 2-3 months, no??

First, research. Neither of my collection agencies that had accounts would acknolwedge a PFD offer. No one sent me any written communication, yet both deleted the trade lines after I paid. One I settled for 50% and the other (medical) I had to PIF. But my scores increased 30+ points with the removals.

After you see how the collection agencies that hold your accounts operate (from info here on MyFico), I would call them up, ready to pay in full. If they settle, great. If not, pay the bills and move on.

If they don't agree to delete in exchange for full payment, pay them anyway and then try to ask for goodwill deletions later.

Re: Non traditional college grad - a few problems

Anonymous — Mon, 11 Jul 2016 19:57:17 GMT

Yes, two months is my timeline for having all collections paid. I appreciate all the advice. I have looked up all companies and only 3 have info listed online. 1 has a couple successful tried so I guess I will give it a shot. My biggest collection is for 1200 for a credit card charge off a couple years ago. From all my reading, this company does not do PFDs. Am I better off paying in full or trying to settle for a lesser amount?

Re: Non traditional college grad - a few problems

RonM21 — Mon, 11 Jul 2016 20:20:26 GMT

@Anonymous wrote:
Yes, two months is my timeline for having all collections paid. I appreciate all the advice. I have looked up all companies and only 3 have info listed online. 1 has a couple successful tried so I guess I will give it a shot. My biggest collection is for 1200 for a credit card charge off a couple years ago. From all my reading, this company does not do PFDs. Am I better off paying in full or trying to settle for a lesser amount?

I would try all of them though, regarless of success rate that you find. You have nothing to lose and won't know if you don't try. If you can PFD, that is what I'd do first, because if they agree, it is the quickest result. If after a few tries it doesn't work, then the GW deletion method that you mentioned can be tried.

Re: Non traditional college grad - a few problems

Anonymous — Mon, 11 Jul 2016 20:37:10 GMT

Should I try calling a few times for PFD or letters. I don't want to waste months of correspondence when paying it off sooner can start the repair process?

Re: Non traditional college grad - a few problems

gdale6 — Mon, 11 Jul 2016 23:29:23 GMT

@Anonymous wrote:
Should I try calling a few times for PFD or letters. I don't want to waste months of correspondence when paying it off sooner can start the repair process?

Trying to get a PFD by mail is the gold standard, something in writing is always preferred but not all will put it in writing and if they wont then you would want to try to make the deal over the phone. A verbal agreement is just as good as one in writing. I would try one set of letters by mail and if no response then try by phone.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519