topic Re: Need help, how to fix and goals in Rebuilding Your Credit

Updated: Need help, how to fix and goals

Randy2191 — Wed, 29 Jun 2022 03:35:31 GMT

Hello, I am 28 years old and never really needed/worried about credit until now.
The person I live with is dying and in order for me to stay in house, I will need a 650 TU score. Currently 537.

checking my credit and found negatives.

1. $1000 credit card from when I was in college and didn't pay will be 7 years since last payment next month.
2. $300 collections from not returning equipment to cable company. (Paid today said it should be removed 30-45 days IC system)

3. $660 collections similar as above, same company. Plan to pay next week.
4. $220 fingerhut acct that has charge off remark from 4 years ago (paid it today, they won't remove)

5. in 2019 I called to put my student loans on hold when I lost my job, and since I didn't get monthly bills like I usually would, I never thought about it, until I got a big one after they said I missed 8 payments in a row (on 3 loans) so this shows my payments at 73% made on time

what I have done to try and start to build new credit so far

1. capital one $200 secured.
2. Self inc 2 year loan $500

3. Daniels Jewelers loan $600

I plan to get another secured card, and when reading about best ones found this place, so figured I'd ask for advice, because I'm way over my head.

Re: Need help, how to fix and goals

IamWesty12 — Sat, 23 Apr 2022 21:35:22 GMT

@Randy2191 welcome to this forum and hello. I am sure you will get some top notch advice soon, I just wanted to pop in and say I think you asking for advice on this forum is truly the best step you could have taken to rigth the wrongs. You are young and willing to learn so cudos. I wish I had been more open to advice and logic from others when I was 28. You have taken a very important step in your credit future!

@Randy2191 wrote:
Hello, I am 28 years old and never really needed/worried about credit until now.
The person I live with is dying and in order for me to stay in house, I will need a 650 TU score. Currently 537.
checking my credit and found negatives.
1. $1000 credit card from when I was in college and didn't pay will be 7 years since last payment next month.
2. $300 collections from not returning equipment to cable company. (Paid today said it should be removed 30-45 days IC system)
3. $660 collections similar as above, same company. Plan to pay next week.
4. $220 fingerhut acct that has charge off remark from 4 years ago (paid it today, they won't remove)
5. in 2019 I called to put my student loans on hold when I lost my job, and since I didn't get monthly bills like I usually would, I never thought about it, until I got a big one after they said I missed 8 payments in a row (on 3 loans) so this shows my payments at 73% made on time

what I have done to try and start to build new credit so far

1. capital one $200 secured.
2. Self inc 2 year loan $500
3. Daniels Jewelers loan $600

I plan to get another secured card, and when reading about best ones found this place, so figured I'd ask for advice, because I'm way over my head.

Re: Need help, how to fix and goals

lns1976 — Sun, 24 Apr 2022 01:57:30 GMT

@Randy2191 You seem like your trying to do it all at once, I would advise slowing down. I can understand feeling in a hurry and trying to rush, but rushing will not help you build your credit. I know and understand from experience.

I would pay off the collections and stay where you are. Look up the AZEO method and follow it on the Capital One card and give it 90 days to 6 months and your score will go up and you'll qualify for unsecured cards.

As for the student loans have you tried talking to the servicer? Are these DOE loans? You might be able to talk to them and get some relief.

Re: Need help, how to fix and goals

Randy2191 — Sun, 24 Apr 2022 04:55:12 GMT

The loans are caught up now. Haven't been behind in almost 2 years when that happened, but they said they can't remove the missed payments from showing on credit, because they have to report accurately.

Re: Need help, how to fix and goals

FireMedic1 — Sun, 24 Apr 2022 09:41:47 GMT

Go to annualcreditreport.com and pull all of your reports. Look for the DoFD. Fall off date goes by DoFD and not last payment. If everything is paid in time from the past. Does the SL servicer show a bunch of 120 day lates? And how long ago. Looks like a few things may linger and hamper your quest as it stands now. List out what you posted.

Creditor/ Credit Line/Balance

Collection Agency/Amount owed

SL/Servicer/ # of lates/ Dates

Re: Need help, how to fix and goals

lns1976 — Sun, 24 Apr 2022 15:33:28 GMT

The late payments will fade, although you might research a "Goodwill" letter and try it.

TU is not the only CRA, so you want all 3 reports as @FireMedic1 mentioned.

You can also get your free Experian FICO Score by signing up at experian.com.

And is that a FICO or is that a Credit Karma Vantage Score?

Just asking as people will confuse the two where Credit Karma, Nerd Wallet, WalletHub, and many others give you a Vantage Score and don't always make it well known they are not giving you the same thing as a FICO Score.

Re: Need help, how to fix and goals

HowDoesThisAllWork — Sun, 24 Apr 2022 18:04:10 GMT

@FireMedic1 wrote:
Go to annualcreditreport.com and pull all of your reports. Look for the DoFD. Fall off date goes by DoFD and not last payment. If everything is paid in time from the past. Does the SL servicer show a bunch of 120 day lates? And how long ago. Looks like a few things may linger and hamper your quest as it stands now. List out what you posted.
Creditor/ Credit Line/Balance
Collection Agency/Amount owed
SL/Servicer/ # of lates/ Dates

Exactly what I was going to suggest. Wonder why? Ha! Ha!

Now, for all of us who have been in the forum for a bit - and for the new folks - I would like to take a second to remind everyone that we here in the US can get a copy of our credit reports from annualcreditreport.com every seven days (aka, one week) through December, 2022.

This was changed (for like the third time, I believe) as this service was to be discontinued in April, 2022 (RIGHT NOW!!! LOL). Naturally, this change in allowing weekly credit reports (vs. once a year) is due to COVID-19.

This is evedenced from the link below (none other than the FTC here in the USA):

Weekly Free Credit Reports?

Enjoy!

Re: Need help, how to fix and goals

HowDoesThisAllWork — Sun, 24 Apr 2022 18:17:51 GMT

@Randy2191 wrote:
Hello, I am 28 years old and never really needed/worried about credit until now.
The person I live with is dying and in order for me to stay in house, I will need a 650 TU score. Currently 537.
checking my credit and found negatives.
1. $1000 credit card from when I was in college and didn't pay will be 7 years since last payment next month.
2. $300 collections from not returning equipment to cable company. (Paid today said it should be removed 30-45 days IC system)
3. $660 collections similar as above, same company. Plan to pay next week.
4. $220 fingerhut acct that has charge off remark from 4 years ago (paid it today, they won't remove)
5. in 2019 I called to put my student loans on hold when I lost my job, and since I didn't get monthly bills like I usually would, I never thought about it, until I got a big one after they said I missed 8 payments in a row (on 3 loans) so this shows my payments at 73% made on time

what I have done to try and start to build new credit so far

1. capital one $200 secured.
2. Self inc 2 year loan $500
3. Daniels Jewelers loan $600

I plan to get another secured card, and when reading about best ones found this place, so figured I'd ask for advice, because I'm way over my head.

@Randy2191

Welcome to the forum.

As @FireMedic1 suggested, the recommended first step is to get your credit reports. Yes, sir! Credit ReportS! There are three:

1. Experian

2. Equifax

3. Transunion

The formatting in each is a bit different. But look for "Negative" (or, "Potentially Negative") accounts listed. Ensure that what you find - in terms of Collections and/or Charge-Off and/or Late Payments - are consistent on all three of the CRAs (Credit Reporting Agencies).

Use that (what you find in the Credit Reports) as what is actually going on. At least, in this very moment.

And then list everything out (as requested).

DofD is "Date of First Delinqency". This is a VERY IMPORTANT date when you have "baddies" (the three things that I listed above.....collections, charge-off, lates - to be clear, there are several other baddies, these three are the three that we most commonly see, though).

A Collections Account is something that you can potentially have removed entirely. BUT......there are certain things that need to be in place (depending on who the Collections Agency is and what criteria it may have. One such common criteria is that the amount to be collected be due for at least two years....so, if one of your collections is only nine months old...then they would not offer to remove it...and this "offer to remove it" is called a "Pay to Delete"). There is also a list of known Collections Agencies who are willing to play ball, and there is a list of others who are not so willing to play ball.

The Charge Off is a different animal from a collections or from a late. It is very challenging to have a Charge Off removed (read: not talking about waiting the seven years from DofD.....talking about asking a Creditor to remove it 'early'). Not impossible. But not very frequent.

Anyway, there is enough information to digest at this point.

Looking forward to that list....

Re: Need help, how to fix and goals

Randy2191 — Mon, 25 Apr 2022 05:39:30 GMT

So the $1000 credit card falls off in July of this year.

the collections show they fall off in 2023 and 2024, and nothing else different from credit karma shows but that T-Mobile pulled. Which I haven't had a account with them in 10 months so going to call them and make sure I didn't have a balance with them

but I may have messed up not thinking. It kept saying that portfolio recovery is pulling my credit. So I read you can view what Debts they have of yours by logging into their site with last name and last 4 of social. So I did and it's a account from 10 years ago when I was 18... me logging in and seeing the debt can't restart the when they can put it on my credit since it's already past 7 years right?

Re: Need help, how to fix and goals

FireMedic1 — Mon, 25 Apr 2022 09:07:12 GMT

Once again. Pull your reports. For an example. Need to know is the $1000 card paid yet? Its probably a CO. It affects your aggregate util % and is considered a maxed out card. Need more info as asked above.

Re: Need help, how to fix and goals

lns1976 — Mon, 25 Apr 2022 15:57:55 GMT

@Randy2191 EX, TU, and EQ are all giving "FREE" weekly credit reports that you can get at annualcreditreport.com until the end of 2022 right now due to Covid.

As @FireMedic1 sent you need to go there and pull "ALL 3" credit reports.

I can tell from personal experience that CK can be slow and not always show everything. CK (Credit Karma) is unreliable and the score they give you is what's called a "Vantage Score", this is "NOT" a FICO score. This is not a score banks will use nor is it a score a landlord would typically use.

You can get your 3 free reports above and you can register for a "FREE" Experian account at Experian.com and get an actual Fico Score for free.

Re: Need help, how to fix and goals

lns1976 — Mon, 25 Apr 2022 15:59:59 GMT

@Randy2191 Debt counters restart if you make a settlement or payment with them. Just viewing it doesn't reset the counter.

Check the SOL (Statute of Limitations) for suing in your state. If it's past and past the 7 years I would then look at who the OC is to whether I would consider paying it before just disputing that it should have already been removed.

Some creditors (OC = Original Credit) have a long memory and you may end up wanting to pay it just so the OC will do business again with you in the future.

Re: Need help, how to fix and goals

Randy2191 — Tue, 26 Apr 2022 17:33:06 GMT

I did pull all 3, and only the things I had mentioned before were on it, and the $1000 credit card does not show as paid , but still shows it falls off in July of this year.

Re: Need help, how to fix and goals

lns1976 — Tue, 26 Apr 2022 17:38:39 GMT

@Randy2191 You never said who the Credit Card was with. Some Creditors have a really long memory, 14+ years for some people on these forums, when they are not paid.

Re: Need help, how to fix and goals

FireMedic1 — Tue, 26 Apr 2022 19:44:57 GMT

Ok then. I'll try once more:

1. $1000 credit card from when I was in college and didn't pay will be 7 years since last payment next month. Maybe it will fall off next month as you said. Who?
2. ~~$300 collections from not returning equipment to cable company. (Paid today said it should be removed 30-45 days IC system)~~

3. $660 collections similar as above, same company. Plan to pay next week. Have you paid yet? Will they remove as the other one above?
4. $220 fingerhut acct that has charge off remark from 4 years ago (paid it today, they won't remove) Charge Off status will remain until its 7yrs from the DoFD. So 2024. A CO is ranked right under a BK. It will sting the entire time.

FICO scores dont go by payment percentages. Its either paid on time or late. I'll ask again. Do the 3 accounts show 120 lates on the SL Account? I'll ping @calyx . She knows how to handle SL's to a tee. It will be hard to reach your goal. No more cards for now. Time has to heal from the CO to the 120 lates. If the lates can get removed. Then maybe your goal might be obtainable. If you can get to just the Fingerhut CO as your only baddie. Good Luck!

Re: Need help, how to fix and goals

Randy2191 — Tue, 26 Apr 2022 19:51:29 GMT

1. It was a card through Wells Fargo

3. I haven't, I am waiting to make sure they actually remove the other one first. Didn't even discuss it with them.
4. okay so that one they won't remove, but it is paid. So hopefully that helps some?
5. Yes it shows 30 60 90 and then like 5 120s for each other the 3 loans.

Re: Need help, how to fix and goals

FireMedic1 — Tue, 26 Apr 2022 20:47:55 GMT

@Randy2191 wrote:
1. It was a card through Wells Fargo
3. I haven't, I am waiting to make sure they actually remove the other one first. Didn't even discuss it with them.
4. okay so that one they won't remove, but it is paid. So hopefully that helps some?
5. Yes it shows 30 60 90 and then like 5 120s for each other the 3 loans.

Thanks. Now were getting somewhere. Hmm. If you have the $. Call them back and say hey I'll pay the other one since you said you'll remove the first one and then both are gone. Play the game. Never know. Either way. Paid collections are not considered in your FICO 9 score/Vantage. Yes a settled CO no longer affects your aggrgate util %'s any longer. A CO with a balance is considered a maxed out closed card. So it helped getting that in the past. Lets see what @calyx has to say on the SL's. Maybe a way like rehab or whatever it is that can be done.

Re: Need help, how to fix and goals

Randy2191 — Wed, 27 Apr 2022 20:17:27 GMT

@FireMedic1 so I just paid the other collection with IC Systems off. And right after noticed experian pinged that my other paid off one updated from them, but instead of deleting it it says "paid". So I asked them and they said it takes about 30-45 days for them to take it out of their active inventory and then it will be removed from credit. Does that sound right?

Re: Need help, how to fix and goals

lns1976 — Wed, 27 Apr 2022 21:36:43 GMT

@Randy2191 I had a couple collections I paid recently that did that. Updated paid about 3 or 4 weeks prior to being deleted.

Re: Need help, how to fix and goals

FireMedic1 — Thu, 28 Apr 2022 09:56:49 GMT

@Randy2191 wrote:
@FireMedic1 so I just paid the other collection with IC Systems off. And right after noticed experian pinged that my other paid off one updated from them, but instead of deleting it it says "paid". So I asked them and they said it takes about 30-45 days for them to take it out of their active inventory and then it will be removed from credit. Does that sound right?

@Randy2191Yep. Portfolio does the same thing. First it shows paid. Then the next update is outa here. Congrats!!!!!!!!!!!!!!!!