topic Re: How should I plan to rebuild my credit? in Rebuilding Your Credit

How should I plan to rebuild my credit?

AhhKuhPrich — Tue, 30 Jan 2024 22:19:03 GMT

Long story short, early 2018 I had good credit and 730+ and I had life changing things happen and let everything go delinquent. Fast forward to today and I want to turn everything around but dont know how to start or where to start. Items below are on my credit profile.. Thank you all in advance. I earn about $5,500 a month. Monthly expenses is about $3,300 a month. Rent, Food, Utilites, Car, Insurance and ETC all included. (Gas for the commute to work as well). So I have about $2,200 a month I can put towards my rebuild. I bank with Navy Federal if this makes any difference.

Current Scores: 525 Fico average, not sure it is even worth posting

Open accounts:

Auto Loan $42k 72 Months @15.7% opened April 2023

NFCU NRewards $0/$750 Opened December 2023

NFCU Pledge Loan $900/$1,000 1 Year Term, Opened December 2023

AU on Target Red Card $200/$1,300. Added on December 2023 (Card has been open since 2004 no delinquents)

Charge Offs:

Wells Fargo CC $5,879 DOFD: 07/2018

Pen Fed CC $17,259 DOFD: 09/2018

AMEX CC $1,388 DOFD: 10/2018

Wells Fargo LOC $5,516 DOFD: 12/2018

Wells Fargo PL $4,559 DOFD: 12/2018

Lending Club Loan $4,190 DOFD: 12/2018

First Premier CC $943 DOFD: 02/12019

Discover CC $4,460 DOFD: 02/2019

Car Max $4,279 DOFD: 01/2020 (co-signer)

Toyota Financial $5,536 DOFD: 08/2020 (co-signer)

First Premier CC $572 DOFD: 06/2022

Collections:

Calvary Portfolio Services

Citi Bank CC $2,122 DOFD: 04/2019

Jefferson Capital Systems

Verizon Wireless $2,528 DOFD: 05/2019

LVNV Funding LLC

Web Bank Finger Hut $2,952 DOFD: 07/2019

Credit One Bank $613 DOFD: 02/2020

Midland Credit Management

Syncrony Bank $3,763 DOFD: 02/2019

Portfolio Recovery Associates

Citi Bank N.A. $4,738 DOFD: 11/2019

Capital One $895 DOFD: 10/2020

Credit Collection Services (I owe, but was told i owe a balance from 12 months ago at the time, so just moved on)

All State $495 DOFD: 09/2022

All State $127 DOFD: 09/2022

All State $95 DOFD: 09/2022

Re: How should I plan to rebuild my credit?

WarCulture — Tue, 30 Jan 2024 22:58:11 GMT

Hey, I just wanted to say welcome to the forums, and good luck on your rebuild. With patience you'll achieve all you're after.

I actually feel intimidated looking at your details, I would hate to give you bad advice for your circumstances, but a guru will come through!

Good luck!

Re: How should I plan to rebuild my credit?

JoeRockhead — Tue, 30 Jan 2024 23:23:53 GMT

Sorry for your troubles and welcome to the forum. When it comes to rebuilding, it takes time, and a lot of it. Given the amount of debt you have I'd strongly recommend you speak to a bankruptcy attorney at your earliest convenience.

I did it the other way and I paid for it for much, much longer.. Went 10+++ years cash only. Not that I advocate BK, but it would give you a much quicker path to recovery, not to mention probably some peace of mind.

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Tue, 30 Jan 2024 23:34:17 GMT

Thank you for the kind words. After what I went through this is nothing. But I am not taking it lightly. I want to get past this chapter.

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Tue, 30 Jan 2024 23:38:18 GMT

I have nothing planned for the next 3 years or so. And maybe I can wait on things to fall off. But if I can knock things off slowly I would do it. And not sure about bankruptcy. Seems like a headache just researching it. But if it is what everyone recommends I would look further in to it. It's not much of a stress mentally as I was dealing with other matters. Thank you!

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Tue, 30 Jan 2024 23:45:43 GMT

To add. I do have about $8k saved up as an emergency fund.

Re: How should I plan to rebuild my credit?

Traveler101 — Wed, 31 Jan 2024 01:13:54 GMT

@AhhKuhPrich wrote:
To add. I do have about $8k saved up as an emergency fund.

In a bk there is a wildcard exemption. I forget how much it can be. Life can get in the way sometimes. It's not pretty. I've rebuilt after bk, as well as many many folks. The stress, the worry, and the fact that they can seek judgments against you and really make your life a horror story. Talk with a bk attorney. Tell him about your funds for emergency. Compile a list of all of your creditors and get yourself on a smooth road.

There have been some folks who have been lucky enough to keep a cc open and survive a bk for length of history. I would possibly try and keep 1 or 2 that have no balance. I'm no attorney. I suggest you reach out to one.

It can be a slow go rebuilding. But your peace of mind is far more important. There are plenty here to help you advise on how to get yourself rebuilding. Best of luck to you.

Re: How should I plan to rebuild my credit?

coldworld — Wed, 31 Jan 2024 01:17:57 GMT

@AhhKuhPrich wrote:
Long story short, early 2018 I had good credit and 730+ and I had life changing things happen and let everything go delinquent. Fast forward to today and I want to turn everything around but dont know how to start or where to start. Items below are on my credit profile.. Thank you all in advance. I earn about $5,500 a month. Monthly expenses is about $3,300 a month. Rent, Food, Utilites, Car, Insurance and ETC all included. (Gas for the commute to work as well). So I have about $2,200 a month I can put towards my rebuild. I bank with Navy Federal if this makes any difference.

Current Scores: 525 Fico average, not sure it is even worth posting

Open accounts:
Auto Loan $42k 72 Months @15.7% opened April 2023
NFCU NRewards $0/$750 Opened December 2023
NFCU Pledge Loan $900/$1,000 1 Year Term, Opened December 2023
AU on Target Red Card $200/$1,300. Added on December 2023 (Card has been open since 2004 no delinquents)

Charge Offs:
Wells Fargo CC $5,879 DOFD: 07/2018
Pen Fed CC $17,259 DOFD: 09/2018
AMEX CC $1,388 DOFD: 10/2018
Wells Fargo LOC $5,516 DOFD: 12/2018
Wells Fargo PL $4,559 DOFD: 12/2018
Lending Club Loan $4,190 DOFD: 12/2018
First Premier CC $943 DOFD: 02/12019
Discover CC $4,460 DOFD: 02/2019
Car Max $4,279 DOFD: 01/2020 (co-signer)
Toyota Financial $5,536 DOFD: 08/2020 (co-signer)
First Premier CC $572 DOFD: 06/2022

Collections:
Calvary Portfolio Services
Citi Bank CC $2,122 DOFD: 04/2019

Jefferson Capital Systems
Verizon Wireless $2,528 DOFD: 05/2019

LVNV Funding LLC
Web Bank Finger Hut $2,952 DOFD: 07/2019
Credit One Bank $613 DOFD: 02/2020

Midland Credit Management
Syncrony Bank $3,763 DOFD: 02/2019

Portfolio Recovery Associates
Citi Bank N.A. $4,738 DOFD: 11/2019
Capital One $895 DOFD: 10/2020

Credit Collection Services (I owe, but was told i owe a balance from 12 months ago at the time, so just moved on)
All State $495 DOFD: 09/2022
All State $127 DOFD: 09/2022
All State $95 DOFD: 09/2022

What is your current income? There are a lot of derogatories here that will take time and a lot of money to help. Bankruptcy might be the best option at this point. You should definitely consult a bankruptcy attorney. In the meantime, take a look at the "bankruptcy" section of these forums. Good luck!

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Wed, 31 Jan 2024 01:27:38 GMT

I will definitely look for a bk attorney. Thank you.

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Wed, 31 Jan 2024 01:28:34 GMT

I make about 80-90 thousand annually before taxes.

Re: How should I plan to rebuild my credit?

Zoostation1 — Wed, 31 Jan 2024 03:12:53 GMT

So adding it all up it's just under $70k and definitely worth speaking to a BK attorney. It's also worth mapping out the path of paying the debt off (in full in some cases, maybe settlements are an option for others). A chapter 7 will stay on your report for 10yrs and many of those lenders will not let you back in if you include them in bankruptcy and never pay back (Amex, Citi, PenFed, often but not always Discover to mention some). I'm not a financial counselor but would suggest talking to one first (many will do free consults and some will negotiate on your behalf with creditors). After you have that information then you can speak to an attorney and have a better feel for whether BK is the the right option or not.

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Wed, 31 Jan 2024 04:11:53 GMT

My plan was to start with getting all the collection accounts settled first, while some of the charge offs are going to come off throughout 2025? After 2025 I will only have 4 charge offs to deal with. So I can work on the collections this year, and more then likely start working on some charge offs. Like AMEX, Discover and maybe Citi Bank. I'm seeing it as deal with BK for 10 years or go with this idea and be better in 2 years. Or am I looking at it wrong?

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Wed, 31 Jan 2024 17:10:18 GMT

Update: Spoke with three BK attorney offices, and they said they don't recommend BK since majority of my accounts are past the 4 year Statue of limitations? I'm in California.

Re: How should I plan to rebuild my credit?

coldworld — Wed, 31 Jan 2024 18:15:35 GMT

You may be outside of the statute of limitations for being sued, but it sounds as though there is no realistic prospect of you paying back these debts in a reasonable timeframe. Just because they wouldn't recommend a bk, that doesn't mean it would be the better option for you. If you don't mind me asking, what is your approx. age?

I have never filed bankruptcy, so I am ignorant when it comes to the process. I would suggest taking your original post to the "Bankruptcy" section of the forums and solicit some advice there.

Re: How should I plan to rebuild my credit?

AhhKuhPrich — Wed, 31 Jan 2024 18:46:27 GMT

I am 33. I can clear up my collections which totals 18k. I can save for it in about 6 months time. Would it be best to clear all the collections and wait for everything else to drop in 2025... then settle the last 3-4 that I have left in 2026.. or don't pay anything and just wait. I have no plans to purchase anything big.

but I will post in BK for more precise help.

What should I do?

AhhKuhPrich — Wed, 31 Jan 2024 18:51:26 GMT

UPDATE: I did reach out to a few BK attorneys, and they didn't recommend BK due to being past SOL in CA. So I plan to at least settle all collections then wait for everything else to drop in 2025 and be left with 3-4 charge offs in 2026 and worry about that stuff in 2025. But 2024 I take care of collections. Or should I leave everything alone wait for them to age out. I have no big plans til 2026. Thank you.

Current Scores: 525 Fico average, not sure it is even worth posting

Open accounts:

Auto Loan $42k 72 Months @15.7% opened April 2023

NFCU NRewards $0/$750 Opened December 2023

NFCU Pledge Loan $900/$1,000 1 Year Term, Opened December 2023

AU on Target Red Card $200/$1,300. Added on December 2023 (Card has been open since 2004 no delinquents)

Charge Offs:

Wells Fargo CC $5,879 DOFD: 07/2018

Pen Fed CC $17,259 DOFD: 09/2018

AMEX CC $1,388 DOFD: 10/2018

Wells Fargo LOC $5,516 DOFD: 12/2018

Wells Fargo PL $4,559 DOFD: 12/2018

Lending Club Loan $4,190 DOFD: 12/2018

First Premier CC $943 DOFD: 02/12019

Discover CC $4,460 DOFD: 02/2019

Car Max $4,279 DOFD: 01/2020 (co-signer)

Toyota Financial $5,536 DOFD: 08/2020 (co-signer)

First Premier CC $572 DOFD: 06/2022

Collections:

Calvary Portfolio Services

Citi Bank CC $2,122 DOFD: 04/2019

Jefferson Capital Systems

Verizon Wireless $2,528 DOFD: 05/2019

LVNV Funding LLC

Web Bank Finger Hut $2,952 DOFD: 07/2019

Credit One Bank $613 DOFD: 02/2020

Midland Credit Management

Syncrony Bank $3,763 DOFD: 02/2019

Portfolio Recovery Associates

Citi Bank N.A. $4,738 DOFD: 11/2019

Capital One $895 DOFD: 10/2020

Credit Collection Services (I owe, but was told i owe a balance from 12 months ago at the time, so just moved on)

All State $495 DOFD: 09/2022

All State $127 DOFD: 09/2022

All State $95 DOFD: 09/2022

Re: How should I plan to rebuild my credit?

markbeiser — Wed, 31 Jan 2024 20:37:22 GMT

@AhhKuhPrich wrote:
Update: Spoke with three BK attorney offices, and they said they don't recommend BK since majority of my accounts are past the 4 year Statue of limitations? I'm in California.

You are a bit far down the road for a normal BK to shorten your time in credit virtual jail.
You are basically on the path for what I like to call a "Chapter FU BK," where you just ignore everyone that doesn't sue you, and wait for it all to fall off your report. From personal experience with doing it that way, I don't recommend it.

It looks like a lot of it will fall off your reports by the end of next year.
It may be best to just not communicate with collectors for those debts, and concentrate on trying to get the newer ones resolved so you are not in the "dumpster fire" credit category for another 5 years.
Any of the newer collections you can get to do a pay for delete would really help you, especially if you can get all of the new ones off.
Dealing with the newer ones will also help keep from being sued.

I think you are looking at a 5ish year path to clean score cards.

Re: How should I plan to rebuild my credit?

RSX — Wed, 31 Jan 2024 20:50:52 GMT

sorry to hear about your troubles

i would start with these 3 since they are small

call and offer 50% of the outstanding amount - if they don't agree, pay them anyway, since the amounts are small, and they aren't super old

Credit Collection Services (I owe, but was told i owe a balance from 12 months ago at the time, so just moved on)

All State $495 DOFD: 09/2022

All State $127 DOFD: 09/2022

All State $95 DOFD: 09/2022

Next take care of these ones - since they Pay for Delete (LVNV and PRA)

call and offer 50% of the outstanding amount - if they say no, hang up and call them a month later, offering 50% again

LVNV Funding LLC

Web Bank Finger Hut $2,952 DOFD: 07/2019

Credit One Bank $613 DOFD: 02/2020

Portfolio Recovery Associates

Citi Bank N.A. $4,738 DOFD: 11/2019

Capital One $895 DOFD: 10/2020

i think that will be a good start and get some progress rolling for you

good luck to you!

Re: What should I do?

pizzadude — Fri, 02 Feb 2024 18:04:56 GMT

Hi @AhhKuhPrich , I've merged this thread in with your discussion in Rebuilding forum as it sounds like you've decided BK is not on the table.

Re: How should I plan to rebuild my credit?

PilotTerry — Mon, 20 May 2024 03:47:13 GMT

@AhhKuhPrich

Your post is very helpful to see how you're going after this.

@RSX Your notes here are very helpful regarding Portfolio and LVNV.

My wife and I both need to pay for delete with them, and from your experience I'm encouraged that this may be possible. Thank you.

How about Jefferson Capital?