Where do I start? Please help!

[Anonymous]

I am really overwhelmed. After years of having my head in the sand during my 18 year prior marriage, I am now learning what I should have known long before.

WHile I cannot change the past, I would appreciae your guidance for now getting on track My end goal is get a modest home for my little boy and I. I'm willing to do the work it requires, but need guidance.

When I first ran my credit reports in Spet of 2011 it was around 505 (I know, really bad). I signed up for Suze Orman's package and see that the scores have moved to 588 and 618 (not good either, but better).

Here are some specific questions -

I have collections on my report from 05-09. Is it true you can cut a deal to pay a percentage of that and it still reflects well on your credit? What are the guidelines/tips for this?

I had an informal conversation with my bank (BBVA Compass) on credit (they could not pull my report) and they said the minimum score for a home is 620 with no collections AND the collections need to be 2 years old.

I feel like I have the money to pay the collections (most are credit card and medical).

I have student loans on there as well - not the guaranteed one, but the private. There are many of them, I thought they would show as just one, but this is not the case. Is there anyway to minimize this damage?

I'll stop there.

My hope was to take this year to work on my credit and save money as well. But according to Compass I would need to show 2 years of good history.

Any advise.

Thanks,

Overwhelmed Texan

[Anonymous]

Welcome to the forums!

While I don't have specific answers to all your questions, there are some really knowledgeable people who've been where you are that can help you here.

Browse around the forums, read some of the threads, and I'm sure others will respond with helpful information.

Just wanted to welcome you and encourage you to know that you won't be overwhelmed for long if you stay diligent and consistent.

All the best to you.

[MarineVietVet]

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@Anonymous wrote:

I am really overwhelmed. After years of having my head in the sand during my 18 year prior marriage, I am now learning what I should have known long before.

WHile I cannot change the past, I would appreciae your guidance for now getting on track My end goal is get a modest home for my little boy and I. I'm willing to do the work it requires, but need guidance.

When I first ran my credit reports in Spet of 2011 it was around 505 (I know, really bad). I signed up for Suze Orman's package and see that the scores have moved to 588 and 618 (not good either, but better).

Here are some specific questions -

I have collections on my report from 05-09. Is it true you can cut a deal to pay a percentage of that and it still reflects well on your credit? What are the guidelines/tips for this?

I had an informal conversation with my bank (BBVA Compass) on credit (they could not pull my report) and they said the minimum score for a home is 620 with no collections AND the collections need to be 2 years old.

I feel like I have the money to pay the collections (most are credit card and medical).

I have student loans on there as well - not the guaranteed one, but the private. There are many of them, I thought they would show as just one, but this is not the case. Is there anyway to minimize this damage?

I'll stop there.

My hope was to take this year to work on my credit and save money as well. But according to Compass I would need to show 2 years of good history.

Any advise.

Thanks,

Overwhelmed Texan

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Hello and welcome to myFICO.

All of this can seem overwhelming but my first suggestion would be to slow down and take your time and try not to do too much too soon. Trying that strategy will definitely lead to unnecessary stress. Repairing and rebuilding is generally not something that can be accomplished quickly but it can be done. I think most of us here (if not all of us) have had money and credit problems so we know full well what you're feeling.

If you are determined to get to a better place and put in the time and effort and hard work necassary then you will reach your goals. Also realiize that there will be ups and downs in your journey but it's all worth it in the end.

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 also suggest you visit the Rebuilding Your Credit board for excellent advice. Good luck in your efforts!!

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[RobertEG]

I would start with what appears to be the most damaging item... the collection.

The main thing with regard to a reported collection is that payment does not remove the collection, and thus does not improve your score.  Payment eliminates the chance of legal action to collect the debt, and thus the chance of further damage by the addition of a judgment.

Paying for less than the full amount is a financial benefit, but not a credit scoring benefit.  It will be marked as paid for less than the full amount, which is a negative mark. It is better than a review of your CR that still shows unpaid debt, but is not a "positive."  It indicates that the consumer did not pay all of their prior debt.  It is best, aside from the financial considerations, to pay in full.