22yr old, FAKO 530, where to start?

[Anonymous]

Hi, I am a 22 yr old single mom in college trying to get my lfe together.  Currently staying with my parents. 

I have a credit karma score of 530.  (I got denied for a credit card and it said my score was 560, but I think my credit karma score was taking into account the pull)

I have never had a credit card.  The only loans I have are from being in school right now (so I don't have to start paying on those for a couple years) which aren' that much.

However I have a really bad credit report because I have no real credit history outside of medical bills.  I have about $1,100 in  medical bills in collectons.  The oldest are fom 2012 and the newest is from 2014.  The oldest accounts are also the largest, at about $900.

I do not have a car of my own.  I work on campus part time. I am trying to save up for a used car.  If I can get one before summer I can get a good job and start saing up some money for a down payment on a house (I am an LPN, so I could be making decent money, but with no car and my crazy school schedule and child care...I just can't really make a hospital job work right now).  I was hoping to get my own house in about two years, but with my credit score I don't see that happening.

I don't even know where to start. 

I've heard that paying off these collections wont even improve my score unless I can get them dropped. 

I don't even know what the bills from 2012 are for!

Should I just wait for the 7 year period to pass on them?

What about the more recent medical bills?  Those are smaller and would be easier to pay off.  I want to apply for a home loan before those would expire (2021).  If I pay the full amount on hose do I have a decent chance of getting them removed? 

Does anyone know how I could find out what each one is about (wihout resettng the clock on the ones from 2012?)? 

I am going to get a secured credit card but I am waiting until after the holidays.  I have seen on here that three credit cards is a good number.  However, I have also read not to open too many credit cards at once.  If I'm opening securedcards, how is the best way to space them out?

This is very frusrating for me.  Over all, I am very responsible and good with money.  Every negative mark against me is due to my healh problems, and I didn't even know I had all these bills in collections.

[Anonymous]

Welcome to the Forums!! I would suggest you get a few Capital One cards.  My wife and I got Cap 1 cards in the last few years and we both had scores in the 500s. I got mine in 2010 and she got hers last year.  It usually takes at least 3 tradelines to start seeing a good boost in your score.  You'll probably have to get a secured CC and a deposit will be necessary. I would dispute the medical collections if you really cannot recall what they are for.  My wife did this and had 3 medical collections removed a few months ago. Since you basically have no credit history, getting 3 cards in a short time won't do any more damage than has already been done.  Some people have suggested 1 a year for 3 years, some people have said just go for it.  I got 2 CC's back to back  in November of 2013 and only suffered a small hit to my score.  You can try to negotiate a pay for delete (PFD) but PFD's vary by company/creditor and they may make you ask multiple times or you may just have to get lucky and communicate with the right individual.

You can be proactive about your credit and not run from your history.  The past has already transpired so it's time to focus on the now and the future.  You just have to believe that you can improve your credit and not be too overwhelmed by the process.  Credit repair is a marathon, not a sprint. Even though we would all love it to be sprint lol. Best of luck with your credit and with school.  Trust me, in a few years of patience and prudence  you're credit will look great and you will get a great job and be amazed at how far you came.

[mochi123]

The hospital bills are killing your credit score because agencies are allowed to report them when the account is held by a collecting agency. Your best bet would be to settle them out since it goes by date of last deliquency. See if you can get ahold of the collecting agency. Rule of thumb is negative accounts do not leave your history until 7 years have past since first deliquency. Tackle the medical bills with the collectors and that will boost your score. 

While you are in college you can get a college credit card through your bank. They have a higher APR and are easier to get when you have automatic deposit with specific branch. Look for small credit unions to help you out.

[Anonymous]

Thank you for your reply.  I am definitely trying to be proactive!

Would disputing the $900 collection acount be "aknowledging" it and reseting the 7 year thing?  I ask because the largest collection account, which is also one of the ones which I don't know anythng about, is from 2012.  So by the time I have my finances ogether enoughh to buy a house it will be close to expiring. 

Yes, I plan on getting a secured card.  I would have to space them out some what because at the moment I can't afford three $200 deposits.

[Anonymous]

Disputing the account would be just that.  Once it is in collections, it can only be on your report for 7.5 years no matter what. There is no re-setting of the fall-off date clock per se.  There is nothing wrong with spacing new credit accts out by a few months or 1 a year.

[mbla]

google "hipaa process"

[Anonymous]

If you don't think the medical bill is yours, I'd first try to get them to verify it really is you and belongs on your report. If they verify, I don't think you should wait for it to fall of; many banks require you to have those collection accounts paid off before you'll be approved for a mortgage. Good luck!