Hello everyone
I've been lurking for a few weeks and have read alot of useful information regarding rebuilding credit and dealing with colleciton agencies.
I used to have a credit score of 790. Made all my payment on time, very financialy responsible and purchased a home at the age of 22. I was excited and proud of all the hard work. Fast forward to when I opened my own business. Ran it for about 2 years then made a decision to close it. I ended up getting behind on my payments, could not afford to pay for certain things so that I can continue to pay for my mortgage. I got back on my feet and got a job. I'm still paying my mortgage and student loans but my credit cards went to collections.
I do not know how to handle the collection agencies. I want to rebuild my credit to what I used to have it at. I'm getting denied for cards, my credit score is so low and puts me down because I feel tied up. I don't have the money to pay in full but I do make a salary. I'm also applying as a firefighter to departments and they pull credit scores. I am concerned that I will be denied a job because of my credit score.
My credit score 580
credit cards
Capital One - $4000 - Charged off
Zales - $2200 - Collections - I did not admit to this debt but the rep said he can settle at $1500 at $75 a month.
Barclays - $1500
ATT Uverse - $700 - Collections by Enhanced Recovery Company - Can I dispute this? Old 2014 cable bill.
This is what I owe and need to fix. I want to be able to rent an apartment by the end of year and tired of having my score in the 500's. Any help or advice would be appreciated guys.
Should I have a family member add me as an authorized user on one card? Apply for a secured card?
@Creditaddict wrote:
credit cards
Capital One - $4000 - Charged off
Zales - $2200 - Collections - I did not admit to this debt but the rep said he can settle at $1500 at $75 a month.
Barclays - $1500
ATT Uverse - $700 - Collections by Enhanced Recovery Company - Can I dispute this? Old 2014 cable bill.
This is what I owe and need to fix. I want to be able to rent an apartment by the end of year and tired of having my score in the 500's. Any help or advice would be appreciated guys.
Should I have a family member add me as an authorized user on one card? Apply for a secured card?
Zales can settle even lower... Offer them 30% of balance ($660) with pushing most likely you can get it if not very close... I would not settle for more than 50%.
Same with the rest.
Thanks! I tried a few times with the collection company that bought the debt from Zales. They would not budge from the original $2200. They wanted a lump sum. Then after being transferred a few times, one person said $1500 at $70 a month. Do I just offer $660 and see where it goes from there? Would they be able to do $660 with monthly payments?
@CH-7-Mission-Accomplished wrote:You only owe $8400 total. You can probably settle for 33% so less than $3,000. How much is your monthly salary?
Try to get a pay for delete on these and settle them one by one and offer 25% and settle for no more than 33%.
It doesn't matter if you dont pay them in full. Just get them settled so they stop updating.
And if you get an AU account, get one from like your grandma or something. An account that's been open for 20 years and is always paid in full. And then get a secured Visa through OpenSky for $200. They do not pull credit and it's only like a $29 annual fee and no BS fees.
By settling these collections and getting three revolving cards and a share secured loan or a loan from self-lender you should be well into the 600s on FICO scores.
Thank you for your response. My monthly salary is $2400. I'm trying to knock them out one by one. so far only have 2 in collections. The cap one has not hit collections yet. Just says charged off. I'm more concerned about that one. I've had that card for 10 years and is the highest amount. I tried applying for secured card with them but they mentioned that I have an unpaid debt with them and could not approve me.
As for opensky. I'm looking into that now so that I can atleast establish some credit. My credit report currently says no credit card percentage since they all charged off.
I'm just curious: why do you want to be able to rent an apartment if you are already a homeowner?
@austingal wrote:I'm just curious: why do you want to be able to rent an apartment if you are already a homeowner?
When I bought my home it was for my family. I Wanted to provide them with a home so that my mother does not pay rent the rest of her life. So now I want to work on my credit so that I can purchase a property for myself in the future or rent an apartment for now with my fiance while we build our credits and save for a home.