Not sure where to start Help :)

[Anonymous]

Ok, some of you may have seen my other post where I asked a couple of questions. Those have since been answered and I have pulled all 3 reports.

To say the least, Im lost, I do not even know where to start. So any and all help would be very much appreciated. When I was younger I was not very smart with the credit decisions I was making. Some of the issues I've experienced was indeed my fault, no doubt, some where not so much. (work related)

I have been working on rebuilding my credit a little bit. Back in January I spoke with mortgage lender and she told me I was real close to being where I needed to be. She said within 6-9 months Id be where I needed to be if id do a couple of things. She suggested for me to get a secured credit card which I did and pay it on time. I done that in February and have made every payment on time. As a matter of fact the latest Ive paid has been 6 days early. And in July I purchased a car. I did have to get a higher interest rate but figured it would be a way of establishing credit too. I have since made two payments and both on time and both more than the minimum amount (by about $20.00). Well I thought since it being the 9 month Id try again but went with another lender, one suggested by a good friend. After trying I was told that I was not where I needed to be she sent me to Rising Point Solutions. (She is well known and trusted in our town too.) So they guy from RPS called me and we somewhat went over my info. He gave me my scores and those are 571, 577, 591 but did not tell me which score went with the corresponding agency. He told me that I was not far from where I needed to be and for the price of $300 to start and $139 a month within 4 months I could be where I needed to be in order to purchase our first home. I told him ok, let me do some research and talk it over with my wife and I would get back with him today. Well, I started doing some research and that’s how I come across this awesome place. And have realized that I can do the same things they can do (I think). He mentioned that there was a couple of things on my credit report from someone with the same first name as me, but a different last name. He also advised me that paying old debts made no sense. He used the comparison that its kinda like being bailed out of jail. The crimes already committed or something. Which struck me kind of oddly. Since I have pulled my reports, I don't seem to see the difference in the two last names. I do have one thing on there that I have no idea what it is and honestly believe that its not mine. There are about 11 things Id like to have removed. If i post a few scanned pictures, would you all be willing to give me some advice on where to start and how to start it? I take full responsibility for being a moron. I do, but I don't want to be a moron anymore and get my credit to where it should be. Im a good guy...... I think lol

Here is what I have as revolving credit that.

Capital One Secured Credit Card. Credit limit of $300.00 Balance rite now at $191.82. Fixing to make a payment of $100.00 after making a payment of $100.00 on Thursday. (I didn't know of the 10% rule or guide line)

Car loan through Santander. Its paid up and nothing is due until the 29th of next month.

Covington Credit. Small loan company. Not sure if these are good to deal with or not, but it paid up and not due until the 8th. I have had this loan for a couple of years, but refinance it every 4 months or so. (have since learned these are not as good as I thought to build credit)

Security Finance. Small loan company. Not sure if these are good to deal with or not, but it paid up and not due until the 8th. I have had this loan for a couple of years, but refinance it every 4 months or so. (have since learned these are not as good as I thought to build credit)

Thanks for any help. We really want to purchase a home. We were hoping to do it by our anniversary which is Friday. (10 years of marriage) Which now I know we can't, but hope to do by March of next year.

[Anonymous]

[Anonymous]

[Anonymous]

[Anonymous]

[Anonymous]

Most of those balances are relatively minor.  Put together a list of the debts and sort them by the smalest amount owed and the most recent activity.  It looks like most of your bad items are within the past 24 months so the best thing would be to pay them off in exchange for getting them removed.

There's no harm in contacting all of them and paying the ones that accept your offer.  However, do not send money or make a payment over the phone to any collection agent who REFUSES to back up their offer in writing.  Do not pay without a written letter from them accepting your offer.  Don't let them rush you - you have plenty of calls to make.  If you want to save time, just send every debt collector a letter instead.  If they want your money, they will respond.

But be aware of debt collection tricks and laws.  You do not have to legally agree to anything they say.  You do not have to legally accept their offer as "final."

Keep in mind that the most important part of your objective is to get these items removed - vanished - in return for payment.  These balances are very small and with time, you can make it all go away.

And when you get your first house, remember the hell you went through to get where you are.  Have fun.

[Anonymous]

TY Dapper. So I should pay what I can and disreguard what the guy from RPS said?

[Anonymous]

If I were in your shoes, I'd look at getting collection acounts removed asap. I'd start with the cheap ones and go from there.  I'd play hardball at first since there is some time to play... if they won't delete, won't put anything in writing, then pass them up and work on the next one.

Now, you can use that approach or you can attack the ones that have the highest balance against the actual account credit limit.  I have a similar situation, but my balances are in the several thousand dollar range.  Basically, any balance reporting over the credit limit is bad news.  So you can go for the cheap debts first or you can go after the ones that are likely anchoring you down the most.  There's no assurance that either approach will be better than the other.  I read on this site that for every 10% reduction you make on your balance, your score will go up 5-10 points.  In your case, you are over 100% like I am.  Ideal FICO scores have total debt on credit cards at 1%-9%.  So take that information knowing that you need to pay these accounts to make them go away.  You might get more bang for your buck if you are able to delete not only any collection you pay off, but you're eliminating the ones that have are more than 100% over your limit.

Based on what you uploaded, it looks like most of your items are over the account limit.  Find the cheapest and most recent and attack!  Don't fall for any tricks - make sure they agree in writing before you give them money.  DO NOT give any checking account informtion over the phone.

Don't give up.  Most of this is easier said than done.  Be persistent.  You're with one with the money, they will take it if you take a firm and professional tone.  Don't get worked up if they try to push your buttons.  If they get to you, just hang up and call later - you'll likely end up getting someone else to talk to.

[Anonymous]

Awesome info Dapper. TY for that. I shall get started first thing in the A.m then.
I just wish I would have been more aware as a young man as to what I was doing.

[Anonymous]

Just remember that I'm only providing advice.  I'm not an expert at this by any means.

Also, if you have really old debts, they might be outisde the statute of limitations (SOL) in your state.  For some states, it's 3 years.  If you call a collection agency and acknowledge the debt, you reaffim the debt and reset the clock - this means the debt becomes valid again.  If it's older than the SOL, do not even accept the fact that you owe them money.  Some users on this site would consider that to be shady advice but you never really know who they work for...

So whatever you do, if the debt is outside the statute (SOL), don't even bother with them unless you absolutely have to.  Keep in mind that the bad items within the past 24 months have the strongest influence on your score.

Keep reading up tonight about collection accounts and paying them off.  This site has everything you need.