Please Help! Advice and suggestions are really needed!

[Anonymous]

Hello all! I have recently been hit with a harsh reality of bad credit and truly have no one to turn to. Here is my story, I need help and advice!

I graduated college in 2011 and have not been working part time (been focusing on getting into grad school). I tried to be as responsible as possible, however my part time job made it very difficult too. I had a Citi card that I stopped paying. I thought I was going to pay off the late fees when I get a new job, however I got served with a collection notice. Furthermore, 3 students loans were in deferment. Two of them came out, which I have been paying. The Federal Direct Loan was set to be deferred from 2011-2013, however you have to re-certify it every year. Without my knowledge, the loan went out of deferment and I was 120 days past due. Lastly, I had $50 medical bill that went to collection that my insurance should have paid. 

All together I have the following negatives on my credit: 7 Direct Loans that are 120 days past due (current now, back in retroactive deferment), 1 Citi Bank collection for $2000 (all paid off now), 1 $50 dollar medical bill collection (paid off, with a letter stating they will reverse the reporting), and 3 30days late payments from Chase (from 2011/2012). Before I paid the Citi collection, medical collection, and made the 7 direct loans current, my score was at 579. I think since I paid the 2 collections and the 7 direct loans are now current, that should raise my score.

The information really freaked me out. I am going back to school in August, and will be taking out student loans. I am deathly afraid that I will not be able to obtain loans (even with a cosigner) and there goes my dreams. I have talked to Lexington Law today, and I am considering using their $79 a month service for them to send out dispute letters on my behalf. 

Please help, should I use Lexington? What should I do? 

Thank you! 

[Anonymous]

First advice would be to stay away from any agency that claims that they can repair your credit. You will just be flushing money you could use to help yourself. There is a ton of good information in the Rebuilding your credit forums on how to accomplish some cleanup and move forward. Be careful in disputing accurate information in your reports as that will not help in the long term (and that's all these credit repair firms do).

The negative items will remain on your report for 7 - 71/2 years unless you can convince them through "Goodwill" to remove them. See the repair forum for info on that. The good news is there is life after credit mistakes as many of us can attest. It just takes work and time. I was in your same type shoes about five years ago and I used the info on these forums to get back on track. The hurt of negative information fades and as you build positive information on your reports it gets better.

The fact that your student loans are being taken care of is good. There is a "rehab" program for them that will take care of the negative info. I am not familiar but again you can find all the information in these forums. Other than that opening secured credit cards and becoming an authorized user on good accounts of someone else will start you back on the right track.

Welcome to the forums, Now continue your education here and become a master of credit.

[llecs]

+1

[Anonymous]

How can I take off the 120 day past due on my Citi card (went to collection and I paid it off, but collection is not on the credit report)? Also, how can i take off the 120 day past due on 7 Direct Loans? I did not know they came out of deferment. 

Goodwill letter? 100% Validation of credit? Please help! 

[Shogun]

I would start with a GW letter.