Rebuilding girlfriends credit

[drsmith]

Where to start...

I've recently discovered my 30 year old girlfriend has been relying on her mother to pay off her debts. Sending her money every month for Student loans, car loan, etc. Only instead of doing that, her mom just kept the money and used it on whatever she wanted. Now I'm in the picture, teaching her about the importance of credit and I'm starting to realize the enormity of the hole she's in here.

I've helped a few friends rebuild their credit, but I'm in over my head. She has multiple things in collections, mystery loans out there her mother can't provide paperwork for, and I'm not sure where to even begin. Any advice on how to start the process would be appreciated.

[Anonymous]

You'll need to give us some more information regarding her credit so we can help as best as possible. I'll start by asking how many accounts does she have including CC's and loans? Of those accounts list which ones are in CO's, the original date the collection was posted, and for how much? 

If you can provide this info, we'd be able to get a better understanding so folks here can help. Best of luck!

[drsmith]

I don't know the answer unfortunately. Her mother gave her a large file folder yesterday when she asked for everything so we could make this right. I'm just finding ocassional sheets with collections information, past due notices etc.

She's at work right now, I'll have her credit report later this afternoon and can update the thread.

[thornback]

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@drsmith wrote:

I don't know the answer unfortunately. Her mother gave her a large file folder yesterday when she asked for everything so we could make this right. I'm just finding ocassional sheets with collections information, past due notices etc.

She's at work right now, I'll have her credit report later this afternoon and can update the thread.

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Have her pull her reports from annualcreditreport.com.  Much more detailed & comprehensive than those acquired from other commercial sources, includes DOFDs/Expected Drop Off Dates - so you'll have a full picture of exactly what you're dealing with.  Regulated by the fed gov, so free to pull once per year (twice in some states).

[drsmith]

Alright so I have her report now. She has multiple student loans with last reported dates as of 12/2014 that were reported as 120 days late and the account status is closed

Some that are in collections with current dates reported

As far as I can tell there hasn't been a single payment made, ever on her student loans.

I feel completely overwhelmed looking at all this. I almost thing I need to enlist the help of a professional

[TekkenQQ7]

Student loans never go away they will hunt her forever, so its time to work on that especially she can request small monthly payments if she is not making a lot of money. Loan payments will help her scores in the long run. Good luck!   

[glockrunner]

Unfortunately your gf should have never let anyone else handle her accounts and never check that things are being paid. But nonetheless,  you'll need to list all the negative accounts, amounts, how much is due, DOFD. Some things may fall off soon and better not to touch them.

As mentioned, the student loans will not go away. Try to get her into a loan rehab, you can read about it on this site. She is going to have to face this head on. It's not going to go away. 

In a couple years from now she can be on the right track.  

[Anonymous]

Student loans will never go away until PIF.  I had a student loan default 20 years ago and ended up many years later giving up my tax refunds until it was paid.  Thankfully it was a smallish loan.  The good thing is that they can be her friend.  They will work with you to make payments that are affordable.  They will report these on time payments and after time it will be a positive on her file.  Once paid it will show "paid as agreed" Mine shows no lates and paid as agreed.  It now sits in my closed account file. 

How to handle the other credit issues will depend on many factors as stated above.

[drsmith]

These are the only accounts listed that aren't student loans. Is her only option just to pay this and be done with it? Is it worth it to ask for them to delete it off her credit report with full payment? If they won't, it the estimated date this item will be removed accurate?

As for the student loans, the majority are federal loans. Does anybody have any experience with the "rehabbing" option? I've been told after six months of good payments to creditors they'll delete the existing derogs from her report.

Thanks again

[glockrunner]

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@drsmith wrote:

These are the only accounts listed that aren't student loans. Is her only option just to pay this and be done with it? Is it worth it to ask for them to delete it off her credit report with full payment? If they won't, it the estimated date this item will be removed accurate?

As for the student loans, the majority are federal loans. Does anybody have any experience with the "rehabbing" option? I've been told after six months of good payments to creditors they'll delete the existing derogs from her report.

Thanks again

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1. Contact Centron and ask if they are willing to do a pay for delete, and if they will get it in writing. Since it is such a small amount of money you can easily pay it and be done with it. If you don't pay it her scores will continue to be suppressed if it is continually reporting. It won't  fall off until 7 years from DOFD.

2. Contact whomever is now handling the student loan. Probably a collection agency. Contact them and ask what are you options of paying the loan. They should give you the option of rehabilitation. Usually you will have to pay 8-9 months of payments before your loan is not longer defaulted. Then it will be handed over to a Servicer. Only the latest negative accounts will be deleted, not the initial account that was defaulted on.