Trying to rebuild really bad credit before getting engaged...

[Anonymous]

My fiancee and I are trying to rebuild his horrible credit so that he can get a loan to buy an engagement ring.  So far, we've paid off all of his collections accounts (we know that they'll stay on the CR even though we've paid them off).  We're still disputing 2 collections accounts that are no longer current accounts with those collections agencies who reported them to the CRAs.  Here's where he stands now:

1 credit card: $300 limit (we just paid it off completely today, but he is usually pretty good about keeping the balance below 50%)

Student loans: $19,830 (not paying on these as he's still a full time student)

Credit score: 630 (according to equifax)

We just paid off 7 or so collections accounts, and are currently disputing all possible old/incorrect information.  (he had a horrible payment history previous to 2006, but has been paying all of his accounts on time since).

I have a FICO around 820 and have quite a bit of credit available to me.  I added him as a secondary on one of my credit cards today (only has a $1500 limit) in an effort to increase his score. 

I'm not sure what to do next, we are getting married in less than a year and would like to buy a house.  We are willing to do pretty much anything to boost his score.  Any advice you might be able to offer would be awesome.  Thanks!

[Anonymous]

First never dispute OLD baddies   unless they are not reporting accurate info.  It will come back verified and become current in FICO eyes!

Did you pay the collections by PFD?      If not you need to start sending GW letters.....you want them off his CR

All baddies (late pay & stuff) can remain on CR up until 7 years from the date it was late.

When possible deal with the OC instead of the CA

Always know the DOFD/DOLA  and your SOL!

[Anonymous]

I don't know his SOL (mostly because I dont know how to find a statute of limitations- is that the 7 year rule?)

and I dont know what PFD is (I looked it up but 'planet feedback' doesn't help much...)

As for the OC and CA... I did settle one account with the OC (it was a medical acount, and we then had to dispute his acount with the CA that this hospital sold the acount too-they no longer have the acount, so they told me to dispute it)  The others I settled for about 20% with the CA because the OC wouldn't do anything to help me.

[Anonymous]

AH! PFD! sorry, no not that I know of... and who do we send these good will letters to?

[Anonymous]

Ever state sets their own SOL.......IF he lived in more then 1 state.......they can use either SOL   where he lives now or in the state that he received credit!

simple SOL

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

GWs are sent to whoever was paid........they do not have to delete........this is why when dealing with a CA  you should DV first   then if they answer  you PFD

Always remember that a collection is a collection ,paid or unpaid..................never dispute these as they will update & may hurt your scores.

CRTP v SOL

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17466

Message Edited by HappyDays on 07-11-2008 06:09 PM

[Anonymous]

ok so looks like i made some mistakes here.  I disputed one old collections acount because my fiancee is claiming he paid on time, and another because he has no idea what the acount is (the acount is 6 1/2 years old) does this mean that we will have to wait ANOTHER 7 years for this acount to go away if it's seen as current now because we disputed it?

The woman I settled 6 of the 7 collections acounts was really nice and helpful (probably because I was giving her money I'm sure) but would it do any good to call her back directly and ask her to take it off of the CR completely or should I just start writing letters?  Who to i send GW letters to?

Should my fiancee apply for another credit card now as he has very low availaible credit limits or should we wait for the dust to settle from all of these disputes and settlements?

I feel like a moron...

[Anonymous]

just re-read your reply about the GW letters and who to send them to. thanks sorry!

[Anonymous]

I just checked that SOL website you sent (thanks!) and for Oklahoma (which was his state of residence for most of these acounts) it says that the SOL for open acounts is 3 years.  (5 years for promisory notes and written contracts) does this mean we can dispute anything older than 3 years?  I'm sorry I'm so lost on all of this...

[Anonymous]

After having read the SOL vs CRTP article, I'm beginning to freak out.  I settled my fiancee's acount for less than half of what he owed.  The article says they can now come after us for the rest!  Is this why I need to get them to take it off of his report altogether?  And I think I now understand that SOL doesn't mean we can dispute 3-5 year old items.  Does disputing re-activate older acounts and make the CRTP start over from the date disputed or is the 7 year mark still 7 years from the 'late payment' date?

[Anonymous]

The SoL is how long the creditor has to file suit for the debts (As others have said, they they can file whenever they want, but if it is past the SOL you have a defense).

The SOL and the CRTP have nothing to do with one another. So you are always dealing with two sets of dates.  If your fiance doesn't live in the same state as he did when he incurred the debts, you'll want to look up theSOL for the current state he lives in because the CA (collection agency) will sue using the SOL for whatever state gives them the most time to do so.

Message Edited by UpUpUp on 07-11-2008 09:36 PM