Where to start?

[skakid812]

Hello everybody, I've been lurking for a while, trying to gain as much insight as possible and finally decided to post.  After much research and reading, I still want to seek advice from the forums because it seems like there is tons of experienced people here.  I'll try to keep it short.

I'm 22 years old, my current scores arent too close to each other.  I did the myfico score and transunion score.  Fico was 535, and transunion was 603.  Thats where I stand, I want to go over what makes those scores real quick, because its really not that much.

Credit cards:

Old Navy visa:  Basically tricked into getting when I was 18 (thought I was signing up for 15% off and had a choice to decline if approved) ended up using it for college kid needs and racked it up.  Had absolutely NO idea about credit and scores and all that jazz so I just let it go for 90 days.  They kept calling, I didnt care.  I do now.

Express credit card:  Same thing basically, let it get to 60 days past due.  Kept getting calls. 

HHgreg credit card: Both my parents and I had this one, let it get 30 days past due due to misunderstanding.

Auto loan:  Bought my first brand new car at 19, never missed a single payment. period.

Collections: Had absolutely NO idea this was even a thing until it popped up on one of the scores, just said "collection" and the clinic where it was from.  I had some medical issues a while back and I thought insurance wrapped it all up.  I literally was shocked when I saw this, because I never recieved ANY phone calls or mail pertaining to the issue.

So thats basically it, 3 credit cards that went past due and tanked my score.  I'm trying to do as much as I can to rebuild at this point.  I'm guessing being 22 is going to create an issue as well?  The oldest credit line is 3 years old.  I just want advice on how to move forward.  Should I even bother sending all three credit card companys good will letters?  Because Old Navy is closed completely (by them) so I'm not even sure if it matters.  And I have NO idea who the collection agency is.  I have taken strong initiative to improve everything financially now (after the fact of course) and I am making great money, just want to fix the damage.  Any insight is appreciated. 

[guiness56]

Welcome to the forums.

What to do will depend on how those accounts are reporting. 

Have they been charged off or sent to collections?  Are they reporting a balance or no balance and say transferred/sold?

Do you know what the statute of limitations for debt is in your state?

Were you over 18 when the medical happened?

Where did you get the reports, myFICO?  If so, go to annualcreditreport.com and get a free report from each CRA.  You get one every 12 months.  These reports are directly from the CRAs and are much more detailed and accurate.

[skakid812]

I already pulled a annual score a while back so I cant do that again.  I'm looking at my experian right now...

Express credit card: 

It says its open, payment status is current, but past due 90 days, and shows the high balance, as well as the limit.

It was on time for a full year, and then had the late payments.  I just recently paid off the entire balance of this card.

HHGreg shows the same thing as the above

Old navy says current/closed and in the comments it says 'Credit line closed-grantor request-reported by subscriber'

It shows the collection agency address and balance, still have no idea what it is.  It shows the last three months as red/not paid even though I've yet to get any calls or mail.  I dont know the statue of limitations in my state (TX, just moved) and I was over 18 during medical issue. 

[skakid812]

Also, the collection agency is FAC/NAB and I have the address, like stated before I have NO idea what this is even for.  Should I write a dispute letter?

[guiness56]

Send them a DV letter.

[guiness56]

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@skakid812 wrote:

I already pulled a annual score a while back so I cant do that again.  I'm looking at my experian right now...

Express credit card: 

It says its open, payment status is current, but past due 90 days, and shows the high balance, as well as the limit.

It was on time for a full year, and then had the late payments.  I just recently paid off the entire balance of this card.

HHGreg shows the same thing as the above

Old navy says current/closed and in the comments it says 'Credit line closed-grantor request-reported by subscriber'

It shows the collection agency address and balance, still have no idea what it is.  It shows the last three months as red/not paid even though I've yet to get any calls or mail.  I dont know the statue of limitations in my state (TX, just moved) and I was over 18 during medical issue. 

---

As long as they have not been charged off or sent to collections, it is the late payments that make them negtive.  Those lates will come off 7 years from each occurence.  When the last one is gone the accounts will turn positive and stay for up to 10 years from the date closed.

SOL in TX is 4 years across the board for all types of debt.

CAs cannot report late payments.  They can just report the worst delinquency of the OC account.

[skakid812]

So what would my best option be for the credit cards?  Express is paid off and done (didnt close it though) should I just keep trying GW letters until they delete the lates? (a stretch I know) Old navy and HHgreg still have balances on them which I am paying down.  And the collection agency, I think I'm going to write them a DV letter.

Also I forgot to mention, I recently traded in my car (the one I paid for 3 years) for another vehicle.  The dealership was going to pay off that loan, it still shows on my credit report though.  It shows paid and everything, but its showingi as "open and current" and obviously makes my entire balane a lot more than what it actually is.  I emaiiled the company of my new vehicle, and they said to contact the ORIGINAL trade in car financial services, does this sound right? 

[guiness56]

If you just did the trade in it can take up to 90 days for it to report correctly.  If it doesn't update by that time, yes, contact the original dealership.

Yes, continue with the GWs.

Get the 2 closed ones paid off as soon as possible.  They are still factoring into your overall utilization until they report a 0 balance.

[skakid812]

Yes its been longer than 90 days it was trade in late March, I'll call tomorrow.  As far as paying off the two closed cards... should I wait until they are completely gone before applying for a secured credit card?  

[guiness56]

What do you mean by completely gone?  You mean excluded from your CR?