Like most others I have credit issues I am trying to fix that I don't know where to start. Here is my situation: Back in 2006 I opened a Credit card. It was a small limit $500. I was paying all my bills on time until I got into an accident at work and was out on workers compensation for the past 3 years. So that card ended up getting charged off because I couldn't pay the bill. I pulled all 3 of my credit reports and on all 3 that one card shows up (also a $59 installment account for baliys that got charged off but I paid it) I have no other credit. I am willing to pay off the $500 charged off credit card but is there a way to pay it off that it helps me/my report? Secondly now that I am returning to work and I have a large settlement from my accident my savings account has a large sum of money in it. I don't have any large sum of debit ($559 total on my report). I cannot get approved for a new credit card. I was trying to buy a car because I need it for work and the auto dealer would only approve me through "in-house" financing which comes with a large APR %. I was told that in house financing will do nothing for my credit rating, but i was unsure. Also I was trying to finance my new couch figured it help build some credit but again I got denied! I can buy my car or couch in cash but they won't give me a chance to rebuild my credit So what can I do? I need help. I am trying to get on a 3-4 year plan to build up positive credit history in hopes of getting a mortgage down the road but if nobody is willing to give me credit with this small little blip on my report and nobody "really" cares how much money I have in the bank what is one person to do?? (I actually have a credit union saving account for over 8 years but it never had more that $10 in it. Can that length of account coupled with putting a large sum of money in it now help me out any?) Any information someone could provide to get me going would be appreciative!
Welcome to the boards Stylez... I will see if i can save the experts some time and try to answer your easy ones... You asked: " I am willing to pay off the $500 charged off credit card but is there a way to pay it off that it helps me/my report?" Yes! (see below) You: "I was told that in house financing will do nothing for my credit rating, but i was unsure." Maybe, you have to ask the in-house finance company if they report. (bonus points it you ask if they report to all 3 and they say yes) You: " Can that length of account coupled with putting a large sum of money in it now help me out any?" From everything i have read... No Through this site there are suggestions for bad/repair credit cards. Begin with those, keep utilization 10-15% and make sure you pay on time. Also from what i have read, the larger national rent-to-own agencies do report on your accounts (check first), but i would take care of your prior financial obligations before I started these new ones. Once you get those "little blips" off your report you might see a better score which means a better rate. If you are willing to pay it off, you know you owe it, and are reasonably sure that everything is correct, etc. etc., (from what ive learned here) there is a letter in the 'sample letters' section of this site that covers PFD (which means pay for deletion of the record from the CRA) Try doing a forum search for PFD and see if you understand the concept, and maybe prepare your own PFD letter if you feel it suits you. now for the important stuff!!!! I am an idiot, I know nothing, my credit score sucks, and my girlfriend ran off with my ex girlfriend... that being said, do not take my advice above as gospel. I wouldnt even trust it if i were you, but, this is what i have learned from what i have read on these boards... I would suggest you so a little forum surfing and searching to see if any of this sounds correct to you. If there are any glaring mistakes, i am sure someone will correct me.
thanks for the great info. I read a bunch of stuff about PFD before I posted. It actually has led me to some more questions. Actually today I paid off the $59 Baliy's bill with the CA. I did ask for PFD but the guy on the phone said something about not being able to guarantee it and it would show up as paid. I did just authorize them to pay the bill just to be done with it seeing at it was a small $59 amount I probably messed up by doing that. I could probably renig on the payment until the agree to PFD. The other $534 credit card is with First Premier Bank. They still hold the debit (I'm assuming since it not showing up as a CA on my report just charged off) Would it be wise to do a PFD or could I try to get them to agree to remove the charge off and just show the account as paid in full? Which would benefit me more? The card was from 2006 and was paid on time for a long time until it went delinquent.
Anytime a CA says they can't guarantee something means it's not going to happen. So count on your credit reports just being updated as a paid collection, which will unfortunately do nothing to help your credit scores. For less than $100, I think you could've convinced them to delete if you pushed harder. Regarding First Premier, it would be OK if you could only convince them to remove the charge off and report the card as paid in full. That said, I would first go for a PFD every time and make sure you get everything in writing. It's less risky because you want to make sure you remove anything negative regarding this account in return for payment. Once you've cleaned up the baddies on your credit reports, get a secured credit card and start rebuilding positive payment history. You should then be able to upgrade to an unsecured card with better terms and rewards after 6-12 months or so. Do you know anyone (spouse/relative) with great credit who would be willing to add you as an authorized user on one of their oldest credit cards in good standing? That will help give your credit scores a quick boost as well.
Thank you again for the reply. My Fiance has a credit card she has had for a very long time, I can't say she has great credit but her credit is a lot better then mine. If she called the credit card company and asked to put me as an authorized user that card would end up reporting on my Credit Report also without them checking my credit?
Stylez777, It is great idea to add authorized user accounts to restart your credit profile. If you have your Fiance add you as an authorized user to her credit card make sure she has perfect payment history (no 30 day lates) and can maintain a low monthly balance, 30% or less of the credit limit. The credit card should also be at least 2 years old or it could hurt your credit instead of improve it. You can also purchase authorized users account if you don't know anyone that is willing to help you. Look up BoostMyScore.NET.
Here is an update on this situation and I'm so mad right now I put my fist through a wall. As I stated before First Premier bank is reporting I owe them $534. I do owe the card and I do want to pay it but as an above poster stated I want to do a PFD. So I call First Premier they sent the debt off to someone else to collect it (Genessis Solutions) I call them they say they sent it to someone else (NCO) I call them they say I have to call another number (NCO head office). Finally get this lady on the phone and I stated 4 time sin the conversation I do not acknowledge that this is my debit or do I have any knowledge at any point that I owed this money. I am willing to pay them the $534 if they will send me in writing that it will be deleted off my Credit report (PFD) the lady goes on to say they are not authorized to make a deal that way. I keep repeating to her I'd only pay the amount if they will delete it from my report to give me a supervisor or manager who is authorized to make this deal, she tells me nobody can they can only collect the $ that first premiere is the one who will resolve anything with the CRA's once I pay the $. So back on the phone with First Premiere bank who yet again will not deal with me and wants to refer me back to Genesis Solutions who doesn't even have my account. I ask the guy on the phone about PFD and he tells me that is not their policy they can't do that nor will they even take the charge off once I pay it. So now all this time wasted for nothing I am stark raving mad cause I cannot get satisfaction. I have seen the PFD sample letter, I am just unsure who I can send this letter too that it will make any difference?? I am not getting satisfaction through phone conversations, will a letter be any different? If First premiere won't take my money and NCO is not authorized to make a deal why should I even pay this money? This stupid little mistake is driving me CRAZY and in the grand view of things it's only $534!! people own tens of thousands and I owe this little spec of money yet they don't even want to budge?? GRRR Please please help me!! tell me what I should do!
Avoid the phone and keep all your communication with the CA in writing. Letters are often treated differently and responded to by someone with greater authority to make decisions regarding your account. Have you determined if the debt has just been transferred for collection? It hasn't been sold by FP, right?
According to when I called FP, they said it was sent to Genesis Solutions. When I called them they say it was sent to NCO. When I call them they said it's in their head office. I call there they actually say they have it. On my CR First Premier is the one reporting, there is not collection agency that is reporting the debit. It says Delinquent Charged Off. So I dunno if they sold it or not. Also I had disputed it with Equifax back in march (came back verified) so on my CR it show as Last Reported 4/2011 but for Transunion and Experian it says Last Reported 12/2010. (the card was opened in 2006 went delinquent in 2009 I believe) At this point I am trying to figure out who should actually contact with my PFD letters. the CA who isn't reporting me but want's my money or FP who won't take my money but is the one reporting me. When I know who I am sending these letters too, should I get a supervisors name and direct the letter to them or just send it to the place in general to who ever get's it. Also if I cannot get PFD is there any point in paying it? should I just leave it until it falls off my report or keep disputing it until one day it get's removed? Sorry so many questions but I just want to clear this matter up that will benefit me the most in the long run. (as of now I am building new credit using Secured CC and Secured Loan)
It sounds to me like it's been charged off and sold, but you should try and confirm that with FP. Luckily, the CA isn't reporting it on your credit reports yet. If it has been sold, you'll need to work directly with the CA that currently owns the debt to make payment. Then you'll want to try and convince FP to remove the charge off after you've paid it, but that can be difficult. They don't have to do anything since it was a "charge off" for them. Are you trying to clean up your credit now for a specific purpose? Do you have a timeline you're working within?
Deleting First Premier is a nightmare outside of litigation. You may want to take a look at your credit reports and look at the "Pay Status" and "Date of Last Activity" with First Premier. I'd at least dispute those two specific fields. If they do not mark them as being "disputed by consumer", you have a violation of the FCRA. As to Bally's, well they have been BK'd for a long time, but someone and somewhere verifies their tradelines. Paying that will actually lower your scores, but hey, we all live and learn. When they update the "date of status" or "date of last activity" to reflect the date you made payment, dispute it through the credit reporting agencies. That could lead to deletion and if not, again, FRCA violation. As for the debt purchaser that owns First Premier, if it is indeed NCO, send them a letter telling them you are retaining counsel and intend to sue them for failing to provide you verification pursuant to the FDCPA and they will not report and they will sell it off or send it back to the debt purchaser. Finally, have whoever add you as an Authorized User to any and all revolving accoungs; i.e., they are willing to. Make sure they're aren't any major dings such as 60 day lates in the last two years, but really, at this point you need credit and that is the best way to increase your scores.
The only solution I can see is to get a pre-paid credit card to help build your credit. Time will eventually heal most of the wounds, so my best advice is to be patient. I have waited 10 years to be able to buy a house because of situations beyond my control. It is not the end of the world. Live a simple life and be happy. You will overcome this!! Eventually the statute of limitations will eliminate the debt from your report.
Just as an FYI- there really is no such thing as a prepaid credit card, and prepaid debit cards don't help build credit. Are you referencing a secured credit card?
