Advice for new comer.

Discussion in 'Credit Talk' started by OS1, Oct 10, 2001.

  1. OS1

    OS1 Member

    I've just begun to take control of my financial life, my credit is the worst I've seen: at least 10 derogs, two liens, one repo, a Student Loan and the list goes on. Luckily I've found this board and have learned quite a few things about the credit game. I've learned to live creditless for 5 years now with the exception of Car loans at the highest interests available. I have managed to receive a credit card and pay it off entirely every month although I'm not sure if this is a good thing or not because I would hate for this credit card company to cancel my card because they are not making money on me. I've also paid a credit repair company $350 for nothing. I've learned my lesson! I've been "clean" for five years with the exception of my repo which was due to a car accident, and inadequate insurance not covering an overpriced vehicle which was all I thought I could qualify for at the time.

    Our main goal is to clean up my credit and establish hers in order to buy a house.

    My wife on the other hand is new to this country and has an opportunity to establish excellent credit. the problem is that she does not know where to start. I started by paying off my Bally's account in full in exchange for an excellent rating. Then had more credit than I knew what to do with. What I'm asking is for advice or if possible a road map to excellent credit for her.
    I'm hoping that by the time I clean up my credit hers will be well on it's way. We would like to by a house in July of 2002 when our lease is up. I know I'm probably asking for too much but at this point in my financial life any help is appreciated.

  2. bbauer

    bbauer Banned

    I kinda hate to get blatently commercial, but I see that you said you had had your fill of credit repair companies having paid them $350 for nothing.

    I'd like to ask you to look over some of the posts others have put up about me.

    You might also want to look over my website.
  3. matty61184

    matty61184 Well-Known Member

    I've never dealt personally with Bill, but from what I have read about him and seen of his credit knowledge, it would be a very good move for you to consult with him. Good luck in getting your credit back into shape!
  4. romanduv

    romanduv Well-Known Member

    I can tell u about building your wife's credit.

    First you should add your wife as a joint account holder to your existing cards, but only those with perfect payment history. Failing that, make her an Authorized User on those accounts, though it is debatable if that does any good.

    She should have at least 2 cards in her name to start with. From my experience, I recommend a Cap 1 secured card: It reports as unsecured, and within 3-6 months u can get the annual fee and security deposit back. U can also get her a retail card like a target or macy's card. I've heard macy's doesn't require a credit history in some cases, only proof of residence.

    In 6 months, apply for citi AAdvantage cards (look up the countless threads that deal with that). She'll have her first platinum card then.

    Don't forget to charge something every month on all her cards, and you should pay in full to avoid any finance charges.

    Hope this helps,
  5. OS1

    OS1 Member

    Thanks for the advice!
  6. author_22

    author_22 Well-Known Member

    Your credit is far from the worst.

    My mother has 17 derogs and 7 judgements and only 2 positives.

    Trying to clean it up now. She paid them all eventually so leverage to delete is long gone.

    I definitely advise secured cards. My personal story is that when I came here, I had 4-6 derogs on each report. Today I have 4 TU, 1 EX, and 4 EQ. Slowly rebuilding and I hired Bill Bauer to help get rid of those derogs. Luckily I only paid one of them.

    I immediately got a Target, Orchard, and secured Sterling and bank accounts at Wachovia. The trick was putting everything into dispute so I would get approved for Target and Wachovia (Sterling is guaranteed and Orchard is pretty lax)

    Two months later, in September, I went into dispute mode again and applied for a Citibank, got approved, then got approved for a second card, combined them into one, and then got another. I also have FCNB secured and 2 Capital One cards, and an AMEX LOC.

    A lot of it has to do with the fact that my derogs are 3-5 years old and very small in amount ($28-400, most $28-100) I also am an advocate of Planet got me CapOne cards and a charge off mess straight (LONG story, search the old threads), it might get me less interest on Citi, it got me more credit on Orchard, and I am trying now to see if MBNA and Chase will reconsider me) AMEX will not budge on their card denials, but I will persevere one day soon.

    A key is to NOT go blow a bunch of inquiries applying for cards you will very likely NOT get. Sam and I are the inquiry leaders I think (EQ?) ;) and we can tell you what NOT to apply for.

    Any questions, this is the best place to ask. First active and useful board I found, and believe me, I tried.

    Welcome and good luck. A warning: it will likely become a day and night obsession :)

  7. rubyjean

    rubyjean Well-Known Member

    You would need at least 5 Years of established Revolving credit with Prime Credit cards. Before you would be able to get an approval from MBNA or Chase. A Sears Card would also help as that is considered a prime trade....
  8. KHM

    KHM Well-Known Member

    inquiry deletes

    When I dispute the inquiries with the CB am I better off doing a few at a time or all at once?
  9. OS1

    OS1 Member

    Thanks for the advice, It is greatly appreciated. I've looked at Bill Bauer's site and will be considering his service in the near future, however for now I want to get as much cleaned up on my own, this is also a great learning experience.
    I just tried to refinance my car with in September and was declined, this updated my credit report which in turn triggered a few collections letters. I'm currently in the process of sending validation letters, I'm still not sure which method is best, I've seen the nice letter play dumb approach, and have also seen the "I DEMAND VALIDATION' letter with specific mention of FDCPA violations not to mention letters demanding that an attached fill in the blank checklist be completed as verification of debt. I'm not sure which approach to take.
    From what I've read I have a few good things going for me. Thanks for the words of encouragement. Good luck with your Mothers credit, which reminds me, I have to call mine.


  10. bbauer

    bbauer Banned

    I think the best approach in validation letters is to use the KISS principle.
    Keep it simple, stupid.

    I think that the less info you give them in a validation letter, the better. In fact, I overplay that just a bit on purpose. I don't even give them any info about the account or myself. I just say they have been trying to collect an account I am supposed to owe and I demand they validate it.

    I keep the whole validation letter down to one full page. Then I sit back and watch the violations start rolling in.
  11. Quixote

    Quixote Well-Known Member

    First of all, Congrats on deciding to take charge. It's a big step. If you're anything like me, you'll knock off a lot of the low hanging fruit quickly, but then still have a bunch of stuff left. BTW, you thinks yours is bad? So far, on my own, I've removed over forty derogatories and twenty five inquiries between my wife's credit reports and my own. That was the low hanging fruit. They didn't put up any fight at all. But a bunch of them did. and that's where you have to make a choice. What happens when they push back? You'll find a number of theories here in this site, some of them reasonably well thought out, and which would no doubt work fine. But as you research it (and I would encourage you to do that) you might just come to the same conclusion I did. This Bill Bauer guy knows what he's talking about. He's not sending out false statements (which are against the law, BTW) to the CRA's saying, essentially, "Yuh, Uhhh!" which is what most of the other services I've run across are all about. He's got the next five or six steps planned out at any point in the game. And jeez, there's only so many hours in the day; how much time do I want to spend on this stuff anyway? I've got a wife, a kid, a boss, and a shih tzu to keep happy. For what it costs to engage Bill's services (which is really more of an assisted or directed self service mdel, BTW), well, I get that back just in the time saved (many times over), not to mention that I'm much more certain of success, and I'm still directly involved in the process. I haven't turned over my destiny to him.

    As you no doubt have gathered, I signed up with Bill; just last week, in fact. We're off to a blazing start and I'm very optimistic of success. I'll keep posting as I see results.

    Whatever you choose; Good Luck!
  12. bbauer

    bbauer Banned


    Thanks for your testimonial, but just since Sunday, I've added something that will knock your socks off.

    I truly believe that this is the most potent weapon ever to emerge in the field of debt repair. And of course, if you fix the debt, the credit repair becomes easy for the simple reason that since the debt no longer exists, the credit bureaus have nothing to report against you.

    Here it is. Under the law, the creditor is legally liable for the violations of the 3rd party debt collector who violates your rights!!!!

    Once informed that the 3rd party debt collector has seriously violated FDCPA and your rights, you can bet he is going to be burning up the phone lines demanding that the debt collector get it fixed and get it fixed quick or else.

    So now I can make the creditor help you beat the debt collector he hired to beat up on you.

    The debtor has always been the "worm" in debt collections, but now the worm has turned and can bite back hard if his rights have been violated. Much harder than ever before.

    Thanks again, Quixote
  13. Erica

    Erica Well-Known Member

    My validation letter is as follows:

    This is a letter in reference to your recent reporting of a delinquent account on my credit report. I have never used your services, and therefore do not know anything about this account you say I am liable for. Please prove the account with something that shows my signature.

    Thank you,


    That is it. I never acknowledge the debt, yet I am asking for proof that it is mine. So far, an unpaid reposession has come off my Experian using this letter. We'll see about the other two reports.
  14. OS1

    OS1 Member

    Thanks for the great advice, I am starting to believe that the KISS method should be a good start. I'll be a mailing tomorrow. Thanks Erica for the sample letter.

  15. Erica

    Erica Well-Known Member

    No Problem OS1. Hope it works for you! :)

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