My fico is in the mid 400's with many charge offs on my CR (some being very old) and some being reported several times due to being bought & sold by collectors. I also have a PR and I am paying on it monthly although the CR doesn't show my on time monthly payments. The PR is with NCC A division of Commonwealth financial systems inc.( this was from a debt from Providian) they are in scranton Pa and I live in Pa. I have been paying this debt for over 2 - 3yrs. I attempted to settle this debt by offering to pay 1/2 of what is still owed which is about 1300.00 I asked for something in writting agreeing to pay it off and that is basically when they told me they don't have to settle for any amount less than what is owed. I only have 1 good trade line being reported that is current and in good standing. I have had car loans that are paid off and were paid on time (apr was in the 20's) I really want to improve my FICO but where do I start (I do have a current copy of my CBR) Any suggestions on how I should go about improving my credit score would be helpful. I should also mention that I have a friend who might agree to put me on their credit card account (they have excellent credit and pay in full each month) as an auth user but I wouldn't be using the card just trying to rebuild my credit scores. I should also mention that because of my credit the only way I was able to purchase a home was through the person that I rented from for many years he decided that he wanted to sell the home I was living in and offered to finance the home to me for a far price only down side is that it is a non recorded sales agreement with a fair interest rate but this also limits me as to any home improvements that require large amounts of money as I have no credit. I do have equity built up in my home and thought about refinancing thru a mortgage company but with my fico it's just not possible until my fico is at least 500.
List your debts. List your credit report accounts. How much is going toward paying down debt each month? What is your available monthly income, less living expenses?
I'll start with the credit report My Husbands Mine Fico on Experian is 495 Experian 480 Equifax is 493 Equifax 420 Transunion 482 Transunion 439 Judgement from (providian cc now with NCC which is Commonwealth Financial Systems Inc cb shows amount as $ 4738 but I have been paying on this every month for over 2 years and its now down to $1400. Capital One Auto Financial shows 5/30 dd 2 of which were in 05 and 3 in 06 1/60 in 06 no 90 dd or PD balance 17,860 (and is now being paid on time) pymt is 399.00 a month Esb/Harley Davidson Credit 2/30 in 05 2/60 1 in 05 1 in 06 1/90 in 06 balance 11,465 (and is now being paid on time) pymt is 341.00 a month Citi Financial 1/30 no 60 and no 90 balance is 10,897 and pymt is 200.00 a month and is now being paid on time Citi Financial this one is unsecured and is showing as a Profit & Loss balance is 3600.00 This account was opended in 08/05 Cresent Bank & Trust shows 3/30 in 05 no 60 or 90 shows a balance of 2455.00 although this was paid in full (paid entire amount due no settlement or anything) it was a car loan and is completely paid off but shows a balance owed but does show it being late or anything last reported 06/05 and was opened in 08/00 Commonwealth Financial (which is also the judgement previously mentioned and is also at the top of the report) says opened 06/03 reported 11/06 shows balance P/D 1400.00 balance 1400.00 says Providian National Bank placed for collection. I am paying this every month. First American Investment opened 04/03 reported 12/06 shows balance of 1305 shows no 30 60 or 90 but shows PD 1,305 also says Providian 3983 Subscriber cannot locate??? this is a car loan the was taken over by other companies thru out the entire loan and is completely paid off (did not settle for a lesser amount paid entire amount due) and was not past due Citi BP oil balance 700 and shows P/L reported 10/06 Gemb/Lowes balance 686 and shows P/L reported 12/05 Shell/Citi balance 656 and shows P/L reported 12/05 First Premier Bank balance 549 and shows P/L reported 06/06 Credit Management Co medical bill collection balance 498 Wfnnb/speigel balance 326 shows 2/30 1/60 2/90 Cons Coll Sv medical placed for collection balance 224 Amex balance 223 shows P/L reported 10/06 Natl Recover medical 124 collection 08/01 says placed for ollection unpaid medical 12/06 opend 08/01 Palisades (at & t old cell phone bill) no date opened shows 1/90 in 08/01 balance 123 collection 08/01 palisades collecion same acct as above balcance 123 and shows opened 11/04 reported 10/06 cons coll sv medical balance 96 opend 04/00 reported 09/06 collection medical collection balance 85 opend 05/01 reported 03/03 At & T (again old cell phone bill that was already in report 2 other times) collecion balance 29 AIB Auto LN balance 0 2/30 no 60 no 90 Hechts Account transferred or sold to Purchased by another lender closed 05/06 0 balance no lates So as you can see everything is either P/L (profit & loss) or collection with the exception of Cap 1 for a car loan and Harley for bike loan and 1 Citi Financial account everything else is closed Our total take home is about 3000 a month after taxes House pymt 600 Cap 1 auto pymt 400 Harley 350 Food 600 (about 150 a week) Electric 80 Water & Sewer 80 Phone 35 Cell phone 65 (not in our names) Citi Financial 200 Insurance 180 (this is for auto's and home) Cable 65 Heat 65 Total = 2720 This does not include Gas or Doctors, Dentist, Home Improvement, School Lunch for 1 Child still at home or Prescriptions thru express scripts (I take money from savings account doesn't have anything in there for long) My Husband recently took a part time job working Saturdays and is committed to doing this until we are back on our feet. I did try to work a second job also (to help out more also) but with a 14yr old at home it was just too much time being left alone so I only work 1 full time job and I am devoting my time and energy to getting this under control. I don't like owing people $$$ and not paying and having people call etc. Things were not always this bad but about a year ago the Co my husband works for cut out all most all overtime (he's worked there for 12 years and has always worked OT every day) and then with gas and heating going up we just kept further and further in the hole and now it's time to get a plan together on how to handle this mess. I would appreciate any suggestions that you all might have to offer. Thanks!!!
Bump up for ontrack or anyone else with suggestions. I live in Pa do you think Lexington Law would be my best bet or is there someone else in Pa that I should consider? I'm at a loss on what to do first.
Get completely out of debt I would suggest getting completely out of debt. Eliminating your car and bike would add over $750.00 to your monthly bottom line, allowing you to pay off other debts and would afford you and your husband extra time by not having to work two and three jobs just to stay afloat. You cold then start saving money/paying down your mortgage. It's odd you have such payments you don't need and are complaining about not being able to stay ahead.
Dude, do not feel overwhelmed, though your scores suck, mine did too when I started. First thing I did out the gate was dispute EVERYTHING. All three bureaus, dispute every single account that is negative, weather it be a collections account or a duragatory account, or whatever, dispute it. I had many many many items on my credit that were mine, that were removed, just because the CA did not want to deal with me. Therefore they were not verified as my debt, and were removed. Once you do that, you need to figure out exactly what you need/don't need in your life for the time being. You have kids, therefore you know how fast time flys. Going without all the cable channels for a couple years will not kill you. Going without your husbands Harley, less it is his only mode of transport, is not unthinkable. Sell what you do not need, take services off your phones/TV/etc you do not need. This will give you a really good idea of what your true debt to income ratio is. Then start with the easiest thing on your list to pay off, unless you are really well disciplined with your money, and in that case, whatever has the highest interest rate. Make a list of all your debts in order by whichever factor you want to pay them off by as listed above. As you pay the items off, scratch them off your list, and then take the money you were putting towards that first debt and apply that towards the second. After the first few, this will snowball. As all this is going on, your credit will be getting better. When all is said and done, go back to the collections accounts on your credit report that were not dropped with your disputes. Call each one, one at a time and tell them that you are willing to settle the debt for a portion of the amount owed. Before you pay, make sure that you not only get a letter from them stating what you agreed on, but see what you can do to change how they are reporting to your credit. The best thing is to have them remove the entry as if it never existed, second would be paid in full, third would be settled for amount less then owed, fourth would be charged off. Remember, you only have leverage when they want your money. You can negotiate ANYTHING long as you get the right person on the phone. If you do not like the answer you are getting, ask for management. DO NOT PAY FOR ANYTHING UNTIL YOU HAVE THE AGREEMENT IN WRITING. If they do not want to send you anything in writing, tell them to have a nice day and move on. Remember, you have alot of crappy things on your credit. If you can eliminate, or work out good negotiations on 90% of them, you will GREATLY improve your score. I have two collections accounts, both are old, I never worked anything out with either, and my score is in the low 700's... Hope this helps, and good luck!!
