Hello everyone. I just wanted to take some time to introduce myself, and give a brief overview of my credit situation. I'm a 28 year old normal guy from South Carolina. Prior service Army and father to a lovely 9 mos old daughter. My credit is messed up because frankly I was young and stupid and didn't really care what it looked like. Now I'm a bit older and somewhat wiser.... perhaps wiser isn't the right word. I'm taking a more long term look at my life and striving to make the changes necessary to live comfortably from this day onward. I haven't pulled my credit report this year, but from what I recall it's pretty bad. But then I have noone to blame but myself. Anyway, with your help and support I'm sure I can get it squared away and start building positive credit for the future. Thanks. Chris
In order to help you, we would need more information, such as the total amount of indebtedness, status of the accounts (whether they're charged-off, in collections, if you've been sued and any creditors got judgements), and the amount of money you have to pay towards the debts. Depending on this information, you may be able to settle the accounts, do nothing and let them "age off" of your credit report, or perhaps filing for bankruptcy might be required.
I got my credit report last night and here is the information on where my credit stands now. I have 7 negative accounts Credit One bank Current status Charge-off 629.00 GE Capital ( Rooms To Go) Current status Charge- Off 1500.00 Equable Ascent Financial current status unknown balance 1490.00 LVNV Funding LLC Current status past due 808.00 SC Federal Credit Union Current status Charge-off 762.00 SC Student Loan status actively making payments balance 1750.00 Total debt 7000.00 Right now I have about 1000 on hand that I've been using to finance my new business. While my first year has been successful, I have to admit that I'm very limited in growth because I can't buy alot of the items o need or open revolving accounts to keep inventory on hand. Any ideas on how to build business credit that won't be effected by my poor decisions earlier in life would be appreciated as well as a strategy to repair my personal credit.
Welcome to the forum Slevin...and congrats on the new baby! What kind of communication have you received from your creditors regarding these charge offs/collections? Have you sent validation letters yet? Also, how old are all these debts? When you're business is young and small you generally need to rely on your own personal credit to get things up and running. It's really difficult to find any lenders these days that will provide you with a loan/credit line in the name of your business and not require your personal guarantee. That's just the way small business lending is these days. It's not easy to get anyone to give you money unless you don't need it .
Joshua , The communication I've received from my creditors consists entirely of letters stating how much I owe, and even that has dropped off as of late. I have not sent any type of verification that I owe anything, although I know that I do. The debts range in age from 5- 3 years in age. Most of these I got during a previous relationship and to satisfy both myself and my then fiance we both lived well outside our means. Foolish I know but fortunately I'm still young enough to benefit from hindsight. Additionally, my new wife and I have 3 joint accounts on her well established credit cards. Her Fico is well above 800 and I Do Not use the cards at all unless I happen to be doing the grocery shopping that day. They are always paid off every month and are primarily used only for bills and living expenses. I've heard this is called piggybacking but I'm generally unfamiliar with the technique so any information that could help fill me in about this would be greatly appreciated. . While I know my credit is poor as does she I feel that this and paying off or removing my debts will eventually pay off by boosting my credit score and giving me the ability to move forward in life with a positive financial outlook.
Piggybacking off your wife's excellent credit is a great way to improve your scores. Keep doing what you're doing. Of course, as you take care of those old debts and remove them from your credit reports, that will have a huge impact on your overall FICO scores too. What kind of funds do you have saved up to deal with those old debts?
Right now I've got about 1K saved up because I throw all my money into getting my business stable and well equipped. I'm currently rehabilitating my student loans and I'm planning to debt snowball the rest of my past due accounts, although I am considering waiting for them to just drop off in the next few years. Not the most responsible option, but I'm not sure if I can challenge or otherwise get some of the charge-off's removed sooner outside of paying. Also, I'm considering asking my mother and Aunt to add me as an AU on their credit cards as well. I'm sure with all my delinquent accounts it probably won't help me much if any, but I figure it can't hurt either.
Well...you're probably not going to get to far with just $1,000. But if you've received communication from your CAs, I would definitely recommend at least sending DV letters before approaching any of them regarding a settlement. As far as adding yourself as an AU on your relative's credit cards, it can only help your credit scores. How much will depend on a whole host of other factors that make up your credit profile.
