Hello, all. While in college, I accrued some impressive credit card debt and was paying it off at a pretty good click. Then last year I was laid off (pharma company restructuring) and was ostensibly unemployed for the better part of 8 months. As a result, 3 cards have gone to collections for @ $12-1500 apiece. Additionally, my student loan went as well. So I'm kind of a wreck at this point. I have things squared away with the student loans. I handled them first, since it was the largest debt, over $25,000.00. I am doing a repair payment plan and next month, it comes out of collections and I will be on (I guess) a non-collections payment plan. Niow, for the other three, I have offers for settlement. Of course, I can't pay all 3 at once. I can barely pay 1 (in 3 installments). So should I pick one and ignore the other 2? Pick one and send a small amount monthly to the other 2? If I send them money, does that negate my chances to pay the settlement? And once these things are payed off, how long until my credit is less than embarrassing again? I bought a new car in November, and the finance guy said "You had great credit until this summer, what happened?" So, it hit my credit quick. I am paying rent on time, car payment, insurance, student loans... I was thinking of getting a new credit card (I have none active now) so I could use it for day to day purchases, paying in full every month to further boost my credit. Problem is, I have been reading horror stories about how companies are doing people in a credit repair situation. Any cards anyone would suggest? Woudl I be just as well off with an unsecured card from my bank? Sooooo... I know, LOTS of info! Be nice to the newbie! Be brutal if you must, but be thorough!
Offers of settlement - helps to know who the creditors are. Some are more quick to haul you into court than others - and once they see from your reports that you are settling up, they will want their piece of the pie. New credit cards - definitely a must for rebuilding, but what kind of FICO's do you have now?
FICO, I am pretty sure the finance guy said, is high 500s, almost 600. I'll check the creditors tonight and post them tomorrow.
Oddly enough, just spoke to my loan rehab agent (ERS) for the student loans. She said if I pay the May 28th payment today or tomorrow that the account goes back to Sallie Mae, will be removed from default and will be removed from my credit report at the end of May rather than the end of June. Is there any advantage to doing this early, od am I just as well to wait and make the payment on the 28th?
The only advantage is that it is removed a month early so would increase your score a month early. But if you're going to wait a few months to get any credit it wouldn't matter.
If the finance guy is for your auto, your pure FICO's could be higher or lower. Generally a car loan is an auto-enhanced score. It weights your installment type loans, and any previous car loans heavier.
Okay. While I'm finding this info, any advice on which credit card is best for me? Am I better off at this point just getting a secured credit card through my bank?
