Rebuilding Credit

Discussion in 'Credit Talk' started by chargeoffs, Jan 31, 2001.

  1. chargeoffs

    chargeoffs Guest

    I am a senior in college and I finish this semester. Unfortunately, I made a terrible mistake about in the summer of 1999. I took out unsecured loans for my ex-boyfriend and allowed use of my charge cards. He promised to pay on them. Of course, he lied. Unfortunately, I was a college student and was unable to pay on them to save my credit. Therefore, I have more than a few chargeoffs, and a judgment. My credit is pretty bad, except for the credit cards that I personally use and pay on. I am now older and wiser and realize that this year I will need things like an apartment, and a new car. I've been paying what I can on the judgment, but the chargeoffs are too much. I am doing the best that I can because I also need money to survive on. I don't know where to begin. Should I dispute the entries with the creditors or credit bureaus? I may be able to settle for about 50% of what the chargeoffs are worth (that's a big MAYBE)later this year (after I get my apartment). Should I write letters to the creditors and credit bureaus explaining what has happened. I have a student loan out for about $2,000 ($40/mth. next 2-3 yrs.) The rest of the debt is about $15,000. I know that it sounds like alot, but I expect to make about $30,000 this year. My car is paid off, hopefully it will last about another year. I am young, 22yrs old, have no children, a great new boyfriend, a bright future ahead, and learned a big lesson. Where do I go from here? Is it worth it for me to pay it? Unfortunately, at this point most of the collectors have stopped calling and the chargeoffs are about 1 to 2yrs. old. I am thinking about joining Junum. Is that a good idea or is it too early? Thank you in advance and may God bless you.
  2. Donna

    Donna Well-Known Member

    Sorry to hear about your credit cituation.

    Unfortunately, the derogatory remarks are still fairly new. You're right to keep paying on the judgment. Once its satisfied, you'll have an easier time of getting it off.

    Yes, you can dispute the chargeoffs with the credit bureaus but the chances are that they'll come back verified. Since your creditors want their money, they're going to keep verifying the accounts.

    Chargeoffs, even if paid, can be a challenge For example, I have a two-year-old paid chargeoff and it's still on my Experian and Equifax reports. Fortunately, Transunion took it off but the other two haven't been as accomodating.

    If you could arrange a settlement with your creditors, that would be great. At the time I was struggling with my chargeoff, I didn't know anything about debt negotiation so I paid in full. Actually, it wasn't so bad that I paid in full, but I regret that I didn't negotiate deleting the negative mark on my credit reports, in exchange for payment.

    Maybe you'll be able to come up with a feasible plan. Agree on an amount to pay your creditors in exchange for deletion. Get the best deal you can but hang in there for the deletion. Believe me! I wish I had known to do that when I was in the midst of my credit struggles.

    Whatever agreement you work out, though, make sure to get it in writing! Don't pay *anything* relevant to the settlement until you have a signed document.

    Good luck and I hope this helps a little.

  3. jamie

    jamie Well-Known Member

    Also, If disputing, try not to tell the CRA's too much. It is thier responsibility to verify your debts. In other words, less is more. Explaining a situation to the CRA's only admits that the debt is yours. You were in college and probably moved alot. Try having former addresses removed first. Again, its up to them to prove it. I agree with Donna on this one. Do not pay the Charge offs unless you get in writing a settlement agreement from the creditor and a guarantee they will remove it from your report. There have been sample letters posted on this site concerning this matter. I can't remember what they were called, but one of the other veterans of this board will surely find it for you. Help Guys!!! As we are all well aware, credit repair is a long uphill battle and can get very frustrating. A lesson in credit is a hard thing to learn, but you do have a bright future. Keep at it and good luck.
  4. Larry

    Larry Guest

    RE: My advise

    Where do you live?
    Pay the judgement till is satisfied. That way it'll be easier to deal with in the future. Don't default in your student loans and keep paying your other cards on time.

    In regards to the chargeoffs: have the accts being sold to collection agencies? if this is the case wait till the SOL is up and don't pay a thing. If you can't wait negotiate with the collection agencies to pay a percentage of the whole amount in exchange for deletion in your credit reports. GET IT IN WRITING. SEND ALL CORRESPONDENCE THROUGH CERTIFIED MAIL.

    Good luck girl ! keep us posted on your moves !
  5. Shantel

    Shantel Well-Known Member

    RE: My advise

    I gotta tell you, I totally understand your situation, but at least you're still young and have time to get it fixed before you really start to need it (i.e. late 20s).

    I have 2 unpaid charge offs. They are from 98. I don't know how hard the apartment places are (where you are), but your credit may hinder you in your apartment-hunt.

    You may want to try to try to get rid of the charge-offs before paying them. It's always nice to NOT pay, if you don't have to.

    If you chose to negotiate, follow the sample letters on this site and GET IT IN WRITING! It's a scary thing, but don't let the collection agencies, etc, get to you. They are into intimidation - they just want to get paid. GOOD LUCK!!! We're here for you!
  6. Carrot

    Carrot Guest

    I was about your age when I screwed up my credit, and believe me, you don't want to wait seven years before you get credit again. At 22, seven years may not seem like a long time, but it's an eternity when you need to buy a car and no one will finance one or when you need to rent an apartment. I'm nearly 30 and still suffering the ill effects of my past behavior while in college.

    Although you may want to try disputing the debts, the fact is they are legitimate debts and even if they come off your credit report, the creditor may still seek legal action against you. You should make an effort to settle these debts. I can think of a few things that may help you recover from this situation:

    **Continue to make payments on the judgment. You don't want them to garnish your wages.

    **Cut down on your living expenses as much as possible to free up more money to pay off your debts. Don't incur any new debt unless absolutely necessary, like if your car breaks down. This includes limiting the use of your existing credit cards.

    **Use the 6-month grace period on your loans to get on your feet and knock out as many of your small debts as possible. Of course, don't pay anything unless the creditor agrees to remove the negative information.

    Check out have lots of information on debt negotiation. Best of luck to you, and keep us informed of your progress!
  7. chargeoffs

    chargeoffs Guest

    Hello guys,

    Thanks for the advice. I live in the state of New Jersey, a wage garnishing state. I live right outside of Phila., and I have been thinking about moving there, but the cost of living is higher. I have applied to one apartment complex and was approved, so I haven't had many problems in that area. However, my options are still open. I've been thinking about a roommate(if I can find a good one) to help save money. Unfortunately, my poor car is about to die. I am hoping to get financed by one of my credit unions (I joined the credit union through my mother's job, and I am about to join one through my new job) or something for about 8,000. I want to put 2,000 or a '98 or '99 Toyota Corolla. So I haven't had any back luck with getting the things that I want or need this year. It just that I didn't budget for the debt that I incurred for someone else. Even though, I lived in NJ when I applied for the credit cards and loans...can the creditors garnish my wages if I move to PA. I am thinking of the worst possible that could happen because I just need more time (probably another year) before I start settling. I really do not use credit cards at all, as a matter of fact I am paying of my one VISA at the present moment. I am a small person so my clothes and shoes are always on sale. I do not plan on buying a house until I reach 30, unless I had a husband to put it in his name. I just finished school in December and everything appears to be coming all at once. All I want is a more reliable car, my own shelter. I just recieved a great job in the financial services field because god knows that I need to learn more about money, but I am working with an entry level salary this year. So I suppose I have to just keep praying. Thank you again for listening.
  8. Newcomer

    Newcomer Well-Known Member


    Your situation is daunting, but conquerable (if that's a word:)). Negotiate and pay what you can. If you settle, sometimes you can do it for as little as a third of what you owe. It will appear on your credit report, but the chargeoffs are already on there so it can't make it worse. I was in a similar situation when I was your age, and believe me when I say, prayer works miracles. The important thing is...DO NOT let this situation dictate how you see yourself. Debt can be emotionally damaging and bad credit combined with debt can be worse if you begin to beat yourself up over it. You made a mistake and you learned from it. And you also are taking steps to make a poor situation better, that's the most anyone can do. I'm praying for you as well:)

    Take care
  9. lena

    lena Well-Known Member

    I think we may be twins :)(Just kidding but anyways) Your story is exactly like mine. I am 22 also trying to re-establish my credit since the the charge offs of 3 credit cards in 1998 during college. Haven't had any problems getting an renting my first apartment. And when I moved to another state to get my second apartment I didn't have any problems there either. Getting Utilities I didn't a problem, though some required deposits while others didn't. Like you also, I want another car because I am driving the crap of my current car, but it still runs well at least for now anyways . But I have tried to apply for auto loans while leaving at my 1st apartment for 2yrs length, most of which has been denied and the few that have been offered, have really high interest rates the 18.8 and up range. I don't really want this sky high interest with car at the cost of 9,0000-12,0000 max, unless I can put at least a half payment on it. I am thinking about either just buying a used car from the internet for around up to 8000 and pay cash for it. Because then I don't have to shell out all the extra cash for the high interest rate and taxes at the dealership. But I have heard if you but put at least 30% to 40% on the price of your car, that you could have a better chance of getting a loan. I don't know how true this is though. So when you start looking for car loans you may run into these issues. While trying to rebuild my credit I have opened another Credit card account with Sterling Bank & Trust with a limit of 420. They are supposed to report to all 3 credit agencies. I have had them for almost a year and so far I haven't had any problems. Right now I am still in college because I took time off of college and I am just returning. I did apply for a short term loan at school for about $500 for my tutition,just for the heck of it.(And I got it surprisely to say, I didn't think I would get it. My guess the college doesn't check credit reports:) So until graduation time I will keep taking out short term credit loans with low interest rates each semester until I graduate, because these are reported to the credit companies and show on your credit report. So this might help my credit report some. I at least need to rebuild it until I am 26 or 27 so that I can buy my condo or at least get a decent mortagage. Well anyways
    good luck.

  10. lbrown59

    lbrown59 Well-Known Member

    RE: My advise

    Author: Larry (ss02
    If you can't wait negotiate with the collection agencies to pay a percentage of the whole amount in exchange for deletion in your credit reports. GET IT IN WRITING. SEND ALL CORRESPONDENCE THROUGH CERTIFIED MAIL.
    The cr laws need to be changed so that Creditors have to do the delation or they can't collect! There is no sense in having to fight this thing on every settlement:!

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