I went through a rough patch a couple of years ago and my credit took a nosedive. I ignored all the letters and phone calls from creditors and then their collection agencies. My credit scores are all in the 500's. I am now trying to climb out of this mess and I don't know where to start. I applied for and received 2 low-limit credit cards, which I am paying on time and keeping a low usage percentage. I just got a car loan with 10% (I couldn't believe it). My bills are paid on time and I have no new dings on my credit. My question is, how do I handle the past transgressions? There are a lot of charge-offs with $0 balances and paid after charge-off (I don't think I did pay). There is only one collection agency listed, Midland Funding, and they have a judgment against me. Where do I start and who do I contact? I can't pay a $0 balance...? I want to get a mortgage at some point and it's not even an option unless I clean up my credit.
Welcome to Creditnet! The good news is you're already doing a lot of the right things to rebuild your credit. You've got two credit cards, you're paying on time and also keeping your credit utilization low. The auto loan payment history will help improve your credit scores a lot as well. Just keep doing what you're currently doing in that regard. Now, onto the baddies. How old is this judgment and how much are we talking about? Has Midland been in communication with you recently regarding the debt? Also, how does it currently appear on your credit reports? If you give us some more information, we'll do our best to help you devise a strategy to take care of these past credit mishaps.
