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Discussion in 'Credit Talk' started by acegirl, May 27, 2001.
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You really don't have all that many problems.
The place to start is always at the root of the problem(s), not try to kill off the weeds by pulling off the tops. While that does work about 40% of the time or so, it's better to start at the source of the problem(s) which is the creditors or collection agencies which are doing the reporting to the credit bureaus. Chop off the roots and the weed is gone for good. It's quite easy to do most of the time (not always) and gets the problem solved once and for all. Then go ask the Credit Bureaus to verify and nothing comes back, so they have to delete. No big deal that way. Most people want to strike out at the Credit Bureau which is only a reporter, the "top of the weed" and that quite often results in little more than frustration. But even that can be dealt with over time.
You almost never want to pay them anything at all. There are a few exceptions to that, and the reason you never want to pay them or even offer to pay them anything is that once you pay them, that will restart the 7 year statute of limitations all over again each and every time you pay them, so it's about like beating yourself with a bull whip. Only good thing about it is that it feels so good when you stop.
So don't start and you will be much better off.
Yes, those charge offs will hurt you in the future, and maybe a lot depending on the circumstances. Buying a new car, a home, prime credit cards, usually the bigger things.
But they can be removed.
On how to rebuild your credit, you seem to be starting in the right place, getting as many credit cards as you can even if they are sub-prime. Learning how to use them wisely is another matter altogether. One should learn that credit cards are best not used in the manner many folks use them, which is to go out and charge some big purchase they can't pay for at the end of the month and end up paying big interest charges and other penalties as well. These sub-prime credit card companies are getting really vicious on over limit fees, late charges and all that kind of thing.
Any silly charge they can tack on, they do.
The best way to use your credit cards and rebuild credit at the same time is to have maybe 9 or 10 cards, (Visa, Master) and use one card per week. I change cards every Sunday no matter what. I never charge more than I can pay for at the end of the month.(due date, not calendar month) My cash stays in a savings account earning me interest. I buy food, clothing, gasoline, all that I need and can possibly buy with a credit card, on the card I am using that week. I just about totally and completely live on my credit cards, even to paying the utilities. Just before the due date on that card, I pay it off in full so I don't get any late charges or that kind of thing. What it boild down to is that I'm building good credit and earning interest on the money I've already spent 4 weeks ago. Works for me.
Hope I've been of at least some help
How old are your charge offs? This will likely determine the best course of action. If they are close to seven years, like five or six, then I would do nothing. If they're only a year old and they are legit debts, you may be offered settlement amounts for them. Sometimes you may even get lucky enough to negotiate a deletion for payment....maybe. But, in my little experience, you will notice MOST every unpaid bill, charge-off or collection will get "verified", whereas success is a little more likely if you don't owe a balance. Just my opinion.
How old are your charge offs? This will likely determine the best course of action. If they are close to seven years, like five or six, then I would do nothing.
I at least partially agree with you. Six years old or less isn't really worth fighting about. But you can usually get the total debt "shot out of the saddle" in 6 months or less, so anything 5 years or less is well worth going for. Some cases, you may be in bad shape indeed if you even start to fight before the end of 5 years. Mortgage repossessions can easily be one of those situations. After 5 years is over, that's when the fight just starts. I've got one like that I'm going to start to work on come the 2nd day of August.
If they're only a year old and they are legit debts, you may be offered settlement amounts for them.
In my personal opinion, no amount of "settlement" would induce me to pay even $1.00. All that would result from that is that the 7 year clock starts ticking all over again. Simply not worth the price tag in my opinion.
Sometimes you may even get lucky enough to negotiate a deletion for payment....maybe. But, in my little experience, you will notice MOST every unpaid bill, charge-off or collection will get "verified", whereas success is a little more likely if you don't owe a balance. Just my opinion.
Well, your opinion is exactly right here. And that's also exactly why one needs to go get the debt wiped off the books by force if necessary, and of course, they aren't going to wipe it off the books completely and totally and erase any and all records that the debt ever existed just because
one calls them up and asks them to be nice and do it for them. So you have to get just a wee bit upset with them in order to force them to do that. Bad language isn't what's meant by getting a wee bit upset with them either.
What one must do to accomplish the wipe off is to get them to break the law, and then go after them for that. Once you are in that position, and you start squeezeing them, they usually turn tail and head for the piney woods simply because the amount they would collect if they fought about it and lost wouldn't justify the costs of defending themselves. They don't usually want to throw good money after bad. Even if they beat you, the attorneys fees and other costs they would have to pay would simply come out of the amount they might possibly get out of you, No matter what happens in court it's a loser when they are the defendant and often even when they are the plaintiff. It's a simple matter of economics for them, and no matter how they add it up, it simply don't come out in their favor.
Just my opinion, of course.
While I don't subscribe to the same "anarchist's handbook quarterly" as our friend Bill does, I feel strongly that some level of credit repair can be done with less effort than sueing or attempting to sue someone you owe money to.
These folks can be and usually are, very slipery. But, if you have the desire and the cash, you can go bargain shopping. Just remember a few basics to protect yourself. These people are not looking out for you no matter how nice they may seem on the phone. Get everything in writing before you send them a dime. Write to them instead of talking on the phone. Never admit this debt is yours (this leaves the door open for options later). Start off by offering a very low settlement amount in exchange for DELETIONS. Be very absolute in your demand for a deletion in exchange for cash settlement.
This should be enough info for you to mull over for now. Before you do anything, read posts on this board. Read a lot! Play offense not defense. Good luck.
While you think I'm advocation "burning down the town", that's not what I advocate at all.
I just make them think that's what's going to happen if they don't do what I want them to.
You don't have to be a genius to figure out how to do it. Just takes using some common sense and applying the FDCPA laws to one's situation. All you really have to do is to read what the FDCPA says is the law, figure out how to make them break it. They do it all the time anyway, so it's almost a slam dunk without you ever having to step into any court rooms or sue anybody.
Maybe I'll have to someday, but so far, I've been lucky.
There is no anarchy involved. just common sense stuff.
all the credit cards that are charge off have just went to charge off stat in march or April of this year. yes there very new. that is why I'm really confused on where to start. they already have offered me some agreements to settle the account for low amounts of what I owe. so I guess I should not take them right? I even wrote a letter to one of them stating that there settlement sounded great but in exchange I would want the charge off removed. The amount for this card was 192.00. They never responded. I also told them I would like everything in writing of any further agreements. The bank of the card was world financial network. anyone have any experiences with them. I have 4 cards with them all different stores.
Well, for very low amounts, it would be worth it to see if you can work a deal to pay them off if they would agree to reinstate the card, no matter how low they put the limits on the reinstatement. I know that if I had a card with that low of a balance that's what I would do first. I would not worry too much about the negative report for a while if I could get the card reinstated. Credit cards are far too valuable to lose if you can help it.
And I would just out and tell them that if they won't reinstate the card I wouldn't ever pay them a crying dime no matter what they did. I'd make the first contact with them about reinstatement by phone rather than by letter. Credit cards can make you good money every year if you do it right.
That's just one reason they are so valuable. Of course, another reason is that you can buy things on line that you can't buy very easy if you don't have credit cards. Yes, you can buy on line with other means, but it isn't as easy.
If you can't get either type of settlement out of them, then I would just get busy fighting them. It's a bit harder to shoot down an original creditor, but it can be done. You just have to go at it the right way. Each case can be different, depending on how the creditor or collection agency answers you and how long it takes them to answer you.
is there such a thing of reinstating a credit card out of a charge off?
I would say that it's up to the creditor. I'm quite sure they can do as they please. They may not re-instate, but they could open a new one.
I'll bet it's almost as rare as hen's teeth, thosugh.
I can't remember ever hearing of it happening.