Back to Blog
Still wondering when your credit issues will change? still thinking that if you remove items every thing will be ok? not true. Let's go over some things so you understand the steps that need to be taken.
Removing negative items: Let's start from day one, think about this if you had 8 items on your report and 6 of them are bad with the remaining 2 pretty good, credit showing for only 5 yrs. . Let's take into the consideration the whole report is only showing 5 yrs old, now think about this for a minute. You have no car payments and no mortgage but you have medical and school loans as well as credit card debt . Remember the credit cards depending on the amount and if it is being reported by the creditor or the collection company can be settled and paid in full with a settlement and deleted.
Usually the collection companies are harder to deal with when asking for a deletion but they want to get paid so we negotiate a settlement with them for less they bought the debt for pennies on the dollar. We ask for paid with deletion, sometimes they do not want to give up that letter and by law as they say they can't, you try to then call the original creditor it's always better to get in touch with the credit card company if you can they just want their money, some can be harder to deal with then others. This may go two different ways, they tell you they no longer have the file, so we go back to the collection company and start dealing strong. We ask for a lower pay off and do not stop with a rep you want to speak to a supervisor get the name number and be prepared to take notes. Believe me they want to get the books off their hands. If you settle with an amount you want it written and sent to you before you make a payment in full by ** check, cashiers check, or money order** never a credit card and you want the letter 1st. Once paid you will receive the pay off letter tell them you want that stated in you letter.
Now let's start building:
You have limited credit and depending on what your trying to do your going to need some good credit to make the rest look better while your still working on it, you have choices. (1) Go ahead and get a secured credit card while your working on the other 4 items, Capital One use to have a secured card that did not say secured on the report only you knew. I would put up at least $400-$500 on it because it looks better. What's left on your credit could be anything from leasing an apartment or pay day loans, they all need to be dealt with. Look at the dates, depending on the state the debt was made in they can very well be out of the statue of limitation and must be removed. Its going to depend if you spoke to them as well, if so it starts the ball rolling again, if you made arrangement to pay its yours. Never ever be so fast to settle just because they contact you, you need to think first.
If you have not spoke to them and admitting to the debt you can fight them for proof of the debt its going to take some time depending on how hard they fight. let's say you get two off..GREAT! now you have 2 left. depending on what they are and how much is owed your in better shape now. You can now do this because you have your secured card right? ask a family member if you can piggyback on one of their credit cards, meaning they are just adding you to the card. Make sure that person has never been late on that card and their not maxed on it meaning owing over 30% on it.
Understand they don't need to give you a card and you need to trust them that they are going to pay on time because it's going to report on your credit, if they are late your late. If you have no one you can use a trade line meaning your buying some ones perfect credit history and payments for a short period of time, you will not receive a card it will just report on you credit. This is the thing, you need to move fast once you see this has reported to the credit bureau's because it will be removed in about 60 days unless you purchase again. In that time you go and purchase an auto and or apply for another credit card which you should get and it will be higher and you have a new start. Remember lenders look for Length of credit history, Payment history, debt, credit used and New credit.
Questions call me, always willing to help in any way I can.