Credit Score

[Pushead2]

So my credit score is considered average, but upon looking through it recently, I have one card that went into collection in 2010.

I clearly remember having it, being a jackass when I was younger and I just let it go thinking it was no big deal. After doing a lot of research, it seems like there are a bunch of answers on what I should with that collection.

I would like my credit score to improve (who wouldn't?) but some people have written that it could possibly bring my score down because it would make it "recent". Other people have put to let it take its course for 7 years and it'll disappear.

Has anyone here gone through the credit rebuild? Or even my situation of just trying to get it from average to great credit?

[New World Order]

Originally Posted by rico

I'm trying to get a decorative concrete business going. It hasn't been a very quick process. I also announce sporting events via radio and podcast for the high school I graduated at.

I was in nursing school, but gave that a break after a year and a half (in December). Was raising 1 and 2 year old girls along with an 8 year old step daughter at the time. It became too much...timing was just awful. Not to mention, I was tutoring my wife through her electives and getting paid to tutor other students in Chemistry/Biomolecular Processes at the college I was enrolled at. Was in way over my head...I have never felt more defeated in every facet of life, than I did in December.

If the decorative concrete business doesn't work out, I'll probably either go back to nursing or try to get on at this local fertilizer plant that is in it's infancy stage. Place pays real well.

Prior to nursing school, I was the Service Coordinator and Regional Business Auditor for a mental health facility for 5 years. It was in these 5 years, where I decided I needed to pursue something different (nursing). That is a field infested with unsatisfying dead ends, low income, politics and drama.

Well good luck man, I hope whatever you end up doing works out. Have you considered getting an MBA?

[Pushead2]

Originally Posted by Tytanium

You can do what's called a "pay for delete". If you haven't paid off the debt, write a letter (actual letter!) to the collection agency offering to settle the debt. You can pay in full if you want (or try to negotiate a lower settlement), but stipulate in WRITING that you wish to have the collection deleted from your record. If they call you, ask for correspondence in writing prior to paying them to leave a paper trail. I did this with several creditors from my past who didn't even put up a fight and immediately removed derogatory marks from my record. Google around for some pay for delete letter templates, not too hard to find. Otherwise you have to wait 7 years for the record to drop off.

Otherwise, the keys to having a good credit score are:

1. Open revolving balance (credit balances available to you)
2. Debt utilization between 1-20% of your total revolving balance
3. Number of open accounts (the more the better, to a point)
4. Average age of open accounts (anything 3-4 years and over is decent)
5. No derogatory marks
6. Keep hard credit inquiries low (under 5)
7. Good mix of revolving and installment accounts (credit cards and loans)

Creditkarma.com is an excellent tool, and free. The estimated score is usually very close to the actual score, and you can manage your accounts through it.

I'm currently using Credit Karma and your advice is the only one I've seen consistently through out my research.

I just don't want to go through that and then have them **** me in the end.

[Pushead2]

Originally Posted by DaFace

Unless I'm remembering incorrectly (which is possible), it seems like Mr. Flopnuts used to work helping people with these types of issues. Might be worth a PM to him if he doesn't chime in.

Thank you sir - perhaps I shall!

[TimBone]

Tytanium's post is solid advice.

[listopencil]

Originally Posted by Tytanium

You can do what's called a "pay for delete". If you haven't paid off the debt, write a letter (actual letter!) to the collection agency offering to settle the debt. You can pay in full if you want (or try to negotiate a lower settlement), but stipulate in WRITING that you wish to have the collection deleted from your record. If they call you, ask for correspondence in writing prior to paying them to leave a paper trail. I did this with several creditors from my past who didn't even put up a fight and immediately removed derogatory marks from my record. Google around for some pay for delete letter templates, not too hard to find. Otherwise you have to wait 7 years for the record to drop off.

Otherwise, the keys to having a good credit score are:

1. Open revolving balance (credit balances available to you)
2. Debt utilization between 1-20% of your total revolving balance
3. Number of open accounts (the more the better, to a point)
4. Average age of open accounts (anything 3-4 years and over is decent)
5. No derogatory marks
6. Keep hard credit inquiries low (under 5)
7. Good mix of revolving and installment accounts (credit cards and loans)

Creditkarma.com is an excellent tool, and free. The estimated score is usually very close to the actual score, and you can manage your accounts through it.

I have been using Credit Karma myself and I find it very useful. I stopped using credit of any kind about ten years ago (long story) and started from scratch late last year. I went from nonexistent credit (worse than bad credit) to qualifying for a home loan.

[Dayze]

Originally Posted by rico

I'm trying to get a decorative concrete business going. It hasn't been a very quick process. I also announce sporting events via radio and podcast for the high school I graduated at.

I was in nursing school, but gave that a break after a year and a half (in December). Was raising 1 and 2 year old girls along with an 8 year old step daughter at the time. It became too much...timing was just awful. Not to mention, I was tutoring my wife through her electives and getting paid to tutor other students in Chemistry/Biomolecular Processes at the college I was enrolled at. Was in way over my head...I have never felt more defeated in every facet of life, than I did in December.

If the decorative concrete business doesn't work out, I'll probably either go back to nursing or try to get on at this local fertilizer plant that is in it's infancy stage. Place pays real well.

Prior to nursing school, I was the Service Coordinator and Regional Business Auditor for a mental health facility for 5 years. It was in these 5 years, where I decided I needed to pursue something different (nursing). That is a field infested with unsatisfying dead ends, low income, politics and drama.

JFC dude
....I feel like such a puss now compared to that kind of schedule. . god damn dude. You're a machine - no homo. that's some serious fortitude. (NTTAWWT). (why is is that every male compliment has a homo-erotic connotation to it?).

for real though - ...that's admirable. big time.

[Hog's Gone Fishin]

Originally Posted by rico

Inability to pay my massive student loan monthly payments is just destroying my credit score.

I never would have imagined 12 years ago, that the most catastrophic decision I'd ever make in my life would be the decision to go to college. I seriously wish I could travel back in time, kick my 19 year old self in the balls while screaming, "DO NOT ENROLL IN THAT PRIVATE COLLEGE!!! DO NOT MAJOR IN ****ING PSYCHOLOGY!!! **** WRESTLING!!! WRESTLE AT A JUCO IF YOU HAVE TO!!!"

Umm, that route could easily lead to a career jerking off pigs !

[Big Poppa Payne]

Originally Posted by Pushead2

So my credit score is considered average, but upon looking through it recently, I have one card that went into collection in 2010.

I clearly remember having it, being a jackass when I was younger and I just let it go thinking it was no big deal. After doing a lot of research, it seems like there are a bunch of answers on what I should with that collection.

I would like my credit score to improve (who wouldn't?) but some people have written that it could possibly bring my score down because it would make it "recent". Other people have put to let it take its course for 7 years and it'll disappear.

Has anyone here gone through the credit rebuild? Or even my situation of just trying to get it from average to great credit?

There is a company in Lee's Summit, MO called The Credit Guys. They can get that account completely removed from your credit bureau. I've sent dozens of my clients to them and they've always delivered. They get charge offs, repos and foreclosures off of peoples credit reports all of the time.

It might cost you a couple hundred dollars to get it done but it will be worth every penny.

[Tytanium]

Originally Posted by npayne1978

There is a company in Lee's Summit, MO called The Credit Guys. They can get that account completely removed from your credit bureau. I've sent dozens of my clients to them and they've always delivered. They get charge offs, repos and foreclosures off of peoples credit reports all of the time.

It might cost you a couple hundred dollars to get it done but it will be worth every penny.

They just negotiate settlements, but then charge you to have them do it. I had several paid collections that I just sent out letters for, and the agencies removed it without a second though. You can do it yourself if you're willing to dedicate a little time and energy to it. I know dealing with asshole collections agencies is never fun, but if you want to save yourself some money, do it yourself.

[Big Poppa Payne]

Originally Posted by Tytanium

They just negotiate settlements, but then charge you to have them do it. I had several paid collections that I just sent out letters for, and the agencies removed it without a second though. You can do it yourself if you're willing to dedicate a little time and energy to it. I know dealing with asshole collections agencies is never fun, but if you want to save yourself some money, do it yourself.

That's what the Credit Guys do, they send out a flurry of letters to the creditors, the creditors have 30 days to legally respond with proof. The problem is these creditors are either too busy to respond or they don't care so after the 30 days with no response the credit bureau is forced to completely remove the trade line from the bureau. Like it was never there..

If the creditor does respond then the Credit Guys repeats the process and sends out another flurry of letters until the creditor doesn't respond and it's removed.

I've been in finance for 14 years and have yet to see a borrower with the dedication to do this themselves, that is why there is companies like the Credit Guys and Kansas City Credit Services that do this for them.

[Big Poppa Payne]

Originally Posted by Tytanium

They just negotiate settlements, but then charge you to have them do it. I had several paid collections that I just sent out letters for, and the agencies removed it without a second though. You can do it yourself if you're willing to dedicate a little time and energy to it. I know dealing with asshole collections agencies is never fun, but if you want to save yourself some money, do it yourself.

They don't negotiate settlements. They actually get the negative trade line removed from the credit bureau.

[DaFace]

Originally Posted by Tytanium

They just negotiate settlements, but then charge you to have them do it. I had several paid collections that I just sent out letters for, and the agencies removed it without a second though. You can do it yourself if you're willing to dedicate a little time and energy to it. I know dealing with asshole collections agencies is never fun, but if you want to save yourself some money, do it yourself.

While you're right that you can do all of this yourself, you can also do your own taxes and defend yourself in court. If someone has all the time in the world to learn all of the nuances and deal with all of the communications, great. But if you just need it done and done quick, reaching out to an expert isn't a bad route to go.

[Pushead2]

Originally Posted by DaFace

While you're right that you can do all of this yourself, you can also do your own taxes and defend yourself in court. If someone has all the time in the world to learn all of the nuances and deal with all of the communications, great. But if you just need it done and done quick, reaching out to an expert isn't a bad route to go.

Yeah I'm torn about it, but you have a good point.

I have a great job, a car I own & I figure now is the time to take care of it fully since I just turned 30.

[Big Poppa Payne]

Originally Posted by Pushead2

Yeah I'm torn about it, but you have a good point.

I have a great job, a car I own & I figure now is the time to take care of it fully since I just turned 30.

You can't put a price tag on having good credit. Interest Rates, Insurance Premiums, Cell Phones, Cable TV, pretty much everything is tied to your credit.

[Time's Yours]

Originally Posted by Great Expectations

It is likely that it won't drop after 7 years. The creditor will likely sell it to another creditor starting the 7 year wait over.

This is incorrect. By law it has to drop from credit report entirely after 7.5 years from date of first delinquency without regard to whether or not it was paid.