newbie- about to begin credit repair

[refugee]

I've been reading as much as I can about the credit repair process since I stumbled onto this site yesterday.

Read the posts on the Info Center sections and also many helpful threads

Basically I have a handful of credit cards that I have not paid since the late 90s and I am behind on my student loan payments (I am going to do a student loan consolidation on those).

The reason I havent paid the CC is because I got behind and eventually just fell off track. I just got tired dealing with the harassment and switched to ignore mode.

Since then I've been on "helpless" mode. I feel like I can't do anything and I hate talking to collection agencies, etc. because they are very rude, pushy, etc. I havent applied for any new credit since I stopped paying my CC bills in the late 90s. I heard so many bad things about the debt consolidation companies that I don't want to use them

My total CC bills are probably about 7-8k (not too much)

My student loans are probably in neighborhood of 40k

So after reading the posts, threads. (INFORMATION-OVERLOAD)

Here is what I think I need to do

1. Get credit reports from the 3 main agencies

2. Review them

3. Do the debt validation process ON all collections

4. Try to remove all inquiries

and thats basically it? I have more specifics on debt validation like if they can't validate it and remove it from the Credit Bureau report, then I don't owe that debt anymore?? To me that doesnt make any sense but I really want to understand the process and get started as soon as I can.

thanks in advance for any advice/help/comments.

[willingtocope]

You've got a good handle on the process there, so get your CRs and go...

Couple of things to keep in mind...

1. You need to check the SOL (Statue of Limitations) in your state. It is possible that you have an absolute defense against being sued over these debts.

b. BUT....just because they fall off your CRs or go past the SOL...DOESN'T mean you don't owe these debts. You will be responsible for them until they are paid off. Falling off your CRs simply means they won't hurt your credit scores anymore, and being beyond the SOL simply means if your sued, you have a defense. Neither wipes away the debt completely. The only thing that can do that is Bankruptcy.

[miracle]

Welcome Refugee! Plan looks great! :) Good Luck!

[refugee]

You've got a good handle on the process there, so get your CRs and go...

Couple of things to keep in mind...

1. You need to check the SOL (Statue of Limitations) in your state. It is possible that you have an absolute defense against being sued over these debts.

b. BUT....just because they fall off your CRs or go past the SOL...DOESN'T mean you don't owe these debts. You will be responsible for them until they are paid off. Falling off your CRs simply means they won't hurt your credit scores anymore, and being beyond the SOL simply means if your sued, you have a defense. Neither wipes away the debt completely. The only thing that can do that is Bankruptcy.

so after I do the DV stuff and get that taken care of either by

a)successfully removing the infractions from CR or

it ends up being legitimately validated, which means i have to figure out a way to settle

c) go past the SOL

I still need to go back to the original creditor or collections agency and still get a settlement or work out a plan with them?

The process I outlined initially only affects my CR and my ability to get future loans/mortgages/CC, correct??

So lets say all my DVs are successful, where they remove it from my CR. (positve thinking). I will go back to the the original creditor or collections agency to settle my debts, arent those new actions going to show up on my CRs?

My goal is to remove all these harmful credit infractions from my CR so I can move in a positive direction on my financial situation and settle all past debts with a lump sum or some monthly payment plan.

Thanks again for the feedback!!!

[willingtocope]

Yes, unfortuneatly, any of the settlement options (excpet "Pay for delete") still wind up dinging your credit report. The object of the game is two-fold: 1.) Do the DV process to make sure you're not being taken advantage of by some scum bag collector. 2.) settle your debts for as little money as possible. and 3.) Clear as many "negative" entries from your CR as possible.

The best scenario is if you can get the debt returned to the OC, and then settle with the OC for less than the full amount (assuming they've thrown penalties and interest at you). Sometimes, that's not possible because the OC has sold the debt to another lender and they may have a policy against retreiving it. In that case, you have little incentive to pay a collector unless they delete their TL from you CR and agree, in writing, that the debt is settled in full and will not be resold.

[admin]

Welcome, refugee! You're getting good advice, just take a deep breath and try to absorb it all.

[refugee]

thanks for the help everyone..

I'm going to start with step 1 and get my credit reports first before I start jumping the gun and worry about step 10 before I even take the initial step

gotta crawl before i walk..

even though i havent taken the first official step, i feel alot better after reading these tips/forums...it makes me believe that the light at the end of the tunnel isn't as far away as it seems...

thanks again.

[miracle]

Yay! You are right... there is hope! Keep us posted!!! -Jenn

[Gibson]

I also have decided to start my credit repair. I know the first thing I have to do is obtain a credit report from the big three.

My question is: Should I order the three-in-one that I see on the websites of the credit agencies, or should I order them individually?

And, since I'm kinda on a tight budget lately, do I have to order them or can I simply type up a letter and send via snail mail to get them for free? I can remember a long time ago doing just this, but I think times have changed.

[refugee]

ok, i just did the free online credit report because my state was in the first rollout of states where you qualify for a free credit report

ran 2 of the big ones except for the TU one..

both of them had about 19 outstanding issues I think. I'm not versed at deciphering all this yet. Alot of information!!!

So I need to dispute (do debt validation) for everything within my account thats negative, even though most of them are probably legit TL on past due student loans, cc bills?

Thanks

[workinninetofive]

Just wanna welcome ya!

[Tarheel Jack]

Welcome to the board, refugee.

Definitely check out your state statutes regarding SOL. While the SOL doesn't extinguish a debt, it does give you a great deal of leverage when dealing with CAs. But first things first...

You're on the path! Best of luck!

[SevenBagels]

Hi refugee,

first, you want to check that all your personal info are right, name, address, etc... challenge these info first. If you have old addresses, work to delete them before sending debt validations.

and also... don't dispute all the accounts at the same time, go slow, to not trigger any red flags.

Good luck and keep us posted.

[score booster]

Actually, Refugee, it doesn't hurt to just dispute with the CRA's on the first round. You'd be surprised how much can simply disappear this way. It saves time and money. You can save the DV's for round two and the 1/2 punch method with the ones that do "verify" initially.