I had an AWFUL day today because of my credit and feel like CRAP.

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I had an AWFUL day today because of my credit. Embarrassing day, really and I feel like crap.

Today I started my NYC apartment hunt, but I have about 6 negative trade lines on my CR and 1 paid judgment. I explained to the broker I met with in FULL DETAIL about my situation and she was cool and even owned the building I was looking at. We went back to the office and they pulled up my credit and she then looked at me funny and said I needed a guarantor (the guarantor needs to make 85x the rent and the rent was 1,900 - so kind of not possible):-(. The thing is - I totally get the apprehension, they just want to avoid a messy situation and on paper, I look like a risk. BUT all of my stuff is 5+ years old, but not old enough to fall off (NY SOL is 7 years), but she mentioned some stuff from 2008 on my CR, which I think, after looking at my CR was a 30 day late on my student loan, which hasn't been late since and I fully meet the income requirements, etc..

Anyway, I feel so exposed. And maybe I am being crazy, but I just thought I would share.

My next move is - is to fight to get these negatives off. Most of them are paid and there are some duplicates where the OC and the CA are both reporting. Can I send some sort of goodwill letter to these folks? Explain my situation?

Thanks and sorry if this is inappropriate for this board - but..talking about and dealing with a bad credit situation can really get you down.

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I tell everyone who has crappy credit- go to a private smalltime landlord. Chances are they are more open to explanation, and they can't really afford to have an open apartment as much as a complex. I had crappy credit for a few years and I dealt with two landlords- the were okay with it. Now I am a landlord and I am cool with it provided no evictions and an explanation. I realize things are much more complicated than that because you are in NYC and there are probably less privately owned non-professionally managed duplexes and triplexes to choose from. But look around. Managed apartment companies can be inflexible...keep your chin up, we've all been there and survived.

Now what is this "85x" rule for gaurantors? That's absurd- and assinine. It is a rule to keep people out who require guarantors. And a landlord should love to have a guarantor with decent credit regardless of whopping income or not. Two bites at the apple should things break down.

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Thanks - I appreciate this, I am going to search for what you suggest! The NYC rental market is a pain in the butt.. Renters need to make 40-45x the rent (which is fine for me) and a guarantor for someone with shoddy credit needs to make 80-85k time the rent (asinine)!

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I'm not sure - but that is part of the income guidelines for renting here - I think it may be more formalized somewhere or it could be an arbitrary idea by landlords, management companies and private owners. It makes sense when you think about it like this (snagged from Google):

If you're a landlord, you want to make sure that your next tenant is financially stable to pay their rent and still have money left over to pay their other bills without causing hardship on themselves.

This is where the 40x the rent formula comes into play. And its a good rule to follow.

No one should be paying more than 30% of their monthly gross income towards rent. If you are, then I suggest you move to a cheaper apartment because eventually it will get to the point that you will no long be able to make the payments on time and then no payments at all.

Example: If the rent is $1,000 per month, then $1,000 x 40 = $40,000 annual salary minimum to qualify. If you have a child then obviously the minimum should go up since having a child is a HUGE expense and takes away from your monthly income.

I would post the link, but I don't have enough posts on here to do so

The problem for me - is I more than meet the 40x requirement, but my credit is poor - which is the problem. The funny thing is my score is about 660 (not good, but not the worst, I am sure), but they don't pull score - they just see the negative trade lines PERIOD - so it stinks.

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  1. Get copies of each of your reports.
  2. Dispute everything. I recommend disputing by phone. Call EQ, EX, TU with your confirmation# from your newly ordered reports and dispute each negative tradeline. It's easier than writing and there is less chance that the CRA who answers the phone to process your dispute will mark it as "frivolous" if you are articulate and friendly...
  3. Wait 30 days. This dispute process alone should knock off at least a few tradelines.
  4. Some of the tradelines will no doubt be "verified" by the DF. If so, dispute these in writing CMRRR under Sec. 623 of the FCRA [623 Dispute Method]
  5. Wait 30 days. I expect you'll get a reply. If their reply is unsatisfactory, you may have to push the issue. You may have to write a second or third letter or threaten suit or even sue before you get a competent reply.
  6. You could additionally try the "1-2 punch" of untimely Debt Validation with CRA dispute.
    Click here: DV
    Click here: Flow Chart
  7. If none of that works, you may have to attempt PFD or you could just let them age off or throw up a hail mary with a goodwill letter... [i find goodwill letters work best to remove lates on an account that is now and has since remained current.]

In my experience, however, I've found credit rebuilding to be just as important, if not more so, than credit repair. That is, 3-4 positive and current tradelines are worth a lot more to your score than an abundance of 5 year old chargeoffs. It's just a thought, but your credit score could be suffering more from a lack of positive tradelines than it is from an abundance of negative ones.

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Thanks so much everyone, it's really appreciated.

Scorch - I see you now own a home, congratulations - that makes me feel like there is light at the end of the tunnel!

Bigwoodystyl - What do you say when you speak to them on the phone (reason for disputing)?

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