ABD74

How do I rebuild? Feeling anxious... worried- rock bottom?

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Hello everyone,

Due to many life factors, I ignored my credit for YEARS! It was a stupid mistake that I regret.  Now, I really, really want to rebuild! My poor credit score makes me anxious, worried, scared... I feel like I've built this hole that I can't get out of by myself. I'm on the verge of contacting a company that can help me rebuild my credit or provide me with personal advice. But before I do that, I wanted to double check with this forum first because on a few occasions, this forum has helped me with specific questions which I am very grateful for. I hope I can help myself before I contact any company.

 

Here's my situation... any help would be greatly appreciated. I don't know what info I should provide, but here is what I think is important.

 

Credit score on Equifax: 487 (so shameful!)

Credit score on Experian: 632 (which is weird because on my Equifax report, it shows my Experian credit score as 486)

Credit Score on Transunion: 464

 

No revolving accounts

 

2 credit inquiries (which are valid)

 

Installment accounts:

  1. Dept of EDA/Aspire Resource (my student loan account)
  • Currently open and current
  • BUT!!! I did have delinquencies reported in 2013 because like an idiot, I decided to ignore it because I couldn’t pay it. (Says was past due 180 days or more)
  • AS OF NOW: I have a monthly payment plan agreed upon (which I will adhere to), but on Equifax and Transunion, my account status states: Late over 120 days
  • Question: Is there a way that I can get the delinquencies removed from my credit statement? Will Aspire Resources agree to having them removed now that I have a monthly payment plan agreed upon
  •  
  • 2.) KSA Servicing (which is the same student loan account as above. It originated here, but got transferred to Aspire because US Dept of Education switched from KSA to Aspire)
  • On my credit report, it is showing my delinquencies because I was delinquent when KSA had my student loan
  • Question: Do you think KSA would remove these delinquencies from my credit report now that I have a plan going with Aspire? Would they even care? I’m not sure how to go about this one!
  •  
  • 3.) US Dept,of Education
  • Same question goes as above for KSA. US Dept of Education had my student  loan first. It shows my delinquencies!

 

Other Accounts:

  1. Finex Group (Listed twice on my Transunion credit report as separate accounts but not on Equifax or Experiean- why is that?) My car got towed in 2009 due to unpaid tickets and registration. I couldn’t pay to get the car removed from impound… I think this is the account that is hurting me!
  • Date opened: 3/2009 (1st listing) 6/2009 (2nd listing)
  • Balance amount is $2867 AND $3980
  • Account status for both listing: Collections
  • The balance seems to be going up and up every time I check my credit report! This began as less than $1500, I think. I don't know how my balance got to be so large?! :(
  • Question: Should I wait 2 more years for this account to drop off my credit report? If I wait, what I can do about this account until then?

 

More questions- sorry, my head is seriously spinning!

  1. After trying to clean up my account with Aspire Resources and agree to a monthly plan, I looked at everything else and thought to myself, there isn’t much more I can do. But now I need to rebuild! I decided to try a secured credit card and got denied by Capital One due to insufficient income. What criteria did they decide that on? I can surely pay for the $300 deposit and add to it. After getting denied for a secured credit card, I got really upset at myself. I feel like there’s nothing else I can do. Everything I look up about rebuilding credit states getting a secured credit card would be a good option, but I can't even get that. I think my income is sufficient enough to pay for a secured credit card... I'm the one who's putting the money into it, right?

 

Any other suggestions on how I can rebuild? Have I really hit rock bottom that I need to employ a credit help agency? I really appreciate your help.

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From the information you've supplied...there are two things hurting those scores. 

 

First, unless the scores come from FICO.com...those numbers are meaningless.  They are the CRAs attempt to approximate what FICO would state...but, they're not very good at it, and what they really measure is will credit cards make money off you.

 

Second, you don't list any actual credit transactions.  Student loans don't count for much (in FICO terms anyway) because everybody has them, they're not dischargeable in BK, and, as long as you're paying on them now, the "lates" don't hurt.  Also, the car thing isn't really credit related...it a CA working for a city government trying to collect fines.

 

So...if you really need credit (not everyone does)...call the city and see if you can work something out.  Don't deal with Finex.  If the city won't talk to you, you might as well let it ride.

 

Then...join a credit union.  Put money in your account.  They'll give you a secured card if you really need one.

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I am so happy and thankful you replied! :)

 

1.) Ok- got it! Don't hang my head over poor credit scores from the 3 bureaus.

 

2.) I don't have any credit transactions. The one and only one I had got dropped off my credit report a few months ago because that went into collections. Now it's gone. I thought my lates and delinquencies on my student loan is what was causing everything to go downhill.

 

3.) My car was towed by a company called JM Towing so I don't know if the city can do anything about it. I wanted to validate the debt with the credit bureaus first to see where that leads me. But from what I've been reading, I should NOT try to contact Finex  and talk about a payment plan, correct? Due to SOL? I definitely can't pay the entire sum in one payment. I would have to pay in installments.

 

All I do know is that I need to rebuild my credit. I'd like to be secure with myself that I at least have good enough credit to rent my own place (and not have to rely on a co-signer which I am doing right now), or get a car loan if anything were to happen to my car right now, or buy a home someday.

 

I just want to raise my score and after being denied a secured credit card, I didn't know what other options I had.

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Also, do I need to join a credit union? I have bank of america. Wasn't sure if I should try a secured card with them. But I hard Capital One is easier to get than BofA.

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I should have said in my first reply...stay away from the "debt fixers"...they can't do anything more than what you can do yourself, and it won't cost you anything.

 

JM Towing must have had a contract with your local government to tow cars.  You owe fines and registration fees to the city...not to JM.  Don't talk to them or Finex.  Call the city, or wait it out.

 

If you have a paycheck direct deposited to B of A, they might consider you for a card. Even a debit card on your checking account will help, but of course you do have to be careful where you use it.

 

Otherwise, open an account at a credit union and build up a history with them.

 

Avoid companies like Crap 1...they're bottom feeders.

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Listen, 

 

You are not the only one with low credit scores...there's many of us.  So don't be so hard on yourself.  What you are doing is the first thing you should do.  

 

Get you some highlighter markers, stamps and envelopes.

 

1st)  Review your credit.  Whatever is showing derogatory in your files, simply, dispute those items with the bureaus that are reporting those items.  Do research on the internet for dispute letters. 

 

2nd)  Put those disputes in the mail.  Allow the credit bureaus to do their investigations of your concerns.  They will notify you by mail with updates status.  

 

3rd)  In the meantime, while you're in the process of disputing, make absolutely no contact with the collection agencies. 

 

Once you receive your updates from the bureaus, review them...see which accounts were deleted and which remain.  Of the ones that remain...start your process again.  Yep, that's right!...dispute until you can't dispute no more.  Costs you little of nothing...thus saves you tons of dollars. 

 

Good Luck, 

 

A Brice Consult

 

 

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Also, do I need to join a credit union? I have bank of america. Wasn't sure if I should try a secured card with them. But I hard Capital One is easier to get than BofA.

Cap One is a nightmare if you default. You may not plan on it, but things happen.

 

I would not go to them if they were the only ones on earth.

 

If you have B of A why look for another.... use that.

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Listen, 

 

You are not the only one with low credit scores...there's many of us.  So don't be so hard on yourself.  What you are doing is the first thing you should do.  

 

Get you some highlighter markers, stamps and envelopes.

 

1st)  Review your credit.  Whatever is showing derogatory in your files, simply, dispute those items with the bureaus that are reporting those items.  Do research on the internet for dispute letters. 

 

2nd)  Put those disputes in the mail.  Allow the credit bureaus to do their investigations of your concerns.  They will notify you by mail with updates status.  

 

3rd)  In the meantime, while you're in the process of disputing, make absolutely no contact with the collection agencies. 

 

Once you receive your updates from the bureaus, review them...see which accounts were deleted and which remain.  Of the ones that remain...start your process again.  Yep, that's right!...dispute until you can't dispute no more.  Costs you little of nothing...thus saves you tons of dollars. 

 

Good Luck, 

 

A Brice Consult

 

 

Thank you, A Brice Consult!

I know, I'm being hard on myself... I just need to be motivated and positive that things will turn around for the better.

 

Currently, I only have my education loan (which I listed above on my original posting) and Finex Group- which is the collection agency for JM Towing. Finex has split my account into 2 listings (as I noted above). Finex group is only showing up in my Transunion Report and not my others. I guess the first thing I have to do is dispute the Finex listings with Transunion.. then see where I go from there. If that doesn't work, I'm thinking the best thing I can do is just wait it out because of SOL, correct? And not contact Finex at all?

 

I'll try to take @willingtocope's advice and contact the city, but I went ahead and paid the tickets. At the time, I just didn't have the money to get the car out of the towing place. I guess once it's been in there for awhile, it becomes their property? I'm not sure... or sold to auction? Whatever the deal is, I took care of my end with city so I wouldn't have that on my record. The car is a different story. I really don't even know why they keep increasing my charges. I'm scared to contact them because I don't want to open a can of worms that's going to make things a bigger deal than they are.

 

So to rebuild:

- I will try with bofa and see what they say. I just heard that if I can't get a Cap One SECURED card, I won't get one with bofa (how embarassing!)

- My work has a credit union which I can also try

 

I really appreciate everyone's help!

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Okay, if you've paid the fines...then the towing company is charging you rent to store the car.  You could call them (NOT Finex) and see if you can work something out.  I'm not sure what the laws regarding such things would be in your area, but it will probably just keep growing until they dispose of the car.  You might check to see if there is a www.naca.net lawyer around that will advise you.  Most will give a free initial opinion.

 

And...just so you know...there's a good chance that "A Brice Consult" is a debt fixer trolling for business on the forum.  Notice that his advice was kind of generic and didn't actually address your problem.

 

As for getting a card thru BofA...still worth a try...particularly if you have an account there.

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Okay, if you've paid the fines...then the towing company is charging you rent to store the car.  You could call them (NOT Finex) and see if you can work something out.  I'm not sure what the laws regarding such things would be in your area, but it will probably just keep growing until they dispose of the car.  You might check to see if there is a www.naca.net lawyer around that will advise you.  Most will give a free initial opinion.

 

And...just so you know...there's a good chance that "A Brice Consult" is a debt fixer trolling for business on the forum.  Notice that his advice was kind of generic and didn't actually address your problem.

 

As for getting a card thru BofA...still worth a try...particularly if you have an account there.

 

Rent to store the car? Yeah, I figured that.. but it's been since March 2009- almost 5 years ago! I'm sure the car is long gone and disposed, don't you thihnk? So I'm not sure why the charges keep increasing. And thanks for the lawyer tip! I'll definitely contact one to see what I can do. Because other than my school loans- which you said I can't remove my delinquencies anyway, even if I'm paying on a timely basis now... and it wouldn't matter anyway since it's a school loan- the Finex group is all I have on my credit report.

 

Speaking of my school loans, there's really nothing I can do about removing the delinquencies reported on my CR?

 

And I didn't even realize that A Brice Consult is looking for business... duh, the name says it all. :0

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I would definitely get at least 1 secured card.  Ideally that would be through a credit union.  That said, you "may" have trouble getting membership with your scores.

 

When and if you get a secured card make sure they report to the 3 credit bureaus.  Ideally you want a secured card that will unsecure after 12-18 months with perfect pay history.

 

You don't need a credit union to get a secured card.  Capital One, Bank of America, Open Sky, etc. all offer secure cards.  Open Sky does NOT do a credit check which is nice if you are worried about inquiries.  However. the card NEVER unsecures at a later date.  I think you would get approved with Open Sky.

 

Open Sky has a small annual fee and an APR lower than most secured cards.  They do report to the 3 credit bureaus.

 

Good luck.

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Okay, if you've paid the fines...then the towing company is charging you rent to store the car.  You could call them (NOT Finex) and see if you can work something out.  I'm not sure what the laws regarding such things would be in your area, but it will probably just keep growing until they dispose of the car.  You might check to see if there is a www.naca.net lawyer around that will advise you.  Most will give a free initial opinion.

 

And...just so you know...there's a good chance that "A Brice Consult" is a debt fixer trolling for business on the forum.  Notice that his advice was kind of generic and didn't actually address your problem.

 

As for getting a card thru BofA...still worth a try...particularly if you have an account there.

 

 

Yes... Gorilla... I do this for a living...but Im not scouting for any business... I do well.  I however dont mind sharing my experience and knowledge whenever or where ever possible....if it helps...you gave me a warning... I took my pic down...hope that makes a difference...

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Okay, if you've paid the fines...then the towing company is charging you rent to store the car.  You could call them (NOT Finex) and see if you can work something out.  I'm not sure what the laws regarding such things would be in your area, but it will probably just keep growing until they dispose of the car.  You might check to see if there is a www.naca.net lawyer around that will advise you.  Most will give a free initial opinion.

 

And...just so you know...there's a good chance that "A Brice Consult" is a debt fixer trolling for business on the forum.  Notice that his advice was kind of generic and didn't actually address your problem.

 

As for getting a card thru BofA...still worth a try...particularly if you have an account there.

 

Thank you, A Brice Consult!

I know, I'm being hard on myself... I just need to be motivated and positive that things will turn around for the better.

 

Currently, I only have my education loan (which I listed above on my original posting) and Finex Group- which is the collection agency for JM Towing. Finex has split my account into 2 listings (as I noted above). Finex group is only showing up in my Transunion Report and not my others. I guess the first thing I have to do is dispute the Finex listings with Transunion.. then see where I go from there. If that doesn't work, I'm thinking the best thing I can do is just wait it out because of SOL, correct? And not contact Finex at all?

 

I'll try to take @willingtocope's advice and contact the city, but I went ahead and paid the tickets. At the time, I just didn't have the money to get the car out of the towing place. I guess once it's been in there for awhile, it becomes their property? I'm not sure... or sold to auction? Whatever the deal is, I took care of my end with city so I wouldn't have that on my record. The car is a different story. I really don't even know why they keep increasing my charges. I'm scared to contact them because I don't want to open a can of worms that's going to make things a bigger deal than they are.

 

So to rebuild:

- I will try with bofa and see what they say. I just heard that if I can't get a Cap One SECURED card, I won't get one with bofa (how embarassing!)

- My work has a credit union which I can also try

 

I really appreciate everyone's help!

Just so you know...SOL is the time period for which a collection agency has to take and sue you in court....once SOL runs out...they still can collect try and collect on the debt...they just cant take you to court for it.

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Okay, debt fixer, listen up. 

 

SOL is an affirmative defense.  If a CA sues you...and you show up...and the court agrees that the SOL has run...they don't get a judgement. 

 

But note...the CA can still sue, use sewer surface to lose the subpoena, get their judgment without you evening knowing you were sued.  Happens all the time.

 

And, if you do use the SOL defense...the IRS says you owe taxes on the "found income".

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Okay, debt fixer, listen up. 

 

SOL is an affirmative defense.  If a CA sues you...and you show up...and the court agrees that the SOL has run...they don't get a judgement. 

 

But note...the CA can still sue, use sewer surface to lose the subpoena, get their judgment without you evening knowing you were sued.  Happens all the time.

 

And, if you do use the SOL defense...the IRS says you owe taxes on the "found income".

 

Yes admin while I agree with some of this...  However.... I was simply saying that SOL is the time period for which a consumer can be sued for an outstanding debt.  Once that SOL has passed, a CA cannot sue a consumer...but they can however still collect on the debt. 

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And what I'm pointing out is you're wrong.

 

A CA can still sue after the SOL...and, if the consumer doesn't show up for the hearing, or doesn't know enough to raise the SOL as an affirmative defense, or the court doesn't agree that the SOL has run...the CA gets a judgment.

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I would definitely get at least 1 secured card.  Ideally that would be through a credit union.  That said, you "may" have trouble getting membership with your scores.

 

When and if you get a secured card make sure they report to the 3 credit bureaus.  Ideally you want a secured card that will unsecure after 12-18 months with perfect pay history.

 

You don't need a credit union to get a secured card.  Capital One, Bank of America, Open Sky, etc. all offer secure cards.  Open Sky does NOT do a credit check which is nice if you are worried about inquiries.  However. the card NEVER unsecures at a later date.  I think you would get approved with Open Sky.

 

Open Sky has a small annual fee and an APR lower than most secured cards.  They do report to the 3 credit bureaus.

 

Good luck.

Thanks for your response @Corvetteman! I was already denied by Capital One for insufficent income which I was really surprised by because I could definitely support a secured card. How do that measure insufficient income, anyway?

I am going to check with a credit union because my work is part of one. I'm a little embarrassed, but I want to go in and just be honest with them from the start. Let them know that I would need to build credit and I'm hoping they could help me, despite my current credit scores. Do you think that would work?

Open Sky would be my last resort because I do want a secured card that will eventually become nonsecured.

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And what I'm pointing out is you're wrong.

 

A CA can still sue after the SOL...and, if the consumer doesn't show up for the hearing, or doesn't know enough to raise the SOL as an affirmative defense, or the court doesn't agree that the SOL has run...the CA gets a judgment.

 

 

Yes admin while I agree with some of this...  However.... I was simply saying that SOL is the time period for which a consumer can be sued for an outstanding debt.  Once that SOL has passed, a CA cannot sue a consumer...but they can however still collect on the debt. 

 

Thank you both @willingtocope and @ A Brice Consult for your responses!

I live in California, and I believe the SOL here is 4 years? The listings from Finex Group began in 3/2009 and and 6/2009. So this basically means, I can still get sued even though I past the SOL... and if I do, I should show up in court anyway, hope that the court agrees the SOL has run... so Finex doesn't get a judgement against me.

 

I tried contacting the city and they're no help at all... especially since I paid my fines and registration to the car. I guess you're right, they're charging me to store the car... but I really do think the car has been disposed. It's been 5 years since! I doubt they have the car. I'm scared to contact the towing company to work something out because I haven't gotten any notices or calls from them lately, and I feel like if I contact them... it's all going to begin- the calls/ notices/ etc. I don't have the money to pay the entire balance up front.

 

I guess I could either: 1.) Contact a lawyer to help me???  2.) Wait until this drops? << Is that even possible? Will it even drop?

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Yes admin while I agree with some of this...  However.... I was simply saying that SOL is the time period for which a consumer can be sued for an outstanding debt.  Once that SOL has passed, a CA cannot sue a consumer...but they can however still collect on the debt. 

 

They most certainly CAN sue.  The SOL being expired simply gives the defendant an affirmative defense IF they raise it.  If they show up and defend but don't raise the SOL issue it is deemed waived.  If they don't show at all it never gets mentioned by the plaintiff and a default judgment is entered.

 

It is misleading to say they CAN'T sue because they can.  

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I know you want a secured card that will unsecure at a later date.  The problem is your low scores.  You keep applying at places like Capital One and get denied your scores will continue to drop from all the inquiries.

 

Open Sky does NOT care about your income or your credit because there is no credit check which means no inquiry.

 

My wife got an Open Sky secured card about 11 months ago and loves it.  She didn't want another inquiry that is why she went with Open Sky.

 

We pay the bill in full every month so there is no interest charge.  Open Sky has only made $29.00 total from us during that 11 months. The $29.00 is their annual fee.

 

Her FICO score has gone up 41 points since getting the card.

 

It doesn't hurt for you to talk to a credit union to see if you qualify for membership.  Tell them what your scores are but I would tell them you don't want another inquiry.

 

Good luck.

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A friend of mine just got a Chase secured card and after paying on time, they raised his limit from $500 to $1000.  

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Wow...I just looked at the T&C for an Open Sky Visa.  Talk about gibberish.  As near as I can tell, your securing deposit funds go into "Capital Bank"...it doesn't exactly say "Capital One".  There are provisions for them to change banks at their discretion.  There is an arbitration clause.  They charge "daily interest"...one section implies that interest doesn't start until the "due day'...another section implies interest starts from the date of purchase.

 

My advice?  Run away...

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Wow...I just looked at the T&C for an Open Sky Visa.  Talk about gibberish.  As near as I can tell, your securing deposit funds go into "Capital Bank"...it doesn't exactly say "Capital One".  There are provisions for them to change banks at their discretion.  There is an arbitration clause.  They charge "daily interest"...one section implies that interest doesn't start until the "due day'...another section implies interest starts from the date of purchase.

 

My advice?  Run away...

You don't know what you are talking about.  There is nothing wrong with there provisions and many secured cards can change banks at their discretion.  Open Sky has nothing to do with Capital One by the way.

 

You have always been against secured cards claiming they can't help credit repair.  According to you a person should get a debit card and/or pay cash to help in repair.  You were wrong then and you are wrong now.

 

The OP needs a secured card to help credit rebuilding. MOST secured cards require a credit check for approval.  Open Sky does not.

 

If he/she continues to apply for a secured card that requires a credit check the chances of approval are very low with current scores.

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There's two different subjects going on here:

 

First, Open Sky, in my opinion, is absolutely the worst lender you could deal with.  If you pay close attention to the fine print at the bottom of their TV commercials for "...get $1,000 in you bank account tomorrow..." you'll note that their daily interest is the equivalent of 297% per year.  Run away.

 

Second, here are some FACTS about secured credit cards in general:

 

1.  FICO knows the card is secured.  It may be reported "...just like a regular card..." to the CRAs, but the FICO algorithms do not apply the same importance to them.  If your actual FICO scores increase when you get a secured card, its because of other factors.  On the other, the FAKO scores are not as concerned...but, in general, nobody who's going to lend you money looks at those.

 

2.  To get a secured card, you have to pay them a fee and deposit YOUR money in a non interest bearing account with the lender.  If, instead, you open a savings account where you have your checking and use your debit card as "plastic"...you earn interest and don't pay a fee.  (Do be careful...make sure you have fraud protection on your account).

 

3.  To get your initial deposit back from a secured card you have to wait until THEY decide there are no more charges coming in.  (In the case of Open Sky, that's 10 months after the card's expiration date).

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