I have made some mistakes. I defaulted on an old credit card 8 yrs ago, I have some unpaid medical bills, old utility bills that were disconnected for non payment, so yes I really fucked up.
99% of this is old stuff from 8 years ago. A lot of it has fallen off my credit report but if I were to try to get an account with them in my name I would be told to pay the balance owed and they would require a deposit from me.
I have even had utility companies I have never used before demand a deposit from me before they would allow me to have service in my name. That is 100% unfair but I think it is because of my crappy credit score.
Since a lot of this has fallen off my credit report my file is now too thin to get an accurate credit score. I am thinking of getting a secured card and making my payments on time to rebuild my credit. This time I will not allow anything or anyone to get in my way.
Maybe if I can raise my credit score enough I can get a home loan and buy my first home. I would love to have a place I own instead of paying rent and being told “no pets” or “no dogs” or “you may have a maximum of 2 cats” If I want two dogs and two cats I’m going to have them and that will be my right if I own my own home.
It would also be nice not to worry about some property manager harassing me and trying to break my lease, or looking for excuses not to renew my lease, or trying to evict me. These are all things I wouldn’t have to put up with if I owned my own home.
With the score I had in 2013 I would never qualify for a home loan. Since most of this crap has dropped off my credit report I can’t seem to get a current credit report. Getting a secured credit card will help with this. It will create a payment history that is recent.
I figure by paying on time for two years I should be able to increase my credit score by at least 150 points. I will also pay off that old sprint bill, my old AT&T bill, and my old electric bill. Unfortunately That old Dominion bill is way too high to pay. I will have to contact them and set up a payment plan.
Dominion will be the LAST one I start paying. I will insist they delete any derogatory remarks they may have on my credit report upon receipt of the final payment.
As for medical bills, They shouldn’t be as high as they are. I’m just going to let them fall off my credit report. I shouldn’t have a whole lot of those in the future because I have a doctor I can call when I get sick instead of going to the emergency room for minor issues.
The key to improving my credit and maintaining it will be responsible use of a credit card, making payments on time, and not creating unnecessary bills from things like emergency room visits. I don’t need to go buy a 60 inch TV when I have a perfectly good TV already.
When I say responsible use of a credit card I mean maybe pay a utility bill ONE TIME with it and make more than the minimum monthly payment, preferably pay it off in full. If I don’t pay it in full in one payment I want to pay at least half and then the following month pay the other half. That will increase my credit score by showing on time credit card payments and I will have an old utility bill paid in full.
Then I can contact another creditor and pay them in full and do the same thing with them. Two to three months making payments on time and that will be two old debts paid off which can only help.
If I do not see a credit score increase in 6 months time I will start filing disputes and try to get some items removed. That will help for sure if I am able to get anything removed.
Most of the time people don’t really NEED these credit repair services you see advertised everywhere. If I get this secured card I’m looking at and pay off some old bills, then pay the credit card bills on time and I don’t see my score increase then I will use one those companies. They are good at what they do but they are not free.
I do not recommend filing bankruptcy. It looks horrible on your credit history. I recommend looking at your credit report, paying the lowest debts first and then start working on the higher ones. This will reduce the number of open accounts and look better on your credit history.
A good example is say you have 20+ accounts in collections. If you know who some of these creditors are you can contact them and pay the smallest debts first which will effectively remove some of those accounts from collections. Say you know who 8 of these creditors are and pay them if you have 25 accounts in collections and pay 8 of them off that leaves 17 accounts in collections which still doesn’t look good but it looks a hell of a lot better than 25.
The next thing I recommend is calling the creditors with higher balances. Go to the lowest creditor you have left first and set up a payment plan you can afford. Make the payments and get that one removed from collections. Keep doing this until you have no more accounts left in collections or you only have creditors that you can’t identify left.
This will help reduce the credit to debt ratio and make your credit history look a little better. Remember the fewer accounts you have in collections the better. For the ones you don’t recognize look at the age of the debt. If it is 3 to 5 years old you can use a credit repair company to remove them from your credit report. They probably won’t have the paper work to back up the crap they listed on your credit report anyway.
Try to avoid having additional debts added to collections. Make sure you are living with in your means. If you can’t afford a brand new car then you probably shouldn’t apply for an auto loan until you can afford it. If you can’t afford a new boat then don’t buy it right now. You can either start saving for it or you can wait until you can afford it.
If you make 500.00 per week your rent price should probably not exceed 500.00 per month. This way you can afford your utilities, cable and internet, gas in your car, insurance payments if you buy your own insurance instead of getting it through work, groceries, home and/or cell phone bills, and if you have credit cards those payments too.