Repairing Credit: HELP!!!!!

Submitted by Cindy1184 on Wed, 08/18/2010 - 23:53
Forums

Like many young adults I overused my credit cards and now my debt has increased beyond belief. Though I have since graduated school and am in a decent job I was unemployed for awhile and just went down hill with some of my cards.

At the moment I have 6 derogatory listings on my credit report. I have contacted the credit companies and only 2 companies were willing to remove the derogatory items and the others are unwilling even though I have maintained on time payments for a year. Companies unwilling to remove, GE Money (had 2 accounts with them), Macys, CMPPTNERS (student perkins loan which have been paid off, I was trying to defer these loans but was unsuccessful and in the process of trying to defer I never made payments, I have since consolidated all my student loans and am making those payments)

Would it be worth it to see a credit repair attorney or consult with a company? Can they even assist?

These items are merely state that I was 30 days late but I am unsure of how much of an impact this is making on my credit score.

I am still young and I am thinking about investing in a home and these items will stay on my report for 7 years and already a year has passed. Any assistance would be helpful as I am at a loss and would hate to think there is nothing I can do to repair my credit sooner as oppose to waiting 7 years.

Hi Cindy,

I think you should atleast make the "Pay for delete" (PFD) agreements with the two who have agreed to delete the negatives. Can I know if you had offered payments in full, or were you trying to negotiate a settlement on the debt amount? Sometimes creditors or collection agencies do not agree to delete the negatives (PFD) if you pay settled amount.

What are the derogatory remarks on these accounts? Even if the negatives do not get removed, once you make payments on these accounts the status will get updated to "Paid". This is a positive thing on your credit report. Any new creditor or lender will get to see that you have atleast paid off your debts. Moreover, with time the negative impact will lessen. The only thing that you need to keep in mind before making the payments is that you should get all the agreements in writing, and you should check your account status after making the payments.

It is better to pay off your debts, and repair your credit rather than waiting for the 7 years.

Thanks,

Aaron

Thu, 08/19/2010 - 07:49 Permalink

I am not sure that Pay for Delete would work with open accounts that have been brought current.

Actually, one year is a pretty short time to get lates off. unless, there was some kind of irregularity that you could file a complaint about it will be much more successful in another year. many companies are willing to drop lates after 24 months.

Thu, 08/19/2010 - 17:38 Permalink

Hi Aaron & Cinnamngrl,

I don't not understand what PFD really means but let me give you an example. On my macys account, I had 2 consecutive months in 2009 that I was over 30 days late so that was the derogatory remark. When I called macys about it although I have been making on time payments since those remarks they are unwilling to remove those derogatory remarks and I was told they will be removed in 7 years in compliance with the credit bureaus. Now since I am making ontime payments for a year since then and my account is still active, I can not settle with them. I am still not sure how this is affecting my credit score or if this is something that is a big enough deal. I mean for me its a big deal because I don't want it there but for future creditors I am unsure if that will impact any financial needs I may have in the future.

Meanwhile, my old navy account with GE Money the card has been canceled and I was reported for being 30 days late as well. They too are unwilling to remove that deragotory remark and they are unwilling to settle the account for an amount as well because I am not over late past 60 days. Which is frustrating because they would then report me again but willing to settle the debt with me.

Again, I am unsure if I am being a bit over zealous about this but I would like to invest in some property in the near future and I honestly don't understand how these deragotory remarks will impact that. Thanks in adavance for any other additional advice you may provide.

Is it worth it to consult with a credit repair company and/or attorney? Is there anything they can help with if the deragatory remarks are true?

Thu, 08/19/2010 - 18:03 Permalink

do not consult or pay anyone to help you with your credit. PFD means pay for delete and it means that you settle the account with the creditor and they agree to delete it from your credit.

you have not damaged your credit much. this is a few lates and an account closed by grantor.

there is very little reason for the original creditor to agree to settle this account with a delete. remember, the law will allow them to tack on several months of late fees ($39 min) plus interest for waiting. original creditor's don't usually pay for delete.

Thu, 08/19/2010 - 19:25 Permalink
tracy (not verified)

If you want to repair your credit you can take loan.online loans are really helpful.

Mon, 08/23/2010 - 11:32 Permalink

I don't think it's a good idea to take online loans. I think it would be better if you went to 'your' bank or Credit Union, if you can. Don't take any kind of PDLs!!! You'll have MORE of a mess!! If you have accounts that are 'current', why use a PFD letter? Have you checked your CR after all this was 'said and done'? I would do that first.

Mon, 08/23/2010 - 11:45 Permalink

Yes, sdchargers. I completely agree with you. It is always better to avoid payday loans. More specifically the online ones.

Aaron

Tue, 08/24/2010 - 11:40 Permalink
matzcrorkz (not verified)

IzC9U8 I am so grateful for your article post.Really thank you! Great.

Tue, 08/05/2014 - 23:51 Permalink