What should i do?
Date: Thu, 07/01/2010 - 10:33
Ok here is my situation, I am 23 years old, I have had a good steady job for the past 2 1/2 years, I now want to start rebuiding m credit.
2 1/2 years ago I was in college, I lost my job and I couldnt pay my credit card payments, approximately 5 different cards which total around $5500. I tried to ask for payment exensions with the companies (chase, macys, and kohls)and they all refused, so I did not pay. When I finally started working a steady job, the payments and interest/late fess etc, were more than I made in two months, I asked for them to re-consider, they refused. So here I am today, I have 5 cc accounts on my report that are all charged off, I have 7 student loan accounts, which were past due for months, I then put them into forebearance and they are now current. I have a few paid off credit cards that are now closed (4), and two totally paid off auto loans.
I checked my scores (transunion 505) and (experian 575). I want to know what the best options are for me to turn my credit around, also why the difference in almost 70 points between the two scores? I do not have a lump sum of $6000 to pay all of these off. I want to get a credit card to help start rebuilding my credit.
Thanks
Quote:why the difference in almost 70 points between the two sco
Quote:
why the difference in almost 70 points between the two scores? |
If you want to take out a new card, you may get a secured credit card. It helps you in rebuilding your credit. Before taking the card make sure that the card company reports to all the three credit bureaus. Make small purchases using this card. Then make on-time payments on the card. This is going to increase your credit score.
As for the student loans, can you tell whether these are federal or private student loans? Private student loan and Federal student loan are two different types of loans. Thus they are to be consolidated separately.
Can you tell whether the paid off credit cards and the 5 charged off credit cards the same? If yes, then what is the status of the paid off cards on your credit report? You need to provide more details on your credit cards, and loans so that the members can help you.
The student loans are all federal loans taken from PNC bank, the
The student loans are all federal loans taken from PNC bank, they are all through the same bank and I only make one payment each month to AES, but it shows as 7 seperate loans on my credit report.
As for the credit cards, the 5 charged off cards are still outstanding, meaning I never paid them off since they never seemed to want to settle, I am just now getting offers to settle in the mail from collection agencies, should I try for a pay for delete?
The paid off crads were from American Express, as well as GMAC I believe, they are now closed and say paid as agreed. I alos have two paid off auto loans from the past 4 years, one from American Honda finance, opened in 2006 paid off in 2007, one from Mazda Credit, opened in 2007 paid off in 2009. I have no other outdatanding Loans.
