I have been doing some online searches and have seen many helpful topics on these forums.
I would like some community advice on how to go about repairing my credit, let me lay it out as best I can and perhaps I might get some valuable advice to help expedite my home buying process.
On my credit report, I have 3 outstanding debts. I paid them all off, as they were small. I have not had my credit report pulled since paying off those creditors in June.
I utilize credit karma and my score has not gone up, in fact, because I had a hard inquiry by a mortgage lender, it has gone down.
This should be a simple process, I've been told to contact those three companies and demand written proof the account has been resolved. However, I also have a judgement from Michael Scott, P.C. I was young and never did anything about the judgement because I didn't have money at the time. In hindsight it was very foolish, but now I am dealing with the consequences.
The judgement was for $4,060. The original debt with Capital One was for $2,000 plus late fees and interest which I believe came out to $2,450. When I try to deal with them, they don't want to settle for less than their current balance of $7,500. I have pleaded that this is 300% more than the original debt, but they do not care.
I could truly care less about the judgement, but obviously it is hindering my ability to receive loans without substantial collateral that I do not have. My goal is to move soon, I am overcrowded in a small home, and would like to upgrade. I make a decent salary and I could come up with more money, but I would like community advice on how much I should consider settling for, and if there are any other ways to purchase a home. My credit score is sitting at 550 according to credit karma. Any and all advice is appreciated, even if it's to tell me something very obvious. Thanks in advance.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.