Hello All,
I made a huge mistake a year before graduating college. I charged about $3,500 to help with school bills. I wasn't able to pay it off until last week. It went deep into collections. I read around and decided it'd be best to pay it off in full. Lucky for me, I did get a job in the tough economy back in June. Since then I save every penny to pay off that debt. I understand that my debt will show as "paid-in-full." It was also a Charge Off.
I've also read around about people requesting that their negs. be removed from their credit history. I did not request this before paying off the debt. My question is, when I write my letter to GEMB in El Paso, TX what are "good reasons" to have them delete it from my credit history?
What is the reason they reject such a request anyway? Is it time consuming, costly or just a moral issue or are they just lazy?
I believe my FICO score is around a 600. What can I do to improve it? What is the test of time that it will increase back in to the 700s? Is a year to soon?
By the way, I am only 22! I'm trying to start out my life now. Within 1 year, I'd like to buy a car and within 2 I'd like to buy a house. Should I really be worried?
Usually you send a pay for delete letter before you even make a payment. So since you paid in full and they already have their money not sure what they will do. I would just call the creditor and tell them your story and ask if they would be willing to remove it. It's no guarantee they would have removed it if you would have sent the letter first. Now as far as improving your score a 100 points in a year it's hard to tell but you can go and get an secured credit card and make your payments on time and only use 35% of the limit. Then you should see your score improve over time with a good payment history. It just takes time. Hang in there
Thanks! I already called. They said you have to send in a letter. Any good reasons that you can think of?
I would just tell them the truth that you were fresh out of college and in this bad economy was having trouble finding a job and as soon as you did you got the money you owed them and paid it in full.
Hi supplychain,
You should have sent a pay for delete letter before paying off the debt. Anyways, now I think you send a goodwill letter to the creditor or the CA requesting to remove the debt. You can site reasons of hardship and economic trouble according to me. They can reject the request on their own will. I do not think there is a particular reason to that. It is their discretion to remove it.
It takes time for the credit score to improve. However, you can do certain things to improve it. Apart from this stated debt issue, find out if there are any other negative items, inaccurate information in your credit report. In such cases you have to dispute the information through a dispute letter. Besides, you can apply for secured credit cards and use it properly. You can also become member of a credit union and you may get some gas/store cards and use them properly to improve score.
Ok thanks! Does anyone know what exactly are the different types of credit cards?
To name a few there are secured credit cards that's where you deposit money into an account. Then there are unsecured credit cards,department store credit cards,and gas credit cards. Hope this helps.
denied a car loan
today i was denied a car loan because my credit was 484! yes, i know horrible. what is making my head swim is i have 9 charge offs and i know of at least 8 i have already paid off! i told the credit union that i have all of my receipts that i have paid these people but to no avail i was still denied. and this place i had successfully gotten a car loan in 2002. now i feel like a complete failure. because of the downturn in the economy and my job for forgoing raises for three years and cutting hours i am just just so outdone. any suggestions? p.s. the loan officer told me that i was only short 16 points for them to try to help me. if i go through lexington law firm and have them help me with the charge offs should i apply again in say 4 months? thanks