 Second Chance Banking or Best Prepaid Debit Card? |
| I've been on a quest to find the best prepaid debit card. I used to have one through Virgin Mobile that allowed you to pay a direct fee monthly and you could use the card as often as you liked. <... |
|
 Where to get a credit card for someone with very little credit? |
| I'm sure many of you have been in the same boat as me. I'm 24, not much credit to my name and I've tried about 5 different places (Amazon, Ebay to name a few) and all have rejected my ... |
|
 I'm new to the USA, how do I start credit? |
Hi, recently I moved to the USA, right now I'm seeking to complete my steps of the USMLE and hopefully getting into a residency program at a hospital near 'home'.
Thing is ... |
|
 Cleaning up credit? |
| I am working on cleaning up my credit after some hard times. I have a few things that have been sent to collections. Is it better that I pay the collection agency or the place where the debt ... |
|
 How do i get out of credit card debt? |
| I am being smothered by credit card debt please ... |
|
 Is a 836 reasonable credit score? |
| I checked it with experian and that was the score is that good for a 24 years old guy?... |
|
 I am having trouble getting student loans because of a lack of credit history.? |
| I applied for an additional student loan for this coming school year, but I have been declined by every lender due to a lack of credit history. I thought I could get a credit card to help add to my ... |
|
 What do I do? My mom ruined my credit.? |
| I need help!!! I'm 25 years old and have only held 2 credit cards in my posession that I always pay over the minimum amount or completely if possible and a student loan that in deferment till D... |
|
 Debit card question? |
once ive withdrawn the maximum amout from an ATM can i still use my card in the supermarket to make a payment? ( dont want to be embarrassed at the checkout!)
Additional Details
ha ha! ... |
|
 Should I cancel my credit card? |
| I currently have 4 credit cards. I tried to cancel one not too long ago. It's the card that I've had the longest - but use the least. Anyway, a charge automatically got sent to the card ... |
|
 Very poor credit and makes 50K--Fiancee has great credit and makes over 400K-Will lenders look at both scores? |
| I have very poor credit because of some embarrassing mistakes I made with credit cards. I am trying to rectify this, but am getting married in the next year to a man with fantastic credit. I make 50... |
|
 My credit card bill was a few days late this month. Will this affect my credit rating/score? |
I've heard somewhere that the bill must be 30 days late to matter.
Additional Details
Also, does it matter that the credit card is through my bank?... |
|
 What's the difference between Chapter 7 or Chapter 13 Bankruptcy? |
| I'm filing for bankruptcy...I'm not sure which to file under. 7 or 13?... |
|
 Do I qualify for the auto loan? |
| I am 19 years old. I am in USMC Reserve. I don't get paid much but I do get paid enough to make a $ 300-400 payment on the loan each month. I live with my parents. I can get a job after I get ... |
|
 Debt collector won't collect!? |
| Ok, so I have an old credit card that went into collections last year while I was in college and poor. The bill was only 500 bucks, and now I want to pay it off and get it removed from my credit ... |
|
|  |
arivaz24 | Should I pay off old debts to improve credit? |
I have a few negative credit marks on my report.
I was wondering if I should pay off debts that are only like 2 years old because I am wanting to finance a car and eventually a home...
I had a previous car repossesed but am making good payments on the rest of it, can I get them to delete it when its paid?
I am basically just wanting to repair my credit and with all my negative marks I dont know where to start...
Do I pay off the department store card I had? (3 to 4 years ago, $400)
The 2 credit cars? (2 years, $600)
Dentist and doctor?(2 years, $500)
Any help is greatlyappreciated!
Additional Details
I just checked my credit score and it said 555, poor, which is higher than I expected.
I think I will go the route of avoiding the 2 credit cards and paying off the local debts like medical if they agree to remove it from my report.
Great answers everyone! Thank you so much! |
 |
 
SlimMick
|
Your best bet is to pay off non credit card debt (your medical/dental bills) as you have the greatest chance of having these items completely removed from your credit file.
Charged off credit card debt is another matter. Don’t make the mistake of simply cutting a check to whatever collection agency has the debt for the charge-off and assume that your credit rating will be magically restored...Doing so will not remove it from your credit reports. It will simply be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid or not, can remain on a consumer's credit reports for up to seven years.
If you're going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report anyway. You have to be VERY careful in this effort...Mail them a vaguely worded statement like:
I am willing to settle this matter for 25% of the original amount. This is in no way an admission of this debt, but rather an attempt to settle this matter. Your firm must send me a written agreement on your company's letterhead that you will accept this amount as "payment in full" and that is issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.
==================
* Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. Never accept settlement deals over the phone...The debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money.
* NEVER, EVER give out your checking account numbers to debt collectors for making electronic debit payments. |
|
bdancer222
 |
Paying derogatory items will not improve your credit score (unless you get the item deleted). The damage is already done and the item will stay the balance of the 7 year reporting period whether paid or not.
However, creditors do look at your whole credit report and paid old debt always looks better than unpaid. If you plan to buy a home, mortgage companies will insist that ALL derogatory items be settled before you can qualify for a mortgage.
In the case of single entry items like the medical bills, negotiate a pay for delete -- you pay $x and they delete the item from your credit report. This doesn't work for regularly reported items like credit cards as the collection agency can only remove what they report. The original creditor's charge off would remain.
General rule of thumb, if the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2 years, offer 75%. Lump sum gets the best deals. Payment plans must be short term. Get any settlement agreement in writing and do not give the collector direct access to your bank account. |
|
Bob C
 |
I'm not really sure what you credit situation is but here's generally how things work.
First, pay money towards debts that are current. The worst thing you can do to yourself is have a new "late". Credit stays on your credit report for seven years. And, every time you make a late payment the seven years more or less starts over.
Second, pay down accounts with high balances. Generally, pay the one with the highest interest rate first. Keep balances on credit cards below 50% of the limit.
Third, pay off debt by paying off the smallest balance first. As you pay off each account, you'll have extra money to pay towards the next smallest account. NEVER cancel a credit card when it is paid off unless the number one reason why you have bad credit is too many credit cards. Canceling credit cards also cancels any credit history which will typically lower your credit score.
Fourth, if you haven't paid an account for over six months or so, it will "charge off". This doesn't mean you don't still owe money on it-you do. However, this does mean that the entire amount of the debt is now payable and you can be sued for the entire balance (although this rarely happens.) Ironically, once an account goes to charge-off, it stops being "late" and, over time, your credit score can actually go up even if you don't pay it off. Generally, collection accounts should be paid in reverse order of their age because the newest collection accounts have the largest effect on your credit score.
Finally, bad credit stays on your credit report for a MAXIMUM of 7 years. Bad credit can be removed by negotiating with the creditor. However, the removal must be negotiated as a condition of payment. If you pay the creditor, they have no reason to negotiate with you and, therefore, probably won't.
I hope this helps. |
|
New rider-- again
|
they won't be removed from your report but they will show paid on your report... the information can/probably will stay on the report for 7 years after being paid.
if you never pay the debt.... (department/credit cards included..) it never shows paid and never drops off
if you expect to get a tax refund.... use it to pay off the old debt... if you call the credit /department store card companies.. they may settle for about 60% of the balance to clear the debt from their books.. it will then show paid by settlement
I bought a house approximately 1 year after doing the "settlement" with a couple old cards.. |
|
min
|
You need to contact all your creditors & make arrangements to pay them off. Do not make any arrangements that you do not intend to honour. I am surprised you managed to get a loan for a car after having one repossessed. I gather you are in the states & dealing with Fico scores?
If you haven't learnt now that not paying yr creditors off is a bad move then you will have trouble sourcing a mortgage @ a reasonable rate.
Set yourself a budget, one that has a little bit of 'fat' in it, separate yr bank accounts so that you have one that all your bills come out of.
Seek out another account that pays higher interest if you make deposits fr your wages on a regular basis & offers bonus interest when you don't make withdrawals.
Cut up your credit cards or put them in a glass of water & freeze, this will stop you making 'want' purchases instead of 'need' purchases.
Draw a list up of where you are financially & where you want to be.
Write a list of all incoming & outgoing money (including that trip to see a film etc). You will soon work out where all your cash is going to & then will be able to put an action plan in place to get savings happening towards that house deposit, whilst paying off your creditors Good luck. |
|
pearlbobshorty
|
I would wait. Unless you are trying to get a mortgage I would wait. you'll get a lot of calls but, debts get transfered to one company after another after 7 years in some states they are not allowed to take you to court. In my experience thought local dentist & doctors bills will hire folks to get their money! |
|
Aku Kuma
|
It will still show as a judgement on your credit for 10 years. Your best bet would be to go a small loan company and take out a loan. As much money as you can get and make every payment on time! You can't just fix it, but you can slowly improve it. Now about the payments you will be in better standing when you try to get the car or house loan if they are paid off and some require them to be paid off first anyways. So yes pay them off, you will be happy you did in the future. |
|
Bill M
|
Pay off the debts with the highest interest rate first. That would probably be the department store card or the credit cards. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
7 | 33 minutes(s) ago
| | | |
9 | 42 minutes(s) ago
| | | |
8 | 43 minutes(s) ago
| | | |
9 | 3 hour(s) ago
| | | |
9 | 6 hour(s) ago
| | | |
9 | 9 hour(s) ago
| | | |
9 | 1 day(s) ago
| | | |
8 | 3 day(s) ago
| | | |
9 | 2 week(s) ago
| | | |
8 | 1 month(s) ago
| |
|
Homepage 
Financial
Forum 
Credit 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
