My boyfriend and I are currently debating which way is better to build credit. I say he should pay off his credit card in full every month to establish better credit. He says it builds his credit faster if he pays at least the minimum payment. He also says that if he pays off his credit card bill in full, the credit card company won't increase his limit. Please help us find out what strategy is better. Just some background: he is 23, employed at a good paying job, and doesn't have credit because he didn't go straight to college after high school (when they usually send you all the applications). He was just recently sent an offer in the mail that is a $1000 limit, $75 one time fee, $45 annual membership fee, and 23% interest rate. He thinks this is his only hope to establish credit. Are there other alternatives? Thank you. Kim
Dear Kim:
Every time you charge and pay the balance in full on a credit card, you are establishing credit. You do not need to maintain a balance to establish credit. To some creditors, if you maintain a balance, you are irresponsible in the way you are handling your credit. They feel you could possibly be overextended because if you had the money, you would pay the balance if full. Tell your boyfriend, by charging on the credit card and then paying the balance in full when his statement comes in, he is establishing credit just as well as if he maintained a balance every month. The credit card company will, in short order, increase his credit limit.
Another source of establishing credit is by applying for a credit card at a major department store. Follow the same principal as above. Charge on the card and pay the balance in full when the statement comes in. This will be establishing credit.
An interest rate of 23% is higher than normal but with your boyfriend not having a credit background, this might be the best he can do at present. I assure you though, if your boyfriend charges and then pays the balance in full on his credit card every month, he will develop a reputation of being a wise credit card user. He will then start receiving solicitations in the mail from credit card companies at an interest rate considerably lower than 23%.
Dear Susan & Co.,
Recently I applied for one of those ATM cards with a VISA logo through my bank. Since it deducts from your checking account automatically, I assumed there was no application process involved. But I was turned down because they said a quick check of my credit revealed a score of 609 and 650 is required to get one of the cards.
Since these numbers don't mean anything to me, I am wondering, what is the range of numbers and what is good and what is bad? Thank you. Sandy
Dear Sandy:
All creditors don't necessarily use the same scoring system so I can't tell you exactly what the point range is in the system the bank uses. From what you are telling us, the range of numbers probably run from 1 to 1000.
Each creditor also establishes their own minimum score to approve or reject an applicant for a credit/debit card. This number can also vary from day to day with that individual creditor. As an example, if they are trying to get more business, they can lower their approval score. Conversely, if they have more business than they can handle, they can raise the score.
Just because you have been turned down by a creditor because you didn't "score" high enough doesn't mean that you are necessarily a poor credit risk. It just means you didn't pass the creditor's initial criteria in securing a credit/debit account. You could try again in the near future.
Also, your score can possibly change from month to month. What you need to do is maintain your payments to your existing creditors, don't charge too much or too often and don't try to apply for credit too often. These are the main criteria that affect your credit score.
Dear Susan & Co.,
I am a senior in college. When I was a freshman, I started receiving tons and tons of credit card offers. I was trying to be patient and wait until I at least got a part-time job. I got a job and then I got the cards. At first it was fine, then I started getting behind on payments due to financial aid reasons. I tried to keep the cards up but I just could not seem to do it. Now I am about to graduate from college and I would like to start trying to repair my credit. How long will it take me to do this? Someone had told me it took seven years and someone else said two. I don't know. Can you please help me. Shay
Dear Shay:
The length of time it will take to clear up your credit depends on how delinquent your credit accounts have become. If you are just a few months delinquent, you can probably get your credit straightened out in 2 to 3 years. If you became 6 or more months delinquent, your accounts were probably 'charged off' as uncollectible. A 'charged off' account will be a blemish for 7 years from date of charge off.
To find out exactly where you stand with your credit, you need to get a copy of your credit report. To do that, you need to contact one of the three primary credit reporting agencies. They are: Experian at 800-682-7654, Equifax at 800-685-1111, Trans Union at 800-888-4213.
Dear Susan & Co.,
I am working to get my bad credit history back into shape. I recently started a new job and I am going to be able to get caught up on my bills in the next year. I am going to need a larger home. I am buying my home I live in now. How long, after you get your bills out of collections and get any outstanding debts paid, will mortgage companies consider you safe to loan money to again? John
Dear John:
At this point it is impossible to give you a specific time frame before you are considered a good credit risk again. It all depends on many factors. Factors such as why did your accounts become delinquent, how delinquent did they become, the effort you made to re-establish your credit and how long have you now been paying in a satisfactory manner.
Dear Susan & Co.,
I would like to get help rebuilding my credit. Thank you. Jammer
Dear Jammer:
Your first course of action should be to get a copy of your credit bureau file. Your file should show the status of all your credit accounts. To get a copy of your credit bureau file you will need to contact one, or all three, of the primary credit reporting agencies. Their names and phone numbers are: Trans Union at 800-888-4213, Equifax at 800-685-1111, Experian at 800-682-7654.
After you have a copy of your credit bureau file, contact the closest CCCS office and schedule an appointment to speak to a financial counselor. During your counseling session, your counselor will discuss possible solutions to your dilemma and make recommendations for you to consider.
Your counselor will explore the possibility of a Debt Management Program (DMP) which serves the dual role of helping you repay your debts and helping creditors collect money owed them. You agree to deposit funds with CCCS each month which CCCS will then distribute to your creditors until you become debt free. The DMP also attempts to help you reestablish your credit.
To locate the closest CCCS office, call 1-800-388-2227. If it is inconvenient for you to visit a CCCS office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service as CCCS except MMI counseling is done over the phone, by mail, fax and the Internet. Counselors are available 24 hours a day, 7 days a week. Good luck.
Dear Susan & Co.,
How about this one? I defaulted on a student loan, fell for the pay it or we'll destroy your life line, paid the loan off in a lump sum. Now, of course, I have a defaulted loan on my credit record with a $0.00 balance!!?? What can I do about that? Kabooka
Dear Kabooka:
Instead of paying the balance in full, you should have made regular payments for approximately a year. In this way, you hopefully would have restored your credit rating and the creditor would have reported your account as being paid satisfactorily.
Unfortunately there is nothing you can do now to remove this derogatory notation from your credit bureau file. This blemish will remain for seven years from the date of last payment on the account. Sorry.
Dear Susan & Co.,
I have a credit question. My husband and I started our own business in March and have been dead broke all summer. We could not pay our credit card bill, and now we have 3 bad points on our credit report. Now, our business has taken off and we want to know how to clean up our credit. The total Credit card debt is 5,340.00. If we pay it off all at once and cancel the card, will that repair our credit? We have always had good credit, and want it back...what to do???? Jolly R
Dear JR:
How long did you go without make any payments on your credit card accounts? Did you go long enough where your creditor charged-off your account as uncollectible? If so, you probably cannot "clean up" or reestablish this account. This blemish will remain on your credit bureau file for up to 7 years.
If you went only a few months without paying, you can reestablish this account. If you payoff your account while it is past due, your creditor will report your account with zero balance but paid unsatisfactorily. What you need to do is bring your account current and make regular monthly payments on time for a period of time. Generally it takes at least 9 to 12 months of regular payments before you have reestablished your account. Good luck.
Dear Susan & Co.,
Hello, I have been searching endlessly for a consolidation loan to pay my debts and have one monthly payment and not be hit with those high interest rates that credit cards charge. At this time I am about $6,000 in debt and that does not include my school loans which are deferred at the moment but those add up to about $10,000. At this time I would like to get a consolidation loan for the $6,000 because the student loans have an extremely low interest rate. My problem is that all the banks that I ask about loans want outstanding credit. My credit cards are past delinquent and probably written off by now. I had 4 credit cards and a personal loan for under $1,000. My question to you is do you know of any banks or institutions that would lend to someone with terrible credit to get out of debt, consolidate, and give me the chance to rebuild for my future. Thank you very much, Ed.
Dear Ed:
There is absolutely no bank, or any other creditor that I can think of, that will extend you credit. You acknowledge your credit is terrible. Why would anybody extend you credit when you have proven to the credit world you don't pay your bills? Creditors won't extend credit to anybody they feel won't pay them back.
We are all creatures of habit. What you have done in the past, you generally will do in the future. In the past you have not paid your bills so a future creditor assumes you won't pay them either. Until you change your paying habits, it will be extremely difficult for you to get credit in the future.
Here are ways you can reestablish your credit:
To locate the closest CCCS office, call 1-800-388-2227. If it is not convenient for you to visit a CCCS office, call our affiliate Money Management International (MMI) at 1-800-762-2271. MMI offers the same service as CCCS except MMI counseling is done over the phone, by mail, fax and the Internet. Good luck.
Dear Susan & Co.,
I was divorced in ‘91, this messed my credit up. How do I get any old information off ? I would also like to know how to get my credit back right. Thanks. Jeff
Dear Jeff:
A Federal law, the Fair Credit Reporting Act, states after seven years from the date of last activity on an account, any derogatory information must be remove from your credit bureau file. If your credit was messed up in 1991, your seven year time frame is here.
I would suggest you get a copy of your credit bureau file to see exactly where you stand at present. You might be surprised to see many of your past due accounts have already been removed. If they are still on your file, you should be able to determine when those remaining accounts will also be removed.
To get a copy of your credit bureau file, contact one of the three primary credit reporting agencies. They are: Trans Union:1-800-888-4213, Equifax: 1-800-685-1111, Experian: 1-800-682-7654.
To help reestablish your credit you can do the following:
Dear Susan & Co.,
We had a lot of credit problems in 1991 and 1992 but have since paid off all old debts. We have had auto loans for the last 3 years which we have always paid on time. We also bought a house Sept. 1997 also paid on time and one secured credit card and three other credit cards all paid on time. And I just paid all the credit cards off and closed out the one secured Visa. My problem is I can't seem to get approval for a low interest credit card or a furniture loan (I am particularly interested in the ones that offer 1 year no interest). What more can I do?? We have a good income of 70,000.00/yr. and only have 2 car notes and a home loan. I just want the respect we have earned the last several years. Any suggestions?? Coleen
Dear Coleen:
There apparently is still something derogatory showing up on your credit bureau report that is preventing you from getting this preferred credit. You will need to get copies of your report to see exactly what is being reported. There are three primary credit reporting agencies (CRA). Their names and phone numbers are: Experian:1-800-682-7654, Equifax: 1-800-685-1111, Trans Union: 1-800-888-4213. Call one or all three to see what the procedure is for you to get a copy of your credit report. The CRA will charge a small fee for this report.
Once you have your report you can check it over for accuracy and see if there are derogatory notation being reported. The CRAs are regulated by a Federal law known as the Fair Credit Reporting Act (FCRA). The FCRA states the length of time derogatory information remains on file is 7 years from date of last activity. Since your credit problems occurred in 1991 and 1992, you could still have accounts from back then being reported since they could be within that 7 year time frame. On the plus side, any derogatory reports should be coming off soon.
Dear Susan & Co.,
I am trying to re-establish my credit and am having a difficult time... can you help? Tricia
Dear Tricia:
I would love to help you re-establish your credit but you haven't given me enough information to properly advise you.
Please call our affiliate Money Management International (MMI) at 1-800-762-2271 and speak to one our financial counselors. Explain to the counselor what you are trying to do, re-establish your credit. The trained, professional counselor will discuss possible solutions and make recommendations for you to consider. Counselors are on duty 24 hours a day, 7 days a week to accept your call. There is no cost or obligation for this service. Good luck.
Dear Susan & Co.,
Help, please. My sister declared bankruptcy in 1986 or 87. Since then she has not established any credit - she was scared off, I guess. Anyway, she has been steadily working, although at several different jobs, has no debt, but can't seem to establish any credit. For the past three years she has been paying car payments for a car leased to my mother (79 years old), but my mother's credit looks good, not my sister's. Recently, she turned in the leased car, leased a new truck under my mother's credit, was told by the salesman that the lease could be switched to her name in "about a month or two" and NOW we find out the leasing company won't touch her. We would like to get her credit established, get my mother's name off the lease (because she now needs a car of her own) (which I understand we cannot do now - we're stuck). HELP. My sister needs credit counseling desperately.
She is 45 years old, on her own, and if my mother should pass away, she has no way of buying a car of her own or getting credit for anything. What does she need to do?
Thanks for listening and I truly look forward to hearing back from you as soon as possible. Barbara
Dear Barbara:
There are a few ways your sister can establish credit in her name. (1) Save some money (say $1,000 or $2000). Go to a bank and say you want a loan. The amount of the loan will depend on how much is saved. To guaranty payment on the loan, you will put the saved money in a bank certificate of deposit (CD) Set up a repayment for one year. Make sure the bank reports loan payment to the credit reporting agencies. After one year, a credit rating will be established with the bank. (2) Apply for a secured credit card. Some banks offer major credit cards using a savings account as collateral. To get a list of the major banks that offer secured credit cards, call or write: CardTrak of America, P.O. Box 1700, Frederick, MD 21702 (800) 344-7714. CardTrak charges $5.00 for the survey offering the above information. (3) Find a cosigner who will guarantee that the payments will be repaid if the primary borrower defaults. Caution; not all creditors will accept a cosigner but most will.
If your sister would like to discuss this further with a CCCS counselor, the phone number for CCCS in Bradenton, Florida is through CCCS in Tampa at (813) 289-8923. Good luck.
Dear Susan & Co.,
I am very eager to rebuild my credit report. I have been very depressed for many years because of this single black cloud over my head. I bit the bullet, and purchased a $15,000 car with a 21% interest rate. I just finished paying for it last month. I totaled the entire amount to over $24,500. And still I have a poor credit report. I want to buy my own home and be happy but please I need assistance in rebuilding or cleaning up my report. Can you direct me to an individual group that specializes in this type of work? I am so desperate these days! I'm willing even to pay someone to help me. I have the secured credit cards and through a friend at a bank I was able to open a checking and savings account. I have gone so far but I desperately need help. To have poor credit is the most humiliating experience in my life, I feel so ashamed. Please direct me to a brighter future. Thank you for any assistance, Javier
Dear Javier:
The only thing that can clear up derogatory information on your credit bureau report is 'time'. On accounts charged off or placed for collection, the length of time information remains in file is 7 years from the date of last activity. There is absolutely no way you can legally get this information removed from your file any sooner.
You might have heard or read of companies or individuals that say they can or will have derogatory information removed from your file. DON'T BELIEVE ONE WORD OF WHAT THEY SAY. It can't be done...period. Don't waste your money on these con artists who take your money but CANNOT do what they say they will do.
Your only recourse is to wait the 7 years to have these blemishes removed. Let this be a bitter lesson and motivate you to maintain good credit in the future. You're to be congratulated on doing what you already have do to reestablish your credit.
Dear Susan & Co.,
I had declared bankruptcy, which was dismissed over 2 years ago. I am trying to rebuild my credit now. I have applied for secured credit cards, enclosing money as a deposit, which becomes my line of credit, and am still getting turned down! Why am I getting turned down for SECURED credit cards that include a cash deposit?! Is applying for these and getting turned down adding more bad marks to my credit? What can I do? Thank you, Paul
Dear Paul:
Each creditor establishes their own criteria for extending credit. This applies even for secured credit cards. There are numerous banks offering secured cards. To find out who they are and what programs they have available you can write to: CardTrak's Secured Card Report, P.O. Box 1700, Frederick, MD 21702. This Secured Card Report cost $10.00. You can also learn more about secured cards at - http://www.securedcard.com
Hopefully with this information, you can find a card issuer that will issue you a secured credit card. Good luck.
As to whether your applying for these cards and being turned down will add more bad marks to your credit; that depends. Creditors look at the number of recent inquiries on your report. Too many recent inquiries indicate you might be trying to get too much credit, which is a negative.
Dear Susan & Co.,
I am 24 yr. old and have absolutely no credit. I have applied for at least a dozen credit cards in the past couple of years and have had no success. What am I doing wrong? I make about $20k a year and have a good job. I have never had any credit so I know my credit is not bad.
Do you have any advice or suggestions? AJ
Dear AJ:
You might try to get a secured credit card. This is where you put money into an account and the credit card company issues you a line of credit in the amount of money you have put in the account. To get a list of issuers of secured cards, write to CardTrak of America, PO Box 1700, Frederick, MD 21702. Their phone number is 1-800-344-7717. CardTrak charges $5.00 for the survey offering the above information.
You also can contact your banker and ask the banker if you put money in savings account or a certificate of deposit, would they make you a loan using your savings or CD as collateral. The purpose of the loan is to establish credit and get the bank to report the loan to the credit reporting agencies.
Dear Susan & Co.,
I hope you can give me some good advice. I am recently divorced and still have possession of a car that was purchased during the marriage. I only co-signed the loan, due to past credit history 5 years ago. I have tried to get the loan put in my name but was told I could not get the loan. My ex is letting me keep his name on the loan so I can keep the car. My question is: How can I use this to better my credit? The car doesn't show up on my credit report - it is on his. So every payment is showing "good standing" on his report - not mine. Any ideas? Sincerely, Dianne
Dear Dianne:
You need to contact the company that you are making your car payments to and ask them to report the fact that you are making all payments, to the credit bureaus. You also need to keep a record yourself, via cancelled checks, etc. of all your payments. If the financing source doesn't report your account to the credit bureaus, you can inform future creditors you made all payments on the car yourself and you can prove it by supplying receipts for all payments.
Dear Susan & Co.,
I read in your Establishing/Re-establishing Credit that there is a Citibank credit account for former clients. I have not been a client, but I have been trying to clean up my credit. I have paid all outstanding cards and am down to no debt. I have been able to reopen and account with a department store that had been closed for some time. I have been very careful about charging, i.e., I only charge what I can pay for, and I pay the balance in full within the week of the charge. I am pleased with this progress, but I also have to travel for work. I honestly am too embarrassed to ask for an advance, and I usually have to fork up the travel costs out of my own pocket. This is getting to be very difficult lately, as I am going to be traveling internationally soon. I requested a major credit card to reopen my account, but was turned down. I have been trying to write another letter to try again, but have been unable to come up with the right words.
Is there anyway CCCS can help? Thanks, Angela
Dear Angela:
Your best bet might be to obtain a 'secured' credit card. This is where you deposit into a CD "X" dollars and you have a line of credit for this amount, or more. This also gives you another good credit reference for reestablishing your credit rating.
For a listing of secured credit card issuers you can call CardTrak of America at 1-800-344-7714. CardTrak charges $5.00 for this list.
Dear Susan & Co.,
Approximately 2 years ago I paid off all my debts and outstanding credit cards, I purchased a building and bought a car. I have begun rebuilding my credit by paying my mortgage, car note and one major department store credit card on time each month for the past year. My salary is around $50K yearly. Now I want to apply for a major credit card - My questions is where do I begin, do I have to settle for a secured credit card or can I try to apply for a standard visa or mastercard with someone who has lenient requirements? If so, what credit card company do you recommend? Searching
Dear Susan & Co.,
My wife and I completed a debt consolidation program with CCCS last August ('96). The program was completed without any problems. We were very happy to get all of those bills and problems behind us. Every since then we have been unable to obtain any form of credit outside of our credit union here at work. My work is pushing me to do some traveling for school and other business requirements, but without additional credit (cards), it is impossible, and our work doesn't allow for travel advances. We are constantly told our credit history shows we are in a debt managementprogram, have too many past due bills (we now have none), or that there are some other discrepancies in the history. Our counselor told us we should try to reestablish with someone like Citibank. We have tried with no results, and now I am in a bind because of the added travel requirements at work. What can I do??? I don't want to fall back into the problems of the past. Any suggestions?? Phil & Bev
Dear Susan & Co.,
I was just wondering how long I have to be at my present job before I can become eligible for a decent loan, assuming I have 10% to put down and good credit. Does being a recent college graduate make me any more or less of a risk in the eyes of the credit grantors? Thanks for your time. Tony
Dear Tony:
Credit grantors like to see six months to one year of employment at the same place. Since your credit file doesn't include your college graduation date, it doesn't contribute to your risk factor.
The counselor in me is saying, "Be sure to tell him not to spend more than 15% of his net income on credit payments." Okay. You're told. Thank you for writing and congrats on your graduation!
Dear Susan & Co.,
My husband and I have recently bought a house and in the process have cleaned up my credit. However, I still cannot get a checking account. Please advise. No Checking Account
Dear No Checking:
The problem is probably bounced checks you haven't paid for or old bank accounts you closed without paying the balance.
These problems don't necessarily appear on a credit report. Banks find out about these problems through subscribing to special services that screen new accounts for them. There are several such services.
So go back to the last bank you applied to and ask them which screening service they use. Get the phone number, call that service and ask for a listing of checks or accounts that need resolving. They will tell you the process for clearing your record.
Thanks for writing. Best wishes.
Dear Susan & Co.,
I was surfing the Internet and came across the Consumer Credit Counseling Service link from the Houston Chronicle.
My wife and 15-month daughter relocated last July from Canada and have had some difficulty obtaining credit cards because of little credit here in the U.S. I have had many credit cards over the time I was in Canada. I was able to obtain a VISA card from NationsBank (after providing a copy of my Canadian credit history) and a VISA from MBNA. I had an American Express (Canadian) and AMEX supplied a U.S. based card with no problem.
Whenever I apply for small accounts, at consumer electronics superstore for $600 I get turned down because of little or no credit history or too many inquiries in a certain time period.
Do you have any advice as to how I can establish credit here? Any advice would be greatly appreciated. Tim
Dear Tim:
If I read your letter correctly, you have three credit cards currently. That number of cards should be sufficient for yours or anyone's revolving credit needs.
My question is; "Why aren't you using those cards at the electronics stores if you want to make purchases on credit?" If your credit limit is not high enough to accommodate those purchases, then you could ask the lenders to raise your limit. If they won't do that, then you have a big, red flag warning you to take a hard, realistic look at your money management techniques.
Credit is not a way to increase income. If you can't afford to pay for a small purchase in full, then you don't buy it at all. Instead, you save up money for the purchase over a period of time and then buy it. If you can't afford to save, then you sure can't afford to spend.
For larger purchases consider joining the credit union available through your company. You can establish credit with them by borrowing a small amount of money, putting it into a savings account, and then paying back the loan from the savings each month. You will also want to visit the credit union often enough to develop a working relationship with a loan officer. When it comes time for a car loan, you will have the history and relationship in place. The credit union may also have a low-interest credit card available.
With the unexpected expenses of a young family, Tim, you need flexibility in your budget, not more fixed credit payments. A written budget is a visual means for maintaining that flexibility. It answers the question: "Why can't I buy it now?" Budgeting help is available by calling CCCS at 1-800-873-2227 for a free workshop appointment. Good plans make good futures.
Welcome to the U.S., and thanks for writing.
Dear Susan & Co.,
My husband and I lost our jobs about the same time. Without any income, we used our savings to pay our bills. My husband had taken a job that paid considerably less than his previous job, and I found myself pregnant so I signed on with a temporary agency. In desperation, we went to CCCS. We were told by the counselor that he could not help us; we still needed to make more money. We filed bankruptcy (Chapter 11). That was five years ago. We have a few charge accounts that were reaffirmed in our bankruptcy and keep them current. Will we ever be able to get "good credit" again? C
Dear C:
I'm not sure what you mean by "good credit." If you mean a blemish free report, then the answer is about 5 years. It takes up to 10 years for a bankruptcy notation to be removed from your credit report.
Continue maintaining the accounts you have. If you really need an emergency loan, you might approach your credit union. A good repayment record with the credit union will help re-establish your credibility.
Meanwhile, enjoy the benefits of living on a cash basis. Save, invest, earn interest instead of paying it, give to good causes! Enjoy your family, laugh, take walks! There's a whole lot more to life than credit and money.
Dear Susan & Co.,
I am currently in CCCS. When I finish my payments, will CCCS still be on my credit report? Will I be able to get credit cards again? Thanks. Angela
Dear Angela:
If your program is through CCCS of the Gulf Coast, the CCCS notation on your credit report will be removed on the completion of your program. Newer clients will not have this concern. As of September, 1996, our agency will no longer add a CCCS notation to clients' credit reports.
A creditor, however, may add a comment to his tradeline, indicating that payments are being made through CCCS. CCCS cannot remove any information that a creditor has placed on the report.
Getting credit cards again will depend on whether the credit grantor sees you as a good risk. A number of creditors are willing to review CCCS client applications after the program is complete. Again, if your program is with CCCS of the Gulf Coast, the creditors' criteria for re-establishing credit is on the General Information Sheet.
Meanwhile, concentrate on getting debt free, learning to live on a cash-only basis, and saving some of that hard-earned money. Good luck!
Dear Susan & Co.,
Several years ago I fell head first into the credit trap. Having totally ruined my credit rating by age 24, I'm now at a total loss regarding how I can re-establish some type of credit. Here is a brief glance at some of my history.
I've paid off a total of $1300 on both an AMEX account and a student loan after threats of legal action. I've rehabilitated a defaulted student loan of $10,000 with one year of timely payments. I've been paying off a Discover card for 5 years and still have a balance of $950 with some slow pays. I have unpaid electric and medical bills from 4 and 5 years ago with a total of $750 owed.
Susan, I'm *totally* ashamed of my past behavior, but now I'm paying for it with a lousy credit rating. No excuses. This was a deadbeat attitude. I want to pay off the bills that are rightfully owed, but I only make $350/2 weeks. Furthermore, I'll be getting my master's degree next year, but I'm terrified that my employers will want to see my credit rating. Please help! How do I minimize the damage to my credit? Is there any counseling available for financially irresponsible people? God knows, I need it! To this day I still can't seem to manage my finances, but I want to try. Pete.
Dear Pete:
I hear four issues here.
Dear Susan & Co.,
We went through CCCS back in 1990 in Florida. They told us we could get credit real easy after we were done. The only thing we have been able to get is a house this year. We have tried ever since we graduated from there. We don't know why we can't get any other credit since we paid everyone off. M.
Dear M:
First, congratulations on getting debt free and on buying a home. Both are accomplishments to be proud of.
When you're turned down for credit, the creditor sends you the reason in writing. Those replies are your best source for knowing why you were turned down.
If one of those reasons included "slow pay" on your report, some of your accounts may soon "roll off" your credit report. Account information is removed from the report seven years from the charge-off date, and it's been six years since you graduated from CCCS. Why don't you request a report to see where you stand?
Finally, did you go through an exit review with CCCS? Depending on certain criteria some creditors will consider re-establishing credit with CCCS graduates. It wouldn't hurt to contact the Florida office and talk with them. Just remember, it is always the creditor's choice to issue credit or not.