September 16, 2014 at 5:59 pm #3666
I have read so many re-build/create credit forums within the last 2 days that I feel like I’m an expert now. Possibly not, but seriously my head will explode within the next few hours if I don’t stop. So this would the first time I ever attempt to know about how to build a credit. The reason I procrastinated was because I never really needed credit. I was the type of person who think they’ll end up paying cash for whatever they need and use your parents credit for everything else. This worked fine until my parents’ credit was maxed out in debts and even do I was paying timely I never noticed that they also needed to utilize loans for themselves; I know, greedy. So today I would like to start my process in building credit and hopefully guarantee a Good/Excellent Credit in a few years.
So to give you an idea of my credit I checked with Identity guard and all my 3 scores are currently UNRATED, crazy right? Who would have thought that all those years of paying timely my phone, my parents phone, Internet, cable, car insurance and gym memberships (including personal trainers) did not help me build anything. The reason is that most of these agencies (with rare exceptions) will never report to the Credit Bureaus unless you are late or obviously sent to collections. This was really disappointing once I understood this. So now my journey to start building a credit is as it follows. I have less than 5 collections all adding up to $929 IN TOTAL. 3 out of 4 are considered Medical Bills. The last one is for a Comcast system that I returned and Comcast swears never received; of course I didn’t keep my receipt as this item was prepaid postage. Anyhow, I am not only building my credit but also paying old debts.
Unrated Unrated Unrated
Equifax Experian Transunion
220 220 220
220 929 755
I have reviewed information and I found a good way of having removed collections when interacting with debt collectors. I have only tried this with the last and least expensive debt which is the 174, I promised to pay the entire reminder without going a penny under as long as they deleted all information from my credit report. And I meant all information not just leave it as PAID. After a few minutes on hold (according to CSR for Supervisor’s response) they agreed to this but will not send me a letter, they will instead leave info on my account and I could ask for a supervisor if it is not updated within 30 days. Hopefully this works, if it does I’ll do the same with all the rest possibly offering a lower amount but will try to do this by mail instead.
I have this week acquired a Secured Card with Capital One where I had to pay $200 Deposit. I also asked for a Credit Builder Loan and my first payment will be on 09/28/2014; where I’ll be able to get my money on 09/28/2015, kind of like a savings account. Hopefully will post my progress here and it can give you ideas of how you can get a better score using a few tips. I’m currently still waiting on my card and as soon as it arrives I will possibly ask about usage in this forum.January 3, 2015 at 3:48 pm #3675
Sorry for the SUPER late reply. It sounds to me you’re on the right path. Paying old debt and establishing a good credit history is essential to having a good credit score. Getting those collections deleted is the definitely the way to go, otherwise they’ll be on your reports for 7 years and will make things harder in the long run.
Please let us know how you’re doing with your capital one card and credit builder loan.
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