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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
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How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Does there get to be a point where one's credit is so bad that it cannot ever be fixed?
We're talking numerous collection agencies after this person on many occasions, settlement payments, late payments, etc. Can this ever be fixed do you think?
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Posted 3/1/07 11:51 AM  |
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longford73
Welcome to the world Baby Boy!
Member since 8/06 3127 total posts
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Maybe seeing a credit counselor will help to determine how bad it really is and if there is any hope.
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| Posted 3/1/07 11:52 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
yes- you can always fix it
pay every thing off- even if they are settlements
and then start to rebuild- it can be done
people with bankruptcy can bounce back-
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| Posted 3/1/07 11:53 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
It really depends on alot of factors. Yes, I think it's posible but they may have to declare bankruptcy and wait the 7 years to apply for credit again. That's the final step though.
If the person is willing to try, then they have to take the first step and make arrangements with all of the vendors looking for money.
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| Posted 3/1/07 11:53 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
No it never gets so bad that there is no turning back. The most important thing to do is know your rights..NYS SOL and the rights of collection agencies. I highly recommend going on www.creditboards.com
And please do not pay someone to clean it up for you...you can do it on your own.
FYI: I understand late payments only affect your credit score for 2 years...after that they have no affect. FM me if you need more info!
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| Posted 3/1/07 11:55 AM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Posted by jacquig
No it never gets so bad that there is no turning back. The most important thing to do is know your rights..NYS SOL and the rights of collection agencies. I highly recommend going on www.creditboards.com
And please do not pay someone to clean it up for you...you can do it on your own.
FYI: I understand late payments only affect your credit score for 2 years...after that they have no affect. FM me if you need more info!
Totally agree! I raised my score 100 points BY MYSELF. I actually was so good at it I started doing credit repair but stopped because you couldn't charge enough to recoup the time it took.
Check out creditboards, the Fair Credit Reporting Act and do your research. Get yourself a whole bunch of certified, return reciept slips and start sending letters. Bottom line-anything that has its last activity more than 7 yrs ago is out of the staute of limitation(except for BK, foreclosure, etc) Any collection agency has to prove that the debt is actuially yours through showing you copies of your original sig. which none have because they buy your name and phone # for pennies on the $ after the original creditor writes off the debt GL
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| Posted 3/1/07 11:59 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Posted by Blu-ize
It really depends on alot of factors. Yes, I think it's posible but they may have to declare bankruptcy and wait the 7 years to apply for credit again. That's the final step though.
If the person is willing to try, then they have to take the first step and make arrangements with all of the vendors looking for money.
7 years is a myth- you normally start getting offers again after 1 or 2 years
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| Posted 3/1/07 12:01 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Posted by Beth1210
Posted by Blu-ize
It really depends on alot of factors. Yes, I think it's posible but they may have to declare bankruptcy and wait the 7 years to apply for credit again. That's the final step though.
If the person is willing to try, then they have to take the first step and make arrangements with all of the vendors looking for money.
7 years is a myth- you normally start getting offers again after 1 or 2 years
the bankruptcy stays on your credit for 7 years. 
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| Posted 3/1/07 12:02 PM |
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Lauren
Very Happy!
Member since 10/06 3917 total posts
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Yes it can be fixed. Once everything is paid, your credit starts to improve very quickley.
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| Posted 3/1/07 12:05 PM |
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Posted by Beth1210
Posted by Blu-ize
It really depends on alot of factors. Yes, I think it's posible but they may have to declare bankruptcy and wait the 7 years to apply for credit again. That's the final step though.
If the person is willing to try, then they have to take the first step and make arrangements with all of the vendors looking for money.
7 years is a myth- you normally start getting offers again after 1 or 2 years
Many people start getting offers while the bankruptcy is still pending. Not a good idea to accept them at that time but they will keep coming after the case is closed. It's pretty crazy! I'm a bankruptcy lawyer. You can definitely repair credit. It does get to a point where credit is so bad the a bankruptcy does not even make it much worse. Also, there are people with great credit who file bankruptcy. They will obviously take a hit on their credit. These are people who have been making payments but really suffering b/c there is not enough left over for their basic needs or they become so stressed about their payments.
Message edited 3/1/2007 12:08:29 PM.
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| Posted 3/1/07 12:07 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Any collection agency has to prove that the debt is actuially yours through showing you copies of your original sig. which none have because they buy your name and phone # for pennies on the $ after the original creditor writes off the debt
Is this true? How do you go about this? Do you call the collection agency or wait for them to call you again?
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| Posted 6/12/07 11:45 PM |
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MrsRbk
<3 <3 <3 <3
Member since 1/06 19197 total posts
Name:
Michelle
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
Posted by jellybean1420
Any collection agency has to prove that the debt is actuially yours through showing you copies of your original sig. which none have because they buy your name and phone # for pennies on the $ after the original creditor writes off the debt
Is this true? How do you go about this? Do you call the collection agency or wait for them to call you again?
Somewhat.... I check my credit report (probably more frequently than the norm!). I had lousy credit and worked very hard at getting my credit score up. But every now and again, I've come across something on my credit report that says something is in collections (and many times it's a small dollar amount too). Usually the name and number of the collections agency is on your report, but if it's not, it's fairly easy to get by calling whatever reporting agency you are pulling your report from (I make sure I always pull from all three). Anyway, I've noticed things that did not belong to me in the past, I've called the collection agency listed on my report and asked them to show me that this debt belongs to me. My experience has been that they cannot and it is removed from my credit report. You can also file a dispute with the credit reporting agency and they will do the work for you.
ETA: You can also try to get a credit card with a bank that helps to build your credit back up. Usually they will start you off with a very low credit line, but if you use it, pay it on time, they will over time continue to increase your credit line, which will help to improve your credit score.
Message edited 6/13/2007 9:33:15 AM.
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| Posted 6/13/07 9:13 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
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They call me "Tater Salad"
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Re: How Bad Does One's Credit Have To Be Before Throwing In The Towel?
I KNOW this thread is old, but I thought I'd post this anyway.
If you have debts in collections or anything, try to work out the following deal: Payment in FULL in exchange for them changing your credit report to reflect "Paid as agreed" -- and no mention of collections or charge offs, etc. This will dramatically help your credit score if you can get them to do this.
Otherwise, no, it is NEVER to late to salvage your credit. It may take time (7 years in some cases), but this is FAR, FAR better than declaring bankruptcy, which stays on your credit longer and has more dire consequences than bad credit.
Pay all your bills on time every month, pay off the charge offs / collections accounts, dispute inaccurate information, etc.
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| Posted 6/13/07 9:30 AM |
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