Credit Challanges
Hey gang, thanks for the opportunity to post here. I have been reading for a while, but wanted to get some input on my current credit situation. I am 33 and have a middle score of about 550. I have had lots of things on my report, from collection of old phone bills, medical collections, and also two very large items..a repo and a fifa, which was just filed last year.
I realize what a screwup I have been in the past. I have dedicated the past year or so to clearing up all bad debt on my credit report. I have spent almost 13k paying off almost everything, even those items that were charged off. I just wanted to have zero balances and get going in the right direction.
The repo was in 1997. I just recently paid this off in July of 2003. I was recently told that it will stay on my record for ANOTHER 7 years because the creditor continued to update my credit report and that a repossession stays on your record for 7 years from the last update. The last update being that I paid the balance, and now have a zero balance on the account. If so, this is very discouraging. Any thoughts?
Also, I had a state tax bill that I submitted an offer and compromise on. While waiting to hear from the results of my offer the state filed a FiFa 2 months later. I explained that would have tried to borrow the money to pay it off if I had known that they were going to do that. After 2 years in limbo, I received a letter saying the offer was declined. I am planning on paying that full amount ($2800) as soon as I can.
I have 3 low limit CC's that I got about 6 months ago. I use and pay off immediately. I have no other current forms of credit. I paid cash for my car. I do not own a home yet.
My income is ok (50K or so), but I have no investments or much in savings. I have read RDPD and also Russ Whitney's book on foreclosures. I am very excited, and also very motivated to become a successful REI.
Is my credit pretty much in shambles for the next 5+ years? Will the credit be a big obstacle, and thus should be my primary focus to get my scores up?
Thanks very much in advance. Any help is greatly appreciated.
Well Hiya there fellow poor credit dude,
well i too have pretty bad credit, no repos yet and hopefully none on the way... but i have like 5 overcharged credit cards that i havent paid and my credit is in shambles... but dont let that scare you away from investing, because if you have no money or credit like me, you find ways to invest without using those things... now of course, those things will help you A LOT in the investing business but is it needed? not necessarily right away...
i'm 22 and wrecked my credit at age 17 with my first credit card... it was truly a learning experience and will never take it for granted as i did then... but hey, i have 4 properties that i'm trying to sell right now, one of which is under contract to sell to a potential buyer... so hopefully i got a pay day coming up soon.
keep reading, educating yourself and find a mentor in your local investor group... it helps to find someone local cuz of the state laws and stuff, they'll know and it helps to have someone to turn to for help and advice when you need it asap.
but having perfect credit is not needed, but having it is a luxury.
[addsig]
Your bad credit doesn't need to hang around as long as you think. For one thing, you can fight the illegal re-aging of your repo.
This is a great board, but the answers to your numerous credit questions will be found elsewhere, like http://www.creditboards.com, http://www.creditinfocenter.com, http://www.creditnet.com, http://www.artofcredit.com .
Credit repair can be done by you, it's not illegal (at least, it doesn't have to be, but there are shortcuts that might cross one line or another just a bit), immoral or fattening (just frustrating at first). Learn how, and knock those derogatories off your reports one by one, whether they belong there or not. [ Edited by flacorps on Date 02/17/2004 ]