Cleaning up my credit report.?
My thing is I have credit card on my report that I refuse to pay, Its a long story,
I have other things on there but most if not all are paid, late or charged off, but paid. and a fourclouser on an old house.
Right now I have a mortgage on my house but it is with a private lender that is not reporting it to my credit report.
I have a debit card and I pay things with cash or I tell myself I do not need them.
I have no problem just letting things sit there for the next 7 years and let everything go off my credit report and sort of starting from scratch. No credit, low credit is better the bad can't fix credit to me.
At the moment I can not even get a gas card or a store credit card, so getting one of those to help 'fix' my credit is out of the question.
Am I right.? Should I let things sit.?
Answers:
Well, it's a matter of opinion. If you're willing to play the waiting game, then by all means, do it. In a sense, you can think of it as a "poor man's bankruptcy". The only difference is that you didn't file any paperwork.
But I do have a solution that may help your cause, as I was in a similar situation. Listen carefully:
If you haven't already, you need to get a checking and a savings account. Having a reloadable prepaid debit card is okay, but what I'm about to tell you works a lot better if you have one. I'll explain a little bit later why this is necessary.
So you say that you have a credit card on your report that you refuse to pay. Is it with Orchard Bank(HSBC), Bank of America, or Wells Fargo? If not, then what you should look into is setting up a secured credit card. Now the major drawback would be that you would have to put a deposit upfront that's usually tied to a savings account to get the same amount in a line of credit. But you could also use this to work to your advantage. If you ever wanted to save money but never could, this is the perfect way to do it and build credit at the same time. Reason I say this is because you can add to the deposit anytime to increase your credit line. Although you wouldn't be able to touch the savings account temporarily, you could build it up as far as the maximum allowed as much as you can, until you were able to get it back. I actaully did this myself. I got a secured card and I kept adding to the deposit with money that I knew I didn't want to touch for a while until I was able to get to the max, charged small, either paid in full or the slightly more than the minimum payment on time every month, and after a year, the card converted to unsecured with a $10,000 limit and I got the deposit back with some interest added to it. It took discipline not to touch that money, but I did it again with another secured card, and after 9 months, that one became unsecured. So by hard work, patience, and discipline after almost 2 years I was able to get 2 credit cards with $10K limits each. And now I'm investing that $10K I used to get both those credit cards in a certificate of deposit. That's how you build credit with a savings account.
As for your mortgage not reporting on your credit report becuase it's from a private lender, currently, I'm going through the same thing. Let me tell you that shouldn't stop you. And what I'm about to say WON'T stop you. I'm sure that you pay your utlities for your house, car insurace, and a cell phone if you have that right? And guess what? None of that reports on your credit.
Until now...
I managed to stumble on this credit bureau called PRBC
http://prbc.com/default.php?
All those payments you make every month that I mentioned CAN and WILL get reported as credit by enrolling in PRBC. Hey look, I'm no P.R. or advertising man for them. I don't get paid for telling them all about their site. I'm a client, just like you would be if you signed up. I'll sum up how it works, but I still strongly suggest that you check out their website FULLY. It basically works like this. You enroll (for free). You gather all your bills and paperwork to prove you paid them. The only thing that you would have to pay for is to have it verified (which is a one time fee). You can do this for bills 3 years prior. AS for current and future payments they've partnered up with check free web, a billpay service that not only delivers your payment on time for a low fee of $4.95/month but it automatically reports your payments with PRBC. If you're paying for that mortgage, it should count for something, right? Otherwise it would be just like you're renting an apartment. At least with PRBC, you would even get credit doing that! I can't stress enough to check out the website, you won't be disappointed, I promise!
Now as for your charge offs, and the derogs on your report. There's 2 things that you should know about debt: The statute of limitations for reporting debt and the statue of limitations for collecting debt. These are 2 completely different things. Now the Federal statute for reporting debt is 7-7½ years. Now the statute of limitations for collecting debt is somewhat different. These vary from state to state. Here's a link to find out what the statute is in your state
http://www.acollectionagency.com/statute...
Now having this knowledge can actually help you negotiate payments to get items removed from your report for far less than it would any other time. Now I'll say this: It's NOT 100% foolproof. But, if done properly it can and will work. I know, I've done it before myself. A couple of tips when you contact the collector is to write them, don't use the phone if possible, in the letter DO NOT admit to owing the debt. Admission of debt can restart the statute of limitations, and may enable the creditor to sue you. You are also less likely to be able to negotiate a letter of deletion if you admit that this debt is yours. Simply say “I’m calling about account number ________” instead of “I’m calling about my past due debt.” But since you're wanting to wait it out, then you can disregard what I mentioned earlier.
Hopefully if you follow some or all the steps I've provided, it should give you some relief while you're waiting out those derogs.
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