Am I doing this right?

Tips and Deals Forums Consumer Credit Improve credit Am I doing this right?

This topic contains 0 replies, has 1 voice, and was last updated by  dealpal 7 years, 9 months ago.

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    dealpal
    Keymaster

    I’ll try to make this short and sweet..

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    In 2006… my employer unexpectedly went out of business and I ended up not getting paid for the last 2 months I worked there AND I was out of work for about 6 months while I found a new job. In this time I let EVERY DEBT I had slide – I couldn’t even pay my rent or buy food, so I had no way to pay my creditors. I spoke with them on the phone at the time and tried to delay payments for a while, but they wouldn’t negotiate. So, I basically gave up trying to pay them. Before my no-income streak I had a mid-600 credit score.

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    Fast forward to*last spring*– I ran my credit reports and I have about 15 negative entries.*Most of them are*credit cards and store cards with low limits (Max $500) that are showing $1000+ owed on each due to fees and whatnot. I had a small student loan that says something along the lines of “reported to government” and another student loan that I was continuously late on (very late) but I deferred and will start paying on again next month (and I will be ON TIME every time!!!). Everything else has gone to collections (and changed hands numerous times) and will “age off” in 2013 or so. There were a few things on the report that looked off so I disputed those and 1 was removed. The rest of the “baddies” I am just trying to avoid until they age off, because even if I settled with them they will still show as bad (right??).

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    What I am doing now*– I don’t even get letters from those past debts anymore and when I have gotten one from a law firm I write a letter saying that I dispute the debt and I haven’t heard back from any of them after that letter. I got a car loan (29% interest rate) in November 2010 (that I am always on time on) and I got a secured credit card a few months ago with a $200 limit – which I use every month but pay more than the minimum ON TIME every month. I recently applied to Wells Fargo to try to refinance my car loan as the interest rate is killing me! Out of the $2400 I’ve paid on the loan the principle has only gone down about $500. Wells Fargo denied me, but were nice enough to send along my Transunion credit score which was 506.

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    I know I seriously fudged up my credit score and I *think* I am going about fixing it the right way. I’m just looking for advice on what I’m doing and if I’m heading in the right direction? Or is there something I could be doing differently? I just really want to get out of this mess, it’s so embarrassing to have such a horrible credit score – not to mention COSTLY (seriously, my car payment is ridiculous).

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    Thanks in advance to anyone who cares to enlighten me :smileyhappy:

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