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I am looking for some advice on how to repair my credit. I recently pulled my credit reports from and it showed I have about 7 old accounts in collections (medical bills , parking tickets, old credit card, old phone bill) that appear to be due to roll off my credit report within a year. Aside from student loans and an old credit card that i let go unpaid into collections i have not established any positive credit history. I recently applied for a wall-mart credit card and was denied and on the denial letter it said my score was about 425. I am wondering if a secured credit card and or loan along with bringing my student loans out of deferment will be enough to establish good credit assuming all bills are paid on time and reported to all three credit bureaus. Also can i really just let my old debt roll off my credit report. I am 27 years old i have a good job and although i realize i was very irresponsible and ignorant when i was younger i just want to try to get passed it and start to put myself in a position to own a home at some point in the future. Any advice or information is helpful, thanks.

2 Thoughts on Is it possible to rebuild my credit while still having very old debt?
  1. Reply
    September 2, 2012 at 11:09 am

    WOW, that’s a LOW score. . . . .sad when even Walmart won’t trust you. . . . . .
    One repairs credit the same way one destroys it, one payment, one month at a time
    Student loans won’t go away; contact them and start paying them EVERY month, in full and on time
    Educate yourself: get the Suze Ormond or Dave Ramsay books/tapes/cds and read/listen to them and start managing your finances NOW. . . . .this is the MOST important thing for you to do
    Pay all your bills in full and on time
    A secured credit card may be the only way you can get any credit now; they don’t have a huge impact on your credit rating

    As to the delinquent debt. . . . .you can wait for it to roll off, continuing your irresponsible financial behavior. . . . . .and having to treat the amount they figure they can’t get from you as INCOME on your next tax return. . . . .or you can contact them and try to negotiate a lower lump sum payment (1/2 or even 1/3 since it’s so old?) to get it settled and off your credit report now; make sure that it is settled in full (although probably for LESS than you actually owe) and that all agreements are in writing; also can request that NO 1099-C be issued, although you deserve one; a 1099-C says a deadbeat got $ $ or goods, promised to repay, with interest, reneged on promises, failed and refused to repay; and therefore company is writing off the debt still owed them, and thus the deadbeat gets a 1099-C, which means the $ $ the deadbeat doesn’t repay are treated as income to them

  2. Reply
    September 2, 2012 at 11:42 am

    Paying off these old debts would not help you credit.
    It’s going to take you a LONG time to get to a point of having average credit….two years at least.
    A secured credit card might be the only chance you have of re-establishing your credit….

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