Rebuilding Credit...

Is there anyone that knows how the credit reports work?? When I was younger 18-21 I had excellent credit 700+, but then I got with a chick that loved the finer things in life and racked my credit card balances WAY up to the point where it was near impossible to pay off. Many got charged off, some got placed into collections where I've been paying them off as I can. I've now gotten to the point where I can financially afford to start getting them all paid off.

Here is my question, on charged off accounts, how long do they remain on your report? I've heard 5-7 years, but no definite answer. I've got a couple that were last reported in 2007, one in 2008. They've not been reported since then so I guess if they stay on for a certain period of time it'd go from the date of the last report.

These are really what's keeping my score from coming back up to where I'd like it. Over the past year I've been able to raise it by almost 50 points, but it was so bad that it's still awful. I was just hoping someone had some more info.

You probly should line by line check your CR for accuracy as many do contain errors. The 5-7 yr is about right. I beleive you also have 100 words to explain your situation in your report which tells creditors what may have happened, meaning things beyond your control. Your CR also lists whatever alvailable credit/cash is left and the lower the % the better to a point. I'm leveraged to the max these days where when I was younger I wasnt.

The hits in 07/08 should be about ready to drop off, raising your rating. Good luck!

Thanks man, those are really the only things that I can't control right now. The outstanding credit % used and credit inquiries are things I can control now. The past is something I've just got to let go and hope it falls off soon. One of the charged off accounts was last reported in 05/2007 so we'll see if it falls off next month.

Funny thing is I was in the same position..When I bought a new car 2 years ago..they pulled my credit report and there was a hospital bill from 12 years earlier from Michigan on it. Mind you, I have never even been to Michigan. I had to jump through a million hoops and still cannot get it off there, it's clearly not mine.

Funny when I moved as well the realtor pulled my credit history and mentioned the same hospital bill. She said it was the only mark I had, but that they had to use it against me. I explained to them not very nicely how ridiculous she was being and that even had it been mine, it was 12 years earlier...So I got the place..but i don't think they liked me after I tore into them.

I thought after 7 years your credit history was erased. I had always heard that medical bills could not go on your credit. I heard you can just dispute a false charge and it would go away. Apparently they were all wrong.

I was in the same boat as you guys...
Yes- 7 years is the time it takes to get of the report.
You can contest it, and many times they will not respond back so it falls off.
Not always true though.
Also, I have had collection companies still try to collect after 7 years- I don't get this but I guess its better to get some money than none.

correct me if I'm wrong, but aren't there lawyers out there that clean up credit reports?

dorian123 said:

correct me if I'm wrong, but aren't there lawyers out there that clean up credit reports?

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Not sure about lawyers per se, but I've been warned to steer clear of companies offering to do same. They are reportedly rip offs

When I was making 185k a year with 4k a month in bills my score was a 650. When I was making 40k a year and had 3500 a month in bills I had a 760. Now I don't even bother. I get great rates through my credit union regardless of my scores. Right now the only thing I have financed is my truck. Once that's done I'm out of that crap

I've heard medical bills dpnt show up unless a collection agency buys the debt. From my understanding, being in collections is worse than a charge off in the long run because a charge off eventually goes away, but a collection agency reports every few months ao it rarely ever falls off because they just keep bouncing the debt to other agencies so it rarely goes over 7 years without being reported.

Either way, I'm hoping to clear this all up, not so much for any particular reason, but it'd be nice to have the ability to finance something if I so choose. I don't know that I want to own my own home anytime soon, but once I go full time at work I'd like to get a nicer vehicle. Right now I just basically pay cash for everything

big n wv said:

I've heard medical bills dpnt show up unless a collection agency buys the debt. From my understanding, being in collections is worse than a charge off in the long run because a charge off eventually goes away, but a collection agency reports every few months ao it rarely ever falls off because they just keep bouncing the debt to other agencies so it rarely goes over 7 years without being reported.

Either way, I'm hoping to clear this all up, not so much for any particular reason, but it'd be nice to have the ability to finance something if I so choose. I don't know that I want to own my own home anytime soon, but once I go full time at work I'd like to get a nicer vehicle. Right now I just basically pay cash for everything

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Other than maybe homes and some intelligent vehicle purchases. The best and easiest way to be financially successful is to not finance anything. We pay way over the minimum payment on our vehicles despite 3% interest rates. Our land in Tennessee and our cabin are cash purchases. The amount of money you throw away financing is INSANE

The Dude said:

Other than maybe homes and some intelligent vehicle purchases. The best and easiest way to be financially successful is to not finance anything. We pay way over the minimum payment on our vehicles despite 3% interest rates. Our land in Tennessee and our cabin are cash purchases. The amount of money you throw away financing is INSANE

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You're absolutely right. That's why I don't mind paying cash for things for so long because I don't have any debt at this point. I hadn't been thinking about getting any loans until the old lady totaled her car. I have just been paying cash for our vehicles, but I want to put her in something safe and she picked out a 2013 Wrangler so I am leaning towards getting it for her, but don't have that much cash lying around. I won't have to finance much, but I'd be able to save a lot if my credit was better

big n wv said:

You're absolutely right. That's why I don't mind paying cash for things for so long because I don't have any debt at this point. I hadn't been thinking about getting any loans until the old lady totaled her car. I have just been paying cash for our vehicles, but I want to put her in something safe and she picked out a 2013 Wrangler so I am leaning towards getting it for her, but don't have that much cash lying around. I won't have to finance much, but I'd be able to save a lot if my credit was better

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Are you a member of a credit union?? I always got great rates at dealerships when I bought cars so when I bought my truck I didn't even bother to ask. When I looked at the paperwork a week later they had given me a 10% interest rate!! I went to the Credit Union the next day and refinanced it at 3%.
Remember they are going to try to give you as high a rate as they can as its extra income. Banks are robbing people blind. Get with a Credit Union.