How much will this fix?
To all,
I currently have a FICO score between 537 - 542 depending on which agency reports.
I have 4 Charge Off's (I was laid off), a reposession (Voluntarily offered for repo because I owed so much in back Child support), and back child support (Didn't know I had a child till I recieved a letter stating I owed money).
Now I found employment and I'm trying to fix everything and start investing but I want to first get my credit in the 600's. I submited Investigations through the CRA on some of the inquiries and items that appear on my credit report, but how much does that help me? If I have several inquiries and late payments taken off how much does that help?
Now the Child Support is pretty high. $17,000 in arers that I am currently paying on and am not delinquent at all. But that will take a while with interest and all to wipe off. I am also starting to pay off the Charge off's. The voluntary repo hit me for $4,000 even so that may take a couple months to clear, but the others total $2,000. If I wipe 3 charge off's off stating they were paid does that help my credit at all?
I appreciate everyones advice,
CaChinGuy
The one most important factor in boosting your credit is paying bills on time then gradually the score will improve. My score is also in that range and it makes investing kinda hard cos we get the worst rates. It sounds like you have a good strategy for paying off on the charge offs that will also help. Voluntering the repo was another good move! I guess the most touching part of your story was the back child support I was in a similar situation.
Good luck and keep those bills paid on time remember you have 60 days till a late payment is reported as 30 days late.
I'm never ever ever EVER going to get into debt like this again! It's not even debt so much. I owe a miniscule ammount. I just got banged around when I got layed off.
My whole strategy for the future is to ALWAYS have enough money in the bank to survive paying ALL the bills for 3 months. God forbid a catastrophy strikes again I want to be covered.
It's odd that I say this, but in a way I am furtunate to have gone through this. I learned a VERY VERY important lesson. I will not let history repeat itself on this.
Thank you for your reply,
CaChinGuy
It is good to see someone take responsibility for their own actions. Remember, those bad things only stay on for 7 years after the last date of activity. (Unless BKR which is 10) So there is a light at the end of the tunnel. You can still actively invest now though in your education and in REI. You might look into the subj. to method, as well as Lease options, as well as birddogging. credit is a pretty significant tool, but not the only tool.
Good Luck,
Shawn(OH)
loanwizard,
Thank you for the reply. Actually I have a long drawn out road map of where I want to be and what obsticals I must overcome to get there. It's not that I don't want to post that on the board, it's that I want to clarify some of the problems I see lying in the way.
To make a long plan short I'll just give a synopsis of what my idea is. I am becoming a CA Notary and from there a Signing Agent. That should be within the month. From there I intend on getting my real estate license. Not so much for the money (Doubt I'll even want to represent anyone) but for the knowledge that goes into this. I can learn soooo much by personal experiance. I also intend on doing some bird dogging. All the while I will be fixing my credit behind the sceens.
My fiancee, my best friend and I are all going to be going into this as a team and we all have reasonable goals. I know full well that this is not a get rich quick scheme. It is a get rich slowly and with a lot of work "Plan".
Once again thank you for your reply ,
CaChinGuy
I would also like to add one thing as well. Its admirable that you are willing to pay off the debts. But here is a tip of advice. When you are ready to pay off a particular debt write the agency that is trying to collect and send them a letter stateing that you are willing to pay off the debt in full only if they will remove the negative klisting on your report. You dont want a collection that states "paid in full collection. This is almost as bad as never paying it at all. It will increase your score but very slightly and the the negative listing is still on your credit for 7 years.