Posted on: 29th Mar, 2010 03:44 pm
I recently tried to get a mortgage loan and have found out that I have made a serious error over the past several years. In an effort to just get by after the company I worked for closed its doors in 2008, I found myself in a house sitting situation which means that I do pay utilities, but they are not in my name, so I have no record of those payments. For many years, I have also been one of those folks who believes that paying cash for something was far better than saying "Charge It!".
Now, after trying every avenue I could think of, I cannot find anyone to help me with financing a very low priced but well worth it home. What I do find, however, are lots of folks who claim they can help me clean up my credit and boost the scores "tremendously".
When I pulled my scores I did find some scores which seem decent (in the mid 600's) but the mortgage lenders get no scores because of the no CC's, car loans, etc. I also found a total of three derogatory listings which totaled less than $400 so I paid them off.
Now I am told I should not have paid them by one of these who claim to be willing and able to repair my credit. My thought is that they cannot really do much for me. Am I correct in that thinking? Can they remove the negatives and replace it with positives?
I thought that perhaps the best thing I can do to try to repair my credit at this point is to get and use a secured credit card two or three times a month (in keeping with my pay cash for it mindset, more or less). If I do this and always pay the amount I charged at the end of each month will that do the same thing that these hawkers want me to pay hundreds of dollars to do?
Can I get the negatives off the report since they have been paid?
Now, after trying every avenue I could think of, I cannot find anyone to help me with financing a very low priced but well worth it home. What I do find, however, are lots of folks who claim they can help me clean up my credit and boost the scores "tremendously".
When I pulled my scores I did find some scores which seem decent (in the mid 600's) but the mortgage lenders get no scores because of the no CC's, car loans, etc. I also found a total of three derogatory listings which totaled less than $400 so I paid them off.
Now I am told I should not have paid them by one of these who claim to be willing and able to repair my credit. My thought is that they cannot really do much for me. Am I correct in that thinking? Can they remove the negatives and replace it with positives?
I thought that perhaps the best thing I can do to try to repair my credit at this point is to get and use a secured credit card two or three times a month (in keeping with my pay cash for it mindset, more or less). If I do this and always pay the amount I charged at the end of each month will that do the same thing that these hawkers want me to pay hundreds of dollars to do?
Can I get the negatives off the report since they have been paid?
Hi nubee!
Welcome to forums!
Paying off the derogatory items on your credit report will always have a positive effect on your credit score. You should start paying them off immediately. I agree with you that you should take out a secured credit card and use it in a proper manner so that it has a positive effect on your credit report and help you in building up your score.
Rather than taking the help of a third party to repair your credit, it would be better to negotiate with your creditors yourself and pay off the dues. Once you pay off the negatives, you can request your creditor to remove the negative items from your credit report.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Paying off the derogatory items on your credit report will always have a positive effect on your credit score. You should start paying them off immediately. I agree with you that you should take out a secured credit card and use it in a proper manner so that it has a positive effect on your credit report and help you in building up your score.
Rather than taking the help of a third party to repair your credit, it would be better to negotiate with your creditors yourself and pay off the dues. Once you pay off the negatives, you can request your creditor to remove the negative items from your credit report.
Feel free to ask if you've further queries.
Sussane
Thank you for your reply. I wonder if the collection agencies will also remove the derogatory listings that I found. Had I known I owed these amounts, they would never have been there. One was a cable bill that my son apparently did not pay when he left a home where we had both lived (he moved in when I moved out) and two were mysteriously nearly the same amount owed to Verizon for a telephone account but with different collection agencies. One was $84 and the other $87.
Hi Guest,
If you pay off the derogatory listing, then you may request the collection agency to delete the negative item. You can send him a pay for delete letter and check out if he can help you in this regard. However, it would be completely the collection agency's discretion whether or not they would be ready to remove the item.
If you pay off the derogatory listing, then you may request the collection agency to delete the negative item. You can send him a pay for delete letter and check out if he can help you in this regard. However, it would be completely the collection agency's discretion whether or not they would be ready to remove the item.
Thank you, I will give that a try.