6 1/2 years ago, my wife and I got married. She had just graduated college and apart from student loans, we had worked to eliminate her debt.

Neither of us had car loans, I had a credit card with no balance, and I had just bought a house. This is where it gets ugly.

I couldn’t technically afford the house payment, so my wife had to get to work asap. Already stretched thin, we bought a timeshare on our honeymoon. How did we pay the down payment you ask, a new credit card. Within 6 months, the credit cards were maxed out and we were hurting.

3 months later, a broken down vehicle and computer and we were toast. Since April/May of 2006, we have lived on what we make. After the dust settled and a new job, I started working toward cleaning up my credit. I’ve got it all cleaned up with the exception of a debt buyer trying to collect a closed account and the timeshare we eventually defaulted on.

I have attempted a few times the past couple of years to get a credit card as I started traveling some for work. To my dismay, despite decent credit scores and good income, I cannot get a credit card (this after paying off 2 auto loans and being approved for a home loan).

This has got me itching to clean up the last remnants from early in our marriage. After some research, I thought debt validation was the way to go for the old account with the debt buyer. After reading some things on your site, I’m not so sure anymore.

As for the timeshare, the company basically foreclosed on our loan and took the deed to our portion. They have left my credit report saying I still owe them even though I am 100% certain they resold it for more than we owed.

What are the best courses of action for me to take in these cases?

Jon

Other Related Articles to Read

• I Am a City of Houston, Texas Employee and Need to Repair My Credit so I can Build a House. – Jocelyn
• How Can I Build My Credit With No Job? – Maria
• I Paid Off an Old Debt and My Credit Score Went Down. – Michelle
• Is It Possible to Easily Increase My Credit Score? – Tamara
• I’m Not Paying My Bills But Need to Rebuild My Credit. – John
• My Credit Score is Dropping. Is Yours?
• I Can Afford to Payoff My Old Debt. Should I? – Emma
• Jennifer Says “We Have Accumulated So Much Debt And Bad Credit. What Do We Do?”

Read the full article at GetOutOfDebt.org, click here: What can I do to clean up the last hang ups on my credit report? – Jon

“Dear Steve,

I just got my residency and would like to know how to start building my credit. I don’t work so I have no idea if lenders are going to give me any credit cards and my husband has bad credit that we need to fix too.

How can I build my credit with no job?

Maria”

The Answer:

Dear Maria,

It sounds like you need to follow the process I outlined here.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Other Related Articles to Read

• I’m Not Paying My Bills But Need to Rebuild My Credit. – John
• Chris Has Bad Credit. I Show Him How to Easily Get Good Credit.
• My Credit is Ruined and I Just Got Laid Off. How Can I Improve My Credit Once I Get a Job? – Tina
• I Just Filed Bankruptcy and I’m Out of Debt, Now What Should I Do?
• Credit Score Dropping, I Owe the IRS, and Need More Student Loans
• What can I do to clean up the last hang ups on my credit report? – Jon
• How to Easily Rebuild and Repair Your Credit After Bankruptcy, Foreclosure, or Reposession
• If My Father Buys Off My Past Debt Will It Help Improve My Credit? – Jonathan
• Should I Pay My Old Debts or Just Let Them Fall Off My Credit Report? – Lucas
• I’m Paying Off Old Collection Account But I Want Better Credit So I Can Buy a House. – Angie

Read the full article at GetOutOfDebt.org, click here: How Can I Build My Credit With No Job? – Maria

“Dear Steve,

I am currently past due and do not pay payments on my debt. I am aprox. $2500 in debt from two credit cards, a loan, and debt thats being collected from another source from sprint. I have not planned on paying any of these but i need to build credit and fix this.

What is the appropriate way to handle this? Pay off all my debt and try to build credit again via CC, car, etc.. which ever way I can get approved. Or not pay it off and try to get approved for something and put it in the past and start fixing my credit?

John”

The Answer:

Dear John,

The best way to approach this is in two stages. First stage is to close the door on the past by satisfying that debt.

Next stage after you have paid it off will be to focus on rebuilding your credit. Start with a secured credit card that reports to all three credit bureaus. Make sure that you don’t carry a balance on that card greater than 45% of your credit limit. Consider getting a second secured card and do the same thing.

After you do this you will notice a substantial improvement in your credit after six months to a year.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Other Related Articles to Read

• How Can I Build My Credit With No Job? – Maria
• My Credit is Ruined and I Just Got Laid Off. How Can I Improve My Credit Once I Get a Job? – Tina
• I Just Filed Bankruptcy and I’m Out of Debt, Now What Should I Do?
• What can I do to clean up the last hang ups on my credit report? – Jon
• How to Easily Rebuild and Repair Your Credit After Bankruptcy, Foreclosure, or Reposession
• If My Father Buys Off My Past Debt Will It Help Improve My Credit? – Jonathan
• Should I Pay My Old Debts or Just Let Them Fall Off My Credit Report? – Lucas
• I’m Paying Off Old Collection Account But I Want Better Credit So I Can Buy a House. – Angie
• I Want to Repair My Credit Report and Improve My Credit Score After Debt Settlement. – Brian
• Paying Off Debt In Collections. – Tom

Read the full article at GetOutOfDebt.org, click here: I’m Not Paying My Bills But Need to Rebuild My Credit. – John

Emma

“Dear Steve,

I was financially reckless as a college student, incurring approximately $22,000 in various credit card debt that I ignored throughout graduate school & post-graduate training. Well, now I’m all done and I make a lovely, lucrative salary.

I want to buy a house. My credit score is in the low 500s. I can afford to pay off my $22,000 in a very short period of time. How do I begin to approach this? It seems that if I just pay every cent I owe, then my credit score will go down! What do I do??

Emma”

The Answer:

Dear Emma,

Repaying your debts as agreed will not lower your score, it will increase it. And the good news is that repairing your credit when you’ve got the money to pay is a fairly easy process.

I think you should follow this link for a copy of your 3-1 consolidated credit report. You need to look at all the credit reports since they don’t all report the same creditors. While you are getting your credit report you can order your credit score as well. This will give you additional specific advice about actions you can take to improve your credit score further.

I would then suggest that you contact the creditors you still owe from the lowest balance due to the highest. As you pay one off, move on to the next.

You want the debts to show as paid, without any residual negative activity so don’t settle these debts. The amount of debt forgiven will be reported as a negative entry and you will have to pay the IRS income tax on the forgiven debt if the forgiven debt makes you solvent.

If you have not resumed credit activity again, you need to get a secured credit card, like a Visa or MasterCard to show you can handle credit. That will help to boost up your score as well.

Please promise me one thing though, don’t borrow the $22,000 from an IRA, 401(k) or 403(b) retirement plan. And if that’s what you were planning to do, don’t.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• Bre Wonders Why Her Credit Report Still Shows Negative Items That She Thought Should Have Been Removed By Going Bankrupt
• The Financial Expert Group Says for a Fee They Can Make My Bad Credit Go Away. – Carol
• How Can I Fix My Bad Credit So I Can Get a Loan? – Andy
• Credit Issues? You Are Not Alone – Fax – SCAM WATCH
• Credit Repair Scams on the Rise
• American Credit Experts and Legal Credit Repair Center Settles With FTC Over Credit Repair Infractions
• I Am a City of Houston, Texas Employee and Need to Repair My Credit so I can Build a House. – Jocelyn
• Credit Repair Firms In Crosshairs of Federal Trade Commission
• Jennifer Says “We Have Accumulated So Much Debt And Bad Credit. What Do We Do?”
• Consumer Credit Repair / RepairMyCredit.com – Consumer Complaint – 3-16-2012

Read the full article at GetOutOfDebt.org, click here: I Can Afford to Payoff My Old Debt. Should I? – Emma

Jocelyn

“Dear Steve,

I am a 15 year City of Houston, Texas employee. My gross income is about $27,000 a year. We get no raises or cost-of-living adjustments. However, despite my low income I have managed to purchase a piece of property. Years ago I became ill with a form of cancer and ended up filling for bankruptcy.

My credit is shot. I am 49 years old. I want to fix my credit so I can build a house. I do not know where to begin to repair my credit. I collected all three of my credit reports but find them difficult to understand. I need help. I want my own home so bad I can taste it.

Do I need a credit restoration service? Are there any legitimate ones? If not, where do I go for help?

Jocelyn”

The Answer:

Dear Jocelyn,

The consolidated credit report I use is the one I find easiest to read. Use the link to get your credit report as well.

This credit report combines the information from all three major credit bureaus and allows you to compare the information by creditor on one combined credit report, rather than looking at separate reports, which can be confusing.

I would urge you to get the credit score option as well. It will tell you exactly what is bringing down your credit score and what actions to take to bring your credit score back up.

The consolidated credit report will also make it easy to spot any wrong or incorrect information about you. That information should be removed and you can request that it be removed by following the dispute procedure that is included with the consolidated credit report.

I suspect that one reason your credit is still in the dumps is because you don’t have much of a current credit history of good and on-time payments. The primary way you overcome bad credit is to close the door on old debts by paying them off or with bankruptcy and then start using credit again to report good information. If you don’t, then your credit history is a report card of only bad news.

There is no need for you to use a credit repair or credit restoration service for this. I think you can handle it all by yourself. Once you follow the steps above and have reviewed your credit report and started to address any remaining open past due accounts that were included in your bankruptcy but still show as open, I think you should find a local mortgage broker to work with.

Go to the mortgage broker and explain your situation and your goal of wanting to buy a house. The broker will help you to understand what will be necessary for you to be able to qualify for a home loan. At that point you’ll be able to see and identify the target and execute your plan to achieve it. At the same time, make sure you are saving up cash for a down payment. Banks like that.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• The Financial Expert Group Says for a Fee They Can Make My Bad Credit Go Away. – Carol
• What can I do to clean up the last hang ups on my credit report? – Jon
• What’s Your Advice About Using Novation for Debt Elimination? – Melissa
• I Can Afford to Payoff My Old Debt. Should I? – Emma
• Jennifer Says “We Have Accumulated So Much Debt And Bad Credit. What Do We Do?”
• Just Had Negative Items Removed From Credit Report. Will My Score Go Up? – Melanie
• Top 3 Cures for a Low Credit Score
• Veracity Credit Consultants Reaches Settlement With Colorado Attorney General
• How Can I Fix My Bad Credit So I Can Get a Loan? – Andy
• The Franklin Group / Franklin Financial Group – Consumer Complaint – 11-11-2011

Read the full article at GetOutOfDebt.org, click here: I Am a City of Houston, Texas Employee and Need to Repair My Credit so I can Build a House. – Jocelyn

“Dear Steve,

We have accumulated so much debt our credit score is to low to even buy a house. I’ve been looking into different programs to help, unfortunately the charge money I can’t afford either, we have to do this on our own.

If a creditor is offering to let you pay over 4 payments and only 55% of what you owe is this going to help our credit or hurt it more

Jennifer”

The Answer:

Dear Jennifer,

To get out of this situation it is going to wind up costing you something. You’ll either pay for a professional to manage your debt recovery, like in a debt management program, or, like many, you’ll try it on your own and make costly mistakes. Either way, you wind up paying.

Let’s see if I can’t create an inexpensive way for you to deal with this situation.

My first recommendation is going to cost you a little but I want you, using this link, to get a consolidated credit report and get the credit scores at the same time. This consolidated credit report is the best I know of and when you purchase it with the credit scores it will tell you exactly what you need to do to increase your credit scores. It is a small price to pay for very specific and direct information that will give you the exact guidance you need to increase your credit scores.

Your statement about repaying a debt for less than you owe is actually a form of debt settlement. The amount of debt forgiven is reported to the IRS and you may have to pay income tax on that forgiven debt. Read Beware of the IRS if You Settle or Default on a Debt. However, because it is a creditor that will allow you to pay it over four payments it makes it sound like this is a relatively small debt.

The forgiven debt is also reported on your credit report as a bad debt so while it gets you out of debt, it does not address your number one goal of increasing your credit score. If your number one goal is to increase your credit score then maybe you’ll want to repay the debt in full if you can afford it. That will then show the debt was delinquent but satisfied rather than delinquent and part written-off as a bad debt.

My second recommendation would be that while you are using the specific steps in that consolidated credit report I recommended I would urge you to consider getting a secured credit card that reports to the credit bureaus. You see, addressing your old bad credit is one step but if you are going to improve your credit report, better and faster, we also need to get new good information on there as well. These credit cards for people with poor credit will help you do that.

My final recommendation is for you to download my free book, Eliminate Your Debt Like a Pro and follow the advice and steps in there.

Big Hug!

@GetOutOfDebtGuy

The Answer:

Other Related Articles to Read

• Bre Wonders Why Her Credit Report Still Shows Negative Items That She Thought Should Have Been Removed By Going Bankrupt
• Credit Scoring: How it Works and How You Can Improve Your Score
• We Are Looking Forward to Buying Our First Home But Our Credit Sucks. – Casey
• “How Do I Go About Making My Credit Score Better” – Antoine
• SteveSavers – Group Discounts to Save Big Bucks on Debt and Credit Help
• How Do You Value Your Quality of Life? Debt Solutions to Fix The Future
• Do I Really Have to Default on My Debts to Go Into a Debt Settlement Program? – Mark
• How to Be Financially Successful When You Graduate
• Carol Wrote Me And Asked “Would You Advise Debt Consolidation?”
• Lauren is Searching For Ways to Get Out Of Debt And Make Her Bad Credit Go Away

Read the full article at GetOutOfDebt.org, click here: Jennifer Says “We Have Accumulated So Much Debt And Bad Credit. What Do We Do?”