Subscribe to our mailing list

X

I Was Told Not to Pay My Default Debts But I Want to Rebuild My Credit. – Leonard

By on October 8, 2012
I Was Told Not to Pay My Default Debts But I Want to Rebuild My Credit. – Leonard

“Dear Steve,

I’m turning 22. I have defaulted student loans, several phone bills that went into collections, a credit card that went into collections and also medical bills that are soon to go into collections.

I’ve finally been able to secure a decent job, and I want to start rebuilding my credit … my score is horrible, in the low 400s and I want to see it reach at least the 600’s in 2-3 yrs. I want to know if that’s possible, and what steps I should be taking to do so. My house is owned (left to me by my father), I pay property taxes annually. My car is also paid for… My total monthly expenses are somewhere in the 600 dollar range. I just want to do better, prepare for a family etc. Any advice on the matter is much appreciated.

Should I repay all my past debts that went into collections, I’ve been advised not too. Obviously, getting current with my student loans is a good idea. Secured credit card, etc. I’m looking for good ideas, so I can build a solid game plan.

Leanord”

Dear Leanord,

Congratulations on the new job.

Whoever told you to disregard the collection accounts gave you bad advice. Let’s deal with those first. You can identify them with a consolidated credit report and then use the correct secured cards to rebuild your score.

Please post your responses and follow-up messages to me on this in the comments section below.

morehelp1 Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

READ  What is Your Opinion on Lending Yourself Money to Rebuild Credit?

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

One Comment

  1. Kevin Haney

    October 8, 2012 at 6:25 pm

    At the age of 22, those debts must be very new and will remain on a credit report for 7 years. 

    The only sure way to improve Leanord’s credit score is to get the collection accounts current. Taking money that could repay those debts to open a new credit account takes resources away from this objective. 

    The positive points of using a secured card will be overwhelmed by being delinquent. I would open the secured card after first getting current on the other debts.

Share a Comment / Leave a Reply

%d bloggers like this: