I am a high school teacher-same school 24 years. We had a house fire 4 years ago, fought insurance company, ran up credit cards, then paid them all off. Then my husband’s job was disappeared; found a new one-not paid; now fighting the owner for non payment, looking for another. Credit cards maxed out. I want to pay off all and then get RID OF ALL CREDIT CARDS forever, and live within the means of my own paycheck as savings. I used to have good credit but now don’t because of all of this. I do NOT want to file for bankruptcy, especially since this will most likely be a temporary situation.
After reading many sites, I applied for a loan through this site (liked what it said) and was turned down, saying: “Derogatory public record or collection file. Proportion of balances to credit limits is too high on bank revolving or other revolving accounts,Time since delinquency is too recent or unknown,Too few accounts currently paid as agreed.The foregoing are the factors provide by the reporting agency that resulted in your credit score being below our minimum credit score requirement.”
All my payments are just a month behind, and I do not have a derogatory public record! Did I do something wrong? I can pay the loan, I just need a chance to get this organized and behind me.
Thank you so much for your help in this field.
Thank you for being a teacher. I have a great love and affection for teachers and know how hard it is to teach. My mother was a teacher for decades.
The notice you posted says “Derogatory public record or collection file” and it must be the recent collection activity that has impacted your credit report, not a derogatory public record.
This negative and delinquent credit history you’ve experienced will remain on your credit report for the next seven years.
I understand you do not want to file bankruptcy and you feel this is a temporary situation so your logical option is just to wait the situation out and then focus on dealing with the bills when the temporary situation is resolved.
I have no way of knowing what your credit score is but if you go to CreditKarma.com you can get one credit bureau score for free and use their online credit score simulator to see how changes will impact your score.
Also, you statement about avoiding credit cards forever is not the prudent way to go. If you want to rebuild your credit score and improve your credit history you need to maintain cards but not run them up. The current situation is not because of credit cards, it is because the cards were maxed out.
Just as background on this I think this other article will be of interest. See Dave Ramsey’s Hatred of Bankruptcy and Credit Cards Makes No Logical Sense.
If you investigated filing bankruptcy and determined it was a logical action to take you would most likely be able to discharge your debt in 90 days and begin rebuilding a better financial future, now. Alternatively you should expect that a focused effort after income starts coming in should take five years or more.
The reasonable path to follow here would be to investigate bankruptcy and also draw a line in the sand, say 30-60 days from now. If the income situation has not been resolved by then you can proceed with bankruptcy and get the legal second chance and fresh start you are entitled to.
You can click here to find a local bankruptcy attorney and talk to them for free.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.
Then use the free How to Get Out of Debt Calculator to review your options.
Once you’ve identified a company you want to work with, then follow my step-by-step guide on what you should look for and expect from a good debt relief company.
Bankruptcy Articles and Posts You Must Read
To get ready to read the information below with the right frame of mind, please first read How Do I Get Out of Debt Quickly? Change Your Mindset.
- Those That File Bankruptcy Do Better Than Those That Don’t
- How to Know if You Should File Bankruptcy
- So You Are Going to File Bankruptcy. That’s Great News. Congratulations.
- Easily Rebuild Your Credit After Bankruptcy
- The Truth About Bankruptcy Success Rates
- How to Get Out of Debt Calculator
- How Avoiding Bankruptcy Can Backfire
- How Long After Bankruptcy Can I Buy a House?
- Is Bankruptcy Sinful and Bad or Right and Moral? An Examination
- What Does the Bible Say About Bankruptcy? Is Bankruptcy Scriptural?
- How to Get Out of Debt. The Honest and Unvarnished Truth
- The Emotional Seven Stages of Debt
- Getting a Job After Bankruptcy
- Chapter 7 Bankruptcy – What is the Truth?
- Low Cost / Pro Bono Bankruptcy Resource Locator
- Bankruptcy Should Be the Last Resort Many Say. But That’s Just Not True
- The Ethical Considerations of Bankruptcy
- Is Bankruptcy Right For Me?
- 14 Reasons You Should Not Avoid Bankruptcy
- How to Really Discharge Your Student Loans in Bankruptcy. Many Can. But Never Try.
- Life After Bankruptcy: How to Quickly Have Great Credit and Dumb Mistakes to Avoid
- How to Find a Great Bankruptcy Attorney
- You Have Not Failed if You File Bankruptcy
- The Saddest Avoidable Mistake People Make When Getting Out of Debt
Life After Bankruptcy
- How Long After Bankruptcy Can I Buy a House?
- How to Rent a Lovely Home or Apartment After Bankruptcy
- Life After Bankruptcy – The Truth
- How to Easily Rebuild Your Credit and Have Good Credit Again After Bankruptcy
Filing Bankruptcy Yourself
Please post your responses and follow-up messages to me on this in the comments section below.