Should I Wait to Rebuild My Credit or Start Now? – Renee

“Dear Steve,

I’m 36 and I got credit cards for the first time at age 27 in 2004.

I had pretty low limits, 1,000 or less on the 3. I lost the security of my job and got behind on payments, then eventually stopped paying and everything went to collections in 2007.

I’ve managed to pay off all my student loans but now this cloud of debt hangs over me and it is a small amount, less than $4,000- It’s embarrassing to be in this situation.

I have not made any agreements to pay anything since before April 2008, when I move to another state and got married- the delinquency was first reported in 8/2007. what steps should I take to rebuild credit?

Do I Pay off the debt, which will take about 8-12 months with payment arrangements, or let the bad reports fall off my credit report in 2014 and get a secured card to build up my credit during that time? I’d like to have a high credit rating by the time I’m 40 and get on track to own a home.


credit good

Dear Renee,

You should begin rebuilding your credit now, don’t wait.

It’s actually very easy to do so, just follow this guide.

If the items have fallen off your report and are expired under the statute of limitations the reasons to pay them would be to meet your past obligation or you wanted to close the door on the old debts forever.

Just because they are too old to be sued for and have fallen off your credit report does not mean collection companies can’t still attempt to collect on them.

The choice about what to do on those old debts is up to you. There are pros and cons on both sides so it is really a personal choice.

If you did tackle the old debt you might want to consider settling them for a portion of the balance and pay that in a lump sum. I’d connect with a debt settlement coach to guide you through the process.

See also  How Can I Get My Old Bad Credit Removed?

Bottom line, don’t wait to start rebuilding your credit. Start today even before you tackle the old issues.

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


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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