During my junior year of college my parents provided me with a credit card that they paid off in full each month, they never missed a payment and I never worried about the money.
I took out a credit card on my own my senior year of college, which I could make the minimum monthly payments until I was 4 months unemployed post-grad. My account became delinquent and was closed by my creditor. I am down to the last $200 dollars to pay off.
As a 22 year old I do not want this one bad credit card to ruin my credit for 7 years. Is there anyway I can talk to my creditors about removing the delinquency of my account from my credit report in exchange for paying off all of my debt?
When you fall behind with credit card payments, you end up with 30 day late pays on your credit reports. If your inability to pay continues, the 30 days late notations can pile up. After 6 months of missed payments, creditors will be required to charge off your account. Getting a credit card company to delete those negatives from your credit reports, whether just one or two months late, or the fact that your account was charged off, is just not likely.
Are your missed payments a big deal? If you have a thick credit profile with many current positives, and only have one credit card with a negative account history, it can be just a bump in the road. But the more late pays and negatives you have, the bigger deal it becomes.
Thin Credit Profiles
Based on what you shared in your question, it appears the credit card you were unable to pay for a while, is the only one you had showing on your credit reports. If that is the only account in your credit profile, those late pays are a big deal, as there is no positive credit reporting to help offset the negatives.
Do you have student loans showing on your reports as positive trade lines? Are there any additional positive items showing on your credit reports?
Once your account is fully paid off, check your credit reports to make sure the balance is showing zero owed.
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Some Ideas for Building Your Credit File
Depending on the amount of good items appearing on your credit, once you have resolved your past due accounts, you need some time to pass, and to take advantage of credit building opportunities that make sense for your life. Here are some things to look for that can help you build your credit.
Apply for a low limit credit card like those offered by Capital One and others. You can use the credit report card and credit card matching tools available through CreditKarma.com, or another type of service that looks at your credit profile and credit score to match you with the cards you are most likely to be approved for.
Open a secured credit card through a local bank. Check with your current bank to see if they have secured card program. I have like the secured credit cards available through Bank of America for a long time now. But there are many banks offering similar cards now.
If your transportation needs today, or in the near future, require you to purchase a car, do it with financing. Car loans add diversity of credit type to your credit profile. Just be sure to stay within budget. I recommend people looking to build credit, who may even be able to purchase a car in full, still take the financing approach to help with credit building. You lose out cost wise with some financing charges. If you are sensitive to that then pay cash. If you want to pay off the car shortly after purchasing, give it 6 or 12 months of making the monthly payments before you do that.
Once you have beefed up your credit profile, and roughly 12 to 24 months has gone by since you last resolved a collections debt, your credit can often be in the shape you need to get approved for a mortgage, car loans, and other credit products. Your one negative does not have to hold you back from accomplishing your credit goals for the next 7 years.
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