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Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

Credit Score Repair
I need something relatively small to finance.

Apparently my student loans, which I thought I had put in deferment, were delinquent status for like 300 days.

My truck will be paid off in the next 2 months. I pay credit card off in full every month... which I understand that could possibly hurt your score.

Any ideas? Don't think I have any need for furniture.



VirgilCaine
Alabama Fan
Further South
Member since Dec 2010
1972 posts

re: Credit Score Repair
quote:

Credit Score Repair


Will not happen until this:

quote:

Apparently my student loans, which I thought I had put in deferment, were delinquent status for like 300 days.


is current.

Are those loans now current or have you talked with your loan servicer about options to bring them current?
This post was edited on 1/8 at 4:32 pm


Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
They are current.. Didn't know about it until yesterday, I've been making payments for about 7 or 8 months

This post was edited on 1/8 at 4:40 pm


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iAmBatman
USA Fan
The Batcave
Member since Mar 2011
9182 posts

re: Credit Score Repair
quote:

I pay credit card off in full every month... which I understand that could possibly hurt your score.


incorrect...paying off your card's balance every month would not negatively effect your score.


Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
K, fine.. Read somewhere that it may not help increase your score. Not the point of this thread.



The Mick
LSU Fan
Member since Oct 2010
39392 posts

re: Credit Score Repair
quote:

I pay credit card off in full every month... which I understand that could possibly hurt your score.
Will not "hurt" your score, no. However, it can really help your score if you do it properly. Ironically if you pay it too quickly after charging on the card it doesnt show up as utilizing your credit and paying it off. (hope that makes sense).

What you need to do is use about 15-20% of your credit limit each month (30% is max recommended), let those charges actually hit and be billed on your statement. Then pay that balance off before the due date. If you charge on it and pay immediately it doesnt really show a responsible use of your credit.


Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
Yea, that was my understanding..

Ok, now, to the point of the thread.

Would getting a personal loan, for say $3,000-$5,000, throwing that into my mutual fund and/or Roth, while making monthly payments on loan be my best option??



iAmBatman
USA Fan
The Batcave
Member since Mar 2011
9182 posts

re: Credit Score Repair
the point of this thread is that you're fricked if you have a 300+ day delinquency on your credit report.

Hope you don't need to buy a car or a house or apply for a credit card in the next 7 years. Enjoy paying the late penalties


iAmBatman
USA Fan
The Batcave
Member since Mar 2011
9182 posts

re: Credit Score Repair
quote:

Would getting a personal loan, for say $3,000-$5,000,


you aren't going to be able to get a personal loan with your credit history and if you do somehow get one by the grace of god, I don't even want to think about what the interest rate would be


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04
Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
My credit score is still mid 600s in spite of those delinquent payments..


Which I will dispute if I can find anything showing I'd put loans in deferment.


Eta: thanks for your concern, tho
This post was edited on 1/8 at 5:00 pm


Dr Rosenrosen
Tulane Fan
Member since May 2006
2155 posts

re: Credit Score Repair
You really need to go back to the lender and see if they will delete the late marks. You may have to put something in writing.

The OP may still qualify for financing, but at high rates.


Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
quote:

You really need to go back to the lender and see if they will delete the late marks. You may have to put something in writing.


Yea, I started paying when I started receiving mail for payments. I'm thinking it's an error. Will be disputing it and try to get them removed.


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Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
quote:

The OP may still qualify for financing, but at high rates.


Not an issue at all, not with the institution I belong to.


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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
5859 posts

re: Credit Score Repair
quote:

My truck will be paid off in the next 2 months. I pay credit card off in full every month... which I understand that could possibly hurt your score.


Paying the credit cards in full every month won't hurt, it helps. You need your utilization to be less than 10% to maximize your score. You need more positive trade lines to offset the negative one. I would say to try another credit card but that may be tough with such a recent major derogatory mark. Call the student loan lender or write "goodwill letters" to try and get the marks removed. Disputing won't do any good unless there is some legitimate error that you're sure of.

Have you looked into a "credit builder loan" at a credit union? Google it and check around any credit unions in your area that may do these. Good luck.


anc
Member since Nov 2012
12526 posts

re: Credit Score Repair
quote:

Hope you don't need to buy a car or a house or apply for a credit card in the next 7 years. Enjoy paying the late penalties



Holy hyperbole, Batman!

It won't take seven years to buy a car or house. People that go bankrupt can buy a house in as little as a year.

As someone who has had to fight the credit bureaus in my life, good luck - its stressful and draining to fight something, especially if the leg you are standing on (I didn't know) is weak. I had outright identity theft and it took me 18 months to prove that I had not lived in a state that I had never even visited.

That being said, get everything current, wait six months and go sit down at a credit union and take out a small personal loan and pay it back in 3-4 months. Do that a couple times and no one will look at your student loans.


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Boudin
Navy Fan
Lafayette
Member since Oct 2006
10131 posts

re: Credit Score Repair
I only use a credit union. I'm going to likely borrow some money tomorrow and max out my Roth..

If I max out my Roth now and earn over the limit in 2014, what happens?


bigblake
Member since Jun 2011
1869 posts

re: Credit Score Repair
(no message)
This post was edited on 1/9 at 5:17 am


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Haughton99
LSU Fan
Haughton
Member since Feb 2009
6076 posts

re: Credit Score Repair
quote:

I only use a credit union. I'm going to likely borrow some money tomorrow and max out my Roth..


I dont have any advice to give but this sounds like an incredibly dumb idea. Am I wrong?


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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
16589 posts

re: Credit Score Repair
quote:

My truck will be paid off in the next 2 months. I pay credit card off in full every month... which I understand that could possibly hurt your score.


I honestly wouldnt finance anything.

The safest thing to do to save you money would be to pay off the "statement" balance on the credit card each month instead of the whole balance. This way it wont charge interest and it will show you use 20%-30 of your credit limit and the statement gets paid each month. This obviously depends on how high your credit limit is.


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mglsu21
LSU Fan
Prairieville
Member since Jun 2012
1159 posts

re: Credit Score Repair
quote:

Call the student loan lender or write "goodwill letters" to try and get the marks removed. Disputing won't do any good unless there is some legitimate error that you're sure of.


This.

If there was an error then you can dispute it. If there was a misunderstanding on your end then you will have to throw yourself at the mercy of the lender and explain in writing what happened. Search for sample goodwill letters online and use those as a template. That's really your only way to possibly get those bad marks removed. Odds of that happening are not very high, but it doesn't cost anything to try and is worth a shot.

Continue to pay your creditors timely every single month. Add additional tradelines slowly as time passes. Continue to show good use of credit over time and that the 300 days was a mistake not to be repeated. There is very rarely a quick fix to credit issues and takes a long time to completely rebuild what took a short amount of time to damage.


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