|
Camera93
We got dicks like Jesus



Registered: 08/15/18
Posts: 3,220
Last seen: 10 days, 11 hours
|
secured credit card
#26597730 - 04/13/20 11:05 AM (3 years, 9 months ago) |
|
|
so I am at a 515... with less then 2k in collections which according to credit-karma, is the category affecting my score the most I don't think my credit is super fucked 
looking into getting a secured CC to try and build it back up as I am having issues now getting approved for renting ect..
can someone explain the best way to utilize one? I guess I am not even sure how they work?
-------------------- All I need are some tasty waves, a cool buzz, and I’m fine. Whatever you decide won’t really impact our survival Close your eyes, and do the best that you can
|
crabs
Strange


Registered: 12/15/19
Posts: 349
Last seen: 2 days, 4 hours
|
Re: secured credit card [Re: Camera93]
#26597855 - 04/13/20 11:55 AM (3 years, 9 months ago) |
|
|
Get the secured card. After a while you can get it changed to a more traditional card. Make sure you apply at a bank/institution that's different than the bank which issued the account in collections, otherwise you're wasting your time. Then take a small personal loan which you pay off over the course of a year. I look at the interest as buying credit. Instead, if possible, you can get an auto loan, as long as the rate isn't too crazy.
At what point did you stop making payments on the referenced account in collections?
|
crabs
Strange


Registered: 12/15/19
Posts: 349
Last seen: 2 days, 4 hours
|
Re: secured credit card [Re: crabs]
#26597873 - 04/13/20 12:03 PM (3 years, 9 months ago) |
|
|
With the secured card, you put down say $1k cash, and they then give you a $1k line of credit. Occasionally you might have to put down a little more than your line. They'll release the funds when you close the account, or if you're able to convert the account into a traditional CC.
Having accounts that have been active for a while on your credit report is good for your credit, so try not to close it if you can. Once you start building your credit back, you should start receiving new CC offers in the mail. Pick one that looks good, and pay off your balance every month.
|
TheStallionMang
Do U know who yur fuckin with?


Registered: 10/18/17
Posts: 4,531
Loc:
|
Re: secured credit card [Re: Camera93]
#26597883 - 04/13/20 12:06 PM (3 years, 9 months ago) |
|
|
I worked with credit, debt, and collections for a very long time. The first thing to do is try to settle or pay off your account in collections. A lot of places will settle for as little as 30% of your balance and with everything shut down right now, they may be very willing to work with you.
It looks slightly better if you pay the full balance but a settlement is better than being left unpaid. If you're going to pay a settlement, get the agreement in writing before paying it
Getting a pre-paid card without paying the old stuff off wouldn't help you to get approved for a regular credit card.
|
Camera93
We got dicks like Jesus



Registered: 08/15/18
Posts: 3,220
Last seen: 10 days, 11 hours
|
|
thanks for the feedback!
I don't know when I stopped paying, here is screenshot of the 2 reports with the accounts in collections
I was actively fucking my life up with heroin in my early 20s, been clean last 3 years and just dealing with some of the wreckage I caused on my financial future. Living like no tomorrow really bites you in the ass when tomorrow finally shows up

So I should contact the account owner, and establish a payment plan in writing and get these paid off?
If I followed correctly, would you start with the biggest, smallest, oldest or newest?
-------------------- All I need are some tasty waves, a cool buzz, and I’m fine. Whatever you decide won’t really impact our survival Close your eyes, and do the best that you can
|
TheStallionMang
Do U know who yur fuckin with?


Registered: 10/18/17
Posts: 4,531
Loc:
|
Re: secured credit card [Re: Camera93]
#26597958 - 04/13/20 12:47 PM (3 years, 9 months ago) |
|
|
Good to hear you're getting things in order and congrats on kicking the H
Normally it's suggested to pay off the smallest one first and work your way up. You get more accounts knocked off quicker that way which gives a feeling of accomplishment and encourages you to keep going.
If they're being handled be a collection agency, you'll need to contact them, not the original credit grantor.
|
Kryptos
Stranger

Registered: 11/01/14
Posts: 12,263
Last seen: 1 hour, 7 minutes
|
|
For all unpaid debts that have gone to collections:
Get a debt validation letter. Tell them those words.
If the debt is older than seven years, or if they cannot provide you with a debt validation letter, tell them to pound sand, and report to the credit agencies to get it removed. Doesn't matter if you owe the money or not. If they can't prove it, you don't owe it.
If they start talking moral bullshit about "doing the right thing" and "getting this off your conscience", that means they probably can't prove you owe the debt. Making a payment toward such a debt is an admission of ownership, and restarts the seven year expiration timer.
|
bodhisatta 
Smurf real estate agent


Registered: 04/30/13
Posts: 61,889
Loc: Milky way
|
Re: secured credit card [Re: Kryptos]
#26598554 - 04/13/20 05:34 PM (3 years, 9 months ago) |
|
|
 That first. Everything in writing. Make them prove you owe. If they can and you owe then get in writing the payment agreement. Pay it.
|
Kryptos
Stranger

Registered: 11/01/14
Posts: 12,263
Last seen: 1 hour, 7 minutes
|
|
Bod brings up a very good point.
Quote:
bodhisatta said: Everything in writing.
Do not talk on the phone, except to tell them to send a debt validation letter to [name] at [current address], then ask them for a mailing address, and HANG UP. DO NOT SAY ANYTHING ELSE.
Then, do not answer the phone if they call again. Send a certified letter (basically one of those things where they have to sign for the mail, maybe cost an extra buck or two) where you request that all further communication takes place in writing, by certified mail.
|
TheStallionMang
Do U know who yur fuckin with?


Registered: 10/18/17
Posts: 4,531
Loc:
|
Re: secured credit card [Re: Kryptos]
#26598946 - 04/13/20 08:08 PM (3 years, 9 months ago) |
|
|
I worked with collections and debt repayment for 10 years. If you aren't willing to make the arrangement on the phone, they won't take you seriously and you won't get anywhere. Negotiate the deal on the phone and then ask for it in writing. It should include a total pay-off, due date(s), your name, and account number. Don't make a deal you can't stick with, they usually won't give as good of a deal if you don't stick with it.
You can ask for debt validation letters if you want but they are NOT required to send you one unless the account has been in collections for less than 30 days.
Most of the accounts on your screenshot are only 3 years old and the "7 years until they fall off your credit rule" doesn't start until they are sent to collections so if you want to wait for them to go away, you'll be waiting another 5-6 years.
If you call and explain that you're trying to resolve it, they won't feel the need to give you the moral lectures. If you got someone acting shitty, ask for someone else. It may not be a manager but that won't matter, it'll be someone willing to be the good cop. If that doesn't work, call back when you think another shift will be in and get someone else. It's a lot like car sales, you can get better deals at the end of the month because they're all trying to make commission. Best to start calling around the 21st of this month
They may try to ask things like where you work, 2nd phone number, or that sort of thing. Don't bother giving that info. The only thing they need is your phone number (which they'll have from caller-ID) and your address for sending an agreement letter.
Priority mail or even overnight the payment if you are close to the due date. I've had people dick me around that thought they could pay their settlement 2 days after it was due. They'd be pretty pissed when they found out the settlement was void and the rest was still due.
Also, when you send your payment, include a letter requesting a letter stating your account was "settled in full" if you settle for less or "paid in full" if you pay full balance. It's an extra layer of protection on top of your agreement letter. It sometimes happens where an account gets settled but is still sent somewhere else to collect on it accidentally.
Remember, you're contacting them to ask for help with something you want to do so there is no reason for them to be shitty or for you to be rude or short with them.
It wouldn't hurt to have a way to record the call but don't let them know (if your phone can record calls it will make a beep every 5 sec alerting them that you are recording). On the off chance that someone specifically threatens to sue you or something else that would be an FDCPA violation, you can sue them (for free) and they'll end up paying your bill.
If you have any other questions, let me know
|
Camera93
We got dicks like Jesus



Registered: 08/15/18
Posts: 3,220
Last seen: 10 days, 11 hours
|
|
leave it to a money forum on a mushroom site to help get my finances/credit in order 
thanks a lot everyone! I didn't read the latest replies before making a move, but I'll have the lowest one paid tmr. They sent links to my email for confirmation alerts and I should get a letter stating the debt was paid.
-------------------- All I need are some tasty waves, a cool buzz, and I’m fine. Whatever you decide won’t really impact our survival Close your eyes, and do the best that you can
|
|