Mortgage and Insurance

Like many posters to this board, my credit is in shambles. There’s no real excuse for it except to say that I am one of those people who’ve never paid much attention to money and I never educated myself on credit and how to take care of it. It’s only been in recent years that I actuallly did the necessary reading and learned how “normal” people take care of their credit.

 

Add to that the fact that I’m very good at ignoring unpleasant things and pretending they don’t exist, and you have a recipe for horrible credit.

 

I was actually doing much better (for me) with my credit until about 2 and a half years ago when I was diagnosed with cancer. There was a period of about 8 months during which I was going through surgery and radiation that I fell back into old habits and just ignored the pile of bills I didn’t think I had the energy to deal with. (Not making excuses. I realize now how short-sighted that was).

 

Back in May I started lurking on these forums.  I got copies of all 3 of my credit reports (from annualcreditreport.com). I’ve gone through them and made notes of everything that is affecting my score in a negative way. 

 

I really want to focus on cleaning up the mess of collections and charge-offs that are listed on my credit report. I’m hoping that you guys can look over my plan of action and let me know if I’m on the right track and/or suggest changes to the plan.

 

First the “good”:

 

Open cards:

 

HSBC Opened 07/07. $500 limit. Balance is paid off each month. I had two 30-day lates Feb & June of 08 while I was recovering from surgery and undergoing radiation. No lates on this card in over 2 years.

 

Plan: Write a GW letter asking for the 2 lates to be removed from the report. Continue to pay balance each month.

 

Cap One Opened 08/10 $400 limit. (Secured card)

 

Plan: Make one small purchase per month. Pay balance each month.

I have also a few closed cards showing “never late” or “pays as agrees”  listed on the account from years ago.

 

Rent History:

 

My rental agent reports to Equifax and now stands at 6+ years, never late, $1400 per month.

 

Now the bad:

 

Charged off:

GEMB/Sam’s Club Added 04/07
 Sold to LVNV and paid (see below)

 

Plan: Not sure if it would do any good to request a GW removal, but it might be worth a try.

HSBC Opened 3/05 Closed 07/06

 

Plan: Any point in requesting removal?

Closed Cards:

 

First Premier (I closed)

 

This card has several 30 day lates and 1 60 day. I closed the card when I realized that their monthly fee made it very hard for me to keep up with the balance and pay off each month.

 

Salute (they closed)

 

This card has 2 30 day lates, 1 60 and 1 90. Was closed during the time I was sick.

 

Both the FP and Salute cards listed as closed, paid as agreed, $0 balance.

 

Plan: Request for GW removal of lates. Not holding my breath on these.

 

Collections:

 

ANFI 
$146
Original creditor is listed as AT&T mobility
Reported: EQ, TU, EQ
Date reported: 02/2010

 

No idea what this bill is or how it was attributed to me. I’ve been an AT&T mobility customer since they were Cingular. I’ve never had an account closed by them.

I’ve already disputed to through the CRA and it came back as “verified.

 

Plan:  Send ANFI a Notice of Direct Dispute under FCRA 623(a)(8).

Alternate plan: Offer a PFD since it’s only $146.

Central Credit Solutions – 6 listings (all medical)

2 for $30 each, $141, $196, $435 — all added late 2008/early 2009
1 paid in 2007

 

This is a small local collection agency but they have a reputation for not doing PFDs.

 

Plan:  Send GW request for removal of the paid account from 2007 and PFD requests for the unpaid listings. I’m not sure if it would be better to send one letter covering all 5 or to send 5 separate letters.

Southern Collections (medical)
paid in 2004

 

Plan: Send GW request for removal. If not, it will come off next fall anyway.

RJM Acquisitions – 3 listings

 

$70 3/10 — Original creditor, Literary Freakin’ Guild!
$236 12/06
$352 12/06

 

I have no idea what the Literary Guild bill is. I’m guessing something my brother may have ordered (my brother is paraplegic and lives with me).

 

My plan would be to send a PFD request except that I don’t have the funds to pay the other 2 accounts ($236 and $352 in full at present — at least not if Central Credit Solutions agrees to a PFD on the accounts I have with them).

 

LVNV Funding
Original creditor Sam’s Club
Reported 10/08
Paid 10/09 (settled for less than full amount)

 

Plan: GW request for removal.

 

Portfolio Recovery
$930
Original creditor Collect America — no idea what this is for
Added 06/08

 

Plan: Not to poke the bear. I don’t have $930 and it’s within the SOL for my state.

Student loans:

 

About 2 years ago I began working on rehabilitating all of my student loans (which of course were in default). I rehabilitated all except for one set and the rehabilitated  loans have now been purchased by Direct Loans and are in deferrment while I rehabilitate the last set of loans (so that they can be consolidated in with the others). That rehabilitation will be complete in January 2011.

 

My student loans are a whole separate issue. I’m having a lot of trouble getting Sallie Mae to remove the indications that the loans are in default and being paid by insurance, but I’ll deal with another time on the Student Loan board.

 

For now I’d like to focus on cleaning up the mess of collections and charge-offs that are listed on my credit report.

 

As you can see, my credit is a mess. I truly am committed to taking care of my credit now and have been working to do this for the last two years. I’m the sole support for my brother and I’d like to be in a position to buy a house in the next 5 years or so.

 

I appreciate any advice you guys can offer.

 

Thanks in advance.