What do you recommend?

Jan 092011
 

Hi Folks,

 

I just received my CH7 BK discharge 4 days ago and I’m starting to work on my credit-reports.

 

I have several derog-accounts on file BUT these accounts are not the oldest on file. I’d say they are equal to my AAoA.

Most of them are charge-offs and due to my BK, they all report a $0 balance.

 

The DOFD of these negative accounts was already a couple of years ago and they are scheduled to fall off by 2013/14.

 

So should I leave these accounts as is or should I try to remove them?

 

Did I get that right that after 7 1/2 years after the DOFD, the negative markings are removed BUT the rest of the tradeline is still reported as if I was never late until it reaches 10 years?

How’s that supposed to work? I’m asking because the reports I have are clearly indicating a date how long these ACCOUNTS are staying ON FILE – and that date is clearly connected to the DOFD-date and not to the 10 years.

 

I’m very interested in knowing more about that because I obviously suffer from a lack of imagination-power to figure out how a discharge/reposession is supposed to be reported as a positive tradeline from one day to the next..:smileysurprised:

 

Thanks in advance!

Rebuilding/USDA Mortgage Readiness Questions

Mar 172010
 

I just found these forums and am so excited to get started on my credit rebuilding journey!  Long story short, my husband and I spent our college years opening credit cards and not making on-time payments.  We closed everything down in 2005 when we got married and started making payments through a credit management agency and made our last payment this month.  I then pulled our credit reports and was a bit disheartened to see that our scores were 548 and 530.  There were 3 collections accounts for small outstanding bills (2 through afni, which I paid yesterday) and 1 which was paid off in 2005 but subsequently sold to a collections agency (Asset Acceptance LLC) who claims that I owe them $2500, and which is scheduled to remain on record until July of 2010. We currently have no open credit cards.

 

Other than those accounts and some student loans that have been in forbearance (just pulled out, first payments are due in April/2010), everything has been paid on time for the past 3 1/2 years, including cell phone payments, insurance payments, rent payments, etc.  We have saved 30,000 for a downpayment and are very interested in a house that the asking price is 200,000 and seems to be absolutely perfect.  

 

We are interested in a usda loan, and in the interest of time (8k tax credit, dream house, eliminating rent payments etc etc) we are tempted to send in the loan application to see if they will take a chance on us. According to the usda, there aren’t any minimum scores, but I do see a lot of things that point to 620 as being the magic number. 

 

Any advice?  Should we just wait 6 months and clean up our credit before applying?  Is there a downside to applying and being denied? Should we open up a credit card to try to rebuild?  Is one better than the other?

 

Thanks for anyone who might have some insight on these matters.