He has a lot of debt, about $20,000. It relates to back child support incurred while in a situation about 7 years ago where he was unable to work, and ignorant to the idea that he should have went to court to reduce his payments. He came out of the situation with about $15,000 worth of back pay. The only other stuff on the credit report was related to ambulance fees, hospital bills and a Macy's bill. The Macy's bill didn't even list an amount owed, it just said the account was closed. He doesn't know what he owes or could owe to Macy's because he was not the one using the card nor receiving the statements. This was 7 years ago as well.
How can he fix this. No one will give him a credit card, (he's tried.) He pays the child support regularly and my caulculations suggest that at the rate his payments go, it will be 4 years before that back pay is almost gone. He can't afford to give more. He doesn't bring enough home now to pay his rent each month.
Is there really no way out?
2007-10-05 17:11:21 · 3 answers · asked by thetigersnameistony 2 in Business & Finance ➔ Credit
If I read the report correctly, he doesn't even have a credit score, because he has no revolving accounts.
What does it really mean when they say things 7 years old get removed from a report? The bulk of the debt showed is 7 years old.
2007-10-05 17:13:00 · update #1
He doesn't WANT a credit card, he wants to have some credit. In addition, he is in a position in which the slightest emergancy can leave him homeless, stranded, or useless. He's a father and he needs to better his life so he can be a stable figure in the lives of his children.
2007-10-05 17:48:20 · update #2
Negatives fall off the credit report 7 years and 180 days from the default date.
The closed Macy's account may be just that and there's nothing owed. The back child support is probably in the public records section and will be on there more like 10 years.
The only thing he can do is pay off the bills, including that child support. Then he can try to get a credit card and build a credit history.
2007-10-05 17:28:40 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
My experiance in Canada with credit reporst is that 7 year old information dosent automatically drop out of the credit report. He can try to get a secured credit card. The credit card will be secured by cash colladeral. The lender may still not be convinced to give him a credit card as his debts servicing ratio may be too high because of all the money he owes. But a secured credit card is your best bet.
2007-10-06 00:41:49 · answer #2 · answered by Imroz R 1 · 0⤊ 0⤋
Obvious question: Why does someone with 20K of debt WANT a credit card? To get in MORE debt?
I've never understood why people who are in the most debt are most concerned with their ability to borrow more money.
2007-10-06 00:38:22 · answer #3 · answered by kvuo 4 · 0⤊ 0⤋