I want to seriously start fixing my credit. However I have 3 'charge offs' on my credit history since 2001. Do you recommend me holding off until they get erased next year (7th year) and...Would they really get erased???? please help!!!
2007-11-15 07:06:41 · 7 answers · asked by magical 2 in Business & Finance ➔ Credit
If you have not been sued by now, wait until they drop off your report.
Derogatory accounts drop off after 7-years from the date of first delinquency which works out to 7-years and 180-days.
And yes they will really drop off.
2007-11-15 07:12:00 · answer #1 · answered by ? 7 · 4⤊ 0⤋
The best way to find out is to order a 3-in-1 credit history; bear in mind, you do have to pay for it. I would wait until 2008 just to be on the safe side before applying for any credit applications.
2007-11-15 07:40:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The idea behind credit is that people look at your past and based on that information, try to predict your future. In other words, as a lender I look at your payment patterns, I look at how much you've borrowed (and repaid) in the past, and I look at your purchase patterns.
I want to loan money to folks who demonstrate - over a long period of time - that they take credit seriously, and that they take their financial obligations seriously.
The fact that some chargeoffs have been reported by the credit reporting agencies for the past six years and will stop being reported in another year has very little bearing on your creditworthiness. In looking at your credit report, I would not have to see the term 'chargeoff' to be able to draw that conclusion from the payment pattern leading up to the chargeoffs.
Start rebuilding now. Start small, and pay on time, every time. As you regain trust, you will be afforded larger and more generous credit terms.
Credit is one of the few things (trust and time are the others) that you really can't buy.
Good luck.
2007-11-15 07:15:38 · answer #3 · answered by Stuart 7 · 1⤊ 1⤋
It does come off after 7 years, but they might sell it to a collection agency for a fraction of the balance. Even if they offer you a settlement of 50% ,do not agree to it. If you have $2000 in a savings account, you can convert that into a loan for 24 months but pay it off in 12.
2007-11-15 07:54:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I would get myself a secured visa with a small limit to start establishing a history of good payments. When the bad stuff falls off you will have an established payment history and will be much easier to get a better rate card!
2007-11-15 08:58:37 · answer #5 · answered by teri 3 · 0⤊ 0⤋
yes i think you should, if you start paying on them now, that will start you all over and it will remain on your credit. You may have to get them to remove it if they don't automatically. But yes they will be erased, and I would just wait since its only a yr.
2007-11-15 07:13:53 · answer #6 · answered by goodgirlabout2gobad 6 · 0⤊ 2⤋
yes, they really are removed from your credit. I would wait...
2007-11-15 07:15:22 · answer #7 · answered by silverstar 2 · 0⤊ 0⤋