Hey everyone,

I just wanted to update the situation.

First, Re: the student loan.  I took a look at their website and found a notice stating that they will not remove late payments from credit reports.  I decided to save my energy for finding somewhere to lock in my rate instead.

 

Second, after much hemming and hawing and searching I applied for a Citibank card and was approved.  I took a chance that the majority of my late payments were far enough away that they wouldn't focus so much on those.  So I have committed myself to a super low balance to be paid off every month.  In fact, this card is going to live at home except on paydays when I go to the bank and get gas!

 

I looked at several different sites before deciding which card to apply for.  I wanted to find the "best of the worse" as they say, since it seems there are very few, hmm, "nice" credit card companies.  I made sure to apply for a no-fee card and for the most basic which I thought I would be approved (I didn't want the whole bait-and-switch type scenario and end up with a card with a fee).  And I had to take many of the complaints regarding most of the companies with a grain of salt, seems there's a lot of misfortune and unwise spending going on out there!

 

Anyway, just wanted to update everyone, thanks for your advice!

 

Ok, I guess I am thread stealing too?? In regards to the credit report issue.  I was in almost the same position  as soxkat, no credit at all due to my own stupidity and trust in an ex.  That was 5 years ago, I now have a very nice credit score, a few credit cards, and a mortgage at a decent rate.  I agree with Mia, get the secured credit card.  I got one first from Bank of America, and after a year of on time payments they sent my deposit back and changed my card to an unsecured card.That one credit card got me the mortgage on the house and other credit cards with decent interest rates but it does take a long term methodical approach to repairing your credit.  First, I paid off all collection accounts ( I had three from my ex), I then got the secured card, used it and paid it off every month.  I also made sure at the same time I was saving at least $50 a paycheck ( that is over my 401k and espp plan).  The only warning I would give is be careful about how much credit you apply for, each application brings your score down about three points ( per one of my bankers),and when looking for a secured card, check carefully the fees.  Many will have a $72.00 yearly fee,  $5 a month membership fee, a $129 application fee...by the time they are done with their fees you have deposited $500 and you already have $500 in fees on your card! My other suggestion is to do whatever you can to get the student loan up to date, I also had many lates on my student loan ans again my banker said this is a big issue for lenders.  I caught up on past past due payment and paid ontime for one year.  After that I refinanced the loan with a new 3% interest rate and that shows on time, the old loan with the past due shows late payments, but its further down the credit report and showing paid off as agreed. I hope this info will help! Just keep working on it and start paying everything on time..even if you have to call the creditor and pay a $15 phone check fee ( and i have done it )..its better than having one more late on your report.  Thanks!

Speaking of starting new threads...back to the March 24 conversation, "Fuming About Friends," the NYTimes published an article in Sunday's (5/7) paper called "Money Changes Everything," and it's about precisely that topic.  Very interesting.

 Soxkat, try to get a secured credit card.  You'll send in a deposit (maybe $500 or so) that will be your credit limit.  If you default, then the CC company keeps your deposit, so they've got nothing to lose.  But if you make on-time payments for a year, you'll be in a better position to get a "real" credit card because it'll demonstrate a recent history of responsible payments on your part.  I'd suggest never charging more than you can afford to pay off in full every month, but make a couple of charges every single month and pay the bill as soon as you get it.  That way you don't get stuck paying interest, but you're also showing that you know how to use credit and pay it on time.

It won't make your negative items disappear from your history, but will put you on the right track to having better credit once enough time elapses and those fall off the report.

Keep in mind, though, that if you don't pay regularly on your secured card, or if you max it out, it's not going to help you.  Also, when you are able to switch it over to being a regular credit card, the same rules apply -- creditors want to see responsibility and consistency.

Good luck!

Hi All,

Jessica, since you mentioned, I need to "hijack" this thread!  Hate to do it, but I need some advice from all of you financial/credit wizzes out there.

 

I checked one of my credit reports today.  I've been checking them every four months, rotating through each of the bureaus.  I've been hoping to see my credit score go up as I got further away from my "negative" items, but it hasn't.

 

On my report I have 6 "potentially negative" items.  Most of them are charge cards that are closed w/zero balances.  Most were closed about 3-4 years ago.  These all had late payments, some up to 90 days, I know, I know! But I did pay them all.  The one I am mostly concerned about is my student loan, which is currently open.  My last late payment was in November of 2004 when it was 60 days.  It is reported as "Open/Current, was past due 60 days." 

 

Is this something I can contact my student loan admin about?  Does anyone know how long after a late payment it stays as a negative item?  I'm pretty sure for the closed accounts I have to wait until they fall off (a pretty depressing thought, though 2002 feels so long ago, apparently it wasn't!), but is there anything I can do for my loan?

 

I know I've made my mistakes and I'm paying for them.  My situation has changed drastically since that time (i.e. better grasp of cashflow, increased pay, increased savings and increased retirement funding) but it's disheartening to see that I still have all these "meanies" to deal with.

 

Another thing, part of the reason for my low score is that I have no major credit cards (but also, no credit card debt!)  I last applied for a credit card almost two years ago and was turned down in part because of my late payments (and also for my home ownership status, I think they called it).  I'm concerned that I will still be turned down because of these late payments.

 

So, any ideas out there? Anything I can do?  Or do I just have to suck it up and wait another three years? I'm sorry I got so long winded, I wanted to give as much detail as I could!

Thanks everyone!

If that is the case Jessica that would be great wouldn't it!

 

That sounds great Mia!

Please ask for an editing option. I hate my typos.

does that mean everyone will be able to start threads/conversations?  so we won't have to 'interrupt' one another to ask a question or bring up a topic like now (because us 'regular folk' can't start topics of our own)?