Need help with rebuilding <600 CS. Clarification Questions..

[raptor13]

Hey there!

 

I was referred to this forum by a friend, and after reading through most of the stickied posts around the place I got a good understanding of some of the laws regarding credit reporting but need some clarification.
I was told that it was 6 years from the date last reported for collections / debt accounts, not last activity. If it was last activity / first delinquent date, I should be hitting the 6 years very shortly, so im not sure what to do here as last reported dates are mostly 2014.

 

Other than that, I would appreciate any advice to help build back up my credit. I am currently a student, and have limited means of generating income (am on government assistance because of a disability, but not full disability support so not much money per month). I might have $100 a month after saving towards tuition to pay off some debt.

 

I have ~$12000 total (after interest built up) in outstanding debt from a few years back.. was wondering the best course of action. There are various accounts so I have made a JPG and hosted a link if you wanted to check it over..

Here is the link for my credit info: http://imgur.com/dYLpF27

I don't NEED my credit at all right now, I use cash for everything, but I need to start working on it before it gets too late as I will be looking to purchase a home within the next 5-10 years. I graduate in 1.5 years and can start paying off major chunks of this if needed.

Thanks for any assistance!

PS. Sorry for posting a request like this as my first post, been reading a while, but could use some input from others around here.

[winnipeger]

First of all, bad debt trade lines and collections purge 6 years from the date of last activity/date of last payment.

The DOLA is reported by the original creditor as seen in your credit report. DOLP is what the collection agencies use instead of DOLA. These dates will usually be within a few months of each other, and will normally purge around the same time.

This information applies to both Equifax and TransUnion.

 

I see you had one good account with BMO that seemed to have ended in a positive state, is that correct? If so, this account will also purge after 6 years of the DOLA, and will leave your Equifax file a clean slate when everything is gone.

However, TransUnion keeps accounts closed in good standing for up to 20 years. This is a plus for you in your case. With Equifax, you'll have to start from scratch again. With TransUnion, you'll have that BMO on there giving you some credit experience to show to new prospective lenders.

 

If I were you, I wouldn't consider contacting or having any contact with any of those bad debt creditors or collectors. they will want more money per month than you can afford or be willing to give. Wait it out until everything purges, and you have a clean slate to start building on. No point in riddling your already bad reports with numerous inquiries for new credit, when you will only be declined. Once your TransUnion file is clear, leaving only that good BMO account, go to a Canadian Tire store and apply for their Options Mastercard. You may be approved with a small limit, but it's a start. The reason why I say apply for a Canadian Tire Mastercard, is they only check TransUnion, and will see that you've had credit before (that good BMO account). Also they are the only lender that considers applications that lack a good long credit history. Capital One does also, but I don't recommend a card from them, because the one they give to people with bad/no credit always has a $300 limit and a stupid $79 annual fee! At least with the CT Options card, it will grow with you, and you can get steady increases every 6 months as long as you keep your payments and credit history good. I started with $3500 limit with them last July when I applied. In January I asked for an increase and they bumped me to $5000. This July marked another 6 months and a year total that I had the card, so I called again and they put me at $7000. Doubled my limit the first year. That's just an example of how you can grow with a card and company like CTFS if you treat them right. Keep in mind I wasn't starting with a fresh clean slate myself, I was just giving an example. They may start you at $500, they may start you at $300, who knows, the point is you will increase as you improve your credit with them, and your overall credit file.