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lukej44

Advice needed for a Collections remark.

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Hey, just joined here looking to get some advice and information on my situation.

 

I just graduated college with a Mechanical Engineering degree in May. I started work and have been saving up for various purchases and moved into a nice apartment complex. I got married as well in October.

There my background for you. When I moved to Dallas, I had to get an apartment for us. I got denied based on my credit regaurdless of how much oney I was making based off of insufficient credit history. I started to look into this more and got a account on creditkarma to see my scores. I have around a 591.

 

I've never had a credit card in my life. Im only 22. I make 60k a year. The only payments I make are on my student loans which are 25k. I started paying off my loans 6 months before I had too. My wife had her college paid for and was smart and got a credit card in college to build credit. Her score is about 740. I've tried to get my score up by getting a card and paying off the purchases as soon as I could. Only problem is I can't get anyone to give me a card in the first place. I get denied anywhere I try. It's very frusterating for me. I feel stuck.

 

Fast forward to last week. My wife and I both make over 6 figures combined and are replacing our cars with over 150k miles on each. I got a 2011 BMW 528i and put 50% down to get a reasonable interest rate of 5.64% for 60 months. We plan on paying it off early but we had trouble getting someone to finance us at first due to my score. The dealer gave me my score and this is when we realized why I have had such a horrible time getting financing.

 

4 years ago we were on a ski trip. On the way up to Colorado, our charter bus went over the side of a mountain pass, injuring half of the 43 on board. I was ok compared to the rest, but my wife had a significant lasceration requiring surgury abover her eyebrow. Her bill was around $30,000 while mine was only $2700. The driver of the bus was at fault for not slowing down around the corner while it was snowing. The bus company shut down across the entire US to avoid paying the money for our injuries. We had to sue the bus company which ended up taking a few months. By the time I had finally gotten my bill for the hospital, it had gone to collection. I was only 18 at the time. I didn't know anything about collections or credit history for that matter. Once I settled with the bus company I paid my bill as soon as I got the check. My wife took even longer

 

This is hurting me today. I can't seem to get a head of this bus crash incident. I'm looking for some advice or guidance on what steps, if any, that I can take to explain my situation to someone who can fix this for me. We are going to be buying a house in a year and need to get this figured out so I can be a help instead of a hindrance to our credit.

 

Thanks for reading!

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so the only payments you make aren't student loans, but also a BMW payment on a $60k salary....?

 

IMHO, instead of putting 50% down on an expensive car, I would have gone for a more modest car and gotten a high limit secured card (you can still do this). If you STOP APPLYING for credit and let the car loan and the secured card age, you should be fine for a mortgage in a year. Keep your utilization down, no late payments, and you'll be surprised what your score will do in a year.

 

I'm a little confused about all the talk about the accident. Do you have a lot of medical collections as well? Is it one collection or many?

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Hi and welcome to Credit Boards. Take a look at the Why Chat Medical HIPPA letter program. What it does is allows you to is to bypass collections and deal with the hospital . BTW, It was a smart move on your part to buy a good used car.

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Welcome to CB lukej44.

 

You need to order your credit reports from Equifax, Experian and Transunion to see what's on them and then ask questions. It's hard to help without knowing exactly what you are actually dealing with.

 

Creditkarma scores are useless other than for noticing when big changes occur on your reports. There's a lot that CK doesn't factor into your FAKO scores. FICO scores are all that matter.

 

Transportation is important but at you age, putting that much down on a car wasn't exactly wise but not the end of the world. Nice car by the way. I imagine you paid at least 30k for it and when you go to buy a house you're going to wish you had paid down your student loans. Paying the student loans should be your goal, not paying off the car early. If something should go wrong and you get into financial trouble you can sell that car but the student loans never go away until paid. Once you get your credit situation figured out you can try to refinance the car through a credit union to get a better rate.

 

It sounds like you are jumping into things a little too quickly without doing your homework first. If you have a medical collection, you could have probably gotten rid of that pretty quickly and been a much better place for the car loan. It sounds like you are on the right track and you have a good head on your shoulders, just slow down a little. You can always come to CB and ask lots of questions about cars, credit cards, mortgages, and retirement (which you should consider starting now).

Edited by funkiehouse

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