Re: Several Questions About Our Credit

Posted by LadynRed (68.52.127.174) on June 13, 2004 at 10:17:55:

In Reply to: Several Questions About Our Credit posted by Just Married on June 12, 2004 at 23:57:51:

1 - SOL in NC is 3 years, but that refers to the time limit for a creditor to SUE you, it has NO effect on your credit reports. Negative items stay on your reports for SEVEN years + 180 days from the date of delinquency that led to charge-off, so you've likely got at least 4 years to go. Your scores won't improve until those derogs drop off.

Get a copy of your credit reports from the 3 bureaus, do NOT get a 3-in-1, they lack critical details.

2 - Wrong. He was late on his payments - that's the first negative hit to his reports. The repo has already happened, another big ding. Now he owes a deficiency amount, and once it goes to collections it'll ding his credit again. Paying it off will NOT erase the bad marks already on his credit, it may only stop the collection agency ding.

3 - Depending on the totality of your debts, jointly, BK MAY be an option to consider. Paying or settling charge-offs won't help your reports. You're in a tough position as far as credit repair. You can try disputing things off, but that is not an instant fix and it takes diligence and patience. Even with a BK, you're looking at 3-4 years before you could buy a house and that would mean NOT amassing and abusing new credit, but a careful rebuild and making every payment on time for at LEAST 2 years.

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