Debt Problems - Help please regarding paying old debts and trying to fix my credit. Knowledgeable answers appreciated!?

Help please regarding paying old debts and trying to fix my credit. Knowledgeable answers appreciated!?

I had impeccable credit for over 30 years, but a little over a year ago, things started to go south, including the loss of my job. Needless to say, a very bad time in my life and I was unable to pay my bills for around a year. However life is better now, and I am now in the process of paying off all of my debts, after the not-so-pleasant experience of having to talk to & work with all of the creditors. I was just curious if, when people check your credit rating, they ever take into account all of the years of GOOD credit vs. the short period (in comparison) of time where there were problems, or will the 1 bad year screw-up the rest of my life? I've been reading a lot of the postings here on YA, and truthfully am a little frightened that even after paying off all of my old debts, it won't mean a hill of beans and I will still have bad credit. I know about it staying on your report for 7 years, but since I am older, this is serious to me. Any encouraging words would be appreciated. A further note - I have already talked to and worked with all of my creditors and have almost completed the process of paying off my bills, so I do not need to talk with credit counselors or get loans. I was really mainly curious if your old very good credit rating was ever considered when you are trying to build your credit rating back up. I'm just scared of going 7 years without any credit at all.

Public Comments

You could benefit from credit counseling. For one thing they will get your debts reduced and it shows good faith on your part as you make your payments. Also you don't have to deal with your creditors, the credit counselors will do that. Here's a good site for that: http://www.1-800badcredit.com/credit-card-debt-counseling.html
if you're getting caught up and didn't actually file a bankruptcy, your credit score will recover. I had a chap 7 bankruptcy discharged 6 yrs ago - my credit score is now 720+. You situation is a lot better than mine was - I separated, (now divorced) lot my job 3 wks later, had just started paying child support and had a new car repo'd, plus a ton of credit card debt - was out of work about a yr - only getting occasional temp jobs. I bought my first house 18 months ago, in the process of buying a piece of land for my retirement home and have had a good job for 5+ yrs. I survived and recovered, so will you - probably a lot quicker than I did
Once you have paid everything off get a letter from all of the creditors stating the it is paid in full. Then, contact all of the credit bureaus and have them change the status to paid. Yes it will show on your credit for 7 years, but at least it will show it was paid.
I understand your concerns. As you get older, you truly realize the value and power of a good credit score. First, you are entitled to an annual free credit report so i would make sure to get that. I think you can just order one online through TRW or experian but do check into it as I am not 100% sure these days who offers it. They look at your overall outstanding debt, your slow pays (over 30 days), and also the total amount of credit that you have. They of course look at how many years you have had credit as well. And yes, unfortunately they will look at this most previous slow pay history due to the loss of your job. However, you can write each of the top 3 credit reporting bureaus and attach a letter to your file. You can explain your circumstances and what you are doign to correct things. I would also work hard to pay off whatever debt you can and get rid of some of the smaller cards first (with the highest interest). This will take time of course, but take it from someone who has been there, it can be done. Don't close all of your cards as that can work against you, but, do get rid of the excess that you really don't need. I personally conacted all of my creditors and arranged payment plans with them. I also wrote many letters explaining my circumstances to any that I was slow paying. I was surprised at how understanding they were. I too had lost my job and was not able to pay some of the balances I had on time. This was many years ago. I had messed things up so bad that I went dosn to some ridiculous credit score of 440!! Or something like that. Yet, there is hope. It is 10 years later and my score is now close to 800!! I have worked real hard to get it there and I am sure that you would love to hear it happened quickly, but it did take time and effort. Don't lose hope. Again, contact all of your Creditors and let them know your circumstances. Make any arrangements that you can. get your most current credit report. Don't apply for any new credit or anyting that requires that they check your crdeit score (if you can). This will lower your Beacon Score each time and right now you really need to raise it. Lastly, go to the library or just online and check into ways of improving your credit score. There are so many resources out there. I am proud of you for not just claiming bankruptsy and for actually doing someting to improve your score. Oh, if you absolutely do need to apply for new credit, you can also explain to them at that time what had happened. I did that when I was purchasing a new car and it did help. Hang in there and good luck to you!
Have seen lots of people asking info on bad credits. Well, if you need to get your problem solved onarrange loans or other finance, and usually means you will pay more interest on any loan you take out.