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Question: Old debt vs. new debt?

I am 27 years old. I have been on a roller coaster with my debt for about 7 years now. I have some very old debts, (4 years or older) such as a repossession and outstanding utility bills, along with some credit cards. I also have a smaller amount of current debt (2 years or less) leftover from my past marriage (credit card and a couple small utility bills). I want to improve my credit and start paying things off…the trouble is I’m a college student who barely makes minimum wage, so I am not in any position to pay it all off. I need to be thrifty and choose what to pay. I’ve been told it’s better to pay off current debts cuz they affect your credit score more than older debt does, and some of my debts I can actually have dropped from my report because they are 7 years old. I realize in a perfect world I should honor all of my debts, but right now I’m just looking to do what’s going to help me in the shortest amount of time. I realize it won’t happen overnight.

Answer: Concentrate on the newer debt. The old debts may be beyond your states statute of limitations to take legal action.
The newer debts could get nasty and you might wind up in court fighting a judgment order for garnishment.

Let the old ones drop from your report, they can not be re-dated and placed back on your credit report as this is illegal per the FDCPA (15USC1681s-2] § 623).

P.S. follow Slimick’s advice and get rid of those utility bills as this will cause you to have to pay a hefty deposit for services if you decide to move.

Hope this answers your question.
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Credit Repair – Credit Score,COLLECTION,Bunkruptcy,Forclosur

What does the credit bureau do after investigation of a Credit Report dispute?

The agency is required to consider information and documentation from you as well as contact the creditor whose item you are disputing. Once all of the facts have been reviewed, the agency must:

• give you the results of the reinvestigation within five days of the completion;
• remove the item you are disputing if you are correct or if it is unverifiable (most creditors destroy records after twenty-five months, so it is very possible that the item you are disputing can no longer be verified);
• ensure that an item that was corrected does not incorrectly reappear on your report; and,
• provide you with a copy of your corrected report.

What happens if the credit bureau determines that the item being disputed is correct?

If the credit agency determines that the item you are disputing on your Credit Report is correct and that you are wrong, then the item will remain on the report.

If your report is corrected, the agency must send a copy of the corrected report to any creditors who have requested your report in the last year and to any employer who has requested it in the last two years.

Wait a few months after your Credit Report has been corrected and then request a copy of it. Verify that the error was corrected and has not reappeared. If it has reappeared (and this does happen), send a letter indicating this to the credit reporting agency and detail the history of the matter.

Don’t dispute more than three items on your Credit Report

It is best to not dispute more than three items in one letter. If you wish to dispute more then three items, use separate letters for each group of three. A long list of disputes can indicate to the agency that you are not serious and are disputing everything just to make trouble. Include copies of any documents that support your position, such as letters confirming an account has been paid off or closed.

Does it cost anything to dispute Credit Report?

There is no cost to you to dispute your Credit Report. This is your legal right, so do not be afraid to exercise it!

When will I hear back from the credit bureau after filing a Credit Report dispute?

Generally, the agency has thirty days to contact you after receiving your letter. If you do not hear back from the agency within thirty days, send a second letter for reinvestigation. Once the credit reporting agency receives your request for reinvestigation, it has thirty days to reinvestigate the items on your Credit Report that you are disputing. If you provide the agency with information about the item, then the agency has fifteen extra days to investigate, a total of forty-five days. If the agency does not respond to your requests, contact the FTC (Federal Trade Commission) to file a complaint.