[lacuran8626]

I have a history of many late payments as I had been unemployed and then under-employed for over a year. With a 50% decrease in my income during that time, I got to 90 days on some things and at least to 30 or 60 on nearly everything. Ultimately I sold my home, and paid off all my debts. However, my credit is very poor now.

I am living with my parents for a time before I purchase another home so that I can save about $30,000 to put toward equity in my next home. Given the market, real estate and moving expenses, I did not have a lot of equity left from my previous home sale after I paid my debts. Now, my only debt is my car, which I am paying on time, and a $3,000 line of credit which I am paying down (and which has never been paid late, so I feel is worth keeping open but not using). I have only one credit card that I use, and pay the entire balance every month on it. I also have a store card which has a zero balance, and which I am keeping open but not using. I had a gas card which was cancelled by the company due to late payments and I was unsuccessful in my efforts to get them to reconsider.

In a year, I would like to buy another home but I know that with the current market for mortgages, I will not qualify. What can I do that I've not already begun doing to increase my credit rating? I had been irresponsible for a few years about making payments on a timely basis, then learned I had ADHD and began to turn it around with help (this is a common problem for adults with ADHD) when I lost my job.

I'd appreciate any advice I can get!

Thank you!

[GlindaofOz]

It sounds as if you are taking all the right steps to repair your credit history. Unfortunately it won't be repaired overnight. It will take for all of those late pays and charge off to be in the past.

For how long did you have late pays?

[DrJ]

You could employ a credit restoration company to assist you in remove any old negative remarks on your credit

Also, you will want to try to open some other accounts (credit cards, etc.) Even secured credit cards, if you have to.

If your parents are willing to help you out, you can have them add you on to one of their accounts. You will want to select an account that has been open for a LONG time, has had a HIGH balance at one time but is now paid down as low as possible, and doesn't have any late payments on it. Tell them that you do not want an actual card, you just want to be added to their account.

In about 3 months, this will show up on your credit report as a joint account and can boost your score quite a bit. If they are willing to, get added to 3 different accounts of theirs... it will help A LOT!!

[GlindaofOz]

you could employ a credit restoration company to assist you in remove any old negative remarks on your credit

What you are doing is helping to remove bad marks off your credit. Majority of the time credit restoration agencies will not provide any help. Just keep doing what you are doing and you will be back in a better place in no time.

Is there anyway you can wait 2 years to purchase a home? That may help you build up a better history.

[DrJ]

There are many good credit restoration companies out there that can help tremendously. They can remove late payments, charge-offs, collection accounts, etc... pretty much any type of negative item can be disputed.

If you are savvy enough, you can learn to do it yourself, as well. You may not do as good of a job as a professional will, but it will only cost you the price of a few stamps.

I have very up-close and personal experience in debt management and credit restoration. It really can work.

But, then again, if your "bad past" was close to 7 years ago... you could just wait for stuff to fall off.

Either way, the other techniques suggested will help you tremendously

[lacuran8626]

Thank you all for your insight.

[Fr_Chuck]

I am sorry but no, you can not remove any true and correct "bad" credit, and in some US states credit repair companies are actually illegal because of so much fraud in that industry.

There is nothing they can do but challenge a report and hope the company does not respond, since legally they are allowed to post correct info.

What clears your record is time and only time.

Along with that, you have no idea what the mortgage industry and the housing market is going to do in one year or three year, If there are a lot of foreclosures, there will be more houses to sell than buyers, so prices are down. And there will always be some lenders who will look at over all debt to income and length of income instead of credit scores alone.

Even your past lender since you worked with them and paid them off shows you did not take an easy way out.

[DrJ]

Sorry it took so long to get back here but of course, I have to stand my ground.

Yes, in fact, you CAN remove CORRECT derogatory marks from your credit report.

I am not standing up for fraudulent credit repair companies... I am standing AGAINST immoral creditors and collection agencies.

The fact is that for anyone to report a derogatory on one's credit, they first must abide by the Fair Credit Reporting Act. Most do not know the details of what this involves.

MOST creditors do not abide by the law and will report derogatory remarks about you without following protocol.

Its like a cop throwing you in jail without a trial, judge, or anything.

A big part of removing these derogatory marks is insisting that the offending party (the creditor and/or collection agency) show proof that they were filed IN ACCORDANCE with the FCRA.

If they were NOT, then by law, they have to remove them (or refile them... however, if you make these disputes once the account has been paid, they typically won't want waste any more time on them).

I am not a scam artist... I have removed many derogatory marks from peoples credit 100% legally.

[Megalomaniac]

Also keep in mind that if you are going to attempt to clean up your credit on your own you will need to learn everything you can about the FCRA. It will take a lot of time and you have to keep it up or else it will be time wasted. It will also cost a fair bit of money. You can't just throw a stamp on a letter and mail it. They need to be certified so you have proof that the company received your mail. On some things you can make a deal with the company to pay a certain amount if they will remove it off your credit report. You *have* to get this in writing from them though. A lot of companies will agree to it and then not do it. If you have it in writing you can send a copy to the CRA and they will remove it for you.

Just remember you absolutely have to stay on top of things and stay organized. You usually only have about 30 days to respond and if you don't it will be much harder to fight it.

Good luck!