Chosen by Asker

I wouldn't file Bankruptcy if I were you. Although it may seem like you're in a huge hole, it sounds like you only owe 20k right now and soon an additional 30k. Don't get me wrong that is a lot, but I'm not sure if it's worth bankruptcy. There is a new bill that may pass (H.R. 3421 Medical Debt Relief Act of 2009) which would eliminate medical collections once paid (either in full or settled) from your credit reports. How old are the collections? After 7 years from the date of first delinquency collections drop off. So if they are 3-4 years old, why tack on another 7-10 with bankruptcy? Collections can be fairly easy to settle with (pay 30-60% owed) plus you could offer a pay for delete deal, which means, you pay in full or a settled amount and in return they delete the negative account from all reporting agencies. Is the 10k in collections from credit card debt or is that also medical collections? It really doesn't matter, you could end up paying about half owed to the collection accounts. Plus, If you paid a low amount each month towards your medical bill (the ones not in collections) even 50 bucks they won't send it to collections, as long as you pay something each month. For more info, there is a pretty good step by step guide on how to improve your credit, just check out the source I left below. Also, if you have no open trade lines (credit accounts) get some (at least 2) having no open trade lines will hurt your credit, especially if the only thing in your credit report is negative accounts. I would suggest getting a secured credit card. They are guaranteed approvals, you have to deposit money which the bank holds as collateral, but they will report your payment history to the credit bureaus. The source below also explains this in better detail. Hope this helps, and best of luck

Source(s)

creditmagic ...

by Joe

4 weeks ago

Asker's Rating: 

Your situation is a bit complex. The fact that you dont have available credit in the form of credit cards or instalment loans is what is keeping your score low, with no hopes of being approved in case that you apply. The collections debt already made the damage so try to negotiate this debt with the lenders, and look out for the statues of limitations of that debt. If its expired, forget about it. Do not stop paying the current debt, if you encounter financial difficulties talk to the company, tell them about your situation and try to resolve they issue. Call them until they comply. The 30,000 in students loans are defered, you can however save money and come up with a plant to pay that until you graduate. Have in mind that if you file for bankruptcy you may be required to pay money back and your finances will be ruined. Yes, it will stay on your credit report for 7 to 10 years but thats like a traffic ticket, it will always be there.

by Apollo- 4 weeks ago

When obtaining credit whether it be filling out credit applications for new purchasing or you're requesting loans, the business you are dealing with will consider your credit score and history. It is easy to get credit in most cases with a high credit score, however, many factors go into your score. If you have been denied, here are ways on improving credit score for a successful approval. The make up of your score takes several actions into consideration. www ... A lot of people know the meaning of a credit score, but don't understand how it is calculated. The score is arrived using a formula. The number of accounts you have that are open falls into one bucket. The varied accounts fall into a bucket. How you pay and the timeliness is another area. The last one is paid off balances with the accounts still open for future transactions is another one.

by Paige- 4 weeks ago

raiseyourcreditnow ... has a lot of information on how to fix your credit and articles on simple things you can do to raise your credit score.

by Silas- 4 weeks ago