Buckeye1647545503 Posted March 18, 2012 Report Share Posted March 18, 2012 So If someone has no credit and has Doctor bills on their report both currant and old. What repairs a credit score better Working a payoff with those debters (no way to ever pay most in full so it would only be a "deal") or using the same chunk of $ and buying a vehicle (putting half down and financing 1/2) and making the payments on time? I know a vehicle is a deprecating object but I am looking at it more as a tool to repair the credit and I can use a nicer "daily" Sadly I am pretty dumb about the system of Credit and need help please. Cliffs: What helps Credit more 1 year plus of car payment Or "settling" old debt? Quote Link to comment Share on other sites More sharing options...
BloodRed Posted March 18, 2012 Report Share Posted March 18, 2012 Is it just medical bills? Doing a settlement ("deal") will actually lower your credit score and they will still say on your credit for the remaining time (total 7 years). They will show as a "R9" which means you paid via settlement not in full. If so if you can get approved, it would be best to help fix your credit score is to get the car loan. Quote Link to comment Share on other sites More sharing options...
acklac7 Posted March 18, 2012 Report Share Posted March 18, 2012 Is it just medical bills? Doing a settlement ("deal") will actually lower your credit score and they will still say on your credit for the remaining time (total 7 years). They will show as a "R9" which means you paid via settlement not in full. If so if you can get approved, it would be best to help fix your credit score is to get the car loan. So what happens if after 7 years they come after you/try and sue you/garnish your wages etc? Does that still go on your credit record? Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted March 18, 2012 Author Report Share Posted March 18, 2012 Hmm If that is true than that would have pissed me off to lower my score AND not have a car Quote Link to comment Share on other sites More sharing options...
acklac7 Posted March 18, 2012 Report Share Posted March 18, 2012 Hmm If that is true than that would have pissed me off to lower my score AND not have a car From what i've heard the worst thing you can do is settle a debt several years after it has been issued. Like the record of you paying the creditor or w/e stays on your credit report for 7 years from the date you payed it off, so if you play your cards wrong you can fuck your credit report for 14 years. Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted March 18, 2012 Author Report Share Posted March 18, 2012 I have heard that before but as I said I am a credit noob so was not sure Quote Link to comment Share on other sites More sharing options...
evan9381 Posted March 18, 2012 Report Share Posted March 18, 2012 Is it just medical bills? Doing a settlement ("deal") will actually lower your credit score and they will still say on your credit for the remaining time (total 7 years). They will show as a "R9" which means you paid via settlement not in full. If so if you can get approved, it would be best to help fix your credit score is to get the car loan. NO. An "r9" is a revolving line of credit chargeoff, ie, a credit card, which means they reported it as a loss. Medical bills ARE NOT a revolving line of credit. You can settle them pre-chargeoff and it wont report as a chargeoff Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted March 18, 2012 Author Report Share Posted March 18, 2012 Ok Evan but what does it do for a report to settle them pre charge off and does it restart the time? Quote Link to comment Share on other sites More sharing options...
evan9381 Posted March 18, 2012 Report Share Posted March 18, 2012 Have your accounts already gone to a collection agency or are you still making payments with the dr/hospital that they agreed to take shortly after the bill was made? And have you actually pulled your credit report to see whats on it? Stuff on a credit report goes 7 years from the date of last activity...ie, if you open a cc in 2004, use it and pay it off amd close it in 2007, itll stay til 2014 Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted March 18, 2012 Report Share Posted March 18, 2012 Years back we had hospital bills that never made it to the insurance company and we werent made aware of them until it was to late to claim. We agreed on a settlement with the collection companies with the stipulation that they immediatly report them paid in full and any collection activity was removed. They were more than happy to do both so they could collect. Quote Link to comment Share on other sites More sharing options...
gillbot Posted March 18, 2012 Report Share Posted March 18, 2012 I let my medical bills go as i was advised many don't hold those against you. I just took a crappy car loan and let it ride full term and built from there. Quote Link to comment Share on other sites More sharing options...
99BlownYellowGT Posted March 18, 2012 Report Share Posted March 18, 2012 So if you have a default credit card you are better off continuing to make payments until its paid off than settling with them? Quote Link to comment Share on other sites More sharing options...
evan9381 Posted March 18, 2012 Report Share Posted March 18, 2012 Its a judgement call...settled never looks as good as paid in full. If youre gonna save a few hundred bucks, just pay in full. If youre saving many thousands, id probably settle...BUT, be aware, settling a debt and saving over $600, that gets reported to the IRS as "earned income", you will get a 1099 at the end of the year, and you will have to pay taxes on that income.. Quote Link to comment Share on other sites More sharing options...
99BlownYellowGT Posted March 18, 2012 Report Share Posted March 18, 2012 Its a judgement call...settled never looks as good as paid in full. If youre gonna save a few hundred bucks, just pay in full. If youre saving many thousands, id probably settle...BUT, be aware, settling a debt and saving over $600, that gets reported to the IRS as "earned income", you will get a 1099 at the end of the year, and you will have to pay taxes on that income.. Damn that sucks about the tax thing i didnt know. I want to get this debt settled but either way im screwed....stupid mistakes and stupid women lol. Thanks for the info Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted March 19, 2012 Author Report Share Posted March 19, 2012 Well shit man that is a HUGE factor then. I think I will pull currant reports and pay any small stuff off that I can but leave the big stuff alone and just buy the truck. Now for another question I am embarrassed to have to ask... Where is the best place to pull all three of you reports? Last time I tried I ended up at on a scam site wanting to charge $ every month Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted March 19, 2012 Report Share Posted March 19, 2012 IIRC the credit agencies are required by law to provide you with a credit report each year. Contact the big 3. Quote Link to comment Share on other sites More sharing options...
acklac7 Posted March 19, 2012 Report Share Posted March 19, 2012 IIRC the credit agencies are required by law to provide you with a credit report each year. Contact the big 3. Yea i've gotten them free before, as I recall you have to go downtown and show a valid ID then get it mailed to you or something along those lines?? Quote Link to comment Share on other sites More sharing options...
LJ Posted March 19, 2012 Report Share Posted March 19, 2012 Yea i've gotten them free before, as I recall you have to go downtown and show a valid ID then get it mailed to you or something along those lines?? No, just a .gov sanctioned free website. Still have to pay for ur score Quote Link to comment Share on other sites More sharing options...
mustangman2011 Posted March 19, 2012 Report Share Posted March 19, 2012 (edited) http://www.annualcreditreport.com is the legit free one Also, judgements(garnishments) last 10 years in Ohio and can be renewed.a Edited March 19, 2012 by mustangman2011 added info Quote Link to comment Share on other sites More sharing options...
Buckeye1647545503 Posted March 19, 2012 Author Report Share Posted March 19, 2012 I don't have any judgements, just med bills I believe. Thanks for the link I will check it Quote Link to comment Share on other sites More sharing options...
Rally Pat Posted March 19, 2012 Report Share Posted March 19, 2012 (edited) Remember this? http://img.photobucket.com/albums/v202/MegamanEXE/dave1.png http://www.daveramsey.com *Search link removed, as its broken now. Just do a search for "Dave Ramsey" on here. Edited March 19, 2012 by Rally Pat Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted March 19, 2012 Report Share Posted March 19, 2012 According to Dave you have to believe in the all-mighty (not dollar, god) to get rich too. :lolguy: Most of what people have espoused about Dave's teachings here (should be) common sense, except for the whole religion part. No, I didn't always follow the best financial guidelines in my personal life. But when I decided to start, it really wasn't all that hard to figure out. Spend less than you make and save money... Holly shit, Dave Ramsey must be a genius! And there is this http://thereligiousatheist.com/2008/03/25/is-dave-ramsey-ethical/ Quote Link to comment Share on other sites More sharing options...
Rally Pat Posted March 19, 2012 Report Share Posted March 19, 2012 According to Dave you have to believe in the all-mighty (not dollar, god) to get rich too. :lolguy: I am Catholic on paper, but wouldn't consider myself religious anymore. Dave's emphasis on the bible doesn't bother me, because it is almost always used to demonstrate something in a financial context. He also respects other's beliefs when he is giving advice, and if someone isn't Christian, will often give advice to someone in the context of their own religion or lack thereof. Most of what people have espoused about Dave's teachings here (should be) common sense, except for the whole religion part. No, I didn't always follow the best financial guidelines in my personal life. But when I decided to start, it really wasn't all that hard to figure out. Spend less than you make and save money... Holly shit, Dave Ramsey must be a genius! As it turns out, "common sense isn't so common". Growing up in a house where money was wasted constantly and debt was/is the norm, what might be obvious to other people wasn't obvious to me. My mom is financially ruined right now, and won't do anything about it. Before my dad died, we weren't much better off. After he died, my mom lived on the social security checks, instead of finding a long term solution to paying for everything. She had a job at the time, but it was a near minimum wage job doing secretarial work for a now closed photography studio. I am using Dave's books to help me prevent a future like hers. And there is this http://thereligiousatheist.com/2008/03/25/is-dave-ramsey-ethical/ I read the entire thing including the comments. I don't necessarily agree with Dave only certifying Evangelical Christians to be his official counselors, but like one guy in the comments pointed out, I see why. Anyway, I hope you get some good information out of this Scott. Quote Link to comment Share on other sites More sharing options...
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