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#1
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I need advice on how to properly build credit.
Hey Guys, here's my dilemma:
In 2003 my personal information was illegally obtained and $6000+ worth of charges were made on my name. I found all this out in late 2004, and have been fighting this ever since. I have filled out tons a lot of police reports, forms, credit related paperwork etc. I pay all my bills on time, and even with the fraud on my name, I managed to have a 622 credit score (in jan 2006). Yesterday I had my credit checked and my score has dropped to a 584. Now I called Equifax and found out that one credit card company did not remove the debt, but my call has now fixed that. The $4000 debt on that card is what lowered my score. Now I really need to build my credit badly. I was thinking of two options: Getting a credit card from my bank, and making regular purchases and paying off the balance at the end of each month . OR Getting a cheap car under $5000 and paying on it monthly to boost my score. Is anyone of those a good idea, or is there a better solution? Note: I THOUGHT IDENTITY THEFT WOULDN'T HAPPEN TO ME,PLEASE CHECK YOUR CREDIT REPORT FOR ANY DISCREPANCIES. IT IS A HARD BATTLE TO WIN.
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1987 mercedes 300E 1995 e320 conversion(hated the 300e grill) HID/Xenon (D2S) Keyless Entry Monochromatic Paint (Custom Blue) Smoked Tails Flat Badged (front) Debadged (rear) custom "carbon fiber" console 18 inch HP EVO rims Sold! Now I drive a Monte Carlo SS http://memimage.cardomain.net/member.../352975_67.jpg http://memimage.cardomain.net/member.../748335_24.jpg |
#2
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Don't buy the car unless you actually need it. The credit card idea is good, along with one or 2 store cards where you often shop. They sometimes give good discounts on your purchases.
We have had cards stolen and used, including an ATM card that I had no idea was also a credit card. I can appreciate what you've been going through.
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1985 380SE Blue/Blue - 230,000 miles 2012 Subaru Forester 5-speed 2005 Toyota Sienna 2004 Chrysler Sebring convertible 1999 Toyota Tacoma |
#3
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As said above don't buy anything you don't need just add point to you CS. Get a gas card and pay off the balance every month - no carryovers. Are you close with your banker? Borrow the most amount of money you can from them and then pay it back (all) within 60 days but not before 31 days. If the bank is on the level there should only be a slight interest charge and a transaction fee <$35. If you can get a Visa or such, just use it to purchase things you would normally write a check for like groceries and such. Don't carry a balance here either pay it all off each month.
You will have the best credit score of your life when you don't need it (credit) anymore.
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BENZ THERE DONE THAThttp://www.peachparts.com/shopforum/...c/progress.gif 15 VW Passat TDI 00 E420 98 E300 DT 97 E420 Donor Car - NEED PARTS? PM ME! 97 S500 97 E300D 86 Holden Jackaroo Turbo D 86 300SDL (o\|/o) Last edited by TX76513; 07-20-2006 at 04:00 PM. |
#4
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Get a CC. Put ALL your bills on it. Pay it off monthly/weekly.
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1989 300E 144K |
#5
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Cynical answer: File for bankruptcy. They know you can't do it again for many years so you will get all the credit offers you could hope for.
Sad but true. Seriously, though, I would agree with other's ideas that have been posted and would also agree that you should avoid the car unless you need it or enjoy a good project.
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Ralph 1985 300D Turbo, CA model 248,650 miles and counting... |
#6
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Your score is not that bad. People say 700+ is average or getting into the good territory, but based on my credit knowledge its not bad to have it in the mid 600's. It could be better, sure, but I wouldn't let it keep you up at night.
On the topic of ID theft, I came close to being a victim. I won't tell how because it makes me look totally dumb, so just assume I'm dumb. Since then I've placed fraud alerts on all three credit reporting agency reports, as well as using a creditmonitoring service. With the service, I can see all three credit scores at any time, as well as just about everything else about me. Its really kind of scary. There's stuff on there I've almost forgotten about, like jobs, brief addresses, etc. I highly recommend it. I use Transamerica's service. Pretty good value for the money (19/mo).
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1984 300D turbo, 250K 1971 MGBGT, 101K 2007 VW Jetta, 4K |
#7
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You could do what I did, get a job traveling with a company that has you pay for everything then re-emburses you.
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#8
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Appropriate punishment
Mike, I'm sorry to hear of your trials and tribulations due to this unfortunate incident.
I think a fair punishment for identity thieves would be to take their name, SSN, and other things like that away from them for a while after the first offense. They would become like India's Untouchables. On the second offense they would lose they own identlty forever and become permanent outcasts. What does anyone else think?
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" We have nothing to fear but the main stream media itself . . . ."- Adapted from Franklin D Roosevelt for the 21st century OBK #55 1998 Lincoln Continental - Sold Max 1984 300TD 285,000 miles - Sold The Dee8gonator 1987 560SEC 196,000 miles - Sold Orgasmatron - 2006 CLS500 90,000 miles 2002 C320 Wagon 122,000 miles 2016 AMG GTS 12,000 miles |
#9
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I havent had any identity theft issues, but I have raised my credit score over 80 points in the last year and a half by simply paying down my balances.
I still have some balance, but I haven't been charging much and have been paying way more than the minimum in order to knock the balances down. I did just buy a car, but I did that for good reason. The others have some great suggestions for you to follow. Alon
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'92 300CE - Sold 2004 C240 - 744 - C7 Wheels - Android Radio 2002 C320 - 816 - Sport Wagon |
#10
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identity theft
I just bought identity theft insurance from prepaid legal services. You're right - it's no joke. There was a identity theft ring busted in the key peninsula area (Wa). There are people who make a living off other people's credit. A secured mailbox is the first step people should make. - K
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#11
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I would notify all of the bureaus of the situation, if you haven't already (Trans Union, Equifax, Experian). They will note on the troubled accounts what happened. This isn't going to raise your score, but it definately will make any finance company rethink denying you credit based on your score.
Make sure to have low balances, and a prompt pay history. |
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