Credit report/debt question?

[amg35]

The problem is the payment arrangement. Every time you make a payment the account updates. That makes it look like a new charge-off every time you make a payment. The original charge-off maybe 1 year old but the way it is reported makes it look new every month. It sucks that you are penalized for doing the right thing but that seems to be how the system works.

What I would do is get a secured card to start reestabilishing your credit. Also, join a credit union. They are usually good to their members.

Thanks, I'm going to look into a secured card and start fresh.

Thanks for your help everyone. I made some mistakes, paid off my debt, and will just have to wait a few years so I can finally own a condo instead of renting! It's just hard because I've matured, make good money now and have a good sized down payment ready. But I did the "crime" so I will do the time.

 

[golfgal]

But why would a person need to have a single credit card to have good credit? Why would a long history of paying your mortgage, car payment and student loans not be enough?

The answer is very, very simple - because the banks have rigged the system. The need you to borrow money at higher interest rates, so they require it. Sure, they say that you don't have to carry a balance - but they know that people will slip up eventually.

It is a system manipulated by the banks...

You don't have to have a credit card at all, I just used that as an example since most people DO have a credit card. Making payments on installment credit helps your credit score more then revolving credit but a fair amount. Besides, if you ever want to rent a car in Disneyworld, you have to have a credit card.