The Worst Credit on the Planet

[lolalola]

Hello All,

I have the worst credit. I have had bankruptcy, car repossession, charged off credit cards and closed bank accounts. I live paycheck to paycheck and pay my bills on time, but can not repair my credit. I'm 49 yr old female, single parenting for the past 14 years (thats how I got into trouble!!). I don't own a home, but I do own my car, thank goodness!

Since the bankruptcy I had 5 new credit cards and I screwed up again - economy, lack of work, etc. - and now those credit cards are "charged off" but I did not declare bankruptcy again.

Is there a time limit that things can stay on my credit report? I know the bankruptcy is 10 years, but what about the repo, charged off credit cards and closed bank accounts? Will I ever be able to have a clean slate?

THank you for any help,
Lola

[JoshuaHeckathorn]

Negative marks that are accurate can generally stay on your credit reports for up to 7 years. This would include things like credit card charge offs, collections and repossessions. As you mentioned, BKs can be reported for 10.

Closed bank accounts aren't reported to the CRAs, but if you have a checking account closed because of numerous overdrafts, nonpayment of fees, etc., your bank will probably report you to ChexSystems. You definitely don't want to be on that last, as it will make it difficult to open a new checking account for quite some time.

Time will certainly heal your credit as baddies drop off your reports, but what's more important is learning how to live within your means and manage credit responsibly. If you can make a personal commitment to always pay your credit card bills on time and in full, that is what will have the greatest positive impact on your scores over time.

[lolalola]

Thank you very much for answering, Joshua.

[JoshuaHeckathorn]

My pleasure...hope to see you around the forum often.

[JDS]

I am your age, but when I was in my early to mid-twenties, my credit was a complete mess. At the age of 26, I could not obtain credit, and could not open a bank account. My income was very low, and it was a constant struggle just to get by.

I started building up my credit in my late twenties and early thirties. It was nice when I could finally open a checking account at the age of 28. Those check cashing places were a pain! At one point I came into some money, $5,000 which was a huge sum at the time. I used the entire amount to pay off a credit card after receiving a call from a collection agency. In hindsight, I wish that I had negotiated a settlement, but anyway, at least I was able to pay my debt.

I eventually got a secured credit card for $500, and this started me on my way. After maintaining that card, I was given a real credit card with a $2,000 limit, and as I maintained a good history, the bank increased my limit.

It took time, but I was able to turn it around. My credit is now excellent, I'm debt free with the exception of a mortgage and I no longer live paycheck to paycheck. I know that you can do this at any age...just start small and build it up slowly.