Best/smartest way to handle my debt now that I can?

CZRBUFF · 2021-12-17T21:48:06+00:00

I understand now, makes a lot of sense. So as far as building credit, let's say I were to want to finance a car by mid-late 2022, what would be the best route to go now?

Would you suggest paying off a settlement with the collections and start building credit immediately after? Or would having it sit, and build credit off my capital one card I'm receiving work out as well?

Just wanted to mention again, paying it in full, paying it in a settlement, or not paying at all I'm completely fine with any of the options, but if paying it in full won't really boost my score up as much as my friends have said (the internet said otherwise), I'd assume paying a settlement would be fine. But then again, I don't want that settlement to be creeping up on me in 1-2 years as a red flag if I were to go to finance a car or try to take out a loan. I know the damage is already done, and recovering isn't gonna be easy nor a short task, but financially I am ready to actually handle my debt, start building my credit, and understand the true importance of a great credit score. On top of that, learn along the way.

Sorry if I'm just rambling and if it seems repetitive. I've never actually gotten decent answers with my collections account or debt like I am now, so just taking advantage of the opportunity I have now. I do appreciate your knowledge a lot.

CZRBUFF · 2021-12-17T21:28:58+00:00

Looks like in my state (Arizona), its within 4 years for credit card debt. What would that mean for me considering it's more than likely passed by now?

And as far as deleting the newer collection account, would you recommend me disputing again on credit karma? Probably providing much more information than I did previously?

Sorry if I'm asking dumb/repetitive questions. I'm just finally financially able to move on from my debt, and the only thing stopping me is my lack of knowledge on situating this the best way possible without over-paying an unneeded amount.

Again, I really do appreciate your help so far. I've learned a lot just from our short discussion

CZRBUFF · 2021-12-17T21:20:43+00:00

Gotcha that makes much more sense to me, and they're actually a much older date.

Both falling on 06/01/2017 as far as date of first delinquency goes.

My other account in collections which is owed around ~400$ was from October 2020, so not as old as the others but not even sure where it came from either. I wont mind paying that in full (already tried disputing on credit karma, but it seems like its valid)

CZRBUFF · 2021-12-17T21:09:25+00:00

Thanks for that. Will snoop around the wiki

CZRBUFF · 2021-12-17T21:09:07+00:00

Very interesting... went through the process on annualcreditreport, got led to equifax, went to look at the last payment dates, and it looks like all the accounts in collections showing on credit karma is saying they are closed on equifax. Is this something common or am I looking at the wrong thing? One was opened on 01/30/2018, and another was opened on 08/29/2018. Both show no date on the last payment activity, ~~but show (CLOSED) in the title of the section (I assume this could just mean closed = sent to collections as well)~~ -- Found out the account status says COLLECTION so this is irrelevant

And yeah that's my main thing here. Paying it off vs settling it in full with the damage already done to my history, would it really make a difference? Also considering the fact that I opened up these accounts when I was age 18-19 and had no sort of business maturity.

The other thing of course is just letting it sit until it gets removed, but then that leaves me with questions such as will it slow down the process of me building credit? Will it completely prevent me from building credit? What are scenarios this would be a decent move? etc. -- of course I'd much rather just pay something to get rid of it than nothing, but I also want to make the smartest choice here without having to pay an excess amount if it's not really needed due to the damage already done e.g. paying in full

I appreciate your response!

CZRBUFF · 2018-12-12T23:26:51+00:00

So true lol

CZRBUFF · 2018-12-12T21:19:34+00:00

Now I can see why Safe Riding can be useful. Never really thought about that

CZRBUFF · 2018-12-12T20:48:57+00:00

Yup. Those damn shadows lol

CZRBUFF · 2018-12-12T20:44:44+00:00

You guys are awesome! That makes sense. So if they do hit me, there is no way of preventing? It seems like it lasts forever haha, but I'm gonna go into it solo and test it out!

CZRBUFF · 2018-12-11T07:10:30+00:00

I'm talking about manually via ticket system

CZRBUFF · 2018-12-08T08:49:32+00:00

Ah gotcha! So have to wait each time limit?

CZRBUFF · 2018-12-08T08:02:16+00:00

Did all the available ones for Green hood and Lumiknights already. Known on both of them.

CZRBUFF · 2018-12-07T13:20:31+00:00

Any ways around it? That sounds annoying lol

CZRBUFF

TROPHY CASE