Quote:
Originally posted by Averett
Hey NoSoup!
A few general questions.
First, how can I obtain my credit report? Do you have to pay for this?
I have 3 credit cards, totaling about $13,000 in debt. I'm using a counsling agency. They were only able to make a deal with 2 of the cards, so the 3rd I still pay directly. Would it make sense to get out of the counsling agency and pay the cards myself? I am able to pay off the cards, at least the minimum each month.
Basically, I'm just not sure how much I benifit with this agency. It doesnt seem as if I'll pay off the cards any sooner through them. I have since cancled these cards. I was thinking of reopening the one card (its a Visa), woud this be wise? Now, I would not use it, but it seems it would be good for my credit rating to have it open.
I'm still living at home, but I am looking to move out in 6 months or so. At my current job I make around $24,000 a year. I have a car, those payments will be done in a little less than 2 years. How hard will it be to get into an apartment?
Money gives me a headache...
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Well, to obtain your credit report you can either
A) Pay for it (recommended)
B) Get Declined for credit... The Institution is required to send you a notice allowing you to receive a free report, but this report won't have your scores or anything on it, simply a list of your accounts and balances.
As far as what you should do with the agency dealing with the credit cards, because I don't have all the necessary information, I would rather not comment at this point, simply so I don't point you in the wrong direction. You said that the agency worked a deal, but didn't mention the terms of the deal. If you would be able to do so, I would be more than happy to offer any advice I could.
If you pay just the minimum each month on the cards, your balance will take many years to be paid off. (if ever) Try making the minimum on the two cards that aren't too bad, and target the last one (with high interest rate, annual fee, ect.) Pay as much as you can on that card, and continue doing so until it is paid off. After it is paid, transfer that payment onto the next card, again choosing the one with the least friendly terms.
As far as "cancelling" your account, it isn't truly canceled. Granted, they may have revoked access to borrowing any more money with your request, but you account won't report closed on the bureau untill the accound is actually at a $0 balance and you request that the line of credit be closed. So, in answer to your next question, reactiviting it would not really help you build any additional credit.
Well, as you didn't state your payment history, it is difficult to deduce how hard it will be to qualify as a tenant. However, if your parents state that you have paid rent for X years, you will at least have some type of rental history as well.
To be honest, before you move out, try paying "rent," just to see if it is comfortable to you. Check around and find an apartment that is similar to one you would want to reside in, find out what the rent amount is, and pay that much more additional money on your credit cards. The reason I suggest this is due to you stating that you can pay the credit cards yourself, well.... at least the minimum. I can't think of too many more financially difficult situtations than signing a lease and having difficulty paying the rent. Make sure you stick with it, one month is a little different than 12, see if your new lifestyle is acceptable. And, you're doing nothing but helping yourself in the long run.
-Also, you may want to start stocking up on housewares, it is Expensive to move out! I know, you have probably heard it a million times, but people aren't lying. Furnature and a security deposit are a definate must, and it is always good to have a little nest egg in case something goes wrong.
Well, I hope that helps you out, sorry if I got a little long-winded, lol... it is late. If you want to repost the agency's "deal", go right ahead, I will do my best to help you out.
Thanks For Posting!