I'm only 19 and my credit is already messed up. Should I try to fix my credit or just file for bankruptcy?
I can’t get a new bank, I can’t get a good phone carrier, and I don’t know if colleges take credit into account when giving me financial aid. What should I do?
It’s not for a credit card. I just have bad credit
Well, Jerk, I am in debt. I’m in debt to 2 different banks. I’m in debt to T-Mobile. I’m in debt to my landlord. That’s all.
Posted August 20th, 2010 in When To File Bankruptcy. Tagged: bad credit, banks, colleges, credit card, financial aid, landlord, new bank, phone carrier, t mobile.
At 19, its unlikely that a court would even grant your bankrupt status unless you have overwhelming medical bills or other expenses incurred out of your control. Simply having some credit card debt as as result of being young and inexperienced with credit isn’t grounds for bankruptcy. Bankruptcy is reserved for folks at risk of loosing housing, essential medical care, and other extreme circumstances.
Typically banks use a source called ChexSystems to see if you have outstanding hot checks or overdrafts with other institutions. It may be that pre-paid cell service if necessary for a while. And, yes, student loan financiers do check credit (especially if they are private and not government guaranteed).
From what you’ve told us, bankruptcy just isn’t an option for you, and it certainly wouldn’t fix your credit and the problems its causing you. The best bet is to either look into hiring a credit repair company, or go about it yourself calling each of your creditors and asking to make a deal. Start with the lowest balances and work your way up. In 6 months, if you stay determined, you’ll be impressed with how much you can improve your credit.
August 20th, 2010 at 7:05 amYou should fix it first, get another job to pay if off, and find out what going on with your credit card with the company and see what they can do for you to help. or go to a credit counseling company for help before you want to file bankruptcy because this will stay on your credit report for 10 years.
August 20th, 2010 at 7:05 amWithout knowing the specifics, it’s hard to give advise.
August 20th, 2010 at 7:05 amIf you’ve had non credit card defaults, pay those off as it can greatly help your credit rating/score to pay off non credit card defaults, as these are the least damaging to your credit rating. Be sure to get a settlement letter from each creditor/collector BEFORE you pay stating that the account will be "Paid in Full" once the agreed-to amount has been paid.
With credit card defaults or loan defaults, the news is not so good. When a credit card defaults and charges off, the damage to your credit is done and cannot be undone by paying back the debt. You’ll have bad credit for at least 2 years after a charge off and nothing can change this.
- You also have your age working against you as creditors view people under 21 as extreme credit risks. Technically, all young adults under 21 have bad credit and it’s unlikely that you’ll qualify for any loan without a co-signer.
- There are many great prepaid cell phone options that do not require a credit check
I would visit http://diylegalinfo.com/bankruptcy_Links.html They have a lot of good information on bankruptcy questions.
August 20th, 2010 at 7:05 amYou haven’t given enough information for anyone to give you a meaningful answer. Bankruptcy only helps with your credit score by eliminating debt. Once the debt is eliminated, you can then rebuild your credit.
August 20th, 2010 at 7:05 am