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Debt management

Need help with collection agency

I live in Salt Lake City, Utah, and I have been receiving calls from a Credit Collection Regarding My Dell loan I am only 3 Months late and my balance on the loan is 1000 they told me if I don’t pay at least half of that then they will put it on my credit report as an R9 I don’t know what that mean but they way she explained it is it will show as a minor Bankruptcy and be on my credit report for 7 to 10 years can they do that any responses will be helpful. also I have had this loan for 2 years and it is a revolving account can I or How can I do a debt settlement on this or is it a wise choice or no I mean. I Have Already paid for this computer 3 times it seems like can anyone please help!

That is the worst – it’s considered “bottom-of-the-barrel” credit rating. I used to have that rating, altho it’s still probably in that area. Try to avoid it if at all possible! According to the commercial I see on tv on occassion, the ratings start at #450 & go up to 850. R9 would probably be somewhere around 450 or less……totally crappy. It may also be one of those “collection agency” secrets they don’t share with the general public.

Here are the ratings for each account.

R0 – Too new to rate; approved but not used
R1 – Pays within 30 days of billing, or pays as agreed
R2 – Pays in more than 30 days but less than 60 or one payment past due
R3 – Pays in more than 60 days but less than 90 or two payments past due
R4 – Pays in more than 90 days but less than 120 or three or more payments past due
R5 – Account is at least 120 days past due but is not yet rated R9
R6 – No rating exists
R7 – Paid through a consolidation order, consumer proposal or credit counselling debt management program
R8 – Repossession
R9 – Bad debt or placed for collection or bankruptcy

So I would guess that my rating is R9 because I had to file bankruptcy about a year and a half ago. I’m having a hard time figuring out how to get that rating up? I’m scared senseless to apply for a loan, get a credit card or anything. Since filing I’ve done nothing by pay all bills by cash. I am down to nothing but regular utilities and living expenses and finally have money in savings. But I killed the checking account and only use my savings. So I guess my question is, does anyone know when I can start reestablishing my credit standing again? And at what point does the R9 move up?

My ex wanted things done his way during our marriage so our credit rating was at the lowest possible. I improved my rating without even trying at first. I paid my car insurance on time every month and they reported it to a credit agency. I’ve paid of some of my debts but still have a ways to go. February 2015 i used some of my tax refund to get a secured credit card (limit is $200) and pay it off every month. It can also be a solution to get a cash advance to pay off some of the most urgent bills. You mentioned you live in Utah so I recommend you get a payday loan from Utah Cash Help – this is a reputable company and you will stay safe with them. But this company also makes reports to credit agencies. As for a checking account I’d get one but only use it for paying bills. Look around tho cause some banks charge fees every month and some don’t, I have one that doesn’t. You can’t mail cash so paying any bills by mail means spending money to get a money order. Consider which is less expensive: buying money orders or having a checking account.

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