Bad Credit Report = No Secured Credit = No Family Home

[olimess]

Well, the name of this post is fairly dramatic but as many of you probably know, problems with your credit can be very dramatic and traumatic. Believe me, I'm feeling it these days. Any advice, help or suggestions are greatly appreciated! Sorry in advance for the long post.

Back in 2002, I decided to quit my day job to start my own web development business. After 2 years, the end result was me holding $9000 debt on two credit cards, $1500 debt on phone bills and $1500 debt on student loans. What's worse is that I was now homeless. It's a funny thing how pride can get in the way of making smarter decisions. Being young, naive and full of confidence, I staked too much on the idea that everything would run as I expected it to.

My only option was to call each creditor and explain my situation. The credit card companies were somewhat understanding. They said I could take a few months and not pay my monthly payments, although interest would still apply during this time. My phone company was less understanding. They demanded full payment of the amount due within 30-days or the amount would be forwarded to collections ... which they did.

I spent about 1 year jumping from place to place before I could get myself back on my feet. It turns out that the constant moving is another reason I find myself with the problems I have today. Without having a set address or contact information meant that creditors could not contact me. I tried my best to touch base with them every month or so to let them know that I was attempting to secure stable work, however this will not stop them from moving forward in attempting to gather their money.

In 2004, I was finally able to secure a stable job and find a permanent place to live. Immediately, I contacted each creditor and they agreed to a payment schedule. On the other hand, my phone company could not provide me with any information regarding which collection agency held my debt and of course the collection agency had no way of contacting me either. I figured I had no choice but to wait. My student loan was still held with my bank. I began making payments to my creditors.

After making 3 scheduled payments to my credit card companies, one of the companies decided to demand payment in full. I was in shock! I decided my best bet would be to contact a debt consolidator. The consolidator was able to consolidate both credit cards although they were unable to determine who had the phone debt and were unable to consolidate the student loan.

With in the last 3 years things have really turned around for me. I paid my student loan over 2 years ago and also completed my consolidation program by paying off my credit card debts over a year ago. I obtained a credit report through my consolidator last year and they said that there were no outstanding debts to report. I was able to continue my web development business in the last 3 years as well while working a day job. My income has steadily increased each year from $60,000, to $80,000 and last year to $105,000 per year.

I have a family now and am looking to purchase a new home for us in the near future. We currently live in a small apartment. I decided before I attempt to obtain a mortgage, I should begin to rebuild my credit. I went to my bank to apply for a credit card. To my surprise they said that my report contained several unfavorable statements including an amount due for over $3000 for my phone debt! Obviously I was not going to be accepted for a credit card that day. With the new found information I contacted the collection agency that held the phone debt and made payment in full that same day.

My bank had asked that I come back to see if I could qualify for a SECURED credit card. Again, I was denied! What's worse is that my bank stated that one of the statements on the report states that one of the credit card creditors had 'written off' my account ... suggesting that they never received payment? I recently obtained my credit report and although it does show details pertaining to my previous debt issues, it is worded differently and no where does the term 'written off' appear. Now I'm confused?!?

What can I do? I plan to call the credit bureau to discuss my credit report and situation with them. Am I out of luck here? At this point I can't help but to feel completely down and as a failure to my family and myself, despite the fact that financially I am doing better then I ever have before.

Thanks for reading.
Olimess