Anonymous asked in Business & FinanceCredit · 6 months ago

Could I start re building my credit?

I owe my credit card 5k which I don't think I'll ever be able to pay back since I now have a baby to take care of and other expenses. I'm in collections with several places which I've been there for a long time. I got a letter in the mail from my credit card company that I owe 5k to telling me they're going to sue me but that was months ago so I don't think they're actually going to.. could I start re building my credit?? Its been a long time that I've been in collections and I don't think I'm in collections with anything new

3 Answers

  • 6 months ago

    Without knowing more of your financial situation I can't really answer this fully. You are not going to rebuild your credit unless you pay off the debts. Bankruptcy certainly will remove the debts, but it destroys your credit for 10 years. Going to one of those debt settlement companies sounds great, but it also doesn't fix your credit. Your debts will now show paid for a lesser amount, still a bad thing on your reports.

    Pull your credit reports and find someone with some credit repair experience to advise you. Good luck.

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  • 6 months ago

    With a new baby and a bunch of bills you can’t pay, rebuilding your credit is the last thing you need to be worrying about right now.

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  • A.J.
    Lv 7
    6 months ago

    With active debt in collections and owing 5K still, you can only either declare bankruptcy to wipe the debt or a bankruptcy settlement partial pay down or settle with creditors. Your credit rating is low and no business should give you new credit. "Rebuild credit" means raising credit score. Debt and collections do expire and fall off the report but takes up to 7 years. As debt gets older it does count less.

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