Who can help me?

[pamacs]

I am so eager to get together with my finacee in the states after two and a half years' separation.

 

But I made a huge mistake before I left America about two years ago.

 

I defaulted my payments to my credit cards while I had to pay my tuition in 2002. I didn't know credit is everything in the states since I had just stayed there for a year and didn't wanna ask my parents for the financial assistance.

 

Anyway, I just messed up with everything.

 

With a bad credit( a total debt up to $8,000 partly showing charged-off), can somebody tell me if I have to face endless problems in the future- high interest rate in mortgage or hard to find a good job, or even will be denied visa at the first step??

 

My finacee just started working so I really wanna put too much financial burden on him after our marriage.

 

We are so sad about the situation and appreciate any good suggestions.

[Squid]

It is definitely not the end of the world. You will just need to get your credit cleaned up. You could greatly increase your credit score in just one year. I would suggest:

 

1. Pull your credit report from an agency online, perferrable from an agency that will have all 3 of the major reporting agency's reports.

 

2. Review the information trying to decide if any of the loans got transferred to collectors. If the loans did not get transferred, call the creditor and asked to make a deal for some payment or ultimately a pay off plan.

 

3. If your loans got transferred to collectors which is much more likely, you are going to have to deal with the scum of the financial world in order to again find a payment plan or ultimately a payoff plan. Their phone numbers should be listed on the credit report.

 

One item of note is that creditors pile on late fees, non payment fees, and any other fees they can think of to your loan. Do not be suprised if your loan payoff has more than doubled because of the fees. When you make a payoff negotiation, you can normally get the fees taken off.

 

Second item of note is that collectors normally "purchase" the bad debt from the original creditor for pennies on the dollar. If they get anything out of you, they are making money.

 

After you have made the payoff plans, stick to them!!!! Do not default!

 

Like I said, you can greatly increase your credit score in just a year. I know what I have said is very brief but there are tons of books you can buy that will help you clean up your credit.

 

Lastly, do not go to any so called credit counselors or anyone else who says they can help you, for a small fee of course. They are also the scum of the financial world.

 

Good luck.

[cosmiclobster]

DO NOT worry about your credit history. The USCIS and GZ will not look at your credit. I know this for a fact because I declared bankruptcy halfway through my visa petition!

My debt was almost 10 times the amount you mentioned and I was just approved for a credit card a few days ago. I didn't really want another card (I have 2 good ATM cards) but the apartment I am trying to move into wanted to see that I was trying to reestablish my credit!! I applied on line from Orchard Bank. Got an unsecured card with 4.9% interest for the rest of the year and then 14.9%. Only has a $59 yearly fee - no others!

[david_dawei]

I was trying to reestablish my credit!!

This brings up an interesting circle in regards to credit/bad credit.. It is credit card overdraft which causes bad credit; it is credit cards good standing which causes good credit !

 

What you might also want to do is to apply for a card or two somewhere among your junk mail.. preferably to stay away from anything with a annual subsrcription cost... But, if your able to get a card or two (and put them aside ), this will help you to 're-establish' credit. It will show that some banks are willing to extend that credit line to you, even if you don't use it.

[pamacs]

Thanks so much for the help from you warm-hearted ladies and gentlemen. Very good advice and encouraging words!

 

Now I really want to correct the stupid mistakes I made at the age of 21. I know it's shameful that as a student in the major of Economics, I didn't know how to keep a good standing in my credit report. But hopefully one is never too old to become wise.

 

So, these are what I will do:

 

Firstly, after I got my credit report, I will try my best to deal with the credit card companies and even the debt collectors. And ask credit reporters to include your statement or my "jian tao"(regretful words after wrongdoings?).

 

Secondly, apply for some credit cards to "reestablish my credit".

 

I am so relieved to hear that a bad credit won't affect my visa process(if any in the future). But I know "the road is zigzag while the future is bright" as I always learn in the Chinese textbooks of Politics.

 

Thanks again since I was so desperate and even thought of changing my identity in China (name or date of birth) in order to have a good start but somehow feel like a criminal...

[kfman]

I think before you actually apply for a new credit card, just pay off your old debt, and the cards will be sent to you automatically. But if you apply, then your credit gets hit and your score drops, whether you get the card or not. Its easy to reestablish credit. I bankrupted myself, and the credit card offers just keep coming in... not a lot to worry about in this day and age.

 

[pamacs]

Thanks for the reminding. I will handle the old history before starting towards a good one. But someone gave me some "warnings" that my future employment opportunities will be hampered by my bad credit history - I assume that a credit hisotry is different from credit score. He said:

 

"Major corporations are routinely checking credit history before making an employment offers these days. I have just experienced this myself recently, as I was asked to sign a credit check authorization form during completing the pre-employment paperwork.

 

And yes, employment offers are contingent on the results, because often employers use your credit history to gauge your level of responsibility. "

 

Now I am planning to apply for a graduate program-preferably a Ph.D one, but does that mean after 4-5 years, my credit history will anywya screw my chances of finding good jobs?

 

I know it's hard to predict but it won't hurt to think twice before I move on.