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Bad Credit advice

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amother

Thu, May 09 2024, 2:05 pm

I have bad credit.... I called someone to clear it up for me and he quoted me $3000 to clear it up for me. It sounds like a ridiculous fee is this standard?

I looked into what happened that caused the bad credit and it was an auto lease that wasnt paid a few months because our car was totaled and they still charged me for months after and then they wrote it off because they werent getting paid. #1 I didnt even have the car anymore it was totaled and #2 they never even ran after me for the money

Please tell me the right approach because Im clueless. Do I pay the $3000? Do I look for someone else who can clear it up for me at a more affordable rate? Do I call the car company to fight with them with what happened 4 years ago?

Side note: I have hospital bills from a hospital stay a year ago. I heard that I shouldnt have to pay and if I dont pay it wont affect my credit. Is this true?

amother

Thistle

Thu, May 09 2024, 2:12 pm

amother OP wrote:

We paid someone $5k and he didn’t clear it. Just dragged us around. I hope it’s not the same person.

theoneandonly

Thu, May 09 2024, 2:21 pm

Find out exactly what he's going to do to clear it (get it removed from your credit report somehow? Work out a payment plan with the debt collection agency? Other?) then get price quotes from other ppl for the same services or see if it's actually something you can do yourself.

amother

Gladiolus

Thu, May 09 2024, 2:24 pm

You pay him first and then he clears your credit? No way.
Let him clear your credit and then you pay him.

amother

Thu, May 09 2024, 2:24 pm

theoneandonly wrote:

He said he'll clear the credit but we wont have to pay it

My bil recommended this guy...

how do I know if its something I can do myself?

amother

Thu, May 09 2024, 2:26 pm

amother Gladiolus wrote:

You pay him first and then he clears your credit? No way.
Let him clear your credit and then you pay him.

I thought the same. Isnt that how it works?

amother

Gold

Thu, May 09 2024, 2:54 pm

This is a long shot, but it might pay to try it first. I had some stuff on my credit report that was not accurate. ( I think it was late car payments for a car that had gone back, but I am not certain). I signed up for Credit Karma and then there was an option in each of the different credit companies to query things, and I did, and it was removed.

amother

Oleander

Thu, May 09 2024, 3:05 pm

Can someone tell me more about the hospital bills?

amother

Freesia

Thu, May 09 2024, 3:17 pm

amother Oleander wrote:

Can someone tell me more about the hospital bills?

Hospitals can send your accounts to collections and if it’s over a certain amount (I think $500-600) they can absolutely put it on your credit. Do not assume not paying means your in the clear..

amother

Freesia

Thu, May 09 2024, 3:19 pm

OP it’s not worth it, anything he can do you can do yourself.

Call the car company and try to find out what happened. Put in an official dispute so it gets removed from your credit until it’s resolved

Did you ever alert the leasing company that the car was totaled? How was it handled at the time?

amother

Thu, May 09 2024, 3:35 pm

amother Freesia wrote:

Hospitals can send your accounts to collections and if it’s over a certain amount (I think $500-600) they can absolutely put it on your credit. Do not assume not paying means your in the clear..

I heard that a hospital stay especially through emergency room through ambulance is a legal right and legally not required to demand the money and effect your credit score

sbs

Thu, May 09 2024, 3:51 pm

Why do I recall hearing that medical debt doesn't go on your credit reports?
Maybe that's not accurate, but for some reason it rings familiar.

Arep

Thu, May 09 2024, 4:01 pm

Get a copy of your credit report first, that will tell you if there's a med collection listed there. As for the lease, you can definitely attempt to fix it yourself first, but it depends how much time you have - if you're looking for a good score for s/t specific.

amother

Freesia

Thu, May 09 2024, 4:25 pm

amother OP wrote:

I heard that a hospital stay especially through emergency room through ambulance is a legal right and legally not required to demand the money and effect your credit score

It depends on the circumstances. An out of network hospital is allowed to charge you what you would have paid if it was in network (including copays and deductibles)

You have a legal right to be treated but they are allowed to charge you after the fact. If you filled out your paperwork as uninsured then they had to give you an estimate of services according to most states

amother

Freesia

Thu, May 09 2024, 4:26 pm

sbs wrote:

Why do I recall hearing that medical debt doesn't go on your credit reports?
Maybe that's not accurate, but for some reason it rings familiar.

This is not accurate unless it’s under $500

Also, once it’s paid it gets removed from your credit entirely

amother

Tan

Thu, May 09 2024, 6:47 pm

Why would the car not have to be paid for if it was totaled?

amother

Thu, May 09 2024, 6:51 pm

amother Tan wrote:

Why would the car not have to be paid for if it was totaled?

It was paid by insurance why should I have to pay?

amother

Tan

Thu, May 09 2024, 6:55 pm

amother OP wrote:

It was paid by insurance why should I have to pay?

You sent the money that was paid out by insurance to the car loan company?

amother

DarkGreen

Thu, May 09 2024, 7:03 pm

A few points.

There isn't any magic formula that is a company that charges $5000 can do to improve credit scores.

Medical debt under $500 can't appear on your credit report and if you pay medical debt that goes into collection, it has to be removed from your credit report.

This is significant because any late payments or unpaid amounts will remain on your credit record for 7 years. Even if you were just forgetful and made a payment late on your credit card or mortgage, it will appear.

You should get a copy of your credit report - you are entitled to free copies every year and make sure it is accurate. If it isn't accurate, then contact the credit company.

OP should contact the leasing company and find out the status. That the car was totaled doesn't eliminate your obligations under the lease any more than if you bought a car and owe money on a loan. That is why you have insurance - so if your car is totaled, you can pay it off to the leasing company or the loan company. If you just walk away, it will go into collections.

FWIW, most companies don't bother to sue to collect money because it isn't generally worth it if it is a relatively small amount. So the leasing company probably sent some requests for payment which OP ignored and then either wrote it off or sold it to a collection company. In either case, it would be reported and appear on your credit report for 7 years.

amother

Green

Thu, May 09 2024, 7:05 pm

Yehuda Gilbert
(917) 558-3709

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