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Scottartist

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When will I see my scores go up?
I was devastated in the collapse in 2008. I had to walk away from thousands of dollars worth of debt, at the same time I became very ill. I have 2 foreclosures, several medical and ambulance debts, had to return a leased vehicle and did not pay the balance. Also have a $13,000 charge off line of credit. All these things are starting to fall off my report, The foreclosures and auto won't until 2017. I took out some secured products, credit card, loan and also somehow some way i got an auto loan last year. I pay perfectly on time and sometimes more than required. When will I start to see great improvement in my scores?

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As the negatives age

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Keep up the good work by keeping those new accounts paid on time.  My best guess is that you'll see the biggest improvement once those forclosures and repo fall off your report. But by keeping those newer accounts paid up, once the old stuff falls off, then you'll see the big rebound.  

A word of warning, If it hasn't happened already, Be prepared for the Tax bill on that "Credit Charge off"  It usually takes about 2 to 4 years.  The lender will file a 1099 with the IRS showing the charge off. This is considered unearned income to you. You will have to pay the taxes on it, both Federal and State (if you a have state income tax)  It can be pretty steep  Up to 38% for the feds. (about $3900. on 13K) If you don't pay it, it will end up as a lien against you and cause you more troubles down the road. So be prepared.  There maybe others as well, ( don't want you to be to shocked when it happens.)  

Good Luck 

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