Is it better to apply for a mortgage now, knowing I'd have a snowball's chance in hades of being approved because my scores are all ~550, just to pull the trigger and get all the slimy cockroach CAs to come out of the woodwork? I'm inspired by all of the awesome stories of people rehabbing their credit in just a few months and buying a house. That is my goal. I can afford to deal with my creditors now; I just have to know what's out there lying in wait. Thoughts?
YOUR "COLLECTION SCORE"
Started by
ICANHASMUNY?
, Oct 16 2010 07:34 AM
58 replies to this topic
#51
Posted 30 August 2012 - 02:05 PM
#52
Posted 31 August 2012 - 04:15 PM
Since CA's monitor credit report changes, pretty much anything can set them off. I applied for a $200 secured card just to have a positive tradeline, then a week later they pull my report and start calling/writing again. It's all more or less automated and they have it down to a science.
What's worse is when you are trying to lay low and someone fraudulently applies for credit cards under your name and THAT also sets off the collectors as "you must be doing ok if you are looking for credit" logic. Happened to me last x-mas, when a fraudster went on an app-o-rama with my information. Naturally, couple weeks later the same CA was doing a hard INQ on my report after getting alerted. Since my previous address was used for fraud ... I think I need to delete all of those off my credit report.
However, I came to realize that it might be best to just wait for the SOL and max out what little credit I have to make my score LOWER, and thus appear to be insolvent. My FICO is not going to jump unless I add lines above 5k anyway. It's not hard to do just pop a seasoned high limit authorized user account from a family member for 40-50 points, but why make myself a target for the CA ?
What's worse is when you are trying to lay low and someone fraudulently applies for credit cards under your name and THAT also sets off the collectors as "you must be doing ok if you are looking for credit" logic. Happened to me last x-mas, when a fraudster went on an app-o-rama with my information. Naturally, couple weeks later the same CA was doing a hard INQ on my report after getting alerted. Since my previous address was used for fraud ... I think I need to delete all of those off my credit report.
However, I came to realize that it might be best to just wait for the SOL and max out what little credit I have to make my score LOWER, and thus appear to be insolvent. My FICO is not going to jump unless I add lines above 5k anyway. It's not hard to do just pop a seasoned high limit authorized user account from a family member for 40-50 points, but why make myself a target for the CA ?
#53
Posted 31 August 2012 - 10:04 PM
Very useful thread. Thanks for the heads up.
Since CA's monitor credit report changes, pretty much anything can set them off. I applied for a $200 secured card just to have a positive tradeline, then a week later they pull my report and start calling/writing again. It's all more or less automated and they have it down to a science.
What's worse is when you are trying to lay low and someone fraudulently applies for credit cards under your name and THAT also sets off the collectors as "you must be doing ok if you are looking for credit" logic. Happened to me last x-mas, when a fraudster went on an app-o-rama with my information. Naturally, couple weeks later the same CA was doing a hard INQ on my report after getting alerted. Since my previous address was used for fraud ... I think I need to delete all of those off my credit report.
However, I came to realize that it might be best to just wait for the SOL and max out what little credit I have to make my score LOWER, and thus appear to be insolvent. My FICO is not going to jump unless I add lines above 5k anyway. It's not hard to do just pop a seasoned high limit authorized user account from a family member for 40-50 points, but why make myself a target for the CA ?
#54
Posted 04 September 2012 - 07:23 PM
Very useful thread. Thanks for the heads up.
Since CA's monitor credit report changes, pretty much anything can set them off. I applied for a $200 secured card just to have a positive tradeline, then a week later they pull my report and start calling/writing again. It's all more or less automated and they have it down to a science.
What's worse is when you are trying to lay low and someone fraudulently applies for credit cards under your name and THAT also sets off the collectors as "you must be doing ok if you are looking for credit" logic. Happened to me last x-mas, when a fraudster went on an app-o-rama with my information. Naturally, couple weeks later the same CA was doing a hard INQ on my report after getting alerted. Since my previous address was used for fraud ... I think I need to delete all of those off my credit report.
However, I came to realize that it might be best to just wait for the SOL and max out what little credit I have to make my score LOWER, and thus appear to be insolvent. My FICO is not going to jump unless I add lines above 5k anyway. It's not hard to do just pop a seasoned high limit authorized user account from a family member for 40-50 points, but why make myself a target for the CA ?
I applied for a car loan, a month later an OC files suit for a CO. I hadn't even disputed it yet due to SOL.
BE CAREFUL WHAT YOU STIR UP AND MAKE SURE YOUR READY!!!!!
Yeah I don't even care about the two collection agencies parking on my credit report. I'm only terrified of Sallie Mae coming after me for private loans IF I appear to have a high collect-ability score. It seems they stopped checking credit after start of 2011 cause I had NO new accounts on my report for about 2 years. That's the elephant in the room; I'd rather sit it out until after SOL before repairing anything; in fact the collection accounts may be beneficial in that respect by keeping my collect-ability score down. None of the CRA's have my employer info either and I plan to keep it that way, I appear to be self-employed. They mostly only get what you feed them in applications.
For real estate, there are always ways of getting around conventional mortgages if you have a large down payment. In particular, hard money lenders and sometimes commercial mortgages (for a business). You can sometimes get by without involving your own credit (and thus alerting the CAs), as long as the asset isn't in your name - cause they will also sue you if you appear to have assets, just use the homestead exemption if applicable to your own residence.
Anyway, APPEARING to be uncollectible/insolvent by not taking on any new credit and leaving your score low may be almost as important as actually being judgement proof, especially if you aren't judgement proof. I had the best luck not sending any contact (like DV) or receiving any calls from CAs. They tend to get bored and move on if your credit doesn't throw any alerts either. As long as you are watching out for default judgements if they sue, by the time many of them sue it's been sold several times and there is not enough evidence passed down the chain to make it suit worthy.
#55
Posted 05 September 2012 - 01:29 PM
Update: The other collector finally got alerted from the secured card application and THEY just checked my credit. I figure they will do a round of calling + sending a threat letter as well. Man, so not worth it for the $200 secured card. So tip to anyone who wants to avoid the irritation, just don't apply for anything at all, the results are often the same whether it's a card or a mortgage ...
#56
Posted 06 September 2012 - 11:22 AM
Just to add to this thread, I'd like to point out that the JDB's use this sort of thing as well, and if they see you getting approved for a lot of apps, you can expect that the phone calls will begin shortly. It doesn't matter how old the debts are; if they think the see a hint that you might have some money, they will be Johnny ion the spot to try and get some of it. Just an advisory.
#57
Posted 11 October 2012 - 06:41 PM
It seems a lot of their strategy is automated. You do an application => automated credit check on you + auto dialer + form mail. I'm sure they put you in buckets depending on your credit report. Since I have < $1000 in revolving showing and a bunch of derogs, it's not very interesting to them. Sallie Mae has always reported theirs negative, but they didn't check my report or contact me they just started updating balances each month as a trigger; so very little of the collector response actually involves people.
This leads me to believe there is a counter strategy (other than ignoring them): lower your score. The best temporary way to do that is to max out cards on a small revolving limit. A more dangerous method is to stop paying a small card until 90-120 days late reported, then pay it in full before it gets written off (but you probably won't be getting any loans in the next 2 years). A less dangerous way is just to close all open credit cards so that you have no revolving reporting, it seems your score caps out low like 600 without recent revolving accounts once you lose that component of the score (perhaps, having none in the last 6 months).
The long term strategy is to appear to have nothing. Meanwhile have your spouse/family apply for cards using your household income, build a positive history, then when your collection accounts are past SOL and resolved have them add you as an authorized user. Suddenly you have some years of positive history, multiple lines and some high credit limit (5k+) and you can use that score boost (+50, +100) to get your own cards. I think this is much safer than applying for credit to rebuild your own when collectors are after you - instead you want to play dead and broke.
This leads me to believe there is a counter strategy (other than ignoring them): lower your score. The best temporary way to do that is to max out cards on a small revolving limit. A more dangerous method is to stop paying a small card until 90-120 days late reported, then pay it in full before it gets written off (but you probably won't be getting any loans in the next 2 years). A less dangerous way is just to close all open credit cards so that you have no revolving reporting, it seems your score caps out low like 600 without recent revolving accounts once you lose that component of the score (perhaps, having none in the last 6 months).
The long term strategy is to appear to have nothing. Meanwhile have your spouse/family apply for cards using your household income, build a positive history, then when your collection accounts are past SOL and resolved have them add you as an authorized user. Suddenly you have some years of positive history, multiple lines and some high credit limit (5k+) and you can use that score boost (+50, +100) to get your own cards. I think this is much safer than applying for credit to rebuild your own when collectors are after you - instead you want to play dead and broke.
#58
Posted 30 November 2012 - 02:22 AM
Does anyone have experience with how a change in status of a public record affects your "collection score"?
I have federal tax lien, but this question applies to judgments and other PRs.
Does the presence of a PR lower your collection score, and the removal of a PR raise your collection score?
---
I have several CAs and OC charge offs from credit cards that are $3000-$5000 each. They are all about three years into the six year Georgia SOL, and I am concerned that I could be sued - especially if my tax lien was helping me look uncollectible. (The calls and letters mostly stopped after I got the lien; the dogs are sleeping.)
My federal tax lien of $31,000 is still reporting with all three CRAs. The IRS has just released the lien as satisfied (not yet reporting). I have requested that the IRS withdraw the lien. My first thought was to try to leave the unpaid lien on my credit reports, so as to not wake and encourage the sleeping dogs while I am within the SOL for the other debt. However the helpful members who responded to this thread informed me that the CRAs will automatically report the release of the tax lien, so I can't play that game.
I will reply to this thread when the lien release (and later the withdrawal) hits my CRs, and let you know if this triggers any CAs to come out of the woodwork. :-(
-tweak691
I have federal tax lien, but this question applies to judgments and other PRs.
Does the presence of a PR lower your collection score, and the removal of a PR raise your collection score?
---
I have several CAs and OC charge offs from credit cards that are $3000-$5000 each. They are all about three years into the six year Georgia SOL, and I am concerned that I could be sued - especially if my tax lien was helping me look uncollectible. (The calls and letters mostly stopped after I got the lien; the dogs are sleeping.)
My federal tax lien of $31,000 is still reporting with all three CRAs. The IRS has just released the lien as satisfied (not yet reporting). I have requested that the IRS withdraw the lien. My first thought was to try to leave the unpaid lien on my credit reports, so as to not wake and encourage the sleeping dogs while I am within the SOL for the other debt. However the helpful members who responded to this thread informed me that the CRAs will automatically report the release of the tax lien, so I can't play that game.
I will reply to this thread when the lien release (and later the withdrawal) hits my CRs, and let you know if this triggers any CAs to come out of the woodwork. :-(
-tweak691
#59
Posted 30 November 2012 - 05:09 PM
Does anyone have experience with how a change in status of a public record affects your "collection score"?
I have federal tax lien, but this question applies to judgments and other PRs.
Does the presence of a PR lower your collection score, and the removal of a PR raise your collection score?
---
I have several CAs and OC charge offs from credit cards that are $3000-$5000 each. They are all about three years into the six year Georgia SOL, and I am concerned that I could be sued - especially if my tax lien was helping me look uncollectible. (The calls and letters mostly stopped after I got the lien; the dogs are sleeping.)
My federal tax lien of $31,000 is still reporting with all three CRAs. The IRS has just released the lien as satisfied (not yet reporting). I have requested that the IRS withdraw the lien. My first thought was to try to leave the unpaid lien on my credit reports, so as to not wake and encourage the sleeping dogs while I am within the SOL for the other debt. However the helpful members who responded to this thread informed me that the CRAs will automatically report the release of the tax lien, so I can't play that game.
I will reply to this thread when the lien release (and later the withdrawal) hits my CRs, and let you know if this triggers any CAs to come out of the woodwork. :-(
-tweak691
Now, I'm wondering the same thing. Should I get my false judgement removed? Or will it bring CAs out?
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