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bizwiz41

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  1. Yes, this is how they are reported, since the loan type is similar to a credit card. In other words, you start off with a "line of credit", you do not take a set amount as you would with a mortgage or auto loan. I have done the same thing as you hope to, I opened a HELOC, and transferred my auto loans to it. I did this to save on the interest rate, and for the tax deduction. At question here is, are you more concerned about your credit score, or financial savings? I did this financial transaction after weighing out the options. In my case, I decided it was a better FINANCIAL move to lower interest rates, and gain a deduction. I also examined my future need for credit, and realized there would be no need to APPLY for credit, until after I have paid off the HELOC in full. So, to me it didn't matter how it was reported, or what effect it would have on my credit scores. Remember, credit is a financial tool, not just a score. Decide what to do based on the best FINANCIAL option for your situation.
  2. Yes, the two are treated differently. A home equity loan is viewd as an "installment loan" (like an auto loan), and is not really factored into the utilization factor of your FICO score. CC debt is viewed as "revolving credit", and utilization (% used of available) is weighted heavily in your FICO score. The best course to take depends upon your financial situation, and credit needs. If you will be applying for more credit soon, then do not move the balnce to your credit cards. But, if you can save money, and do not need to worry about applying for credit, then do the financially better move of reducing interest payments. I did a similar move with my auto loans; I moved both my loans from traditional "installment" loans to a home equity line of credit. My FICO score takes a hit because of the above scenario, but I am saving considerable money in interest. But, I did this after reviewing my credit needs for the next few years. I have no need to apply for credit for a number of years. By the time I do, I will have paid off the HELOC, and my FICO scores will be great. It all depends upon whether you will need credit in the near future. If not, then save the $$. If you do, then wait, and let the installment loan run until after you have secured the credit you will need. Also, consider retaining some "emergency credit", try to leave some room on your CCs for an emergency. Remember, you should view credit as a tool to improve your life. Don't let yourself get too sewpt up in the FICO score syndrome.
  3. sharpeplayer, you're on the right course, sort of. The FICO scoring modek is an algorithm. It is a "moving" mathematical formula which also takes into account the default rates of credit accounts. So your "score" can change relative to overall credit default rates. The categories are also mutually dependent, scoring is also calculated on the interrelationship of them all. This is a complex formula, which FairIsaacs is constantly "tweaking". At best, it is a "predictive model", ironically based solely on historical data. I have used such models in economics forecasting; and I know there is an "error factor", which FI never has published anywhere (that I've seen!). Your approach can give a rough estimation of a FICO score, and potential changes. However, the model's "interpretation" of data has a wider error margin. I know that the "shopping for credit" scoring is not always accurate. All of my reports count ALL inquiries, even from the SAME lender within a week! You also need to look at what the model "infers" from different types of data (i.e.- a mortgage loan says you own a home, typically a homeowner has a different behavior type than a renter, etc.) I can decipher that there are many formula variables that FairIsaac does not disclose. And who can blame them! Their scoring model is a huge business!
  4. The Date of First Deliquency does not change, if indeed you made no payments. The Statutes of Limitations for credit reporting are: Deliquencies (Not including Charge Offs): 7 years from deliquncy date If Charged Off: 7 years from 6 months AFTER Date of First Deliquency (7 1/2 years for charge offs) If yours was 9/1999; Then 3/2007 should be your Statute of Limitations for reporting. If it was included in bankruptcy, it should shoe "IIB" (Included In Bankruptcy. Do you have any documentation of your deliquency date? (old statements, checks, etc.)
  5. The Date Of First Deliquency is the date upon which you first became "late" (30 days or more), AND NEVER became current again. i.e. if you became "late" on 3/2004 (say 30 days), then "caught up" in May, THEN you were late again in July 2004 (30 days), and THEN continued to run late, your Date would be July 2004. The key is the date you first became late, and NEVER became current again.
  6. If not giving this P.O. box, or your new home address, is that important, then your only option is to open ANOTHER P.O. box somewhere. It may seem like a costly answer, but it is the only one available.
  7. While closing on a Line of Credit at my bank, the banker and I were discussing credit scores. She made the comment that the highest (FICO) score she had ever seen was an 800, and then she added the comment...."I think they paid for it". I was dying to ask how they "paid for it"!!!
  8. In all these cases, you are losing your "aging" of accounts, which is part of the FICO scoring system. At some point, a negative TL can ADD to your FICO, due to its age. It becomes worht more gaining points for adding to the age and history of your CR, and losing the "neg" points through aging. In most cases, the "deleted" TLs people get removed, are their older accounts. So, after deletion it is common to see a FICO score drop. Also, have your balances increased? Your utilization rate is also critical to your FICO.
  9. After reading more and more about this situation; I take back my previous reply. DON'T GIVE THEM A PENNY!! WHY?? Because of the true priority; your soon to be child. That is your only concern. With whatever amount you would "give" your in-laws, you could put to a much better use for your new child. Your fiancee's parents have severe money problems, and I mean psychologically. They need serious help. If he is behind in income taxes, it is only a matter of time before another lien is placed on their home. It seems no matter what you do, they will have serious financial problems. If your father in law "crashed" his truck, what about his insurance? Didn't that cover anything? So, forget about the relationship with your in laws, forget about what your fiancee says and thinks right now. Have the courgae and strength to do what will be the best for your new child. That is what matters. Be ready to provide a home for your child, and any needs. Finish the basement for them, you'll only have lost time and energy. BUT KEEP THE MONEY FOR YOUR CHILD!! In all your posts, I haven't heard you say your new in-laws mentioned anything about the new baby. Good Luck, and prove them wrong about you by being a great father, they will never be able to take that away from you!!
  10. I will swim against the tide here! In the end, DO WHAT YOUR GUT TELLS YOU TO DO! It sounds like somewhere you've already made the decision to loan (GIVE!) them the money, and now you're looking for rational justification. Well, there is none, nor do you need it. If you think it is in the best somehow, to "loan" your in-laws this money, then go ahead and do it. But... only if you can do it knowing 100% you will never see a dime of it again. If $4000 buys you a "better feeling" about the whole situation, then do it. It is your money, and your decision. If after you loan them this money, they still treat you badly, then inside you know you've taken the "high road" and are the better person. This is the crux of your decision; what kind of a person do you want to be, what kind of family life do you want. There are no "right or wrong" answers here for these types of questions. Only what you decide is the right thing to do. Good Luck.....
  11. We are speaking of two different facets here of credit; 1) CLs and effect on scores (FICO,FAKO,etc) 2) Borrowing power/perception/approval More "available credit" will help your credit score if it lowers your overall utilization %. FICO also gives you points for being able to be granted higher limits and "status" cards by recognized institutions, but..... If you apply for larger amounts of credit (home mortgages, auto loans, etc.) the approval process looks at the ratio of "POTENTIAL DEBT" to gross income. In simple terms, they will calculate your ability to repay based upon total "potential debt ratios" (i.e, if you maxed out everything on your credit report). Now this max "allowable" debt to income ratio is also dependent upon your "credit score" (as adjusted or scored by your lender). I recently went through this with my bank; (applying for a home equity LOC). It appears that their are certain "Catch 22s" when it comes to utilization rates and potential debt. In my case they are requiring to "pay off a car loan w/the new LOC, to bring my debt/income ratio below a "legal limit". Also, another "Catch 22", the "ratio" was based upon my credit score, which was lowered by the inquiry they pulled for this loan!! In summary, these are two seperate questions; and they mechanics of using your credit scores in applying for MORE credit get tricky. It depends upon the type of credit you apply for, the requirements of the lender you are working with, and of course the amounts, your income, total current debt and ratios, etc.
  12. Somehwere it should say "acct closed by consumer", I'm suprised it does not. Check again in the comments section. Where did you pull this report from? Was it a 3 in 1? Sometimes those are hard to read.
  13. As a fellow "Granite Stater", and a bit familiar w/Filenes, there's a good chance you'll be approved. But....most likely it will be for a small credit limit, say $200 - $300. Just try to avoid running a balance, their interest rate is astronomical!
  14. I had the same thing occur on DW's report. A 30 day late was disputed, and the entire TL was removed. I did have to send in the previous copy of CR, and the TL was reinserted w/o late neg. Follow their instructions on these items, itis the only way to get a good TL back.

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