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westcoastguy

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Posts posted by westcoastguy

  1. 5 minutes ago, cv91915 said:

    What would the effect be?  You mean on your scores?

     

    If that's what you're asking...

     

    Educated guess (wait for other input before acting):  Paying this off won't do much of anything for your scores because it will report as a paid CO and you still have another account in collections.  

     

    There isn't much difference betweeen one paid and one unpaid CO, vs two unpaid COs, even if you have one fewer maxed cards in the former case.

     

    If you're asking how the paid CO would look on manual review, it would look much better than an unpaid CO.

    Specifically what I'm asking is this: Will paying this off, in effect lower my credit utilization rate on my overall credit report? Which I think it will. (hoping it will anyway)

  2. Just now, hegemony said:

    what are you trying to accomplish?

    Trying to stay under 20% or so of credit utilization. But since I have these two old card accounts that are still reporting balances, even if I zero out my three active cards (which I just did) it still shows a high utilization on my report (since these old accounts are reporting)

     

    Does that makes sense?

  3.  

    Here is how one of them looks on my report. (Discover)

     

     

           

     

    DISCOVER FIN SVCS LLC

    601100XXXXXX

    $1,790

    $500

    358%

    Revolving

    Negative

    Aug 1, 2013

     

    So from what I can see, they are actively reporting this account every month, and showing my balance as $1,790 and with the limit being $500, I'm getting hit on two fronts every month.  It's negatively affecting my % of credit usage, plus showing as a past due amount, PLUS showing over limit. 

     

    So, back to my question. Would it be a good idea to pay this off? What would the affect be? 

  4. I got a $300 limit on an unsecured card, because I'm trying to rebuild and had no options. At 700+ you should be able to get a 5k-10k limit on your choice of cards I would think.

     

     

  5. Just now, hegemony said:

    are they out of SOL?

     

    FWIW, a paid charge off is still a major derog.

    Charged off in 2015 and 2016.  I understand that a paid charge off is a derog. Totally get it. The score simulator on Experian (if it's accurate) is saying that by paying down my credit card debt to below 30% bumps me like 50 points.  What I'm asking I guess, is:

     

    1- Should I offer a PFD on these? 

    2- Just pay in full and wait 30 days till they report balance as zero. 

     

    I know that a derog is bad, but paying this off will get it so that the only revolving credit card balance is the one I'm acutally carrying on my three cards. And I keep those below $100.00

  6. Have almost a year of good payment history on 3 cards. 2 secured, one not secured. 

     

    Total credit line is $1,800.00 (lame I know.. but you gotta start somewhere)

     

    One of the big factors dragging my score down, is that due to 2 old credit card balances (about $3,000 in total) they are in collections for quite some time now, and are still reporting every month.

     

    So even if I have a zero balance on my three active cards. It still shows that I have $3,000 balance (due to the old cars) so basically it looks like I'm 200% over my credit limit. I have the money to pay these old cards off, but what's the best approach?

     

    PFD? Just contact them and pay it w/o asking for a delete, then they would report on the next cycle as being "0" balance and account closed?

     

    Ideas, suggestions?

     

    Thanks guys.. 

     

    I want to get this handled today, but want to do it the right way for my credit.

  7. I was there about 5 years ago. 300.00 limit on a credit card that cost me 99.00 a year to have. Couldnt buy a home for my family, Couldnt buy a dependable car to drive to work and every little thing that happened seemed to take all of my emergency fund.

     

    After reading here and learing the does and donts. Im now up to 770 credit score, 75,000 in credit card limits with zero balances, new cars and Nice home. You can do it, Just keep your head high and dont give up!

    Inspiration... thanks!

  8. Credit is one of the things when you have it, it's no big deal. Those that have good credit, and haven't ever been turned down for a loan.. don't realize the turmoil it can cause.

     

    Due to some unforseen challenges with a business partner, mine has taken a hit. It's been several years with crappy credit. Like many of you, I kinda got to the point of saying "screw it.. who needs credit. I make a good income, I'll pay cash for everything"

     

    Scared to look at it, didn't want to know. And basically thought it was unfixable and I would have bad credit forever. Whatever...

     

    I guess like someone trying to lose weight, you have to get to the point where you are just like "enough is enough" I'm doing something about this.

     

    I've posted a few questions as I'm in the rebuilding process. Credit is still bad (mid 500's) but the goal is to get to 650 by the end of the year. Then just a slow march up as the report ages and I manage my balances.

     

    Just in case you are one of the ones that isn't sure if you should fix your credit or put in the work. Here is a list of the ways having crappy credit has humiliated me, cost me thousand and thousands of dollars and tons of missed opportunities.

     

    - Interest rates. If I can get a car loan now. (which I just did, so I could rebuild) it cost me about 20% Thats thousands alone on this loan

    -No access to credit cards. I have three cards now. With a total CL of $1,800.00 Really not enough to do anything with. Very limiting in emergencies etc. Sometimes not even enough to book travel for the family. Frustrating

    -Home and Auto insurance rates are DOUBLE what I paid when my credit was in the 700's. Double. Homeowners policy is $600 a month. Every single month. Your insurance score is tied directly to your credit. Above 650. I'll pay $200/month

    -Limited financial options for my life. I have $250k equity in my home that I'm basically frozen out of. No access to it. No one will re-fi for us, or get us a HELOC with our scores. So the ability to refi for a lower rate to save money, or pull cash out is non-existant

    -Been denied a car rental before while trying to use a debit card. VERY embarassing. Dollar did a soft pull when you try to use a Debit card.. wouldn't rent to me.

    -Can't co-sign for my kids on a car or School loan. Just find ways to dodge it.

    -Being treated like a crimminal when applying for ANY kind of a loan. And being grateful for a $300 unsecured credit line. Sad really.

     

    But. Enough of the pity party. Gotta take charge of this pile of steaming dog crap and make something out of it. Soldier on!

  9. This is a tough situation for sure, but going years and years without even checking a statement seems negligent to me. So while the bank didn't do you any favors, you can't really blame it all on them.

    Yup agreed. However, I'm not bitching about the loan balance or blaming them per se. More trying to find a constructive way out of this so that they can legally (and within their rules) report this loan as current. As others have suggested, I may try a GW letter. Last ditch effort I guess.

  10. Also it’s on the borrower to ensure the lien holder is the beneficiary of the insurance policy. The insurance companies notify the banks of the coverage. This is not all on the banks.

    Right. I totally understand that. That was more for background on the situation. I take responsibility for not making sure that was done. My main question has to do with finding a way to have them report the loan as current until we pay it off or sell etc...

  11. So I've gotten help from the board on to pay/not to pay on some collections etc.

     

    Other than a couple of collections on my report right now. I have the following positive lines:

     

    3 Credit cards totalling $1,800.00 available. Have been running a balance on them but I figured out the reporting dates, and I'm making sure they are below 5% each month

     

    Car loan starting in Jan 18. All current. Positive.

     

    The one nagging issue is this:

     

    I have a note on a car (5 years) with a local bank. During the time of the loan for some reason the Bank wasn't added (or showing) on the insurance policy, so it wasn't reporting to the bank that we had insurance (we did)

     

    Had some late payments during this loan term, but never really paid attention to the balance on the loan. Starting the beginning of this year, I really made sure we were current on payments, I knew the loan was due to be paid off in April. April comes, I get a call from the bank, and lo and behold, the balance on the loan is $31,000 (just $4k shy of what we borrowed 5 years ago) WTF? So I start digging into it, and the bank over the years had just added the crazy expensive insurance onto the loan every six months.

     

    I have submitted all the proof of insurance and they have been working on crediting these periods back to us. Hopefully it's quite a bit.

     

    The problem: In the meantime, I've been making 3-4 payments a month just to make sure we stay way in front of this situation and ensure that everything is reporting current. I get a notice from Experian that my score dropped 30 points a couple days ago. This bank is reporting that the loan is now 60 days past due, and was 30 days past due last month. What the....??

     

    I call the loan officer. He checked into it, and said basically.. the loan matured at end of March, and the bank didn't extend it. So even though they can see that we are ahead on payments, they are reporting that the entire balance was due end of March, and are showing that the whole balance is 60+ day past due right now.

     

    I asked for a goodwill adjustment (because of the situation) he said there wasn't anything they could do, because the Bank wasn't "in error".

     

    Last ditch effort tomorrow to talk to the regional manager and see if they will effectively "extend" the loan retroactively for me. And then maybe adjust the reporting accordingly.

     

    What do you guys think? Any other options here?

     

    (By the way, once the insurance adjustments have been made, we'll be selling the car and paying it off in full)

     

    Thanks

  12. If you don't mind posting the other four collections, we may be able to help you with those as well. (with dates/etc just like you did)

    Yeah.. Good call. Here's the others.

     

    CREDIT COLLECTION SERV

    XXXXXXX

    PROGRESSIVE

    Dec 1, 2013

    $587

    $587

    725 CANTON ST
    NORWOOD, MA 02062

     

     

    CREDIT COLLECTION SERV

    XXXXXXX

    ESURANCE AN ALLSTATE COMPANY

    Jun 1, 2017

    $618

    $618

    725 CANTON ST
    NORWOOD, MA 02062

     

    PORTFOLIO RECOV ASSOC

    XXXXXXXXXXXXXXX

    CAPITAL ONE BANK USA N.A.

    Jan 1, 2017

    -

    -

    120 CORPORATE BLVD STE 1
    NORFOLK, VA 23502

    CBE GROUP

    XXXXX

    INTERMOUNTAIN HEALTHCARE Jun 1, 2017

    $1,905

    $1,905

    1309 TECHNOLOGY PKWY
    CEDAR FALLS, IA 50613

     

     

    That's it.

     

    I've poked around a little and from everything I have read, the two insurance once *should* delete after I pay them. Anyone have experience with Credit Collection Service that can verify this?

     

    Portfolio recovery I'm not sure. I haven't looked at that one, and frankly don't even have the balance (pretty small I think) just something that was ignored.

     

    Any advice on plan of attack her would be awesome!

     

    Thanks

  13. My opinion is that settling the account (or paying in full) shouldn't have any meaningful impact on your credit score. There a very good chance that the "Balance Updated" date is keeping this scored as a fresh delinquency, and settlement won't represent a downgrade in that factor. Instead, with time, the account should eventually score as an older adverse tradeline.

     

    There's a chance you'll see a reporting shift comparable to haydeno's mother and may possibly come out better for it. (Again, my expectation is that the her reporting change made little difference in credit score, with reasoning along lines that shifter notes.)

     

    The important thing I want to underscore is that settling won't impact the recorded "date of first delinquency", which determines when the adverse account will drop from your report. The charge off status date appears to be Aug 1 '16, in which case your DOFD is approximately Feb 1 '16. You should look for this account to be removed in early 2023.

     

    My recommendation is to strike the best settlement that you can and put this delinquency behind you.

    Thanks

     

    I think that's good advice. I would feel better just having it paid and out of my life.

  14.  

    In the processing of rebuilding my (our) credit.

     

    Current FICO 8 is 545. Yeah.. sucks. Big time.

     

    But, the good news is that I started the long game last June, I got two secured credit cards

     

    One with a 1,000 CL, and another with 500 CL. Also got an unsecured card for $300.00

     

    All have been paid on time, closing in on a year. So that's helping.

     

    Got a car loan started in Jan of this year, all payments made on time

     

    What's killing me is the collection accounts. I've been going through them and offering PFD. I started with 8 collection accounts, and now down to 5. However... the one I have a question on is an old Discover card account that I had.

     

    Here's what it shows on my report:

     

    Account Type
    Credit Card - Revolving Terms
    Date Opened
    Aug 1, 2013
    Account Status
    Closed
    Payment Status
    Charge-off
    Status Updated
    Aug 1, 2016
    Usage
    358%
    Balance
    $1,790
    Balance Updated
    Apr 22, 2018
    Credit Limit
    $500
    Monthly Payment
    -
    Past Due Amount
    $1,790
    Highest Balance
    -
    Terms
    Revolving
    Responsibility
    Individual

     

     

    So, essentially Discover has charged this of. So as I understand it, a couple of things are happening right now.

     

    1- It's showing as an open collection and charge off. Obviously that's bad... they are continuing to report it every month as an FP (Failure to pay)

    2-It's affecting my util on CC's since it's showing 358% of my balance.

     

    I have the money to pay it off, that's not the problem. What's making my hesitate is the date of last activity is "Status Updated 2016" What will happen if I call in and pay this off? I'll ask for a PFD, but let's assume they won't do that. They take the money, update the balance to zero. Then update the status to "Closed, paid"? Or something like that.

     

    I want to meet my obligations here. But I want to be smart about it. Ideas? Suggestions?

     

    Goal is to get credit up over 675 by years end, and I think getting Utilization down is one of the big factors. And this one is screwing up my numbers.

    Thanks

     

    Discover doesn't do PFDs, but they do sue. I'd make arrangements to pay it. I doubt you'll be able to dispute it off, but maybe someone else has had a better experience than that. This info is based on what I've seen Discover do with others.

     

    I went through the big credit crunch of 2007, and Discover was good to me. When other cards were cutting my limits, Discover and AmEx did not. They can be hard to deal with though if you default.

     

    Good intel, thanks. I guess the question is.. what will this do to my score if I contact them and pay this off?

  15. In the processing of rebuilding my (our) credit.

     

    Current FICO 8 is 545. Yeah.. sucks. Big time.

     

    But, the good news is that I started the long game last June, I got two secured credit cards

     

    One with a 1,000 CL, and another with 500 CL. Also got an unsecured card for $300.00

     

    All have been paid on time, closing in on a year. So that's helping.

     

    Got a car loan started in Jan of this year, all payments made on time

     

    What's killing me is the collection accounts. I've been going through them and offering PFD. I started with 8 collection accounts, and now down to 5. However... the one I have a question on is an old Discover card account that I had.

     

    Here's what it shows on my report:

     

    Account Type
    Credit Card - Revolving Terms
    Date Opened
    Aug 1, 2013
    Account Status
    Closed
    Payment Status
    Charge-off
    Status Updated
    Aug 1, 2016
    Usage
    358%
    Balance
    $1,790
    Balance Updated
    Apr 22, 2018
    Credit Limit
    $500
    Monthly Payment
    -
    Past Due Amount
    $1,790
    Highest Balance
    -
    Terms
    Revolving
    Responsibility
    Individual

     

     

    So, essentially Discover has charged this of. So as I understand it, a couple of things are happening right now.

     

    1- It's showing as an open collection and charge off. Obviously that's bad... they are continuing to report it every month as an FP (Failure to pay)

    2-It's affecting my util on CC's since it's showing 358% of my balance.

     

    I have the money to pay it off, that's not the problem. What's making my hesitate is the date of last activity is "Status Updated 2016" What will happen if I call in and pay this off? I'll ask for a PFD, but let's assume they won't do that. They take the money, update the balance to zero. Then update the status to "Closed, paid"? Or something like that.

     

    I want to meet my obligations here. But I want to be smart about it. Ideas? Suggestions?

     

    Goal is to get credit up over 675 by years end, and I think getting Utilization down is one of the big factors. And this one is screwing up my numbers.

    Thanks

  16.  

     

     

     

    Welcome :)

     

    Where are you getting your scores?

     

    ETA - Those deleted liens may have affected your AAOA in a big way.

    +1

     

     

    +2

     

    Fake scores lead to false impressions.

     

    On the other hand, if that's a real FICO score you may have been rebucketed.

     

    You are undeniably more creditworthy without the tax liens, which will bear out when any credit application is manually reviewed by a human.

     

     

    Got it. Starting to understand the re-bucketing. And I totally agree with you, to a human reviewing the credit report.. yeah, I would rather not have them on there. But while I'm grooming my report and paying attention to every little change and increase/decrease. This sucks. Had my score above 600 in I don't know how long, then plummets back down.

     

    Ah well. Keep plugging away.

     

    Thanks for the info guys, very helpful.

     

     

    Focus on the long-term trend and not every single score change, or you will slowly go insane. :)

     

    Literally, for every up there will be a down. And for every down there will be an up.

     

    eICWQCm.png

     

    Solid advice, and I understand. But we are trying to get to the point where we can get approved for a car lease.. and these 40 point swings at our score level mean a lot more than say.. 750 down to 710. I feel like I need to be at least 620-650 to get a lease.

  17.  

     

    Welcome :)

     

    Where are you getting your scores?

     

    ETA - Those deleted liens may have affected your AAOA in a big way.

    +1

     

     

    +2

     

    Fake scores lead to false impressions.

     

    On the other hand, if that's a real FICO score you may have been rebucketed.

     

    You are undeniably more creditworthy without the tax liens, which will bear out when any credit application is manually reviewed by a human.

     

     

    Got it. Starting to understand the re-bucketing. And I totally agree with you, to a human reviewing the credit report.. yeah, I would rather not have them on there. But while I'm grooming my report and paying attention to every little change and increase/decrease. This sucks. Had my score above 600 in I don't know how long, then plummets back down.

     

    Ah well. Keep plugging away.

     

    Thanks for the info guys, very helpful.

  18. Welcome :)

     

    Where are you getting your scores?

     

    ETA - Those deleted liens may have affected your AAOA in a big way.

    Signed up for Experian, and get the alerts there when my score goes up and down. They claim that's the FICO score. Is there a more accurate place to get them?

  19. I've been reading the board for quite a while. Had many false starts on my credit building repair journey. Including the last 5 years where I just thought "Screw it, I'll make a ton of money and not have to worry about credit"

     

    But the honest truth of the matter is, it has cost me a fortune by having bad credit.

     

    -Higher Insurance Premiums (by 3X)

    -Higher Interest Rates

    -Unable to rent a car at some places

     

    You all know, the list goes on and on.

     

    Current score at Exp is 605. One baddie is a car loan that was 60+ days past due. Got that caught up, and applied for 2 secured credit cards last June. I've been paying on them like clockwork and keeping my utilization low.

     

    6 collections on my report. 2 I was able to PFD, and 2 more are set up to do the same and should have them paid this week.

     

    The big one was 6 state tax liens totaling $100,000

     

    They were paid and I successfully got them removed as of yesterday. (although it appears that the CRA's are removing them all next week anyway)

     

    So Sunday, score was 605, yesterday the liens got removed (not paid but REMOVED) from my report.. my score then dropped 38 points overnight, putting me at like 570.

     

    WTF?

     

    I was expecting a 30+ point INCREASE. Why in the world would my score DROP when having these liens removed?

     

    Thanks for any input.

     

     

     

     

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