Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


  • Content Count

  • Joined

  • Last visited

Everything posted by CreditCurious20

  1. It wasn't my intent to be argumentative at all, and I am sorry that it came off that way. Sometimes it is difficult to predetermine how you come off in internet prose. The other's poster focus was paying down the unsecured debt. My focus was on minimizing any damage to a refinance application. The goal wasn't to say that the other poster was wrong or that I was correct, but rather, I wanted to show a different angle so that the OP could think things through and decide what is best approach for her based on her unique circumstances. There are still a lot of facts and for her to decide for herself. @hegemony - I'm sorry if I came off as being snotty. It honestly wasn't my intent.
  2. If the amount of savings from the refi is enough to put a serious dent in credit card debt, then we are talking about a decent rate cut and/or reduction in mortgage insurance. If she used her existing Discover BT 0% offer, then she would have 11k at 10.9% and 17k at 9.9%. Even if she waited 6 months to allow time for the closing (which is longer than needed), the amount of interest paid should be dwarfed by mortgage savings. If not, why would a refinance even be on the table to begin with? As a general matter I agree 100%. I only suggested it as a possibility because it appeared she had a viable plan for quickly paying down the debt and because of her expressed goal of obtaining the lowest rates long term. Fair enough - there is variation by lender, but usually at that level you are in prime territory. I also agree regarding the necessity of mortgage FICO scores. As I suggest previously, she should definitely get this information sooner than later and certainly before taking any action. Inquiries + reduced average age of account + many new trade lines showing up right before a closing
  3. Yes the utilization is hurting, but her posts suggest that her FICO 8 scores are 745-750. FICO 8 tends to be more punitive on credit utilization than the FICO score models used in mortgage lending. In other words, she may very well be at or very lose to 760 usually used in mortgage lending as the cut-off for prime rates. If she can get there quickly and close on the house, she should absolutely refinance before opening any new accounts or doing hard inquiries. The interest paid on $30k short term will likely be dwarfed on the interest on her home over a long period of time especially if the balance on the mortgage is large. As soon as the house closes, she can then apply for the 0% BT options. Another possibility if the LTV, DTI, and scores align is to take out $30k in the refinance and pay off the cards. She can then take the savings and pay down the new mortgage faster. My concern is that mortgage lenders will not be happy with several newly opened accounts and a large number of hard inquiries. Focusing on the interest on the credit cards short term rather than thousands of dollars savings on the home may be a case of "penny wise pound foolish."
  4. And I would balance transfer the Amex card to Discover. Is there any chance that some of your existing lenders would offer you CLIs without a hard pull? If so, that is the best way to drop utilization quickly.
  5. Five inquiries is easily a 15-20+ point hit. I would avoid that if trying to refinance a mortgage. The OP doesn't even know the relevant FICO score model being used. My FICO 8 is considerably (~50 points) lower than older FICO scores used in mortgage lending. FICO 8 is more punitive on credit utilization IIRC than the early FICO models; however, all models are similarly punitive for hard inquiries. By opening new accounts or adding hard inquiries, the OP may hurt herself more than help. We need to know what the relevant home lending FICO scores are to give good advice. The prime score is usually 760 or above; however, LTV and income are also big factors. She posted one score is 750 and another 745. If her mortgage FICOs are near that, she doesn't have much to pay down to bump up her score by another 10-15 points. Any extra money could pay down the mortgage and lower the LTV possibly getting a lower interest rate and/or dropping mortgage insurance (if the OP has it). After the house is refinanced, then she can work on knocking down debt.
  6. I should also ask, what is being reported incorrectly? I don't want to jump to conclusions.
  7. You originally made it sound as if you only disputed it with the OC. If you have disputed it with each bureau, and they refuse to update it, then the FCRA comes into play. I would send a written letter to any bureau incorrectly reporting it along with Credit One's letter acknowledging the problem and the correct status. Send it by certified mail with return receipt requested. If they refuse after that, if the conduct violates the FCRA, and if you have incurred damages, you can sue them. The FCRA also provides for reasonable costs and attorney's fees for willful non-compliance, which may make it easier to find a consumer protection attorney to take your case. There is no need to go it alone.
  8. You need to file a dispute with each bureau that is reporting incorrectly. Send copies of the Credit One letter. Until then, there can be no FCRA liability for the bureaus.
  9. Vantage scores from Credit Karma mean nothing. Ditto for FICO 8 in this context. Most lenders use FICO 2, 4, or 5 depending on the bureau. Ask your prospective lender which version they use for each bureau and order all of your FICO scores from myFICO.
  10. You should negotiate trade line reporting as part of your settlement agreement. Is the account beyond the SOL? How old is the account? If the loan is old and time barred, what would be the advantage of even settling unless the trade line is also deleted?
  11. Congratulations! On another note, unless they are running a hard check (unlikely since they already do soft checks every month) or charge for a CLI, why do they ask if you want to accept it? Why would anyone turn it down?
  12. Ask the credit union for a letter confirming that the card was paid off and has a zero balance. Forward it to the CA and CRA and alert them the claim was satisfied. I'm hesitant to suggest sending the CA a settle agreement as giving additional information, including if it was assigned prior to settlement date just creates new layers of chaos. If the CAs continue collection activities after that, sue the CA and CRA again. A JDB claims as assignee and stands in the original creditor's shoes. If there was a problem with the sale that is between the credit union and the JDB. The settlement extinguished any assignee's claim. As it stands, you can sue the credit union for breach of contract and sue for specific performance of the settlement agreement.
  13. If the payment comes from the insurance company so it looks like they paid it late, then the credit reporting agency will remove it.
  14. I'm sorry I missed this. It is 7 years + 180 days immediately preceding collection activity is what the FCRA provides. With that said, this is the maximum period of time that an item may be reported. It could be deleted earlier. If it is particularly old debt as this appears to be and the trade line is old, the collection company may no longer have the account and won't be able validate it in response to a FCRA dispute. There are various other methods here and across the web looking for loopholes to exploit for deleting old collection accounts. You could try some of those.
  15. Most stem Ph.D.s come with tuition waivers and stipends. Even many social science programs are the same. They probably went to a low tier social science or humanities program with out a stipend. They may also have gone to an over priced, small private liberal arts college with six figures each for college.
  16. It is likely a scam, but even if it is an attempt to collect a debt from a "legitimate" CA, it is long past the statute of limitations and the 7 year FCRA reporting window. I would block the number and move on. If they continue to harass you after that, you could always send a cease and desist letter and sue if they continue to harass you after that.
  17. 15 U.S.C. 1681c: (c)Running of reporting period (1)In general The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
  18. Section 605 of the FCRA, 15 U.S.C. 1681c allows a medical group or hospital to report if certain conditions are met: (a)Information excluded from consumer reportsExcept as authorized under subsection (b), no consumer reporting agency may make any consumer report containing any of the following items of information...: (6)The name, address, and telephone number of any medical information furnisher that has notified the agency of its status, unless— (A) such name, address, and telephone number are restricted or reported using codes that do not identify, or provide information sufficient to infer, the specific provider or the nature of such services, products, or devices to a person other than the consumer; or (B) the report is being provided to an insurance company for a purpose relating to engaging in the business of insurance other than property and casualty insurance.
  19. 1. The case you cite from the Kansas Supreme Court strikes down, at least in the state of Kansas, the Doctrine of Necessaries at it existed at common law. My state, Virginia, also found that the Doctrine of Necessaries as it existed at common law unconstitutional due to gender discrimination (just as Kansas did here). My state legislature responded by passing legislation that reinstated the doctrine but applied it to both spouses as to remedy the constitutional infirmity. Other states have done the same, passing statutory versions that eliminate any constitutional issues. As the Kansas Supreme Court even notes other state supreme courts have simply reinterpreted the common law doctrine to apply to both spouses to remedy any constitutional infirmity. Some states have abolished it through legislation or judicial interpretation; however, the doctrine (or a modernized formulation) survives in many states. 2. The CA isn't going to sue for FCRA violations so it is immaterial that it wouldn't have standing for that. If you mean it doesn't have standing to sue for the debt, it would just send the debt back to the original creditor to file suit unless it purchased the debt then it would have standing to sue directly as assignee. 3. Section 605 of the FCRA, 15 U.S.C. 1681c (a) (6)(a) allows the name, address, and telephone number of any medical furnisher IF "such name, address, and telephone number are restricted or reported using codes that do not identify, or provide information sufficient to infer, the specific provider or nature of such services, products, or devices, or devices to a person other than the consumer." This is not the same as saying that a health care provider cannot report a medical debt. I frequently see people with medical collection accounts on their report in a hospital's name. So as long as it general (XYZ hospital) it is okay. It would be barred by the FCRA to report XYZ oncology or Jim Jones, MD though. A large hospital/health system in my area reports thousands of trade lines every month as "XYZ Health System."
  20. Unless there is a federal or state law that expressly prohibits the reporting of the information, by default it can be reported if she has liability. Federal law specifies only what cannot be reported on a consumer report and mandates certain disclosures if certain types of information are disclosed. See Section 605 of the FCRA, 15 U.S.C. 1681c. There is nothing in that statute that would seemingly prohibit the creditor or CA from reporting the debt IF the OP is liable. It is not clear if she is liable which prompted the questioning from @hegemony and myself. To answer the OP, depending on the state you live in and whether the legal requirements for the Doctrine of Necessaries, if applicable, or other statute, then yes it is possible that you could have liability. The law is highly variable from state to state. In some states, it may or may not also have to be reduced to a judgment first. It might be best for you to contact a local attorney or research your state's law. Some firms may offer free consultations. If you don't have liability then you potentially have a cause of action under the FCRA if the CA refuses to remove it.
  21. To be clear, millennials did not ask Congress to meddle in the student loan business to begin with. Not all of the younger generation is looking for a hand out either. You are being a bit unfair.
  22. +1 Also does your state recognize the common law Doctrine of Necessaries?

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
  • Create New...

Important Information