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GypsyGirl

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  1. Thanks for the tip on the book. I am actually a paralegal at a Fortune 10 company and I work in the Legal Dept. reviewing contracts...embarrassed to admit that given the situation my fiance is in but, again, that was his choice against my fierce protests, so there's nothing I can do. But I do know how to protect myself with contracts as I draft and negotiate them (including these types of contracts) all the time...I just couldn't get the players all to the table to do it and my fiance jumped the gun. Bottom line is that we will have solid contracts in place before he leaves and, worst case scenario, even if the business fails, we won't lose any money (just time and labor) and he'll go back to his old job, so all I am concerned about is the house. My only concern is, if he leaves his day job, whether I can effectively create the appearance of him being an employee at an "acceptable" company in lieu of an owner. The question is whether the mortgage company will be investigating the viability of the company and, if so, how and what is the criteria for acceptability? (Actually, the company is very viable, but the mortgage cmpany may not know that based on the fact that there is no DUNS number, etc.) I'm hoping that in the next three months I can get his company to a good place in that regard and, coupled with the fact that we may seek financing from a credit union or local bank, who tend to be more lenient and understanding about certain things, that will enable us to obtain a conventional mortgage. Here's hoping! Thanks again for all of your assistance everyone...it helps tremendously as it gives me good ammo to keep this biz credit thing steamrolling forward.
  2. Thank you all so much for your responses. Believe me, you don't have to lecture me on the multitude of problems with this situation (non-credit speaking). I have been against this from the start and no one heeded my advice. At this point, we are where we are, and my fiance will not leave his current employment without solid, signed business contracts in place, a buffer of capital in the account and a steady stream of revenue in place. The only issue is the timing for when he changes the corporate entity documents with the state to reflect that he is a principal in the business. The mention of D&B was extremely helpful...and ironic. Thanks, Cashnocredit. I have been pushing to obtain business credit for quite some time. My fiance thinks I'm putting the cart before the horse but we CBers know the value of building good credit even before you need it. I wanted to start a year ago so that when we needed it, we'd have it...takes a year or two of good tradelines to get to a good place with biz credit just as with personal credit. The D&B lookup makes perfect sense. How else could a mortgage company/bank ensure that the employment is "legit" and minimize the risk of someone losing his/her income because they work for a sketchy company? In any event, I am in the process of getting a DUNS number and having our three years of leased equipment (three separate leases for three items of equipment with the same company at a total of $6,500/month--ALWAYS paid on time) added manually to our account after that, which both D&B and the creditor said they said they can do, and quickly adding other accounts to build biz credit and get a Paydex score. If this works, do you think three years of info (legitimate--just inserted retroactively), recent additional accounts and a good Paydex score (I'm thinking 3-6 months down the line) will suffice in order for the company not to raise any red flags as a legitimate employer? I'm trying to negate the need for further inquiry so that this mortgage would simply be processed under two working, non-self employed individuals, one of whom just changed jobs. I'm also intending to work with either my credit union or a local community bank on this, so hopefully the personal element that may be increased with these mortgagors may help in this instance. Thanks so much again for all of your help, and if anyone has any comments about my D&B plan combined with the use of a credit union/small bank (how effective you think this may be), or anything else, I'd appreciate it. I'm trying like heck to find the house first, but it just may not happen... Thanks again! CBers rule!!! P.S. We did have the credit (thanks to CB) to buy a house in '07...we just knew better not to (oh yeah, and there was that little issue of the down payment...)
  3. Question: My fiance and I work for large organizations. He's been at his job for 11+ years and I've been at mine for 2 years (13 at the prior job). In addition to his dayjob, my fiance started a business on the side with a partner about three years ago. The goal was to build it up enough to leave the day job and be self-employed full time. We have been trying to find a house for two years, but have had little success. I have been adamant that we must find a house before he leaves his day employment in order to secure the loan. Now, suddenly, the business is doing so well that it seems if he doesn't leave very soon and devote himself to it full-time, he will lose it as he will have to turn so much business away. This is all great and we intend to keep our mortgage very low and have reserves, etc., and I have a decent job so we have no concerns that even if this business doesn't work out, that we will be stuck with a mortgage we cannot afford; we have contingencies in place for all of this. My question is: For reasons too long to get into, he is not listed anywhere as an officer/owner of the corporation. Right now, it is a handshake deal. Of course, he would never leave his dayjob without having strong, attorney-reviewed contracts in place to secure his ownership interest and role in the company. However, we were thinking that perhaps he could work there as an "employee" until we purchased our house. In other words, this is a legitimate business (not out of a home--but a real business operating at a location we lease manufacturing and selling products to customers) with someone unrelated as a legitimate owner. If he were to be paid as an employee paying all the taxes, etc. and listed as an employee with a W-2, etc., would this suffice to a mortgage company in order to get a mortgage? (Obviously, we'd have to work out an agreement with the business partner who's listed as the current owner--forget about matters of trust and the financial ramifications of not being able to make deductions, etc.--that's our problem.) Also, he has never been paid a DIME (not even a dollar under the table) for his work here. His partner put up the money and he has put in all sweat equity. So there is no tax-related or other "trail" of money that has been paid to him from this company to indicate that he is an owner. I realize he'd have to deal with the issue of just changing jobs, but I'm not so concerned about that. He has a long history at his prior jobs (11 years and 6 years), he's staying in the same industry and his pay would be the same or more. Assuming he has three months of real paychecks behind him, would this be viewed as simply changing jobs and, as a result, would that be the only thing we'd have to deal with? Do mortgage companies ever investigate companies that are employers of the borrowers to determine how long they've been in business, what their revenues and reserves are, how many employees they have, how viable they are, etc.? I just want to be sure if he makes the jump we have a plan in place to get our house. Any insight would be greatly appreciated. Thanks.
  4. I have had a TC account for over a year now. I started building and monitoring my credit last summer in an attempt to obtain a mortgage. I had some truly inaccurate baddies on my report (a gym membership I legitimately cancelled reported me, etc.). I was checking daily at one point to monitor changes. I haven't checked daily in several months because I took care of most of what I needed to fix, although I still check for various things. (For example, recently Bombay Company cancelled all of their credit cards with Citibank so they no longer have a card. I called and they told me it would represent on my report that the account was liquidated as I was concerned how it would affect my score. I checked and...nope...all it says is "closed by grantor." SUCH BS!!!! Now it appears as if it were my fault and I have to fight this...not to mention how just the closing the account negatively affected my score.) In any event, last week I checked my TC account for the first time in 3 weeks. The last time I checked it befeore that was about a month before. As I mentioned, I was pullling regularly (almost daily) several months ago because I was anxiously looking for changes. After I checked my credit last week for the first time in ages, I get an email from TC telling me my account has been frozen due to suspicious activity. Two seconds later I get an email from TC confirming MY cancellation of my account!!! I call them up and they explain that there may be fraudulent activity, so they have to conduct a five-day investigation. I question them on it but all they say is I will be contacted via email in about five days and if there's nothing wrong, I will be able to reinstate my account. Today, I get this email: You recently contacted our Customer Service department in regard to our notification that your TrueCredit membership and billing was being frozen due to excessive access to your account. As our customer service team communicated, our Compliance Department has reviewed your account in order to see if you qualified for reinstatement. After a thorough investigation, it is our conclusion that your account should not be reinstated due to an access pattern which indicates potential fraud or a deliberate intent to tamper with the credit scoring system. Your access, billing and all account related email alerts have now permanently been terminated as a result. While we regret any inconvenience this may cause you, it is our policy to protect the security and integrity of the credit reporting system. TrueCredit Legal and Compliance Department DO YOU BELIEVE THIS???!!!???!?!?! So I call TC again and they give me another number to call. I explain to the rep all that has gone on and all he tells me is that "due to my access patterns, my account has been permanently terminated and I can never use TC again." I ask him why and all he says is "the decision is final." I said, "Okay, but I don't understand. Can you explain to me what you mean by 'access patterns'?" He responds, "The decision is final." I explain that "I haven't used the service but about three to four times in the last three to four months. Before that I pulled more because I was applying for mortgages and waiting on some changes. I am only using the service in the manner which I intended and as it was being offered to me. Can you explain to me HOW this is some sort of violation of anything and what exactly I am violating?" He keeps repeating the same stupid mantra. "The decision is final." I said, "I'm not disputing the finality. My service was terminated for a reason which has not been explained to me. I'm only asking WHY." I asked for a supervisor, another number, etc., and got nothing. I asked for an address to write which he finally gave me which, of course, would do nothing. Can you believe this?!?!?!?!!?!? I'm assuming it refers to daily pulling to b* TU and EQ inquiries. I only have like one on each, so that is not an issue of mine!!! (And it's not from b...I got a couple off that way as a side bonus for checking so much, but most of my pulls have been EX and I'm not applying for any new credit until I get a mortgage. And I could have b*ed those other two off the last couple months, but I had no desire.) They REFUSED to give me an explanation. Furthermore, I was not checking regularly to manipulate my score AND I don't know of any rule that says you can't check your credit daily if you want. That's why you have the 24-hour window...to allow you to check again. Has anyone else encountered this with TC or any other service? Has anyone heard of this phenomenon? Does anyone know if I have any recourse? I could use another service, but couldn't it happen again? What is going on? Does anyone else find this incredibly disturbing?????
  5. I'm trying to help a friend who was (is) in debt and went with a debt settlement company. As I understand it, they settle with your credit card companies and take a monthly amount from you to pay the credit cards (and themselves for the service). Wouldn't this mean that on your credit report it would be listed as chargeoff settled for less than the full amount, which is (obviously) not good? In addition, I read that settling the debt with the credit card company restarts the clock in that instead of the reporting period being 7.5 years from the DOFD, it's from the settlement date. Can anyone tell me if these things are correct? Thank you!
  6. As we are all well aware by now, thanks to the abuse of AU accounts from sketchy services, FICO will no longer be factoring in AU accounts into credit scores under the new software (scheduled to roll out beginning in the fall, I believe). Will joint accounts still count toward the score? I have to imagine yes as you are responsible for the debt. My score will tank when my mom's Discover card is no longer a factor as I need the age. I'm so nervous as I'm mortgage shopping and probably won't buy before the new FICOs come around. Since my score is still up right now from the age, I'm wondering if she can switch me to a joint user now--before the hit to my score takes effect, thereby improving my chances of being approved for a joint account--if that will negate the effect when the scoring models change. Anyone know? (P.S. If this turns out to be true, and AU accounts are upping your score, try to go joint now if you can. If you wait until after, your score might be too low to be approved. Just a theory...)
  7. Thank you so much. I will tinker around with this today and tomorrow. I will also post my progress (if any).
  8. Oh, one more thing. CAN they even add this to the report at this point? I know the account is past 7 years, but I don't know how it works with collections. Is it 7 years from the date they acquire the account, so they can insert it and start all over again? I'd like to include something in my request for debt validation that they cannot add anything to the reports before the account has been properly validated and/or that it is beyond the time period where they are allowed to add the account to the report by law. But I have no idea if I'd be talking out of my you-know-what...
  9. I am in the process of buyin g a house. I just received a letter from Midland Credit Management (also referenced as Midland Funding LLC) relating to a Capital One secured card I had from somewhere between 1997 and 1999. Capital One double charged me for an item which brought me over my credit limit. I kept fighting with them and finally just let them have the $500 I put down for the secured card. I think it went on my reports years ago but I disputed it off. Haven't heard boo from anyone in years and, of course, just as I'm trying to buy my house, I get a letter that this company (MCM) is the "new owner of this account." It is not yet on my credit reports but I'm desperately afraid it will hit when I can least afford it. From what I've read on these boards, they are incredibly tough to remove from reports and respond inadequately, if at all, to DVs. I do need the information about this debt (I don't know if it will be so specific as to show the double charges and taking my security deposit). I'm in NJ, and I think the SOL is 10 years (at least that's what I read). So, depending on how they calculate the date, I am probably not past it. They are seeking $1,500 which is surely all interest and late fees. I only charged $300 on the card and they double billed it as $600 and then took my $500 deposit. This is so ridiculous. I will NEVER contract with Crap One on anything ever again. In any event, I will look up the DV process and send them something. In the meantime, can anyone instruct me as to: (a) how to prevent this account from hitting my reports (can I include something in the letter seeking validation?); and what I need to get from them in response to my DV request to be sufficient? Can I explain all the double billing stuff and expect a breakdown of that information in reply? What about a listing of all the interest and late fees, since that is what most--or even all--of this amount consists of? I would really appreciate any assistance anyone can give me! I can't belive I've gotten almost everything on my reports in order only to be hit with this outta the blue at my most vulnerable moment!
  10. Wow. My Internet service wasn't working this morning and I was only able to log on about a half hour ago. I'm so bummed I missed all the back and forth on this one. I just want to thank everyone soooo much...particularly Pryan and LKH (I am bowing to you two)...but everyone did their part in contributing to this fantastic thread)...for their information on this topic. Pryan is the one who directed me before that this was re-aging; I didn't even pick it up when I was initially posting about how to deal with this issue. I have disputed so many times with TU on this--even with documentation from old Macy's statements--so I will have to go all out now. It's the ONLY baddie on any of my reports and I'm trying to buy a house. Thank you so much for that letter, too, LKH. I am going to do some research based on the information in there to try to get rid of this thing. I called Macy's a couple weeks ago and got a fax number to send a request for information on old accounts--I'm waiting for all the info to come in--supposed to be 60 days. I'm hoping that whatever I get from there can provide me with specific DOFD information that I can use in conjunction with the FCRA and the information provided in these boards. I think it is very confusing for people in relation to paying off old COs (I always read stuff saying that this can reset the clock) so, hopefully, this will help other people in this situation--as well as the many people who are rehabbing Macy's accounts. I will definitely post with info if/when anything changes on this. Thank you all again so much...CB rocks!!!!!!!!!
  11. Yes, Walter, that is what happened. Again, I never thought that would be re-aging, but I was advised that it emphatically was. Whether this is true or not I don't know... What I do know is that the account CO'd around 2002/2003, so to list it as a recent CO is inaccurate; it was only PAID recently. Theoretically, the only thing that should have changed was the date of last activity. Since it wasn't on my report before and they added it, it would seem to me that it should still be scheduled for removal as the same time that it would have been before. Updating the DOLA (date of last activity) is not supposed to reset the DOFD (date of first delinquency). If this had been on my credit report already, then it should've updated the date of last activity, but still have been scheduled to fall off at the same time. Unless I reset the clock, which is what I originally thought I did, until CBers told me that was not the case. Man, I am confused!!!! And, it seems, screwed!
  12. I didn't think it was reinsertion or reaging, but when I was inquiring as to recourse, several people on this board pointed out to me that it was. With regard to re-aging, I was advised that it doesn't matter that I paid the CO; to reset the clock is illegal and considered reaging, as the DOFD (date of first delinquency) was in 2001. I kept thinking that can't be right, but some knowledgeable people on this board insisted that that was the case. I read the FCRA and it does say that the account is supposed to drop off 7 (or 7.5 years) from the DOFD. Now I'm confused.... To answer your question, Shawnee, no I did not bring the account current. You pay off the old account and get a brand new one--new account number and new TL. It's considerered rehabbing the account, but you're actually getting a new one which is why it can be a CO--because it's actually on the old account. Interestingly enough, I only have quasi-proof (e-mails from Lexington in 2003 that the account was on the report at the time) that this account was previously deleted (prior to CO) on EX and EQ. And the CO only appeared on TU. I'm wondering if that's just luck or if it was deleted from the other two so they could not reinsert on them? Probably not, but I thought it was weird...
  13. Yes. Affinity Federal Credit Union based in Basking Ridge. They are awesome. I recently posted a thread about them; you can do a search for their name. Good luck!
  14. I recently got a collection off DH's reports. I was bummed to see the FAKO scores (through TC) barely budge. (In fact, EX went DOWN.) He still had some baddies on the report, but on TU and EQ there were only some 30-day lates over a year old. I needed to find his mid-FICO and TU was his mid-FAKO so I pulled and found it to be off by exactly 100 points! The FAKO was 666 and his FICO was 766. I then decided to pull his highest FAKO (EQ at around 702) and the FICO was actually 742, so that turned out to be his mid-FICO. Mine were off by much less (10 - 30 points, and the FICOs were actually LOWER), so I was surprised. There truly is no way to know what you're dealing with until you fork up the $15 (don't forget to find a 20% discount code online first) and pull the real FICO.
  15. Sorry. Account CO'd sometime around late 2002/early 2003. I paid them off in 8/06, and that's when it went on my report, which is why it's now listed with an estimated removal date of 7 years from that date (not the date the account first went delinquent, so I am told elsewhere on CB that that is re-aging.)

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