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Greetings all…

 

Kind of a new member. I was previously very active on the board and 2005 and use the advice on these boards to improve my score toa 740. And all the help is much appreciated.

 

I was good until I got divorced in 2012. Then everything went to hell. To be honest, I just kind of washed my hands of it and said “it is what it is“ and thought I wasn’t going to worry about it because I make enough income that I am not worried about credit.

 

I’m not saying that was a smart choice. Just being forthright.

 

I presently only have two credit lines reporting. My auto loan which is three years old and has perfect payment history. And my AT&T wireless account, which I’m self reporting. Other than that, I have no active trade lines.

 

I have roughly 14 collections in charge offs. They are all either greater than 7 years old or will be within the next couple of months. So I am disputing those with the furinshers and/or Collection agencies and I’ve had at least half of them fall off in the first 30 days.

 

One of the recommendations of Experian to significantly increase my credit score was to open credit cards. So I opened a secured Discover card with a $2000 credit limit, and a capital one with a $1000 credit limit. These have not yet hit my credit report so I’m not sure what affect it will truly have. Experian predicts a 40 to 50 point increase in my score.

 

Based upon having to go through this previously, I realize there are a few of the negative items on my report that I’m going to have to scratch and fight to get off of there.

 

I want to know if anyone has any additional advice regarding adding trade lines. Or any other good major credit cards that offer secured lines. And I would also like to know if there is an online source for all three credit reports that lists all of the information listed on a paper report… Specifically date of last activity and other relevant information I will need to clean up the last eight or so items on my report.

 

Thanks in advance for any input and feedback!

 

 

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The ideal number of open positive revolving trade lines is 5.  More is fine.  

 

Given that you are so close to having clean reports (negative info should drop on its own at ~7 years from DOFD) and you already have two open revolvers, I'd let the two age for a few more months until your reports are free of derogatories.

 

With clean reports and 6 months of history on your two open cards you should be able to pick up some unsecured cards.  Choose carefully and only pick up cards that will provide value long-term.  

 

 

Edited by cv91915
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The ideal number of open positive revolving trade lines is 5.  More is fine.  
 
Given that you are so close to having clean reports (negative info should drop on its own at ~7 years from DOFD) and you already have two open revolvers, I'd let the two age for a few more months until your reports are free of derogatories.
 
With clean reports and 6 months of history on your two open cards you should be able to pick up some unsecured cards.  Choose carefully and only pick up cards that will provide value long-term.  
 
 

Thank you so much. Income is not really an issue. There are a couple of cards (Citi, DCB) that will let you have a $5000+ secured card. Is it advisable to do this for higher stakes poker or no?


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The ideal number of open positive revolving trade lines is 5.  More is fine.  
 
Given that you are so close to having clean reports (negative info should drop on its own at ~7 years from DOFD) and you already have two open revolvers, I'd let the two age for a few more months until your reports are free of derogatories.
 
With clean reports and 6 months of history on your two open cards you should be able to pick up some unsecured cards.  Choose carefully and only pick up cards that will provide value long-term.  
 
 

I would add... I’m a vet and have VA benefits. I would like a VA mortgage in the next 2 years with no pushback.

On this trajectory I’m not seeing any, but if someone sees something I don’t please speak up.

And I am member of USAA and PenFed if that matters.


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Two months? They'll probably fall off before you can get a response to a dispute. Also, a dispute has to be accompanied by a valid reason. They will think it odd that you waited 7 years to dispute a tradeline.

I just basically stated that I recently noted, upon reviewing my credit report, that they were reporting a debt that is greater than 7 years old. That there were specific reasons the debt was not valid in the first place but it seems pointless to waste their time disputing the validity as the time allowed for reporting of the debt per the FCRA had been exceeded and I asked them to please remove the reporting from my credit report.

Sent to CRA and furnisher about a month ago. Half were immediately removed without even responding to me. Still waiting on responses or action from the other half.

Since most of what’s left is small medical debt, I anticipate it will also just fall off.

There is one I don’t expect to fall off because it is less than 7 years old. A Verizon account.

I sent a letter stating that my wife was responsible for this debt in the divorce.

She continued to use the account after divorce so that moved date of last activity. But the account has now been closed and charged off... and last delinquency was well over two years ago. So it is beyond the statute of limitations for Verizon recovering through any legal action (sue).

If they don’t delete upon my initial letter, which I doubt they will, I will send a goodwill letter asking that they remove the debt. If I get no traction there, then I was going to attempt to request pay for delete for half the balance.

It seems like they would realize that is their only reasonable chance of collecting on that debt, since they can’t legally sue me. So perhaps it may seem like a reasonable option to them. I just want to get it off my report because it is $3000 and a little over two years old. So it’s still hurting my score.

If anyone has any better ideas I would certainly like to hear them.

Thanks again.


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The ideal number of open positive revolving trade lines is 5.  More is fine.  
 
Given that you are so close to having clean reports (negative info should drop on its own at ~7 years from DOFD) and you already have two open revolvers, I'd let the two age for a few more months until your reports are free of derogatories.
 
With clean reports and 6 months of history on your two open cards you should be able to pick up some unsecured cards.  Choose carefully and only pick up cards that will provide value long-term.  
 
 

I actually have 4 items that will be reporting positive.

Installment auto loan that is greater than three years old with perfect payment history.

AT&T cellular that is being self reported What do your history.

Several closed revolving and installment loans that are greater than seven years old with perfect payment history.

Will now have two credit cards reporting very soon... One with $2000 credit limit and one with $1000 credit limit. I noted there are a few secured credit cards out there… One from US Bank that would allow a $5000 credit line. One from Citi That would allow a $5000 credit line. And one from digital credit union that would allow as much credit loan as I deposit into a savings account there.

Was wondering if anyone had any thoughts on these accounts or other recommendations?


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10 hours ago, DocB said:


I actually have 4 items that will be reporting positive.

Installment auto loan that is greater than three years old with perfect payment history.

AT&T cellular that is being self reported What do your history.

Several closed revolving and installment loans that are greater than seven years old with perfect payment history.

Will now have two credit cards reporting very soon... One with $2000 credit limit and one with $1000 credit limit. I noted there are a few secured credit cards out there… One from US Bank that would allow a $5000 credit line. One from Citi That would allow a $5000 credit line. And one from digital credit union that would allow as much credit loan as I deposit into a savings account there.

Was wondering if anyone had any thoughts on these accounts or other recommendations?


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We'll have to ask people who know better than I, but I wonder which, if any, of the 3 secured cards you've considered are likely to graduate to unsecured in the future?

-Citi

-Digital FCU

-US Bank

I don't know.

 

Do you have an existing relationship (checking, savings, loan, etc) with any of these 3? US Bank is pretty big on deposit relationships, but if you're not in their branch footprint, don't sweat it.

 

I'm pretty sure that your Discover, that you already have, will eventually unsecure. Either that, or they will ask for a 4506-T (there is a thread here on that recently). 

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We'll have to ask people who know better than I, but I wonder which, if any, of the 3 secured cards you've considered are likely to graduate to unsecured in the future? -Citi

-Digital FCU

-US Bank

I don't know.

 

Do you have an existing relationship (checking, savings, loan, etc) with any of these 3? US Bank is pretty big on deposit relationships, but if you're not in their branch footprint, don't sweat it.

 

I'm pretty sure that your Discover, that you already have, will eventually unsecure. Either that, or they will ask for a 4506-T (there is a thread here on that recently). 

 

I have read the discovery and capital one will be considered for unsecured status in a year.

 

I do not have a relationship with Citibank. Although they are a large bank and offer many other credit card products, so it creates an opportunity to upgrade to one of their unsecured cards in the future.

 

I do not have a relationship with US Bank, but they also offer other bank products which could be beneficial in the future.

 

The thing I like about DCU Is that they do not cap The amount of your secured card. You place money into a savings account which draws interest and they match however much money you have in that savings account on your secured card. So I could put 10 or $15,000 into a savings account there and have a 10 or $15,000 secured card.

 

Since higher limits tend to be get higher limit offers I am contemplating whether to just go with something like DCU and then close the card if they wont convert to unsecured after I have obtained other higher limit cards over the next couple of years.

 

 

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5 hours ago, swimmingwithsharks said:

US Bank is pretty big on deposit relationships, but if you're not in their branch footprint, don't sweat it.

Footprint doesn’t matter if you don’t actually have a need to go into a branch. 
Open a brokerage account with them and you’ll qualify for all their products as an existing client. Just wait a few days after opening the brokerage account before opening anything else. 

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2 hours ago, DPB said:

Footprint doesn’t matter if you don’t actually have a need to go into a branch. 
Open a brokerage account with them and you’ll qualify for all their products as an existing client. Just wait a few days after opening the brokerage account before opening anything else. 

+1

 

I have checking with Chase, Alliant, Citi, and UNFCU and have only been to a branch with one of them.

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48 minutes ago, DocB said:


So how do you like DCU? Are they good for other products other than credit card?


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DCU served a purpose when I was rebuilding 15 years ago. Now I only use it for the high APY on 1k. Although it is on my list of cards and accounts to close this year. The credit card stinks. There was a time membership was worth it for the free FICO as that was a novelty for a few years. But now you can get free EQ scores elsewhere.

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The United States District Court for the Eastern District of New York recently dismissed a putative class action brought under the Fair Debt Collection Practices Act (the “FDCPA”) and held that the two-year limitations period under 47 USC § 415 for “all actions at law by carriers for recovery of their lawful charges” did not preempt New York’s statute of limitations for a lawsuit on a debt arising from an unpaid cell phone contract.  See Torres v. Midland Credit Mgmt., Inc., 2018 WL 2304771 (E.D.N.Y. May 21, 2018).

 

The Court found that the Fifth Circuit’s reasoning in Castro v. Collecto, Inc., 634 F.3d 779 (5th Cir. 2011) was persuasive.  In that action, the Fifth Circuit held that the term “lawful charges” in the FCA initially referred only to “tariffed charges,” and that it was unclear whether this definition had changed.  Thus, the Fifth Circuit held that “ecause we conclude that the meaning of ‘lawful charges’ is ambiguous, we therefore decline to interpret the term in such a way that conflict preemption would apply.”  The Court here adopted that reasoning and dismissed the complaint, finding that the letter was not sent outside the limitations period."

 

There are a bunch of other decisions, just Google 47 USC 415

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49 minutes ago, hegemony said:

because everyone is buying a mortgage each month and needs an esoteric version of FICO.

Might as well be content with Kredit Carma.  Free Equifax score every time you're looking for credit!!!!!!!!!!!!!!!!!!!

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48 minutes ago, cv91915 said:

Might as well be content with Kredit Carma.  Free Equifax score every time you're looking for credit!!!!!!!!!!!!!!!!!!!

it is more a matter of should someone join a subpar CU (or maintain membership) just for a score they may never need when there are 95% similar scores available elsewhere. I'll never have a mortgage again in my lifetime. The utility of the DFICO is pretty limited. Just because you value the DFICO doesn't mean everyone has to.

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1 hour ago, hegemony said:

it is more a matter of should someone join a subpar CU (or maintain membership) just for a score they may never need when there are 95% similar scores available elsewhere. I'll never have a mortgage again in my lifetime. The utility of the DFICO is pretty limited. Just because you value the DFICO doesn't mean everyone has to.

Good lord, you're right.

 

When you said this

11 hours ago, hegemony said:

But now you can get free EQ scores elsewhere.

And I said this

5 hours ago, cv91915 said:

Free monthly Equifax mortgage scores are about as rare as they've always been.

What I really meant is that everyone should immediately move all of their banking and credit card business to DCU, solely because of the free Equifax mortgage FICO that you will never use.

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49 minutes ago, cv91915 said:

Good lord, you're right.

 

When you said this

And I said this

What I really meant is that everyone should immediately move all of their banking and credit card business to DCU, solely because of the free Equifax mortgage FICO that you will never use.

I'm glad you agree with me that different people have ascribe value and utility differently to the same products. Kind of like how I like my Members Only velcro wallet and you're rock'n some aspiration designer.

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