topic Re: Charge off vs BK.I was stupid not paying attention! in Rebuilding Your Credit

Charge off vs BK.I was stupid not paying attention!

Tristate — Wed, 29 Aug 2012 04:09:18 GMT

Hi , guys!

Here is my story:I had like 19 or so derogs, all of them happened in 2009. I filed for BK7in July of 2011 and was discharged October 2011.

Few months ago signed up for USAA credit monitoring system and for ScoreWatch right here.

So when I saw my report , i didn't pay enough attention that many of my derogs were described as "bad debt ,Charge off , account was sold to another lender " ,etc.

I thought if it says balance $0 , I should be fine.

And only today , after reading here about how bad CO is for the score , i went through my report again and found out that 5 or 6 accounts don't say anything about BK.So I called Equifax to dispute and change the status of those accounts as "included in bankruptcy ". Is this going to help my scores? Or maybe it was not a good idea to "wake up my old sins " so to speak ?

Any insight is much appreciated.

Re: Charge off vs BK.I was stupid not paying attention!

Shogun — Wed, 29 Aug 2012 04:24:29 GMT

A CO is a major KD. I would definitely try and get those off.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Wed, 29 Aug 2012 06:05:38 GMT

Thanks for reply.

If it's major KD , should I expect nice boost when CO is changed to "included in BK" ?

Also when my BK is one year old will my Fico score go up little bit?

I'm so excited about this opportunity to really get my scores up! It seems pretty easy to me , it's just stupid CA's didn't report to CRA's that debt was gone in BK , right?

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Wed, 29 Aug 2012 06:11:16 GMT

Shogun wrote:
A CO is a major KD. I would definitely try and get those off.

Oh , by the way , what is KD :-) ? .I know it's something bad :-)

Re: Charge off vs BK.I was stupid not paying attention!

Shogun — Wed, 29 Aug 2012 06:31:18 GMT

KD = Key Derogatory. This includes the CO, 30, 60, 90 lates,, etc. And yes I think you will see a bump if they are keyed right to the CRA.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Wed, 29 Aug 2012 06:35:17 GMT

Shogun wrote:
KD = Key Derogatory. This includes the CO, 30, 60, 90 lates,, etc. And yes I think you will see a bump if they are keyed right to the CRA.

Thanks again! Any idea if anniversary of BK helps too ?

Re: Charge off vs BK.I was stupid not paying attention!

Shogun — Wed, 29 Aug 2012 06:37:02 GMT

I've never dealt with BK so I'm unsure of it's affects on your CR. Generally on your CR time heals all wounds but something heal faster than others.

Re: Charge off vs BK.I was stupid not paying attention!

rootpooty — Wed, 29 Aug 2012 07:58:16 GMT

op not trying to burst your bubble here but with a recent bk and being so new dont pay any attention to your scores. you might as well throw them out the window cause they dont mean anything with a bk reporting. save yourself some time and visit the cc section and do a search of bk friendly cards and go from there

Re: Charge off vs BK.I was stupid not paying attention!

llecs — Wed, 29 Aug 2012 13:12:32 GMT

OP, an IIB comment is scored as a negative. I don't know if it's more or less than a CO comment, so any guess would be just that. If the TL had not updated in a long time (years), then there's a chance of seeing a score drop once the TL changes. Something to consider. YMMV on your credit.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Thu, 30 Aug 2012 03:51:01 GMT

rootpooty wrote:
op not trying to burst your bubble here but with a recent bk and being so new dont pay any attention to your scores. you might as well throw them out the window cause they dont mean anything with a bk reporting. save yourself some time and visit the cc section and do a search of bk friendly cards and go from there

Thanks for bursting my bubble ! :-) I don't rely solely on this issue. It looked to me like an important detail in my report that is not so hard to fix.

Do I hope that by fixing this my scores will be over 700 ? No. But if it will help me to get 10-20 points I will be very happy.

And I DO pay attention to my scores even after BK , and my plan is to apply for Merrick Card after my Cap1 and BK will be 1 year old. And hoping to get Barclays sometime next year , depending what my scores will be by then.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Thu, 30 Aug 2012 04:00:04 GMT

llecs wrote:
OP, an IIB comment is scored as a negative. I don't know if it's more or less than a CO comment, so any guess would be just that. If the TL had not updated in a long time (years), then there's a chance of seeing a score drop once the TL changes. Something to consider. YMMV on your credit.

Yea...That's what I'm afraid of. But I just can't sit and do nothing about obvious inaccuracy in my report too.

So I called Equifax and initiated a dispute about this matter. They said it could take 30 days to investigate. Fine.

I am going to wait for the results of this dispute and see where my scores will be heading. If my Fico goes up - I'll call TU and EX , if it's goes down - I'm not touching it anymore.

Re: Charge off vs BK.I was stupid not paying attention!

Shogun — Thu, 30 Aug 2012 04:09:06 GMT

Sounds good to me.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Thu, 30 Aug 2012 05:43:59 GMT

Shogun wrote:
Sounds good to me.

Thanks, Shogun!

I will keep you guys updated , and we will see if IIB is better than CO.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Tue, 18 Sep 2012 17:59:20 GMT

Update as of 9/18.

I've got a ScoreWatch alert today. My score went up 5 points because of changes in EQ report.

I don't know how to do a snap shot , so I will try to explain.

In about six accounts they changed balance from let's say $3,500 to $0. Although it didn't change from CO to IIB. Not a word about being in dispute too.

I'm pretty happy even if it's only 5 points ! Will see what is next.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Tue, 18 Sep 2012 18:32:59 GMT

Let me correct myself. Balance was $0 now it just doesn't say anything.

High credit changed from (example) $3700 to $3000 all late fees removed I guess.

Re: Charge off vs BK.I was stupid not paying attention!

Tristate — Fri, 21 Sep 2012 03:42:36 GMT

OK. Another update. I called EQ and told them that whole idea of the dispute was to change the status of 5 accounts from CO to IIB.

They said that they are going to do another investigation. It was yesterday Sep 19. And today Sep 20 I've got a ScoreWatch alert where it says that my Fico score went to 669. And my accounts i was disputing has changed to "Included In bankruptcy". So little jump from 660 to 669 , yea !!! And I'm going to call TU and Ex with same question, and hopefully it will get me boost too.