07-31-2012 07:26 AM
In Oct of 2009 my TU credit score was 576 and I was approved for a loan by my credit union of $20,000 at a rate of 11.9%. Fast forward to now and my TU score as of yesterday was 625 and I still have 10 medical collections listed on there. Today I paid off 7 of those collections and they said that they would be deleted from my credit report, does anyone have any idea of how much my score my improve by once those accounts are deleted?
Also, any advice on what my rate might be if I stick with the 625 score that I pulled yesterday? The reason I ask is that there is a used car that i've been looking for and am having a hard time finding one with decent mileage and a decent price, well I finally found one and I might need to act super quick on this purchase.
07-31-2012 07:31 AM
07-31-2012 12:51 PM
Frivolous disputing in the hope of deleting legitimate debt will result in the bureaus disallowing your disputes and is against the terms of this forum. If there is a legitimate reason for dispute then by all means do so but the OP did not suggest such information.
To the OP - The deletion of 7 out of 10 negative accounts will probably not have a large effect on improving your FICO scores. The fact of any negative information (especially collection accounts) remaining will continue to drag your scores down. Note the difference in my scores is because of one negative collection account at +6 years reporting on two bureaus. That being said if your previous auto loan has been maintained in good standing then you should have no problem securing a better rate on the next loan. Many places use what is known as an auto enhanced score which lends more weight to auto loan history than the standard FICO score and gives a better number. Check back with the original lender and see what they say. Of course if the original loan is not paid in full or will not be paid off by a trade in then you will encounter the issue of debt to income ratios. In other words the lender will need to determine that you can carry and afford two car loans based on your income and other expenses.
07-31-2012 12:59 PM
In my case it was not a "frivolous" dispute. I disputed that the account had been paid in full - which is completely true, it had been. They investigated and updated it - resulting in it being deleted.
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