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HavenStarr
Posts: 6
Registered: ‎08-13-2012
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Is There A Way to Delete This??

[ Edited ]

Hello,

 

I currently purchased a sofa. I was told that they offered a program that would allowed me to pay ii off in 90 days same as cash and no credit check. I didn't want hard inquiries on my credit because I'm purchasing a car in about 3 months. They set it up to split the furniture into 3 payments. The sofa was $1200 so setup an autodraft from my bank account for $400 for 3 months. Then I'm done. It's already been two months so I only have one more payment. However, I checked my credit report and saw that this is on my credit report as an installment  account and the dates and amount are wrong. It shows up as 12 months and me owing $1700, which is not the 90 day same as cash deal. Firstly, I didn't realize anything would be on my credit. I thought this was similar to layaway or something. Is there a way for me to have them delete this from my credit? It shows up as new credit which damages my credit score and the installment account shows I owe $1700 which I don't. This took my score down about 18 points which took me from 618 fico transunion to 600. I did not know this was going to be on my credit. If I'd known I'd have just saved $400 a month for 3 months and purhased it outright I desperately need this off my credit. Is there anything I can do?

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guiness56
Posts: 22,406
Registered: ‎01-17-2008
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Re: Is There A Way to Delete This??

Established Contributor
bettercreditguy1
Posts: 760
Registered: ‎02-11-2012
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Re: Is There A Way to Delete This??

What you have is a one year loan on your credit report. The furniture companies sell the paperwork to a loan company so they get their money instantaneously. If you make the three payments on time, the loan company will show paid  and no additional interest is due. If you are late or miss a payment, then by default your loan situation turns into the one year loan thingy and you will pay substantially more interest and more payments for the next nine months. (your terms can be found in the disclaimer of your loan documents at purchase time). If you can, go ahead if you are able to and pay your final payment early. You do not want to risk it being even one hour late. Your score will rebound faster after it is paid off. As always, ymmv dependent on what else is in your credit file.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
0

Re: Is There A Way to Delete This??


HavenStarr wrote:

Hello,

 

I currently purchased a sofa. I was told that they offered a program that would allowed me to pay ii off in 90 days same as cash and no credit chewock. I didn't want hard inquiries on my credit because I'm purchasing a car in about 3 months. They set it up to split the furniture into 3 payments. The sofa was $1200 so setup an autodraft from my bank account for $400 for 3 months. Then I'm done. It's already been two months so I only have one more payment. However, I checked my credit report and saw that this is on my credit report as an installment  account and the dates and amount are wrong. It shows up as 12 months and me owing $1700, which is not the 90 day same as cash deal. Firstly, I didn't realize anything would be on my credit. I thought this was similar to layaway or something. Is there a way for me to have them delete this from my credit? It shows up as new credit which damages my credit score and the installment account shows I owe $1700 which I don't. This took my score down about 18 points which took me from 618 fico transunion to 600. I did not know this was going to be on my credit. If I'd known I'd have just saved $400 a month for 3 months and purhased it outright I desperately need this off my credit. Is there anything I can do?


   That is lame all the way around. Any you are right. It would have been better to just save up and pay cash. Lesson learned hopefully. I have gotten  credit cards myself to improve my credit score but I stay away from loams or any of that credit stuff as much as possible. You can talk to the store but I think you just need to make the final payment in time. I would maybe ask the store to remove that from your report. It is just a bummer I'm sure you realise now to be in this situation at all. You may just wanna make the final payment and leave well enough alone and it will be reported as paid on your report and shouldn't be held against you. Any company who is reporting terms like that which are different than you initially agreed to (unless you default on your initial terms) seems kinda shady to me. You might wanna just leave it alone and make the final payment to avoid getting in a worse situation with these seemingly shady people.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log

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