New here...confused about CR - please help

[Anonymous]

I'm sure my story is no different than anyone else...but I need advise and help on how to improve my credit score.

To make a long story short.....I divorced several yrs ago, due to a HUGE oversight on my part, I overlooked 2 joint credit cards with my ex husband....several months after we D, I was checking my credit report and and realized DH has maxed out 1 of the cards and had charges on the other.

At that point, it was too late for me to do anything....he was making the payments and doing so on time, up until this yr.....due to some unforseen circumstances, he got wayyy behind and both cards were delinquent.

Since I was not in contact with him, not living at the address on the account, I was not aware that the accounts were delinquent.

I became aware when 1 card was finally turned over to CA and they contacted me, and after harassing me for months, threatening to sue, etc.....I finally agreed to a settlement.

This is where I get confused.....I looked at my credit report this week and it has the account as "charged off as bad debt" (but it also has the full balance as a negative amt, does not show that it was settled for less....which I realize there probably has not been enough time, the settlement was only done about a month ago.

What do I need to keep looking for as the status of this account in order for it to not hurt my score so much.....Since 1/08, my score has gone from 673 to 595.    ALL of my personal accounts have never been delinqunet, my credit history is good...just these 2 joint accounts are killing me and I partially blame myself for not reviewing that Credit report closer before I signed those darn divorce papers.

Also, as for the other card, it is about 90 days past due.....what can I do to keep this card from being "charged off as bad debt" other than just paying the past due amt for DH, and hope that he will keep up the pymts from that point on.

Geez...hindsight is 20/20 huh.....we definitely learn from out mistakes.

Thanks to anyone who can offer advise or help

[llecs]

Welcome to the forums!

So, it read as -$xx.xx or ($xx.xx)? Never heard of that. And the balance, is it negative by the amount you paid for the settlement or the amount of the total balance that was due prior to the settlement? And it is CC that is reporting this, right? Is the CA reporting? Look in your report totals, the section where it lists the total balances. Look to see if a negative balance could be impacting the totals. Also, check each CR to see if the others are reporting the same.

Wait to do anything on this account. But you may want to prepare a GW to send once everything shakes out, if it does.

With the second account, you would want to catch up on the payments. Is this a joint account or an AU acct?

[Anonymous]

Transunion Report reads   

Balance          $****.**

Past due        >$****.**>  (note, this amt is the same as the bal...which is BEFORE settlement)

Pay Status     >Charged off as bad debt<

Acct Type      Revolving Credit

Responsibility  Joint account 

I'm thinking the account was "charged off" before I settled, and now, after settling....the status should change to "settled"

After looking thru some papers, I forgot that I had...I did get a notice from collection agency saying " we have returned your acct as "Settled" to credit card company"   But after doing some reading, I'm not sure this is good....I need status to show "Paid", but how would I get them to do that?

I guess I just freaked with them calling so much, and not knowing what to do, I settled...but kinda wish I had not done that now....

On the second acct, I have thought about trying to catch up the payments, but not sure how much that is....should I just call the credit card company and try to work something out with them before they move this acct to a "charge off"???

 Thanks for your help

[llecs]

>$xx.xx<  is TU's way of pointing out what is bad about the account. Now TU is slower than a slug sometimes. If you recently settled this, give them up to 45 days to update. Also, some creditors only update every 30 days. The acct was CO'd already, but the OC owns the acct still.

Whether "settled" or "paid", the damage is the same per your FICO score. Under a manual review, a lender may or may not frown. However, you should see a score increase if this is a CC.

You may want to wait until the acct updates then offer a GW to the OC to ask them to delete any lates, change the pd CO status, etc.

Yes, pay down the 2nd CC ASAP.

Message Edited by llecs on 10-18-2008 11:28 AM

Message Edited by llecs on 10-18-2008 06:01 PM

[Anonymous]

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@llecs wrote:

"

Yes, pay down the 2nd CC ASAP.

I did contact the CC company and paid the acct up to date on the 2nd card, it was really more than I thought and more than I could really afford, but I did it.   Not sure if Ex will now keep the pymts up to date, if not, in 6 months, I will right back in the same place...but I cannot keep doing this, I don't have that kind of extra money.

Thanks again for your help

Message Edited by llecs on 10-18-2008 11:28 AM

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[llecs]

Carolina, I gave you some bad advice. I just learned that "settled" in the comments section is read just like a "CO" by FICO.

You may want it removed if the acct is younger than the avg. age. Removing it could drop your score, but the damage is there now.

[Anonymous]

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@llecs wrote:

Carolina, I gave you some bad advice. I just learned that "settled" in the comments section is read just like a "CO" by FICO.

You may want it removed if the acct is younger than the avg. age. Removing it could drop your score, but the damage is there now.

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So if removing it may drop my score...what would be the point of removing it?    Sorry, but this credit score stuff baffles me.     Also....whether I get it removed or not, can the balance still be sold to another CA?

Another question....I read somewhere that IF you have a settlement on a credit card debt, you will get a 1099 at the end of yr and have to claim the balance of the debt on your income taxes?   Is this true?

Message Edited by carolina6087 on 10-18-2008 03:50 PM

[llecs]

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@Anonymous wrote:

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@llecs wrote:

Carolina, I gave you some bad advice. I just learned that "settled" in the comments section is read just like a "CO" by FICO.

You may want it removed if the acct is younger than the avg. age. Removing it could drop your score, but the damage is there now.

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So if removing it may drop my score...what would be the point of removing it?    Sorry, but this credit score stuff baffles me.     Also....whether I get it removed or not, can the balance still be sold to another CA?

Another question....I read somewhere that IF you have a settlement on a credit card debt, you will get a 1099 at the end of yr and have to claim the balance of the debt on your income taxes?   Is this true?

Message Edited by carolina6087 on 10-18-2008 03:50 PM

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You'd want to compare the age of this account to your AAoA. If this is younger, then removing it would only help your score and the only option to get it removed is a GW. But if this is your oldest account, for example, then your AAoA will drop if this is removed and that will hurt your scores.

Check out Credit Scoring 101.

The balance can't be sold, however I did get burned by a settlement before. Did you have a chance to get a settlement letter. If not, you may be able to write the OC.

Yes, 1099-C due to you by January 31st. Check with the IRS on the rules on that. There are exceptions to the rule.

[Anonymous]

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@llecs wrote:

You'd want to compare the age of this account to your AAoA. If this is younger, then removing it would only help your score and the only option to get it removed is a GW. But if this is your oldest account, for example, then your AAoA will drop if this is removed and that will hurt your scores.

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Ok, I've research but can't seem to find what AAoA means....please help?

[Anonymous]

BTW.....I have checked my CR from Equifax and Experian and this is what they have   

Equifax (has the same amount for the charge off amt, the bal and the past due amt, which really confuses me....i"m going to use some bogus amts here, so it will help to understand)

Charge off Amount   $3000.00  (which was amt BEFORE settlement)

Balance                 $3000.00

Amount Past Due     $3000.00

Comments:  Charged off account, acct closed by credit grantor

Current Status:  Charge-Off

Experian

High Balance  $3000.00

Rece nt Bal as of 10/08 $1500.00 (this is the amt AFTER the settlement)

Status:  Acct charged off/past due 150 days   $3000.00 charged off, $1500.00 past due as of 10/08

So, now I am really confused ......

You also asked if I received a "settlement" letter....The ONLY thing I have received is from the CA, and it just says "We have credited your account"   "As agreed, we have returned your acct to (name of CC comp) as "Settled".