Rebuilding Your Credit

[BrandonSS]

I feel that my big clean up thread is long enough (thanks  Ilecs)

I went to the Credit Union to get financed, but before they ran my report I gave them a copy i printed off the day before.  The woman said they could finance me just fine, BUT there is a single open collection that would automatically flag the account and cause me to be denied.

CA: Cash Pro Inc.

Account is: Collection

status: unpaid

amount:  $405

DOFD: 07/2004

Last reported on 02/2005

I know the proper route would be to send a DV.  But if i want financing (being impatient lol) that would take 30+ days, then who knows how long for the rest of the process. 

I dont really want to dispute it in fear of them threatening to sue after waking it up, etc.

Ilecs says the account is hurting my score as well.  Currently my FICOs are all around 610 (up from 540s 4 months ago as I've been paying off baddies)

What can/should i do here? 

Thanks!!

[BrandonSS]

Bump

[Creditaddict]

so your CU wouldn't give you the loan because of this?

[daboss28]

I would offer Cash Pro a pfd for the full amount.  This way you won't have the aweful score update before financing and you will no longer have the burden of an unpaid collection which results in an instant  denial.

[BrandonSS]

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Creditaddict wrote:

so your CU wouldn't give you the loan because of this?

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 that is correct.  She told me any open judgements or any open collection accounts automatically make them decline applicants.

[BrandonSS]

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daboss28 wrote:

I would offer Cash Pro a pfd for the full amount.  This way you won't have the aweful score update before financing and you will no longer have the burden of an unpaid collection which results in an instant  denial.

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awful score update?  If anything the score would rise, or am I mistaken?  I honestly dont know off hand what the collection is for.  The CA is collecting for an old bank that i used to bank with in college, but I closed the account, withdrew my funds and moved.   I then opened a new account with a local bank.   *shrug*

[daboss28]

Once it updates as paid and it will it's gonna ding your score ... can't say how much but you'll then pass that final hurdle with a successful pfd you won't have that concern.

[BrandonSS]

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daboss28 wrote:

Once it updates as paid and it will it's gonna ding your score ... can't say how much but you'll then pass that final hurdle with a successful pfd you won't have that concern.

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  IF I contacted them I would accept nothing less than a PFD, especially with it falling off in +-5 months. 

And as for the score dropping, why would this be different than my other accounts that I've paid off in the past 5 months.   Every settlement & paid account has increased my score.  Is it that this one is 6+ years old? 

[daboss28]

Where did you get your scores from?  Becuase fico does not differentiate score wise paid and unpaid charge off.  If they were from myfico it's possible something else happen at the time when you settled those accounts. Fico does not take that into consideration.  It should but it doesn't.

[BrandonSS]

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daboss28 wrote:

Where did you get your scores from?  Becuase fico does not differentiate score wise paid and unpaid charge off.  If they were from myfico it's possible something else happen at the time when you settled those accounts. Fico does not take that into consideration.  It should but it doesn't.

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I've been paying for the actual FICOs/reports from the individual credit bureaus periodically and been on FCS.com as a monitor.  I thought the FICO took in to account open collections and closed collections.  Each report shows them in their own categoriy as well as negative.  I'm not saying you are wrong at all lol just that my past has reacted differently.  I was at 540'ish around 3 months ago now up to the current 610 area and just opened a Capital One card.