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Hello Everyone,
I joined fico recently to learn more about credit scores and repair my credit. My credit score as of 13-Apr-13 was 506. I pulled my credit report as of last August 2012 and all of my credit cards and loans have been closed (eight to be exact) and in collections. I have been working very hard the past ten months to pay off my debt. I understand it is going to take some time.
I am very confused at this point. Because I am currently paying the debt collectors (in full, no settlements). My accounts are closed, except for a secured credit card but my report doesn't reflect the positives. Due to the "in collection" and "charge off" status, I have TWENTY ONE NEGATIVE ITEMS on my report.
I've read a lot about disputing items. However how can I dispute something that I am currently making payments on? Do i go back and ask the debt collectors for a settlement? Do I ask the creditors to remove the negative remarks on my report?
I take full responsibility for my debt and I am willing to deal with for as long as it takes. I am frustrated at myself for not understanding this whole credit thing sooner in my life. But I want to learn. Please help me understand.
Thank you.
prissyDidit
Welcome to the forums.
What do you mean your report doesn't reflect the positives? How many positive accounts do you have?
Paying a collections will not help your score. They are scored the same, paid or unpaid. What would help is having them removed. If you have already paid them send a GW letter asking if they will remove the account from your credit report. If you are currently making payments, ask them if they would do a pay for delete. Once they are paid, will they delete them.
I would not dispute anything. A dispute can come back to haunt you in the future plus if they are accurately reporting it is frowned upon and a violation of the TOS of the forums.
If you post some of the TL we will look and give advice.
thank you guiness56 for your response. i believe i have one positive item which is a secured capitalone credit card (limit $200). i was approved in june, and so far so good.
i will take your advice and ask to have the paid in full accounts removed from my report. i thought those items can not be removed until after seven years. i am willing to draft the letters and have them mailed as soon as possible. if the items will be removed from my report after thirty days. i have ffive inquiries on my account to needs to be removed asap, which leaves 16 items to address.
a few examples of items on my report
student Loans *a ridiculous amount*
currently making payments and will be out of the delinquent status as of Aug 13 on my federal loans. (i am guessing i'll just have to wait?)
citifinancial
unsecured Loan
Opened: 11/08
Balance: 10000
Closed as of 12/11 - charge off
debt collector cach - making payments in full, no settlment
current balance as of 7/31: 8952.48
i am in the process of ordering all three credit scores. but i am confused as to how i can keep track of all three and which of the report bares more weight on my overall score. bare with me as i learn more about all things credit, then i'll be able to ask the necessary questions correctly.
i appreciate any advice.
thank you.
For the Student Loans, yes, you have to complete the rehab before the default status will be removed.
Collections and Charge offs normally stay for 7.5 years from the DoFD, paid or not. Many times a creditor will agree, through a good will letter, to remove a paid account. It never hurts to try. And if they say no, try again. They can say no 100 times but it only takes 1 yes.
What type of inquires? A hardpull, which counts against your score for one year, stays on for 2. Soft pulls don't hurt your score and only you can see them. Legitimate inquiries are hard to get removed.
For those debts you are paying, when you get to an amount you could pay in full, ask them for a pay for delete.
Do not order your scores from any of the CRAs, they are not FICO scores and are for educational purposes only. You can get all three here. The one for TU and EX are not the scores most lenders use but can be a base to go by. EQ score from here is the one most lenders use.
You need to pull each report from annualcreditreport.com. You get 1 free from each CRA every 12 months. These reports will contain everything and are the most detailed and accurate. I am not sure what you mean by which report bares more weight on your overall score. Each report is scored based on the criteria for that CRA.
Thank you guiness56. I have to wait til mid August to order my free credit reports. In regards to the credit scores, its good to know that Experian is what most lenders look at. I'll order my scores on here in the near future. I want to make sure everything has been updated and have my credit reports in hand before I order my score.
I've found samples of the GW letters and I am working on sending them off. I am very interested in purchasing a home in a year and half so I am doing my best to get my credit score/report back on track.
thank you again guiness56
prissyDidIt
Hello,
It has been awhile since I last visited the site. I've been putting everything I've learned and continue to learn to very good use. But somehow I've hit a wall, and I need to reevaluate my payment plans. I contacted the debt collectors and I have been making payments towards the full debt, not settlement payments. However, due to some hardship at the moment, I need to settle a few debt.Two debts in collection to be exact (credit one and citicard). I read that settling debts is not necessarily a good thing, and I can liable to pay back in taxes what I owe the creditors. Please help me understand.
I look forward to your response.