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I just stumbled upon this site and I'm glad I did, it seems to be a great resource for getting my credit back on track. I've been reading through some threads and finding some good advice, but I haven't found my specific question asked so I figured I'd start a new thread.
On my Equifax and TransUnion reports I have one account listed twice. It's an old charged off credit card. One listing appears to be the original account with the original account number, the other listing is the collection account associated with this old account. For my Experian report only the original account is listed, not the collection account. My question is, is this normal? To have two entries that relate to the same account? For Experian, the original account is being updated as the collection agency updates each month, except the account isn't listed as a collection account. It's a bit confusing which is why I'm asking for clarification.
Another question I have for this same account is regarding the date it drops off my credit reports. TransUnion has the drop off date estimated at June 2015. That goes for both the original entry, and the more recent collection account entry. Does this mean that as long as I pay off the collection account before June of next year, both accounts will drop off? I've read that the day you become delinquent is what the "drop off" date is tied to, not the day you pay the balance. I just wanted to check to see if that always holds true. My last payment on this account before it was charged off was 05/2008, which appears to be where the 6/2015 drop off date is coming from.
My next question is for those who have a solid understanding of credit score boosts based on things that drop off, and time needed for new credit lines to have a significant positive impact on your FICO scores.
A quick summary of my credit reports:
Negative
- 1 judgment (drops off December of this year)
- 2 charge offs (one drops off next month, the other is the account the first part of my post is about...drops off potentially June/2015)
- 1 collection account, again, same account as above
- 1 auto loan settled for less than full balance (drops off 06/2017)
Positive
- 2 old credit cards, both accounts closed, that were never late
- student loans in deferment (though I guess this might be considered neutral, if there is such a thing)
- 2 capital one credit cards (platinum, quicksilver) just applied for and approved last week
Current scores (checked today by Hyundai when I was inquiring about a possible lease)
Experian - 625
TransUnion - 612
Equifax - 599
I'm focusing on the end of next year, 2015. I want all of my credit scores to be at 700 or above at that point. I plan on putting $50-100 on each card per month, and paying both in full each month. Early next year I plan on inquiring again about a lease, so I'll potentially have that as a new addition to my credit profile. Also at the beginning of next year, after I have a solid 7-8 months of responsible usage on my two new cards, I plan on applying for a third and possible 4th card.
So, given the information I have provided, is my goal of achieving a 700+ score for each agency realistic? Any information you can provide would be greatly appreciated.
@DMB06 wrote:I just stumbled upon this site and I'm glad I did, it seems to be a great resource for getting my credit back on track. I've been reading through some threads and finding some good advice, but I haven't found my specific question asked so I figured I'd start a new thread.
On my Equifax and TransUnion reports I have one account listed twice. It's an old charged off credit card. One listing appears to be the original account with the original account number, the other listing is the collection account associated with this old account. For my Experian report only the original account is listed, not the collection account. My question is, is this normal? To have two entries that relate to the same account? For Experian, the original account is being updated as the collection agency updates each month, except the account isn't listed as a collection account. It's a bit confusing which is why I'm asking for clarification.
Yes, you can have 2 entries for the debt. Once from the OC, one from the CA. The CA is probably listed as a Factoring Company, it's still scored as a collection.
Another question I have for this same account is regarding the date it drops off my credit reports. TransUnion has the drop off date estimated at June 2015. That goes for both the original entry, and the more recent collection account entry. Does this mean that as long as I pay off the collection account before June of next year, both accounts will drop off? I've read that the day you become delinquent is what the "drop off" date is tied to, not the day you pay the balance. I just wanted to check to see if that always holds true. My last payment on this account before it was charged off was 05/2008, which appears to be where the 6/2015 drop off date is coming from. The DoFD which sets the clock is when the account went in arrears and wasn't brought current. So in 06/2008 it went late, and 7 years from that 06/2015 it will be excluded due to passing the CRTP. This will be done by both of the listings whether they are paid or not.
My next question is for those who have a solid understanding of credit score boosts based on things that drop off, and time needed for new credit lines to have a significant positive impact on your FICO scores.
A quick summary of my credit reports:
Negative
- 1 judgment (drops off December of this year)Let it drop
- 2 charge offs (one drops off next month, the other is the account the first part of my post is about...drops off potentially June/2015)
- 1 collection account, again, same account as above
- 1 auto loan settled for less than full balance (drops off 06/2017)It's settled, send a GW
Positive
- 2 old credit cards, both accounts closed, that were never late
- student loans in deferment (though I guess this might be considered neutral, if there is such a thing)
- 2 capital one credit cards (platinum, quicksilver) just applied for and approved last week
Current scores (checked today by Hyundai when I was inquiring about a possible lease)
Experian - 625
TransUnion - 612
Equifax - 599
I'm focusing on the end of next year, 2015. I want all of my credit scores to be at 700 or above at that point. I plan on putting $50-100 on each card per month, and paying both in full each month. Early next year I plan on inquiring again about a lease, so I'll potentially have that as a new addition to my credit profile. Also at the beginning of next year, after I have a solid 7-8 months of responsible usage on my two new cards, I plan on applying for a third and possible 4th card.
You should be sitting pretty by then, you will only have a really old baddie with that auto loan. I say that 700 is not only possible, but probable if you garden what you have well.
So, given the information I have provided, is my goal of achieving a 700+ score for each agency realistic? Any information you can provide would be greatly appreciated.
Okay, thanks for the reply. Hopefully things work out.
I didn't realize the one charge off/collection account would drop off even without being paid. How stupid would it be of me to go that route? The account has roughly a $2500 balance, and my settlement offer from the collection agency is just under $1300. In your estimation, is it worth forking over the $1300 (or even the entire amount) or should I just let it disappear in a year and not worry about it? There has to be a con to letting a debt of that amount just disappear without paying, I figure you probably know the answer to that better than I do.
@DMB06 wrote:Okay, thanks for the reply. Hopefully things work out.
I didn't realize the one charge off/collection account would drop off even without being paid. How stupid would it be of me to go that route? The account has roughly a $2500 balance, and my settlement offer from the collection agency is just under $1300. In your estimation, is it worth forking over the $1300 (or even the entire amount) or should I just let it disappear in a year and not worry about it? There has to be a con to letting a debt of that amount just disappear without paying, I figure you probably know the answer to that better than I do.
It has to do with the SOL of your particular state. Each state has their own SOL which determines how long something can be taken to court and get a judgement on you. Once this has passed, (and ones with a lot higher balance than $2500 do all the time), then you would used the SOL as a defence if they tried to sue you. Most often, they are aware of the SOL and won't do it anyway, but just wanted to make it clear that it CAN happen, even though not of the norm.
So it has passed the SOL, now the CRTP is a different story. This states how long something can stay on your CR. And it doesn't matter if it's paid or unpaid. Now they can attempt to collect the debt from here to eternity, but once it has passed the CRTP and SOL, then all they can do is ask. They can't sue you, it won't show on your credit report.
Thanks again for the reply.
Doing a quick search I found that the SOL for Florida on credit card accounts is four years. I'm past six. I'm going to call the debt collector and make them aware of this, or more accurately ask them if this is a time-barred account, which (from what I read) they can either decline to answer, at which point they have to prove the debt is valid, or if they do answer they have to state the truth.
I'll have to do some more research, but if I were to call and offer them something very small, such as $100 to settle, making it clear to them that the SOL has passed, would that reset the SOL? I read that the only way to reset the SOL is by either making a payment or acknowleding the debt in writing, but with my luck I'd call to offer a very small settlement, and that would somehow reset the SOL. Do you know anything about this?
Sometimes, it's just in the wording.
DBM06
34556 Righthere Ave
Mytown, MYstate 10101
Dear debt buyer person,
I would like to address this debt XXXX which appears on my credit report. Though I am not aware nor recall this debt, I am willing to make a goodwill payment in the amount of $100 if you are in agreement to show a goodwill on your part and remove all references of this debt from my credit reports.
I do realize the age of this debt has barred it from legal proceedings and it will soon be removed from my credit reports due to its age. However I would like to clear this up now if at all possible. Please feel free to contact me at the above address should you have any questions.
Thank you,
DMB06
Just scheduled a consultation with an attorney for Monday. I'm going to see what he thinks I should do with this account, a letter like that will probably be sent out after I speak with him. The paralegal I just spoke with said the SOL in Florida for credit cards is actually five years, not four. On two of my reports it has me making a payment in July of 2009, I believe that's an error and it's really in July of 2008, as the account charged off in early 2009, but at this point I'm not going to bother disputing it. I'll just wait until July has passed to be safe, and then most likely send the letter.
Thanks again for your responses.
I may be wrong but in my research, the SOL on credit cards may not be the state in which you live it might be the SOL from the state where the credit card originated. You might want to check that out.
Good advice. I'll go check that out right now actually. It was from Providian, who I don't believe even exist anymore, but that probably doesn't change anything. I'll look into it, thanks for the heads up.
One other question I had. On Credit Karma they had some kind of offer for a free credit consultation. I called the number and spoke with a guy about this account. He said that even after an account drops off your credit, if a new collection agency buys the account they can relist the item on your credit reports and the seven year clock starts over. Is this true? That doesn't seem to add up, the seven year rule of most things dropping off could easily be circumvented rendering the entire system meaningless. Is this ssomething I have to worry about or did this guy just not know what he was talking about?