Does removing a closed account matter?

Anonymous · ‎07-21-2015

I used the search and found threads on the subject but felt making a new thread would be best.

First off, I decided to get my credit in check finally (I'm 27 now) after ruining it when I was younger. I'm single, living at home with parents and have no car so I never really cared to get my credit better. But I'm starting a new job any day now and need to buy a car and move out, so here I am.

2 years ago I was in a car accident and the insurance company settled for me and paid me money and paid my bills I had. There was one bill for $169 from a radiologist hopsital. On my transunion report (checked on credit karma) it shows the account as paid and closed. On my equifax report (also checked on ck) it shows it's NOT paid and opened. I called the debt collector and explained this and they agreed to have it changed to paid on my eq report but they said it cant be closed. I have to wait 7 years. Once it shows as paid on my eq report (they agreed to send me a letter) should I bother to get the two closed entries removed? Is it worth the hassle?

My score now on tu is 552 and eq is also 552. How do I check ex? I went on annualcreditreport and ex says they need me to mail stuff to them to get my report. Also, on some other site (forgot now) my ex score couldnt be generated from lack of credit history. Sound right?

Thanks.

EDIT: Just called the collection agency again and the supervisor told me the account was being handled by my attorney and they need to speak with him to answer any questions about the account. I am still waiting to see eq update from $169 to $0 but I was told several times they made the changes to get it put to PIF. So now, do I wait until eq updates it and then try to get in touch with my lawyer who handled this to get it removed from eq and tu? No idea about ex also.

EDIT 2: I called a collection agency just now to pay two accounts in collections for $80 and $86 and the guy informed me there's a third account for $226 from august 27th, 2008 and in order to pay any accounts they all need to be paid. So I didn't pay as I don't even see this third account on my reports. 7 years is next month, maybe that's why? I called tu and the guy told me there is no third account. The guy at the collection agency said they report to all 3 bureaus so the only reason I could see it not showing up is that it went off this month since its been 7 years. It will be off his system next month so I will pay my two cheaper accounts then and have them removed. Btw, the 7 year timeline doesn't restart from now, incase some think that. I know I saw that online but it isn't true (thankfully lol).

gdale6 · ‎07-21-2015

@Anonymous wrote:
I used the search and found threads on the subject but felt making a new thread would be best.

First off, I decided to get my credit in check finally (I'm 27 now) after ruining it when I was younger. I'm single, living at home with parents and have no car so I never really cared to get my credit better. But I'm starting a new job any day now and need to buy a car and move out, so here I am.

2 years ago I was in a car accident and the insurance company settled for me and paid me money and paid my bills I had. There was one bill for $169 from a radiologist hopsital. On my transunion report (checked on credit karma) it shows the account as paid and closed. On my equifax report (also checked on ck) it shows it's NOT paid and opened. I called the debt collector and explained this and they agreed to have it changed to paid on my eq report but they said it cant be closed. I have to wait 7 years. Once it shows as paid on my eq report (they agreed to send me a letter) should I bother to get the two closed entries removed? Is it worth the hassle?

My score now on tu is 552 and eq is also 552. How do I check ex? I went on annualcreditreport and ex says they need me to mail stuff to them to get my report. Also, on some other site (forgot now) my ex score couldnt be generated from lack of credit history. Sound right?

Thanks.

EDIT: Just called the collection agency again and the supervisor told me the account was being handled by my attorney and they need to speak with him to answer any questions about the account. I am still waiting to see eq update from $169 to $0 but I was told several times they made the changes to get it put to PIF. So now, do I wait until eq updates it and then try to get in touch with my lawyer who handled this to get it removed from eq and tu? No idea about ex also.

EDIT 2: I called a collection agency just now to pay two accounts in collections for $80 and $86 and the guy informed me there's a third account for $226 from august 27th, 2008 and in order to pay any accounts they all need to be paid. So I didn't pay as I don't even see this third account on my reports. 7 years is next month, maybe that's why? I called tu and the guy told me there is no third account. The guy at the collection agency said they report to all 3 bureaus so the only reason I could see it not showing up is that it went off this month since its been 7 years. It will be off his system next month so I will pay my two cheaper accounts then and have them removed. Btw, the 7 year timeline doesn't restart from now, incase some think that. I know I saw that online but it isn't true (thankfully lol).

If these are medical here is what you do in the numbered order.

For unpaid medical debt that is reporting on your CR:

1. Call the OC and ask that they recall the collection in exchange for full payment
2. Send the reporting CA a PFD offer
3. Google the HIPAA Process and contact its creator for help

For CAs that have been paid and update to paid you need to begin a GW campaign letter asking for removal of those TLs. Anything from 08 cant be reported on much longer so I might not pay full boat for that one but settle for a much lesser amount. If you have no open credit cards you need to open 3 ASAP they are what will drive your Fico score not installment loans. I wouuld try the Cap-1 pre qual and see what comes up, if you cant get an unsecured card go secured. Welcome to My Fico

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Secured-Cards-Database/td-p/3846302

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680

Anonymous · ‎07-21-2015

Thank you. This forum has been quite motivating. I did get the cap 1 secured card yesterday ($200 deposit). Should I get another card? And should I get authorized on my dad's Barclay's card? Thing is, his limit is $2200 I think and despite the fact that he always pays on time, he doesnt have good utilization afaik. For my $200 card, I should spend about $20 per cycle right? If I do spend more, I can pay it down to $20 before my statement arrives and they wont report the higher util to the bureaus right?

(Btw i need to read the common abreviations thread so I know all the things in your post lol)

RobertEG · ‎07-21-2015

I believe there is some confusion, as the referenced "account" is a colleciton, not a trade line with a creditor.

An Open collection simply means that their collection authority is still in effect (i.e., they are still collecting on the debt).

It does not mean you have an open account with anyone.

If the debt is paid, then the collectioh is, by definition, now CLosed, and should be updated as such. It has nothing to do with credit report exclusion at 7 years from DOFD.

If you wish to pursue, they are required to update their collection to Closed.

However, since they have repported Paid, then updating to closed is more a formality than a matter of substance, as anyone viewing your credti report will know the debt is paid, and thus that they are no longer actively collecting on the debt.

As for "removal," there are two different species of removal of a collection. One is its deletion, and the other is its exclusion.

A collection that has aged to 7 years plus 180 days after DOFD must be excluded from any credit report issued by the CRA. However, it is still in the consumer's credit file, and could still be included in a special, full file credit report if a creditor requests a credit report in connection with your request for credti in an amount of $150K or more.

Credit report exclusion is not absolute. See FCRA 605(b).

However, if you obtain a deletion reported by the debt collector, the collection is actually deleted from your credit file, and thus no longer able to be included in ANY credit report, period. Thus, there is still potential benefit to obtaining a deletion, even after the exclusion at approx 7 years. Apples and oranges.

Anonymous · ‎07-21-2015

I see. Well, since it's only for $169, I cant see why pursuing a deletion is necessary. As long as it's closed (it is $0 and closed on tu but still $169 and opened on eq, haven't seen ex yet) of course. I am waiting on the OC to adjust the eq. I wonder how high my scores will go up now that I got authorized on my dad's cc earlier. I will check my ex score/report after they mail it to me, as they said online isn't an option for me. Sound right?

Anonymous · ‎07-21-2015

@Anonymous wrote:
I used the search and found threads on the subject but felt making a new thread would be best.

First off, I decided to get my credit in check finally (I'm 27 now) after ruining it when I was younger. I'm single, living at home with parents and have no car so I never really cared to get my credit better. But I'm starting a new job any day now and need to buy a car and move out, so here I am.

2 years ago I was in a car accident and the insurance company settled for me and paid me money and paid my bills I had. There was one bill for $169 from a radiologist hopsital. On my transunion report (checked on credit karma) it shows the account as paid and closed. On my equifax report (also checked on ck) it shows it's NOT paid and opened. I called the debt collector and explained this and they agreed to have it changed to paid on my eq report but they said it cant be closed. I have to wait 7 years. Once it shows as paid on my eq report (they agreed to send me a letter) should I bother to get the two closed entries removed? Is it worth the hassle?

My score now on tu is 552 and eq is also 552. How do I check ex? I went on annualcreditreport and ex says they need me to mail stuff to them to get my report. Also, on some other site (forgot now) my ex score couldnt be generated from lack of credit history. Sound right?

Thanks.

EDIT: Just called the collection agency again and the supervisor told me the account was being handled by my attorney and they need to speak with him to answer any questions about the account. I am still waiting to see eq update from $169 to $0 but I was told several times they made the changes to get it put to PIF. So now, do I wait until eq updates it and then try to get in touch with my lawyer who handled this to get it removed from eq and tu? No idea about ex also.

EDIT 2: I called a collection agency just now to pay two accounts in collections for $80 and $86 and the guy informed me there's a third account for $226 from august 27th, 2008 and in order to pay any accounts they all need to be paid. So I didn't pay as I don't even see this third account on my reports. 7 years is next month, maybe that's why? I called tu and the guy told me there is no third account. The guy at the collection agency said they report to all 3 bureaus so the only reason I could see it not showing up is that it went off this month since its been 7 years. It will be off his system next month so I will pay my two cheaper accounts then and have them removed. Btw, the 7 year timeline doesn't restart from now, incase some think that. I know I saw that online but it isn't true (thankfully lol).

Its quite common for CA's to dredge up older stuff whenever you call them to settle something on your reports, and then try to lump it all together to get it "settled". In situations where a CA has mutiple accounts you DO have the right to designate what accounts your payments are applied to.

Anonymous · ‎07-21-2015

@Anonymous wrote:
Thank you. This forum has been quite motivating. I did get the cap 1 secured card yesterday ($200 deposit). Should I get another card? And should I get authorized on my dad's Barclay's card? Thing is, his limit is $2200 I think and despite the fact that he always pays on time, he doesnt have good utilization afaik. For my $200 card, I should spend about $20 per cycle right? If I do spend more, I can pay it down to $20 before my statement arrives and they wont report the higher util to the bureaus right?

(Btw i need to read the common abreviations thread so I know all the things in your post lol)

Yes that is essentially correct. Charge as much as you like but just pay it down before the statement closing date. I would not suggest going the AU route, it just complicates thing later. You already have the secured card to start with, that will get you going.

Anonymous · ‎07-21-2015

@Anonymous wrote:
@Anonymous wrote:
Thank you. This forum has been quite motivating. I did get the cap 1 secured card yesterday ($200 deposit). Should I get another card? And should I get authorized on my dad's Barclay's card? Thing is, his limit is $2200 I think and despite the fact that he always pays on time, he doesnt have good utilization afaik. For my $200 card, I should spend about $20 per cycle right? If I do spend more, I can pay it down to $20 before my statement arrives and they wont report the higher util to the bureaus right?

(Btw i need to read the common abreviations thread so I know all the things in your post lol)
Yes that is essentially correct. Charge as much as you like but just pay it down before the statement closing date. I would not suggest going the AU route, it just complicates thing later. You already have the secured card to start with, that will get you going.

Oh ok. How come it complicates things. Should I cancel the AU thing? I did it earlier. He pays in full every month, so that's good. But the util thing is iffy. Does that really matter much? What if my secured card util is good? I read being an AU can bump your score over 50 points!

Anonymous · ‎07-21-2015

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Thank you. This forum has been quite motivating. I did get the cap 1 secured card yesterday ($200 deposit). Should I get another card? And should I get authorized on my dad's Barclay's card? Thing is, his limit is $2200 I think and despite the fact that he always pays on time, he doesnt have good utilization afaik. For my $200 card, I should spend about $20 per cycle right? If I do spend more, I can pay it down to $20 before my statement arrives and they wont report the higher util to the bureaus right?

(Btw i need to read the common abreviations thread so I know all the things in your post lol)
Yes that is essentially correct. Charge as much as you like but just pay it down before the statement closing date. I would not suggest going the AU route, it just complicates thing later. You already have the secured card to start with, that will get you going.
Oh ok. How come it complicates things. Should I cancel the AU thing? I did it earlier. He pays in full every month, so that's good. But the util thing is iffy. Does that really matter much? What if my secured card util is good? I read being an AU can bump your score over 50 points!

Because your score is no longer reflecting your own credit history. Creditors have no way of "separating" those AU accounts in order to generate a true score. While this may not cause issues with lower tier credit card apps that are essentially "instant approval/denial" it can become problematic with other types of credit that may come under manual review, such as auto loans and mortgages and "prime" CC lenders...

It also makes it impossible to effectively manage your utilizations since it will become mixed with his.

RobertEG · ‎07-21-2015

While you are an AU, you will suffer the good and the bad of whatever he does on his account.

If his util could be a problem, it might be good to ditch the AU.

I say that not only because of how he may use the account, but additionally because whenever you have the account of another included in your credit report and scoring, it automatically makes any score produced from your credit report not representative of only your own credit history.

Any potential creditor doing a manual review of your credit report and seeing presence of an AU will be aware that your score is not limited to your personal risk, and may choose to discount or ignore the score. They have no way to back out one account.

If in doubt, I would recommend ditching it.....