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Valued Member
stagemother
Posts: 42
Registered: ‎06-28-2011
0

Effect of new personal loan to pay off new 2007 debt

A CA  $3000 medical collection from 2007 was deleted from all three CBA a couple of months ago.  Then, in July 2011,  to my surprize it showed up as a new 2007 debt from OC, I think.  I have DV'ed yet... I presume that is where I need to start.   

 

But because my score took such a terrible hit when this showed up again, I am interested in paying it off.    Currently I only have a balance of $100 on HSBC, with Zero balances on other cards.

 

What do you think would be the overall effect of taking out a personal loan of $3000 to PFD on the new 2007 debt showing up on CR that dropped my score about 60 points last month?

 

Thx

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: Effect of new personal loan to pay off new 2007 debt

Likely what happened was that the CA deleted, returned the debt to the OC, and the OC assigned it to a new CA who reported.

 

You'd want to confirm who is reporting before doing anything. You cannot send DVs to OCs, only CAs.

 

Are you still within SOL (likely if 2007)? Are you planning on obtaining a mortgage anytime within the next year or so? Is there any guarantee that this CA would accept a PFD?

 

A new loan will likely ding your scores a little but will go away likely within a year. It really wouldn't help your credit and will hurt your DTI until paid. So, if SOL had already expired or is about to expire and you are planning on a home in the near future, then I'd personally wait and not get a loan. If the opposite is true, then I guess it is an option. I'd personally would save up the $$$ before doing anything and not get a loan. Doesn't make sense to lose points and to spend an extra several hundred on origination fees and interest just to pay a CA. If pressed against the wall and are about to be sued, then my tone would soften.

 

If it turns out to be a CA, DV first. If they verify then send a PFD.

Valued Member
stagemother
Posts: 42
Registered: ‎06-28-2011
0

Re: Effect of new personal loan to pay off new 2007 debt

I thank you soooo much for responding because getting a refinance is exactly what I want to do and I don't need any more damage.  I would like to refinance asap hopefully before Christmas. 

 

It looks like the debt went back to OC, a Florida Hospital.   Not quite sure yet, but on CR, the hospital address is the same as the Adventist Florida Hospital name that I see on my credit report.   When I go to the hospital website, it refers me back to CA, when I click on CA, it refers me to the Florida Hospital.  So I think it is back with OC. 

 

My debt to income ratio is very low so I am wondering even if I got a personal loan to PFD the OC,  would help me gain back the 73 points I lost in July when OC reposted? 

 

I was wrong before when I said 60 it was a FULL 73 point plunge for the TWO new pre-CA that went back to OC, one of which WAS paid to CA  :smileysad:?   But on the oher hand, right now the amount the OC reposted is only reporting to Equifax.  

 

But I won't do anything quickly until I get them first to DELETE Paid Amount... they are still reporting this amount that I Paid to CA as Open ..

 

I don't know about the SOL... I hear it's 7 yrs in TX but I don't know but I know I need my refinance within 3 months.

 

 anyway, if I CAN"T DV the OC, then do I just send a PFD letter to the OC ..??

 

 

 



Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: Effect of new personal loan to pay off new 2007 debt


stagemother wrote:

I don't know about the SOL... I hear it's 7 yrs in TX but I don't know but I know I need my refinance within 3 months.

 

 anyway, if I CAN"T DV the OC, then do I just send a PFD letter to the OC ..??


The credit reporting time period is 7 (to 7.5) years, but I think your SOL in TX is either 4 or 6. I can't remember.

 

If the CA reports and they report a balance, the PFD needs to go to the CA. It's possible they are passing the buck to the OC because of fears over HIPAA. But always send the PFD to whomever reports the debt.

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
0

Re: Effect of new personal loan to pay off new 2007 debt


llecs wrote:

The credit reporting time period is 7 (to 7.5) years, but I think your SOL in TX is either 4 or 6. I can't remember.

 

If the CA reports and they report a balance, the PFD needs to go to the CA. It's possible they are passing the buck to the OC because of fears over HIPAA. But always send the PFD to whomever reports the debt.


SOL in Texas is 4 years.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

New Member
Madmoney1
Posts: 2
Registered: ‎06-17-2008
0

Re: Effect of new personal loan to pay off new 2007 debt

I am having the same problem with the same hospital. My account is past the SOL for Florida. How can I get this removed from my credit report?


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