Need help cleaning up an acocunt after BK

[Klesko]

I had a BK 2 years ago and everything has gone pretty well so far in the credit rebuilding department.

I have one account which could be a major problem. I had a lease with VW credit at the time of the BK which I did not reaffirm and turned the car in 1 month after the BK was discharged. Anyway VW claims I affirmed the lease and after a while sent me to some collections. They called me and I explained about the BK and they confirmed it and I never heard from them again.

The problem is VW account on my credit report.
1st Update
Past Due, Balance on EX EQ and TU
I disputed saying it should be saying IIB. It came back updated, they added a CO to the account after the BK.
2nd Update
Then a few months went by and EQ updated the balance and past due to 0 which increased my score by 50 points on it.
3rd Update
I disputed to EX and TU saying it should be IIB 0 Balance, 0 Past due. EX said they it was already investigated and wouldn't do it again. However EQ AND TU updated to balances and past due amounts which tanked those scores by about 50 points.
4th Update
Then about 4 months later those balances, past due on TU and EQ updated to 0 again and my score went up again.

Except for this account my credit report has been clean since the BK. I am afraid to dispute it again because I am worried it will update those past due balances tanking my score again.

I am wanting to buy a house later next and worry this account is going to cause a problem. My score is about 650-660 on TU and EQ which is enough for FHA and those should only get better by this time next year. My EX is only about 590 so I am thinking if I can get this off of it it will raise 30-40 points.

Any ideas about how to approach this would be appreciated.

[Anonymous]

Hi klesko,

Welcome!

Just to make sure I'm reading your post correctly,

TU and EQ are currently reporting correctly with $0 balance and no past due?

EXP is currently reporting a charge-off after the BK?

And remember that fako scores will jump around erratically.  A jump (or drop) in a fako score doesn't mean a jump (or drop) in a true FICO score.  fakos can and will be off by up to 100 points, and moves in a fako don't correlate to similar moves in a FICO.

And the good news is mortgages are typically written based on your middle score only. 

[Klesko]

EQ and TU are showing 0 Balance and 0 Past due and some activity after the BK by a few months. I wish it was showing IIB but its not a huge deal I guess.

EX is showing a Balance and a Past due amount and showing a KD* Key derogatory in Credit Check Total as late as May 2011. The BK was 12-2009 and I turned the car in 01-2010.

I am going for an FHA loan and I know the underwriters dont like to see anything bad after a BK.

[Anonymous]

So, EQ and TU are showing no red flags on the account?  No IIB?  No lates?  That's good!  If it's not red flagged, you've got a bonus.

You might consider using the 10 day free Scorewatch (FICO Scores & Credit Reports tab above) to see how your Equifax credit report is looking at that account.  Cancel before the 10 days to keep it free, or keep it open to monitor your score.

Since EXP appears to be reporting incorrectly, I would keep working them.  Did you submit your last EXP refused dispute snail mail or online?

I had a few accounts post BK that took several attempts to get straightened out.  Very frustrating.  But most all our accounts eventually reported correctly.  Sometimes you have to keep at it.

[Klesko]

I did EX online last time. I will do snail mail next time. I worry thought that VW will update my TU and EQ with balances if I awaken them though.

I was hoping that the Balance and Past due would go to 0 on its own for EX like it did for the others but at this point I doubt it.

[Anonymous]

Well, you're shooting for an accurate report.

If the accurate balance is $0, then (if it were me) I would do a snail mail dispute with EXP.  And I would keep working it until it reported accurately.

I haven't had a dispute with one CRA awaken any "sleeping giants" at another CRA.   And as long as you're disputing inaccurate information, I think you're on good ground.