Reply
New Member
sidneyc08
Posts: 2
Registered: ‎06-17-2008

OMG HELP!!!!!

hi so im new to the forum and have major credit problems: my current scores are TU:485,EX:515,EQ:462

 

I have Major collection accounts 

TCF $899 DO 11/1/06 DOLA same

Comcast paid collection 

Enterprise 621  Date assigned 9/1/07  Date Reported 9/1/08 DOLA 3/1/07

Medical bill 416 DA 6/1/06 DR 11/1/08  DOLA 11/1/03

Orchard 2076  DA 2/1/07 DR 2/1/08 DOLA 8/1/06

XCEL  1600 

 

 

Sprint was 1306 Paid off DA 6/29/08 DR 11/05/08 

Allied was 360 still showing balance but paid in nov 08 

I have a repossesion with GMAC from Aug 07 

 

I currently own a house still owe 202,000 locked in @ 6.25% bought for 230,000 in may 2006 approximatly 12 months of lates due to unemployment pulled it out of foreclosure in June 2008 

I have 6300 in one student loan currently in deferrment and another for 28000 also in defer full time student at this time 

 

Oh and last but not least 1st premier two cards that are charged off as bad debt $520 DO 9/2006 DOLA 2/2007

DC Dec 2006  and $421 DO Jan 2005 DOLA Feb 2007  DC Dec 2006 

 

I had a bankruptcy in April 2003 DC in July 2003

 

After the bankruptcy I was doing really good then in 2006 my husband was in a unfortunate accident and in ICU I fell behind on everything was able to salvage my house but my  car was a loss

 

Now with all of this should I even bother paying off the collections and if I pay off the charged off credit cards will that make a difference at all?? Is there anything I can do to salvage this pitiful credit 

 

 

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: OMG HELP!!!!!

First of all, time heals ALL wounds -- credit "wounds" included. While your credit stinks now, it won't always. Honestly.


sidneyc08 wrote:

hi so im new to the forum and have major credit problems: my current scores are TU:485,EX:515,EQ:462

 

I have Major collection accounts 

TCF $899 DO 11/1/06 DOLA same

 

Comcast paid collection 

Enterprise 621  Date assigned 9/1/07  Date Reported 9/1/08 DOLA 3/1/07

 

What is Enterprise? Is it a credit card account? Installment loan? Medical collection?

It matters!

 

**BTW, we REALLY need to know what state you currently reside in, and what state you resided in when the debts were incurred.**

 

Medical bill 416 DA 6/1/06 DR 11/1/08  DOLA 11/1/03

 

This you can handle in one of two ways: Either leave it alone, since it'll fall off next year, or you can pay it and use the HIPAA process to remove it (PAID medical collections MUST be removed by HIPAA law as it's a violation of your right to medical privacy).

 

Orchard 2076  DA 2/1/07 DR 2/1/08 DOLA 8/1/06

XCEL  1600 

 

 

Sprint was 1306 Paid off DA 6/29/08 DR 11/05/08 

Allied was 360 still showing balance but paid in nov 08 

I have a repossesion with GMAC from Aug 07 

 

I currently own a house still owe 202,000 locked in @ 6.25% bought for 230,000 in may 2006 approximatly 12 months of lates due to unemployment pulled it out of foreclosure in June 2008 

 

Start writing GW (Goodwill request) letters for those lates. 

 

You'll probably get shot down at first, but you have, have, have to keep trying! Too many people have had success with persistence for you not to!

 

I have 6300 in one student loan currently in deferrment and another for 28000 also in defer full time student at this time 

 

Oh and last but not least 1st premier two cards that are charged off as bad debt $520 DO 9/2006 DOLA 2/2007

DC Dec 2006  and $421 DO Jan 2005 DOLA Feb 2007  DC Dec 2006 

 

I had a bankruptcy in April 2003 DC in July 2003

 

After the bankruptcy I was doing really good then in 2006 my husband was in a unfortunate accident and in ICU I fell behind on everything was able to salvage my house but my  car was a loss

 

Now with all of this should I even bother paying off the collections and if I pay off the charged off credit cards will that make a difference at all??

 

No, unfortunately. FICO sees paid and unpaid collections the same. Worse, though, is if you DO pay them, once the CAs update the tradelines as "paid," FICO will "see" them as NEW collections and will ding you further.

 

Soooo ... what you NEED to do is offer/negotiate PFDs for those COs and collection accounts. A PFD is an agreement between you and the creditor/CA that states that if you pay the account (sometimes in full, sometimes a fair settlement offer), they'll remove the entry from your CRs altogether. Like GWs, sometimes it takes oodles of letters to be successful. But it's WORTH it!

 

Is there anything I can do to salvage this pitiful credit 

 

 




Now, before you run off and start writing those PFD letters, we need to know what state you're in (and where the debts were incurred, if not your present state). Why? Because unless you KNOW that the debts are outside of the SoL and you offer a PFD, you run the risk of being sued -- since you'd be waking up a cranky dragon with a very pointy stick. :/

The SoL is a set of state rules that determine how long a creditor (or CA) has in which to sue you in a court of law for a recovery of a debt. They range in length from 2 years all the way to 10 years. If you're still under SoL for any of these debts, it's best to do two things: 1) leave them alone and 2) keep an eye out for a summons to court.

Holler back with that info!!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: OMG HELP!!!!!

WOW!  My heart goes out to you.  Misfortunes are becoming all too common, and I feel your pain.

 

But FICO has no sensory perceptors.  It is a mathematical equation.  Paying or not paying a CO or CA does not remove it from your CR until 7 1/2 years from the date of first default on the account with the OC. 

 

Paying the CAs is a legal issue, for as long as it remains unpaid, they can sue you for the debt.  If the SOL expires, you can offer an aboslute legal defense in court.  That is a legal, and not a FICO issue.  It will not improve your credit score until it drops off at 7 1/2 years from the account DOFD.

 

Best of luck, and I hope things turn around!

New Member
sidneyc08
Posts: 2
Registered: ‎06-17-2008

Re: OMG HELP!!!!!

all the accounts were accrued in colorado which is where i reside and enterprise is a rental car place I was hit by a delivery driver and his company refuses to pay under their insurance tried to go after the driver court said the company is responsible because he was working at the time headache
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: OMG HELP!!!!!

Colorado's SoL is 6 years across the board (so, it's 6 years for credit cards, installment loans, payday loans, etc). So, ANY debt that's YOUNGER than 6 years (and that's calculated from the date of the LAST payment that you made -- so if you opened the account in April 1999, but made your LAST payment in April 2004, April 2004 is the date you use to calculate where you are as re SoL) leave ALONE unless you could pay it in full at a moment's notice.

I say that because let's say that you send ACME Credit Cards a PFD for 75% of the $2K debt you owe. If the debt's still within SoL, they could remember you and that $2K you owe them. And they could very well remember that the debt's still sue-able for. You don't want that. They have NO incentive to accept the PFD, either, since they could just as well take your patootie to court and get the whole shebang.

That said, sometimes they DO work with debts still within SoL. Sometimes, if you offer enough, it's worth it for them to avoid court AND get a good portion of their money. However, enough are total jerks that will sue your butt once they see a PFD with your name on it. :/

All and all, it's a crapshoot.

But first and foremost, you need to figure out the Date of Last Activity on these accounts. That will tell you if you're within SoL or not.

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: OMG HELP!!!!!

Oh and paying off the COed credit cards might help you a *little* -- even though they've been charged off, they still count against your utilization of credit. Chances are, FICO's seeing you as totally maxed out (FICO doesn't like that).

If you don't know how to figure utilization (something VERY handy when credit-fixing) here's how:

You take the total amount of credit USED on your cards and divide it by the total amount of the credit limits.

So, if you had:
1) CC A: Credit Limit: $1K, USED: $100
2) CC B: Credit Limit: $500, USED: $40
3) CC C: Credit Limit: $2500, USED: $150

$100+40+150= $290 (USED credit)
$1K+500+2500= $4000 (Total Credit Limits)

$290 divided by $4000 = .0725

So, your utilization would be 7%. And FICO LOVES utilization UNDER 10%.

But right now, with the COs, FICO's reading those accounts as maxed out. So if your CO is $340, FICO's seeing that as a $340 credit limit that's maxed out.

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+