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Planning Ahead...

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SummerOf17
Regular Contributor

Planning Ahead...

 

Planning Ahead...

 

Hi All, Awsome People Here, been reading a lot.

 

We don't usually do Credit. Good Income, CCs used only on large purchases. My Spouses Fico credit scores are around 720-ish and mine are hovering between 660-685. Income is not an issue at all(now 6 figures). Most of the time we PIF monthly, and making sure that on December 31st of each year there is $0 debt for the past 10 years or so. Combined credit limit now is about 110K.

 

.... So 5 1/2 years ago I started rebuilding, at that time what looked like a complete disaster of a credit profile on my part.  Past paid(sometimes late) student loans, 40K worth. Those were due to fall off in 2013, and they did.

 

First thing I did was to apply for a Chase credit card and was denied, at the bank, in person. I was a Chase customer for several years at that point with a sizable savings account, but still was denied. Banker mentioned to try Secure CapOne MasterCard. So I walked across a street and opened a CapOne Secure MC account with 2K as a deposit.

 

2 years passed, We went to Chase for a Home Loan and got Preapproved. At that time my Student loans dropped off. Everything looked peachy. We waited a bit and decided to hold off on a Mortgage/House for a while to save MORE for a down payment. I applied for Chase Sapphire that day and was approved for card with 18K limit(used 60K miles for Europe trip - Lovely time). Also applied for  Discover IT who gave me 1200 and 0% for 15 month. So that put me at 3 active CC accounts. There were also 2 older personal loan accounts that were originated in late 2005 and were paid off on-time without lates and early. Both now dropped off completely, and that lowered my scores a bit.

 

ITEM #2:

 

So then comes July of 2014, I get hit with a collection account from SENEX for a reminder of a medical bill which they claimed to be from January  of 2012 for $190. In 2012 I was covered under my Spouse's insurance and all the bills were paid as they have arrived, by insurance company and leftovers by us, on the spot. We moved twice in those 2 years, but all the bills were paid, no exceptions.

So it was a big surprise for me to get a collection on my CRs. So I contacted SENEX and was given a runaround by several people. Reading these boards for over a half of decade, I first Contacted OC(Hospital) and asked to validate the debt. At first they referred me to Insurance company to get the info I needed. At a time we were not with the insurance company anymore, so they could not help me there.

 

Then Hospital suggested I contact collection agency. Contacted collection agency(SENEX) and asked if the debt could validated. Shortly after SENEX sent me a letter. Looking at it now. Looks like a difference what insurance covered  and what was billed at the later date labeled as "Adjustments". Called SENEX for explanation back then of what it was and was said to that "IT IS WHAT IT IS", they don't have to provide any more info - pay or your credit file stays screwed(actual words from the SENEX Rep). At a bit frustrated stage of conversation I mentioned the debt was not mine and mentioned for them not to contact me. I have also disputed the $190 with 3 CRAs. Within a month took a "NICE" 80 Point Dip across the board: Completed investigation of FCRA dispute - consumer disagrees.  There was no communication since then from SENEX.

 

ITEM #1.

 

Early Feb 2016 we get a notice via snail mail that we owe $280 to State Of New York(a tax bill from 2013), paid them on a spot via a website. Seems like 8 weeks later it shows up on a credit reports as Paid Judgment, I was not looking at reports as I thought everything should be OK. My fault and My Fault only, did not follow up in time. Shows as Satisfied Judgment/Paid at this point.

 

Question on ITEM 1:

Is there a way to have this removed from both of our credit profiles?

 

 

Question on ITEM #2:

I am not planning on/do not want to as a matter of principal pay for this !@#$, not to SENEX,  but I want this thing off my report. I do not owe these people money. I pay my bills on time.

 

 

Reasons for all this:

 

We want to get a house early next year. I just dotn't want anything to popup  in-between while in process.

 

How do we improve the scores?...  Remove these baddies from our reports?

 

I pulled Experian report today, the note for collection from SENEX says  -Status Details:  This account is scheduled to continue on record until Oct 2018.   

 

 

P.S.

As of Late:

 

April 2017 - 3 Cards Active:

CapOne MC Secured - 2000 limit - High Credit 1900 never late = 0 Balance.

Discover IT 1200 limit  - HC 1260 -  never late = 0 Balance.

Chase Sapphire Visa limit 18,000 - HC 14,700 - never late = 0 Balance.

 

May 2017 - 3 New CC Apps:

CapOne Venture - 20K instant limit(so far charged $4200 and paid it off and got the Miles) = 0 balance.

Chase Freedom Unlimited - 4600 instant limit, app at the Bank, 0% for 15 month + 300 Cash Back after 500 spent = 0 balance after 650 spent.

Amex BCE -2500 instant limit, 0% for 15 month(checked for spending power of 4k yesterday, no problem)

 

Not that We really needed new CCs, but it seemed like a way to add value to credit profile plus earn some 40K Miles and $300 cash from Chase.  My Spouse also applied for Chase Sapphire and got a 20k limit(for the Miles of course ).  Europe here we come!

 

Changes to my Older Accounts in May:

Cap1 MC Secured - I closed it 2 days after yearly fee hits the balance. $24 Yearly Fee refunded, security deposit of $2000 refunded and used for Venture expenses.

Discover IT:  Used a "LOVE button!" = upgrade to 2700 from 1200.

 

 

Thanks in Advance.

 

S.

  

Message 1 of 5
4 REPLIES 4
medicgrrl
Valued Contributor

Re: Planning Ahead...

Is the collection agency still reporting every month?

Check NY regulations to see if they'll vacate since it's paid in full.

Make sure 1 of your cards is reporting a small balance to the CRA's before making application for your mortgage.


EQ 778 EXP 782 TU 729
Message 2 of 5
SummerOf17
Regular Contributor

Re: Planning Ahead...

Re: Is the collection agency still reporting every month?

 

looks like they do on/off routine:

 

From Fresh Exp report:

 

2017: Jun, Apr, Feb.

2016: Dec, Nov, Sep

2015: Jan

2014: Jul

 

Other CAs are probably the same or so...

 

Re: Make sure 1 of your cards is reporting a small balance..

I Always leave a few buks unpaid on 1 card, usualy CSF. $20 or so that is charged for Milk and Egs 2-3 days before the CUT. Knowledge is awsome on these board.

Message 3 of 5
medicgrrl
Valued Contributor

Re: Planning Ahead...

The only other suggestion I have is to attempt EE next year before you apply for a mortgage. You could try TU around April and Ex around July. That's only going to help your collection though. The judgement may fall off next month with the changes in the reporting guidelines.


EQ 778 EXP 782 TU 729
Message 4 of 5
SummerOf17
Regular Contributor

Re: Planning Ahead...

 

Thank You very much for your time and contributing.

 

Well, we will see what happens tomorrow(officially next month).

Question I have what else can I do to boost scores. What about taking a personal loan and paying it off in a next 6 month? I do have a $2500 or so expense coming up in August, I could pay Cash... Take a loan out? Would that help a bit?

These are the factors currently listed in Fico for Scoring:


Positive:
You have no missed payments on your credit accounts.
You've limited the use of your available revolving credit.

Almost always PIF.

Negative:
You have a public record and/or collection on your credit report(Tomorrow hopefuly Smiley Happy).
You have few accounts that are in good standing(3 Open, 1 closed, 1 Collection from Above) today all 0 Balances. Amex and Ch.Freedom did not report yet.
You have no recent activity from a non-mortgage installment loan(getting there).
You have a short credit history. - Longest Account was just closed(CapOne Secured 5+Years). Next oldest is 3+ years.

Message 5 of 5
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