Please help me get to a 620

[lpayton]

Hello, 

My husband and I are both veterans, and want to buy our first home using a VA loan.  I was told by a broker friend of mine, I need a minimum of a 620 to get a VA loan.  I have several bad things on my credit.

Tonight I disputed a cable bill with Experian and TU...It is being reported on my credit FOUR TIMES!!!!  It is for $419 from Time Warner (time warner is reporting it once and a collection company is reporting it 3 times)...NO clue when/where etc it is from.  Also, I paid a couple things off (student loans, and a recent medical bill) that are still being reported that shouldn't be...hopefully those will be removed soon after I disputed them tonight. 

Experian is a 558, TU is a 598.  If I am able to get the medical bills (6 individual collection accounts, all being reported by same company) deleted after payment, the cable bill being reported 4 times removed, and my student loans removed (still being reported by both US Dept of Edu AND bill collector who I paid in full), how far do you estimate my score moving, if at all? 

Also, I have NO revolving credit, none.  No credit cards, no car loan, nothing.  Because I have no recent good credit, I applied yesterday and got approved for a master card with a $200 limit.  I was told to keep a balance of 25 dollars on it, and pay it off each month.

I was told if I do these things, I will probably be able to get my score up enough to get a mortgage using my va loan in 30 to 60 days. True? 

TYIA  

[RobertEG]

A few general comments.

First, it is not improper for a delinquent debt that has been referred to collection to result in the simultaneous reporting of both the OC account delinquencies, and amount of debt owed, on the OC account, and to also have the debt reported separately under the reporting of a collection on the debt.  What the OC is reporting is that you owe them the debt, and what the debt collector is reporting is the amount of debt they are authorized to collect on behalf of the OC.  The debt collector cannot report three separate collection accounts for the same debt, but can report at multiple times under their single account.  What are you referring to when you say the collection is showing three times?

Also,payment of any debt does not, in and of itself, result in the deletion of any prior, accurate reporting of delinquencies on the debt by the OC, or of the reporting of the collection by the debt collector.  In order to gain in credit scoring based on payment of debt, it is necessary to get their prior credit reporting deleted.  Many used what is called an offer to pay that is contingent on their prior agreement to remove their negative reporting upon recepit of your payment.  Those are called pay-for-delete (PFD) offers.

It is very, very difficult to achieve a respectible FICO score without the presence of revolving credit in your credit report, so you definately did the right thing in secuiring a CC.  However, mortgage lendors dont like to see recent acquistions of new credit, or applications for new credit, just before you app for a mortgage.  It indicates that you are also seeking credit elsewhere, and makes them wary of your overextension.  A good guideline is not to appp for new credit within approx six months before a mortgage loan app.

The new CC is a future credit score building action that was definately helpful, but in the short term, it will give you a new inquiry ding, and might raise concerns with your mortgage broker.  Are you app'ing for the mortgage within the next six months?

Removal of collections is extremely helpful, as they are major derogs.  The benefit to your credit score will vary, depending upon whether you have other, remaining major derogs, and the age of the collection removed.  REmoval of one or two wont help as much as when your CR is finally cleared of all major derogs.  Additionally, when it comes to unpaid collections, many mortgage lendors will, regardless of FICO score, require their payment prior to any final mortgage approval.  So you may be faced with payment as a precondition.

All in all, it appears to me that you should wait a bit longer before entering the mortgage app process, and get your CR cleaned up a bit more.

[Anonymous]

---

@lpayton wrote:

Hello, 

My husband and I are both veterans, and want to buy our first home using a VA loan.  I was told by a broker friend of mine, I need a minimum of a 620 to get a VA loan.  I have several bad things on my credit.

Tonight I disputed a cable bill with Experian and TU...It is being reported on my credit FOUR TIMES!!!!  It is for $419 from Time Warner (time warner is reporting it once and a collection company is reporting it 3 times)...NO clue when/where etc it is from.  Also, I paid a couple things off (student loans, and a recent medical bill) that are still being reported that shouldn't be...hopefully those will be removed soon after I disputed them tonight. 

Experian is a 558, TU is a 598.  If I am able to get the medical bills (6 individual collection accounts, all being reported by same company) deleted after payment, the cable bill being reported 4 times removed, and my student loans removed (still being reported by both US Dept of Edu AND bill collector who I paid in full), how far do you estimate my score moving, if at all? 

Also, I have NO revolving credit, none.  No credit cards, no car loan, nothing.  Because I have no recent good credit, I applied yesterday and got approved for a master card with a $200 limit.  I was told to keep a balance of 25 dollars on it, and pay it off each month.

I was told if I do these things, I will probably be able to get my score up enough to get a mortgage using my va loan in 30 to 60 days. True? 

TYIA  

---

You will have to invest time  based on the severity of your bad credit..I learned from this forum that regardles what you do time is the main ingredient to raise your score, and it is a seasaw /balancing act...

My testimonial to this site

I was at a similar score  around December  last year, and I had my lender pull my credit and give me a base starting point I was at a 568 for my mid score

I disputed a few things myself a few fell of it raised my score a little but not much..So I got a secured cc and a small loan  high intrest loan.. Made a few payments and had a new check done my scores went up to almost 600. After a few months more of playing cat and mouse and maintianing my payments paying off a few small debts , I am now at 602/622/630 and I am in review with an actual Bank now for my mortgage.

This forum rocks...

Just my thoughts....

[lpayton]

Thanks for your responses.

Robert,

The Time Warner cable bill showing on Transunion:

Collection agency [?] Original balance [?] Current balance [?] Date assigned [?] Original lender [?] Account number [?] Account holder [?] Account descriptions [?]

Prompt Recov

$419

$419

Sep 10, 2009

01 Time Warner Cable 2

XXXXXXXXXX3338

Individual

Placed for collection

Collection on debt to: 11 Time Warner Cable Neo Pm

The collection agency "Prompt Recov" was hired to collect a debt of $419 originally owed to "11 Time Warner Cable Neo Pm" on account number "XXXXXXXX8148".

Collection agency [?] Original balance [?] Current balance [?] Date assigned [?] Original lender [?] Account number [?] Account holder [?] Account descriptions [?]

Prompt Recov

$419

$419

Jun 17, 2008

11 Time Warner Cable Neo Pm

XXXXXXXX8148

Individual

Placed for collection

The Time Warner on Equifax:

The collection agency "357YC00010" was hired to collect a debt of $419 originally owed to "Time Warner Cab" on account number "XXXXXXXXXX3338".

Collection agency [?] Original balance [?] Current balance [?] Date assigned [?] Original lender [?] Account number [?] Account holder [?]

357YC00010

$419

$419

Sep, 2009

Time Warner Cab

XXXXXXXXXX3338

Individual

Collection on debt to: Time Warner Cab

The collection agency "357YC00010" was hired to collect a debt of $40 originally owed to "Time Warner Cab" on account number "XXXXXXXXXX1218".

Collection agency [?] Original balance [?] Current balance [?] Date assigned [?] Original lender [?] Account number [?] Account holder [?]

357YC00010

$40

$40

Jul, 2009

Time Warner Cab

XXXXXXXXXX1218

Individual

Collection on debt to: Time Warner Cab

The collection agency "357YC00010" was hired to collect a debt of $419 originally owed to "Time Warner Cab" on account number "XXXXXXXX8148".

Collection agency [?] Original balance [?] Current balance [?] Date assigned [?] Original lender [?] Account number [?] Account holder [?]

357YC00010

$419

$419

Jun, 2008

Time Warner Cab

XXXXXXXX8148

Individual

Collection on debt to: Time Warner Cab

The collection agency "357YC00010" was hired to collect a debt of $40 originally owed to "Time Warner Cab" on account number "XXXXXXXX0177".

Collection agency [?] Original balance [?] Current balance [?] Date assigned [?] Original lender [?] Account number [?] Account holder [?]

357YC00010

$40

$40

Nov, 2007

Time Warner Cab

XXXXXXXX0177

So, as you can see...this Time Warner thing is showing up multiple times on both Transunion and Equifax.  I disputed, based on never know about these accounts, and the fact that I do not believe I owe the amounts they say I owe.  I have never been informed of their existence, until pulling my credit. 

Now, as far as the 5 medical bills.  I spoke to a man with the Revenue Group, a supervisor.  He told me that they will completely DELETE all negative items from my credit upon payment of a settlement.  He will not put it in writing.  I am praying on his good faith. 

My student loans will never be deleted, I just want the balances showing at zero, as they should.  I paid them completely off...and disputed saying so. 

The credit card...my broker specifically told me to apply for one, because I have never had a credit card and I am 29 with a 559 FICO.  I need to establish revolving credit somehow.  If it takes a while, fine...but I gotta do it I guess.  Sigh.  This is a mess and I feel SO overwhelmed. 

[CS800]

You will have to invest time  based on the severity of your bad credit..I learned from this forum that regardles what you do time is the main ingredient to raise your score, and it is a seasaw /balancing act...

My testimonial to this site

I was at a similar score  around December  last year, and I had my lender pull my credit and give me a base starting point I was at a 568 for my mid score

I disputed a few things myself a few fell of it raised my score a little but not much..So I got a secured cc and a small loan  high intrest loan.. Made a few payments and had a new check done my scores went up to almost 600. After a few months more of playing cat and mouse and maintianing my payments paying off a few small debts , I am now at 602/622/630 and I am in review with an actual Bank now for my mortgage.

This forum rocks...

Just my thoughts....

---

++++++1 on the red item above

That's what im doing right now. There are some paid baddies that I'm having a tough time getting the OC's to remove so I wlays say, time will heal my score provided I maintain my paymentsd on time etc

[lpayton]

Just got off phone with Prompt Recovery Services in Ohio..The debt collection agency working on behalf of Time Warner Cable.  They state that they notified the credit reporting agencies to remove 3 of the 4 accounts, back in May of 2010, and if they are still on there "its the credit bureaus fault". 

What recourse do I have, and is this true?  These 4 items are on my credit report and have been for some time.  I am getting to the point of feeling maniacal trying to deal with these people.

[GB44]

---

@lpayton wrote:

Just got off phone with Prompt Recovery Services in Ohio..The debt collection agency working on behalf of Time Warner Cable.  They state that they notified the credit reporting agencies to remove 3 of the 4 accounts, back in May of 2010, and if they are still on there "its the credit bureaus fault". 

What recourse do I have, and is this true?  These 4 items are on my credit report and have been for some time.  I am getting to the point of feeling maniacal trying to deal with these people.

---

Did you confirm this is a valid collection account?

If so, you can try a PFD to get the CA to remove from your credit report. You can also GW the OC.

If it's not a valid collection, then I would DV the CA and work directly with OC to get it removed from your CR.

What ever route you take..............remember to get everything in writing.

[lpayton]

of the 4 accounts, they acknowledged this morning 2 are invalid...they claim they notified the credit bureaus of this, and said I had to pay $10 to get it in writing.

I just typed up a letter, demanding the 2 invalid accounts be immediately removed, with written notice to me of such action, and asked that they waive the fee due to the length of time they have been defaming me by reporting erroneous information.  Within the letter, I also asked for validation of the remaining 1 account they claim is "good" (that they are reporting two times...UGH!!!!!!!!!!!)

I googled and found the President's name.  I am mailing it directly to him with "for the eyes of Mod cut only" on the back, and  sending it certified with reciept notification.  Here is the letter:

Prompt Recovery Services
PO Box 940
Twinsburg, Ohio

Re: Acct # 420268

Mr. Mod cut. Please don't post personal information in the public forums. Thanks-MarineVietVet, myFICO moderator

I am sending this letter to you in response to a conversation between myself and Renee Jackson dated 7/27/2011.

Your company is currently reporting derogatory information to all three credit bureaus 2 times for accounts that have been paid in full for several years.  I want these accounts deleted from my credit reports immediately, and I want documentation from you that your company has done its due diligence to accurately and fairly report information about me.  Because these accounts have been inaccurately reported for many years, I do not feel I should have to pay your firm a $10 fee.  This information being falsely reported has adversely affected my life, and I feel that you sending me documentation stating these accounts are no longer due is the least your organization can do for me.  Please mail clearance letters of paid amounts due to the address listed above at your earliest convenience, and request they be removed from all three major bureaus. 

Regarding the $420 debt your company still says I owe:

Be advised, this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your office provide me with competent evidence that I have any legal obligation to pay you.

provide me with the following:

• What the money you say I owe is for;
• Explain and show me how you calculated what you say I owe;
• Provide me with copies of any papers that show I agreed to pay what you say I owe;
• Provide a verification or copy of any judgment if applicable;
• Identify the original creditor;
• Prove the Statute of Limitations has not expired on this account;
• Show me that you are licensed to collect in my state; and
• Provide me with your license numbers and Registered Agent.

Currently, your offices are reporting invalidated information to all of the three major Credit Bureau’s (Equifax, Experian or TransUnion), and said action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:

• Violation of the Fair Credit Reporting Act
• Violation of the Fair Debt Collection Practices Act
• Defamation of Character

If your offices are able to provide the proper documentation as requested, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel. This includes any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is. Please delete these false items from my credit, and provide me with documentation that you have attempted to do so.   

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls or correspondence sent to any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter.

Please delete these false items from my credit, and provide me with documentation that you have attempted to do so, and validate the amount you say I still owe.  I am a reasonable person, but I will not hesitate to pursue this in court if I am continued to be defamed in such a manner, and will do everything in my power to see my rights under the law are observed by your company.

Best Regards,