Just got my social and a bad surprise

[AlwaysUp]

Hi,

So I'm an international student. I'm 20. I just got my SSN today. I have a Wells Fargo Secured CC with a $1000 limit. The card is 7 months old. I was very excited this morning when I got my social. My State Farm agent told me that I was pre-approved for a CC and as soon as I get my social, they'll fill out the application for me. I contacted him today, he submitted the application and then got back to me with a very bad surprise. He told me that my application was denied because I have an account on collection. I went to check my scores online and I found 2 accounts that have been reporting even though I didn't have a social (They used first, last name, BOD and address). It was my CC with WF and a collection acccount for $572 from T-Mobile. I nevever used T-Mobile before, it wasn't me.

I filed a police report for identity theft and I'm gonna submit disputes with all the bureaus, but I'm expecting the worst. If my dispute get denied, I'm gonna have to pay that account because I don't want more problems. My question is :

How bad it will look if I pay the CC account? What score am I gonna start with? If the collection is removed, and I'll only have my CC on good standing, what is the score I should expect?

If I don't pay the account, how bad this baddie would impact my score? I couldn't get a score today since I just got my social, they said it takes up to a month...

I'm really frustrated specially when I was gonna apply for a auto loan in June..

Thank you for your answers and sorry for my bad grammar.

[Anonymous]

Couple of things:

The accounts may not be fraud, might be another person with the same name. Besides, committing identity theft for a service (with a contract), much less a phone, sounds like poor planning on a criminal's part. Your best bet is to dispute the account to each of the three bureaus. If they get denied, dispute them again. If it's not yours, it's not yours.

Secondly, pay the WF. Pay the WF card. Make a payment towards the WF card. Go online or write a check to pay the WF card. Then, make sure WF got your payment. Regardless of any plans, always pay your debt obligations on time. Always. (When reasonably possible, of course).

Next, your initial score probably won't be great. Very short AAoA (average age of accounts), and only one open line of credit. I'd suggest opening another line of credit after your collection is removed - a builder card such as Cap1 (you should probably aim for a non-secured card at least).

Finally, there's probably no way around it - you'll need a co-signer for the car loan. The good news is that by the time you've paid the car off, you should already have or be in position for a nice premium card. See the auto forums for more details.

[AlwaysUp]

Thank you very much for your answer! My WF card is in a very good standing. I'm also self employed, I own an LLC and I make 5-6K / Month. I'm planning to put 50% down of the price of the car, since I don't have any relatives here. If the collection doesn't go away, how bad it would hurt my score and mess up my plans ? Even though I would pay it ?

The collection lady on the phone said that it's me because it has my name, dob and my adress, I said no way I've been with At&t since I got to the US.. She answered by saying that anyone who knows my dob, name and address can do a lot of bad things with it. I remember that I lost my wallet few months ago but I never reported it... I feel dumb now.

I know my score wouldn't be that good because of my AAoA, but do you have any range in mind ? I applied for a Secure Card with capital one (just to make sure I get it I don't want to be declined).. I'm waiting for an answer... typically 7 to 10 days. Also, my banker said that with my LLC I'm pre-approved for an unsecure Business CC that will report to my social... Should I accept the offer?

How many cards should I get ? Is it a good idea to apply for a gas credit card? Am I gonna get turned down if the collection doesn't go away (that's my nightmare)

Thank you again for all your help and sorry for my questions, I'm really confused and frustrated.

[Revelate]

I wouldn't pay it straight up.  It's not yours, this sort of thing is fairly common where they just toss it on the best matching profile.  I'd certainly contact the collection agency and T-Mobile (contact info should be on the credit report under the tradeline), and get it fixed.

Look in the Rebuilding credit form: there's a ton of information on Debt Validation (DV for forum shorthand), which was absolutely designed for you as the collection isn't yours.

As for the WF card: absolutely pay it.  Never, ever take a derogatory mark you don't have to.

[AlwaysUp]

I called them, the woman from the CA said make a police report for identify theft (I just did it this evening) and then mail it to us. Then we will contact T-Mobile for you and remove it. With my luck, it sounds too good to be true lol. Does it sound right to you ?

Thanks!

[webhopper]

---

@AlwaysUp wrote:

I called them, the woman from the CA said make a police report for identify theft (I just did it this evening) and then mail it to us. Then we will contact T-Mobile for you and remove it. With my luck, it sounds too good to be true lol. Does it sound right to you ?

Thanks!

---

That sounds like that is correct... There's no way that its you!  They will fix it, and then you mail a COPY of the police report to the credit bureaus and they will fix it

[AlwaysUp]

Hold on I don't get it! She said that as soon as I send them the police report, they will forward it to T-Mobile and then they will take the account off my credit record since it's a fraud. That implies that I don't have to file a dispute with the bureaus since the CA is gonna take out by themselves ? Right ?

[Anonymous]

Judgement call on your part. I'd follow your gut. Unless you need a clean report asap, I'd consider one thing at a time.

[AlwaysUp]

Yes I need a clean report asap since I'm gonna apply for a car loan in June.. I don't want to have any baddies! The PD here are slow, they said come back in a week to get a copy of your report.. Then I have to fax it to the CA then wait until maybe they take it off my CR..

[Anonymous]

So in that case, then I'd dispute directly with the CRAs. You can find info on that process in the "Repairing Credit" forum.