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New Member
kgkphd
Posts: 9
Registered: ‎06-05-2007
0

Personal Experience

I've just read the new myFICO ASK column --- about paying off old bills and its affect on FICO scores and I think it's mostly garbage.  Let me tell you my experience.
 
I have paid off old bills and negotiated others.  I've worked hard to clean up my credit --- BUT paying those bills does NOTHING for your FICO scores.  As long as that delinquency remains on your credit report, you're screwed.  No matter what I paid off, nothing went up in the way of FICO scores.  In fact, they fell in some cases.  Why?  Because paying off and closing the account may also have reduced the credit level.
 
As for the seven year limit --- don't hold your breath.  I've received some credit reports that actually have "Date Scheduled for Removal" on them.  The interesting thing is that not all the reports, in fact most of them, do not contain this information.  I was LIVID when I saw some of it.  Nine, ten, eleven years were there.  Bankruptcy --- off the record after seven years (by law I'm told) --- TEN years.
 
And then there are some companies that keep recording your deliquency, over and over, even after the account has been closed.  A good group for this is Capital One.  Once the account is closed for delinquency, they contiue to charge you monthly interest and report it monthly --- for about a year --- as a new delinquency with increasing balance.  For the next year, the same thing happens about quarterly.  So, what they are doing is extending the date that this delinquency will stay on your record.
 
Does paying off your bills make a difference?  Yes, in the fact that it takes a load off your mind and gets you out from under the harassment of collection companies.  You may not know this, but if a collection company cannot collect from you, they sell the debt to another collection company, and the whole routine --- including reporting --- starts all over again.  On your credit report, its reported as a new debt without reference to your original delinquency.  So ALL OF THEM may remain on your credit report.  You're screwed again.
 
Only removal of these offensive items will inprove your scores with regard to them.
 
Nobody cares why these debts were delinquent -- illness, disability, etc.  (Mine was a long-term nervous breakdown and despite letters from my psychiatrist, nothing helped.)  Nobody cares if you work your butt off to be honest and correct them.  Credit agencies are nothing more than self-righteous bastards, as are the people who take self-important pleasure in reporting to them.  We're all dead-beats and con-men to them.
 
So --- pay your debts but face reality.  It does NOTHING for your FICO scores --- which are as useless as SAT scores, MCAT scores, LSAT scores, and any other satandardized process.  (Even FICO isn't standardized --- just look at your scores at all of the three majors.  Sometimes you'll find a 100 point difference.  I did.)  You're not an individual kids!  You're a SCORE.
 
 
Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
0

Re: Personal Experience

It may not have improved your credit scores however other lenders can see that you have made good on them. As long as you had open accounts other lenders would be more likely to shy away from giving you new credit. It may be 7 years to come off your credit report, but at least you can start getting new credit now. :-)
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Moderator Emeritus
masdeocho
Posts: 2,050
Registered: ‎04-17-2007
0

Re: Personal Experience



kgkphd wrote:
As for the seven year limit --- don't hold your breath.  I've received some credit reports that actually have "Date Scheduled for Removal" on them.  The interesting thing is that not all the reports, in fact most of them, do not contain this information.  I was LIVID when I saw some of it.  Nine, ten, eleven years were there.  Bankruptcy --- off the record after seven years (by law I'm told) --- TEN years.
 

Welcome to the forum, and sorry to hear of your difficulties.
 
Here's a good thread about credit reporting timing (thanks Tuscani): http://http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=2689
 
Technically, the 7-year limit for reporting charge-offs and collections is 7.5 years, but the CRAs mostly go with 7.
 
TU and EX or EQ (can't remember) include, as a convenience to you, the estimated date that the TL will drop off your report; they are not required by law to report it.  Creditors are required to report to the CRAs the DOFD, but again, the CRAs are not required to include it on your report.  EX or EQ sometimes does.  Call the CRA to get the DOFD.  Add 7 years to it, and that's when the TL should go.  If it doesn't, dispute it as outdated.
 
BK -- it depends what type it is.  If it's a Ch. 13, it drops after 7 years.  If it's a Ch. 7, it drops after 10 years.
 
Hope this helps.
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Established Member
Felicity
Posts: 38
Registered: ‎05-22-2007
0

Re: Personal Experience

[ Edited ]
I can feel your frustration!
I'm working on helping my husband get a few of those CA's for medical bills removed from his report too by sending DV letters.  Same debt reported 4 times!  Twice with one CA and again with two others, probably sold as you mentioned.  As soon  as we figure out which one can validate the debt, he'll try a PFD.
 
It's aggravating since insurance should have paid this in the first place.:smileymad:   In the meantime, all he can do is get inaccuracies taken care of and figure out what FICO considers to be good credit habits.
 
Hopefully, you'll find a lot of good information in these forums that'll help and motivate you to disect your credit report and start getting that incorrect information removed!


Message Edited by Felicity on 06-05-2007 03:08 PM
New Member
3rd325
Posts: 37
Registered: ‎06-05-2007
0

Re: Personal Experience

A collection account is supposed to come off in seven yrs. However, the way collection accounts work is: the company you have the account w/sells that account to a collection agency. That collection agency may sell it to another if they can't collect on it, and so on and so on. Each time the collection is sold it is a new collection on your credti report. So even though the original collection may have been 10 yrs ago the account may have been sold many times each time starting the clock over again.
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
0

Re: Personal Experience


kgkphd wrote:
 
I have paid off old bills and negotiated others.
If you can't get a PFD, never pay a collection unless you have to pay it.

kgkphd wrote:
 
As for the seven year limit --- don't hold your breath.  I've received some credit reports that actually have "Date Scheduled for Removal" on them.
Call the CRAs and find out the DOFD yourself. Keep printed copies in case they try to reage the TLs.

kgkphd wrote:
 
I was LIVID when I saw some of it.  Nine, ten, eleven years were there.
Dispute, and if they don't remove, sue.

kgkphd wrote:
 
Bankruptcy --- off the record after seven years (by law I'm told) --- TEN years.

BK7 is 10 years. BK13 is 7 years.
 

kgkphd wrote:
 
Once the account is closed for delinquency, they contiue to charge you monthly interest and report it monthly --- for about a year --- as a new delinquency with increasing balance.  For the next year, the same thing happens about quarterly.  So, what they are doing is extending the date that this delinquency will stay on your record.

If they do, and you can prove it, a consumer lawyer would LOVE to talk with you. DOFD cannot be changed. If it is, you can sue the CA or OC and the CRA.

kgkphd wrote:
 
Does paying off your bills make a difference?
Only if you get a PFD.

kgkphd wrote:
 
it takes a load off your mind and gets you out from under the harassment of collection companies.
Knowing what I know now, I relish CA harassment. If I were currently enduring it, I'd be recording phone calls and racking up violations for lawsuits.

kgkphd wrote:
 
You may not know this, but if a collection company cannot collect from you, they sell the debt to another collection company, and the whole routine --- including reporting --- starts all over again.  On your credit report, its reported as a new debt without reference to your original delinquency.

Doesn't reset the DOFD. If it does, you sue.

kgkphd wrote:
 
Only removal of these offensive items will inprove your scores with regard to them.

It's worth repeating. Never pay a CA outside of a PFD unless you have to pay them.

kgkphd wrote:
 
Credit agencies are nothing more than self-righteous bastards, as are the people who take self-important pleasure in reporting to them.
In theory, CRAs simply report the facts and investigate honestly. Reality is they make money from the lenders because more subprime borrrowers means more money made in interest, penalties, fees, etc.

kgkphd wrote:
 
We're all dead-beats and con-men to them.
The sermons on ethical credit repair methods in this forum get under my skin.
Established Member
Momof5
Posts: 53
Registered: ‎05-22-2007
0

Re: Personal Experience

Noah,
 
My pet peeve is when the less experienced folks claim "yeah, it didn't help to pay those but future creditors will/may take the "paid" into consideration..." 
 
Where have they been living?  Under a rock?  The ONLY creditors that will take it into consideration is a mtg approval and you better still have a decent enough score.  Anyone else will kick you to the curb.
 

Starting Score: 482
Current Score: EQ: 637 TU: 625 EX: 635
Goal Score: 720


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Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007
0

Re: Personal Experience



kgkphd wrote:
I've just read the new myFICO ASK column --- about paying off old bills and its affect on FICO scores and I think it's mostly garbage. Let me tell you my experience.
I have paid off old bills and negotiated others. I've worked hard to clean up my credit --- BUT paying those bills does NOTHING for your FICO scores. As long as that delinquency remains on your credit report, you're screwed. No matter what I paid off, nothing went up in the way of FICO scores...





What are your FICO scores now?
- - - -
in a credit-scoring postnuclear Stone Age...
New Member
maple
Posts: 15
Registered: ‎06-05-2007
0

Re: Personal Experience



masdeocho wrote:
but again, the CRAs are not required to include it on your report. 





Sure they are.

(g) The term "file," when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.

(a) Information on file; sources; report recipients. Every consumer reporting agency shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to the consumer:

(1) All information in the consumer's file at the time of the request,
Moderator Emeritus
masdeocho
Posts: 2,050
Registered: ‎04-17-2007
0

Re: Personal Experience



maple wrote:


masdeocho wrote:
but again, the CRAs are not required to include it on your report. 



Sure they are.

(g) The term "file," when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.

(a) Information on file; sources; report recipients. Every consumer reporting agency shall, upon request, and subject to 610(a)(1) [§ 1681h], clearly and accurately disclose to the consumer:

(1) All information in the consumer's file at the time of the request,

While the text of a statute seems straightforward, there is often case law that goes along with it for interpretation. ("It depends what the definition of ' is' is." )  I honestly don't know if it makes a difference here. 
 
But even if the CRA has this obligation, its liability is limited if it screws up.  The consumer can't sue unless the CRA provided false info "with malice or willful intent to injure such consumer."  The CRA is only liable if it "willfully fails to comply" with the statute.  The CRA is liable for its negligent noncompliance, but only to the extent of actual damages suffered by the consumer. (I'll save the bandwidth by not reproducing the entire text of §§610(e), 616, and 617 of the FCRA).
 
You can say all you want about CRAs being evil, but I think it may be hard to prove they are deliberately out to get you, [TheNewWorldMan's views notwithstanding :smileyhappy:] or that you suffered quantifiable damages due to their negligence in not reporting the DOFD.
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.

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