Uh Oh!

[Anonymous]

 Had a serious wake up call today.

I was on my way to apply for an SBA loan today and decided to check my Credit Score just so there were no surprises. I hadn't checked it in over 2 years, and when I last checked it was in the low 700's. I was shocked to see that my EQ score was now 677. Good thing I checked. I'm going to have to clean things up before I apply for the loan.

There were three negatives in my report:

One Public Record: a tax lien for $527, which I paid back in April. It is showing up as "Date Resolved:NA"

Went to the courthouse and got a copy of the document showing the debt has been paid, but I'm not sure if the fact that there was ever a lien is the big problem or that it was showing as never resolved.

 Next item is a MACY's Visa Account showing 30 day late payment in Aug 2008.

Current Status is "Pays As Agreed"

Spoke to Macy's and got them to remove the delinquency from my account and they're sending me a letter to that effect.

This has to help, right? 

Third negative item is a 30 Day late payment from 2006, on a Capital One CC. The card was closed in 3/09 due to inactivity (which yes, I now realize I never should have let happen)

Other factors:

one installment loan (auto) which is at a Debt to Credit Ratio of 43%. Not much I can do about that.

I have an outstanding balance on one CC of $4500 ($9000 Credit Limit). I'm fairly sure that's not helping my situation any. I can get that down to 30% immediately. That'll help, right?

Is there anything else I can do, short of paying of the CC entirely?

I'm assuming there are no quick(ish) fixes here. 

Any suggestions? 

[Anonymous]

When it comes to SBA, lenders look at FAR more than your personal credit score.  How long have you been in business, what is your total experience in this field, what will you use as collateral... a credit score alone (even excellent) won't get you there.

Good luck, hope it goes well!

[RobertEG]

Paying a debt never removes the prior fact of delinquency reporting to your CR for 7 years,. It remains,.

A PR is a major derog.   A lien is just a creditor's claim, in the case of default of the debt, to secure the assets put up for the loan, and assert their legal entitlement to the property for assured in the loan.

What did the court order say?  Did the court judgment find you in default, and if so, what were the terms of settlement?

[Anonymous]

Robert,

 I'm not really sure how to answer those questions. I don't find the word "default" anywhere on the GA Dept Of Revenue State Tax Execution.

 What I have here looks like the collection notice to the sheriff. with a "CANCELLED" stamp on it.

FV