Contributor
quarius
Posts: 139
Registered: ‎08-18-2012
Re: Anyone know any cards or things to due for someone who consolidated there credit?

llecs wrote:

Closed CCs w/ a balance still factor into CC util, as do open ones. Unfortunately, many consolidation companies will ask you to close the cards when entering their program and/or when you accept their check. Once the balance goes to $0, then they are forever removed from CC util. So, if closed and at $0, I can see a scenario where a FICO score can drop, especially if they have any other account(s) that still report a high balance and are hurting CC util. It may be out of his/her control anyway, but it's often a requirement they are closed.

 

If the accounts were late which led to the decision to consolidate, then that too can have an adverse result when the accounts show lates and/or derog comments.

 

Not too much they can do other than maybe ask 2-3 creditors if they can reopen the accounts. If not, I'd tell them to open a secured card or two. It also sounds like there are other things going on within the reports. 200 seems too high for changes in util alone. I suspect there are some lates factored in there somewhere, and/or they are comparing two different scoring systems (e.g. a FICO with a FAKO).


Never any lates or negatives in that way. Just consolodation of all there debt, which they had alot of stuff. They r in there 50's-60's. They just wanted a way of being able to pay the debt without going crazy and i don't think they thought it out all the way and now they r not to happy with the resulted and what will happen when they want credit anytime soon.

{NFCU-25k}{Saphire-15k}{Duck-15k}{BOA-12k}{DCU-10k}{Slate-7200}{Simplicity-$7200}{USAA-6k}{DiscoverIT-5k}{CitiTY-$4100}{AmexBCE-$3500}{Venture-$3000}{WalmartDisc-$2600}{Merrick-$1200}{AmazonVisa-$1650}{Cap1-$600}
1/1/14 [Experian-Fico 747][TU-Fico744][Equifax-Fico766]