topic Re: Child Support CA in Credit Cards

Child Support CA

SherriLynn — Fri, 19 Sep 2008 04:58:57 GMT

Recently, my bf and I were talking about credit and I suggested maybe it's time he get one credit card. So we were online deciding which one he wanted to app for. He has not had a credit card for over 10 years. His TU score is 705, so I figured he would qualify for any card he wanted. However, he is in arrears with his child support. He was out of work several years ago, didn't pay for a long time, and he got way behind. He's been paying it for years now, but still owes $16,000! We pulled his credit reports and, of course, it shows a huge collection. He was declined for both CapOne and Orchard. My question is, would he qualify for a secured card like (BofA) with this on his report? Or, should we leave things alone until the collection is paid? He's mad now that there are two wasted inq's on his report. Anyway, he is getting a CapOne card because I just added him as an AU, so haha! I bet they're mad! Any other parents out there with this problem? What cc's do you have? Thanks a bunch!

update: checked EQ tonight, there is no score for him.

Message Edited by SherriLynn on 09-18-2008 10:58 PM

Re: Child Support CA

Anonymous — Thu, 18 Sep 2008 17:02:58 GMT

Did he try Orchard secured or just a regular Orchard CC? The good thing about Orchard secured is they report to all three CRA's. They are working well for me, of course my scores were in the 540's when I started, maybe he was turned down because his score was too high.

Re: Child Support CA

SherriLynn — Thu, 18 Sep 2008 17:04:05 GMT

He apped for the regular Orchard.

Re: Child Support CA

smallfry — Thu, 18 Sep 2008 18:20:47 GMT

Still owes 16K? Be thankful he doesn't live in NJ. He'd be in jail.

Re: Child Support CA

niecey89 — Thu, 18 Sep 2008 18:31:43 GMT

I live in NJ, besides my daughters father, my god-son's father owes over $25,000. No one has gone to jail yet. All they are doing is garnishing wages for little money.

I would suggest trying one of the other cards, try a CU or maybe even his own bank. That is shocking that with scores in the 700s he is still denied.

If i can get credit cards with scores in the low 500s, he can get one. Just keep praying. GOOD LUCk

Message Edited by niecey89 on 09-18-2008 02:31 PM

Re: Child Support CA

Anonymous — Thu, 18 Sep 2008 18:44:05 GMT

I agree, the only time they put you in jail is if you refuse to pay. Wage garnishments are the first step, and you can't take more than is legally allowed by state law. Here in California it is 25 percent of your check. My friend has this done every check like clockwork. He had to share an apartment with me and another roomate because he could not afford rent. (In fact who can these days.)

I would try for secured cards. Help build up a solid foundation, when they have served their purpose move on to a better class of card, like Chase or BofA.

Re: Child Support CA

Anonymous — Fri, 19 Sep 2008 00:54:44 GMT

@Anonymous wrote:
I agree, the only time they put you in jail is if you refuse to pay. Wage garnishments are the first step, and you can't take more than is legally allowed by state law. Here in California it is 25 percent of your check. My friend has this done every check like clockwork. He had to share an apartment with me and another roomate because he could not afford rent. (In fact who can these days.)

I would try for secured cards. Help build up a solid foundation, when they have served their purpose move on to a better class of card, like Chase or BofA.

Not to be argumentative, but the 25% limit is for consumer debt/garnishment.

For Child Support the limit is 50% if current and 60% if in arrear.... Been there done that, got the T shirt.

The limit should be applied to Aggregate Disposable Income per Federal law... but again each state interprets that in there own way.

Re: Child Support CA

Breakthecycle2 — Fri, 19 Sep 2008 01:03:27 GMT

If i can get credit cards with scores in the low 500s, he can get one. Just keep praying. GOOD LUCk

Message Edited by niecey89 on 09-18-2008 02:31 PM

Do you mind if I ask what cards you are able to get with those scores?

Re: Child Support CA

Anonymous — Fri, 19 Sep 2008 01:10:22 GMT

Is the child support listed as a Collection or a Judgement/Public Record? I wonder if it's listed in the public records section if that's why he's having a hard time getting approved. Some lendors look at that as being much worse than a CA.

What else is on his report to keep his scores in the 700's if he doesn't have any active cc.

Re: Child Support CA

niecey89 — Fri, 19 Sep 2008 02:07:11 GMT

Breakthecycle2, I have 2 Cap1s, Orchard Bank, Walmart, Upromise Citibank, Children's Place, Avenue, and Ikea. Oh I must not forget my new truck loan from Americredit. All of these accounts with in the past 2 years; Americredit is the most recent 12/2007.

Re: Child Support CA

Breakthecycle2 — Fri, 19 Sep 2008 02:17:24 GMT

Sorry to hijack rhis thread, but what reports did walmart qnd Ca one pull? What was your score?

Re: Child Support CA

niecey89 — Fri, 19 Sep 2008 02:26:02 GMT

I do not remember which one it was at the time. That was 2 years ago. I do know I had tons of debt when I applied (shocked that they gave me credit). I was probably still in the 500s I live in NJ, i do not know if that might help you. I know some states pull different reports

Message Edited by niecey89 on 09-18-2008 10:26 PM

Re: Child Support CA

Breakthecycle2 — Fri, 19 Sep 2008 02:47:22 GMT

This does help as I am in NJ as well

Re: Child Support CA

SherriLynn — Fri, 19 Sep 2008 14:10:08 GMT

UpUpUp wrote:
Is the child support listed as a Collection or a Judgement/Public Record? I wonder if it's listed in the public records section if that's why he's having a hard time getting approved. Some lendors look at that as being much worse than a CA.

What else is on his report to keep his scores in the 700's if he doesn't have any active cc.

It is listed as an adverse account on TU, and under credit items on EX. EQ was not available online that night, but I'm going to try it again tonight. The only other item on his reports is a positive account from years ago. Date closed: 08/1999. Looks like it's about to fall off.

Update: EQ has no credit score for him.

Message Edited by SherriLynn on 09-19-2008 08:10 AM

Re: Child Support CA

Anonymous — Fri, 19 Sep 2008 03:03:21 GMT

Ah, I see. So, unfortunately, he has nothing really positive to outweight the negative. The one account he does have is old/closed. Even though his score currently reflects a number that we wouldn't expect, I suspect he'll probably have to start with a few rebuilder cards and work his way back up...but I'm surprised Orchard wouldn't take him. Hmmm.....there are other secured cards. Orchard does offer one, you know of BofA already, Citibank has one...who else? Anybody?

Does he have the ability now to pay that past due balance? I wonder if once it is paid if they totally remove the negative entry, or just mark it "paid". I think Child Support obligations may have different rules, I don't think they fall off even at the 7 year mark. Not sure about that though...

Message Edited by UpUpUp on 09-18-2008 11:03 PM

Re: Child Support CA

niecey89 — Fri, 19 Sep 2008 03:04:33 GMT

As far as I know (been to court too many times). Non-payment of support does not drop off credit report. It is it treated differently then credit and loans.

Re: Child Support CA

SherriLynn — Fri, 19 Sep 2008 03:14:42 GMT

UpUpUp wrote:

Does he have the ability now to pay that past due balance? I wonder if once it is paid if they totally remove the negative entry, or just mark it "paid". I think Child Support obligations may have different rules, I don't think they fall off even at the 7 year mark. Not sure about that though...

Message Edited by UpUpUp on 09-18-2008 11:03 PM

He doesn't have the cash, but is considering a loan from his CU. Could probably get a much better interest rate. He has a feeling that even if he got a loan for the balance, that it would remain on his credit reports as a negative.

Re: Child Support CA

dondk — Fri, 19 Sep 2008 03:23:06 GMT

@SherriLynn wrote:

@Anonymous wrote:

Does he have the ability now to pay that past due balance? I wonder if once it is paid if they totally remove the negative entry, or just mark it "paid". I think Child Support obligations may have different rules, I don't think they fall off even at the 7 year mark. Not sure about that though...

Message Edited by UpUpUp on 09-18-2008 11:03 PM
He doesn't have the cash, but is considering a loan from his CU. Could probably get a much better interest rate. He has a feeling that even if he got a loan for the balance, that it would remain on his credit reports as a negative.

it "should be" a public record, that is how most states list it these days. Once settled (and it never will be) then you can try to get it removed or released. Mine in NY is as a lien with a date going back into the 80's (not a typo, yes the 80's) and I am having issue's getting it removed. A friend of mine had to get a judge to order the agency to remove it ASAP. NY just is not that motivated to get people off the list.

As for a loan, that is what the agency wants, you may want to discuss this with an attorney before you get that far. I know in NY if you suddenly pay down the arrears, you will be back in court with them asking how you did that and seeing if they can get an increase in the support order. Years ago, it was recommended to always leave something there, even though you are paying interest on it and it is being reported, it is cheaper than a trip to court.

this is only my opinion and from what I personally experienced, everyone else's mileage my vary.

Re: Child Support CA

SherriLynn — Fri, 19 Sep 2008 04:03:48 GMT

dondk wrote:

it "should be" a public record, that is how most states list it these days. Once settled (and it never will be) then you can try to get it removed or released. Mine in NY is as a lien with a date going back into the 80's (not a typo, yes the 80's) and I am having issue's getting it removed. A friend of mine had to get a judge to order the agency to remove it ASAP. NY just is not that motivated to get people off the list.

As for a loan, that is what the agency wants, you may want to discuss this with an attorney before you get that far. I know in NY if you suddenly pay down the arrears, you will be back in court with them asking how you did that and seeing if they can get an increase in the support order. Years ago, it was recommended to always leave something there, even though you are paying interest on it and it is being reported, it is cheaper than a trip to court.

this is only my opinion and from what I personally experienced, everyone else's mileage my vary.

Since his daughter turned 18 last year and is not attending college, the child support has stopped. All he owes is the arrears. I really don't see why he would be called into court for paying it off, especially if he gets a loan and has documents to prove it. He is paying the balance down with weekly payroll deductions. The payments are $470 per month. He pays $109 out of each paycheck. Without the additional $470 being tacked on each month, the balance should go down faster than it it is. It's very unclear what percentage they're charging him in interest. I think with his scores a CU would loan him some if not all of it, at a much lower rate.

Re: Child Support CA

Anonymous — Fri, 19 Sep 2008 04:07:36 GMT

I think the reporting procedure may differ by state. My husband has support arrears and it is just listed like a regular account and is updated monthly by MA Dept. Of Rev. It says Paid as agreed, nothing bad listed there @ all (except that there is still a balance, which is probably obvious to lenders is arrears). It doesn't list high balance, just the amount he pays in total support per month (including both current and arrears in one sum). I don't know if it'll stay on his file once paid, but it doesn't appear to be affecting his score in at all.

Message Edited by siangirl34 on 09-18-2008 09:07 PM