topic Re: installment question in General Credit Topics

installment question

Anonymous — Fri, 15 Aug 2008 23:07:09 GMT

My DH has very few open accounts. 3 revolving and 1 installment. We will be making the last payment on the installment account in September. Opened 9/06 and never late. So my question is once this account shows paid and closed will he lose points? Any suggestions?

Thanks.

Re: installment question

fused — Fri, 15 Aug 2008 23:37:20 GMT

Yes, he might. Not having an open installment account takes away credit mix points for some. Unless he's planning on apping for something big, he shouldn't care, saving money is always more important than credit scores. Apping to improve credit mix won't help scores, having a new inq and reaging a file will negate any points gained by having an installment account that improves credit mix.

Re: installment question

Anonymous — Fri, 15 Aug 2008 23:45:30 GMT

hmmmm. We are planning on applying for a mortgage hopefully within less than 6 months.

I don't know what to do.

Re: installment question

fused — Fri, 15 Aug 2008 23:46:55 GMT

What are his FICOs now?

Re: installment question

Anonymous — Fri, 15 Aug 2008 23:51:55 GMT

TU 669 EX 659 EQ 593

He has two paid charge off from 2005. I have sent GW's but so far no luck.

He does have several medical collections which I am working on hipaa as I can pay them.

Last late payment was in 12/2006

revolving debt under 10%

Re: installment question

fused — Fri, 15 Aug 2008 23:57:37 GMT

How old are his med collections? You do know that FHA loans are not score driven; also by your hubby paying off his truck he will improve his/your DTI.

Re: installment question

Anonymous — Sat, 16 Aug 2008 00:05:16 GMT

Yes I know. Thanks. The only thing I don't like about FHA is the pmi requirement.

I have to check his latest collection to see if it is out of the 12 month range. He did just have one deleted that was his most recent so I think he is out of the 12 months. Actually our DTI with the new mortgage will be 31% so we are really close. I was just hoping to get a little higher scores before we apply. Thanks for ALL your help fused!!

Re: installment question

fused — Sat, 16 Aug 2008 00:12:33 GMT

Actually, collections do the most damage in the first 24 months so if he has any med collections less than 24 months old, it would great to PIF and get rid of them. His scores would surely start climbing.

Re: installment question

Anonymous — Sat, 16 Aug 2008 00:15:29 GMT

when you say pay in full you mean with the hipaa process??

Re: installment question

fused — Sat, 16 Aug 2008 00:32:28 GMT

Your situation is only different than your DH's because your collection is already paid. So, yes you can start the HIPAA letter process immeadiately. As for your DH, you can certainly try and pay the OC first and if they refuse, pay the CA. As long as someone fully understands the HIPAA letter process, it doesn't really matter who gets paid, the OC or CA. Most people in this forum have little or no experience with credit repair and CAs, let alone the HIPAA letter process. So, we always tell them not to communicate with CA at all costs. Always remember that the HIPAA process requires you PIF, otherwise it won't work. CAs are allowed to report unpaid collections, but they cannot report paid collections...do you catch my drift.

Re: installment question

Anonymous — Sat, 16 Aug 2008 00:32:49 GMT

I checked his report and there are atleast two within the last year. I recently paid these and sent the prehipaa letter this week.

Re: installment question

fused — Sat, 16 Aug 2008 00:47:47 GMT

Once these getted deleted, his scores will go up. GL!