topic Re: Paying off my old cards and have a question in General Credit Topics

Paying off my old cards and have a question

Anonymous — Wed, 13 Jun 2007 12:03:44 GMT

I have decided to secure a personal loan for about $4,000 from a bank to pay off my outstanding credit card balances.

I am hoping to be able to negotiate with the individual creditors to remove the numerous lates from my accounts in exchange for a lump sum payment/settlement for each.

My question is this: Is that something I would need in writing from the credit card companies (should they agree to do it)? If so, is there any particular format that works better than another?

I guess I am just worried about them taking the money and boning me by keeping the lates on there and I am not exactly sure of the procedure I need to follow.

Thanks,

David

Re: Paying off my old cards and have a question

sl — Wed, 13 Jun 2007 12:06:35 GMT

I would send the cc company a PFD letter (paid for deletion) offering to pay the amount or settled amount for deletion on the cb. Don't send the money until you have it in writing.

Re: Paying off my old cards and have a question

Tuscani — Wed, 13 Jun 2007 13:05:29 GMT

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

Re: Paying off my old cards and have a question

Anonymous — Wed, 13 Jun 2007 13:08:57 GMT

Thanks Tuscani!

Re: Paying off my old cards and have a question

Anonymous — Wed, 13 Jun 2007 20:34:27 GMT

Well, I applied for a $4,000 personal loan to cover my credit card debt today with SunTrust and at present, they are still deliberating over it (8 hours later).

Apparently, they pull EQ for the credit check, which is my worst score

I will keep my fingers crossed and hopefully they will have some positive news for me on Friday. I keep telling myself that the worst outcome would be a higher than normal interest rate and whatever rate the bank gives me will be amazingly low when compared to the 29.99% I am getting shafted with from the credit cards right now.

I will update when I hear something.

David

Re: Paying off my old cards and have a question

Anonymous — Wed, 13 Jun 2007 20:43:08 GMT

dhoff? You wouldn't happen to be The one and only David Hasselhoff would you

Re: Paying off my old cards and have a question

Anonymous — Wed, 13 Jun 2007 20:51:18 GMT

Alas, no.

Though it would be rather entertaining if I was... and was having credit problems and decided to get advice here.

David

Re: Paying off my old cards and have a question

Anonymous — Wed, 13 Jun 2007 20:58:54 GMT

LOL LOL well you know with your drinking problems and the inability to eat fast food hamburgers. I could see it.

Re: Paying off my old cards and have a question

Tuscani — Thu, 14 Jun 2007 01:07:20 GMT

Did SunTrust approve?

Re: Paying off my old cards and have a question

Anonymous — Thu, 14 Jun 2007 01:18:12 GMT

Tuscani -

Thanks for asking

No word yet on the approval. I called the bank around 4:45 p.m. EST and my app was still pending. They said they would call me in the morning. <sigh>

David

Re: Paying off my old cards and have a question

Tuscani — Thu, 14 Jun 2007 01:29:31 GMT

Good luck!

Re: Paying off my old cards and have a question

Anonymous — Thu, 14 Jun 2007 14:54:51 GMT

Well, I was declined for the loan.

Loan officer provided the following helpful reasons:

Utilization/outstanding revolving debt too high (37%)
Poor payment history (30+ lates)

Of course, Equifax is brutal about those things in relation to their scoring model. Probably could have seen it coming. Too bad they didn't pull the EX score that was 709...

The plan now is to activate my two new credit cards ($4,000 of additional credit lines) which should drop my UTIL to around 25% and continue paying down the outstanding cards as much as possible. Hopefully in about six more months my scores will have increased through responsible use of the new cards and I will have paid down my utilization to an acceptable level. The lates, unfortunately won't be going anywhere for another 5 years or so.

Thanks all for your support and well wishes it is much appreciated.

David

Re: Paying off my old cards and have a question

Anonymous — Thu, 14 Jun 2007 14:59:24 GMT

Time to start working on those GW letter's-
Who are the creditor's for the 30 day lates?

Re: Paying off my old cards and have a question

Anonymous — Thu, 14 Jun 2007 15:02:49 GMT

Creditors showing late payments:

National City Bank ($1800 balance at 29.99%)
Chase ($550 balance at 28.99%)
Day Air Credit Union (&1100 balance at 14.99%)

Re: Paying off my old cards and have a question

Anonymous — Fri, 15 Jun 2007 05:40:00 GMT

@Anonymous wrote:
Creditors showing late payments:

National City Bank ($1800 balance at 29.99%)
Chase ($550 balance at 28.99%)
Day Air Credit Union (&1100 balance at 14.99%)

Get those GW letters out.
I have heard some success stories with Chase
Looks like 2 of them already default" APR'ed you.

Good luck and keep us posted.