topic Re: 1 Revolving Acct. In Collections.100% Utilization in Rebuilding Your Credit

1 Revolving Acct. In Collections.100% Utilization

Anonymous — Sun, 13 Mar 2011 17:25:44 GMT

I only have 1 revolving acct and it has been sent to collections/charged-off in 2009. My fico is showing 100% utilization of 1 revolving acct. It is also showing multiple 60+, 90+, and 120+ days late for this 1 tradeline. I called the OC (no CA) and PIF. She stated that they will update PIF (I have received the PIF letter from them), close the acct, and delete all of the late payments. She also told me sometime the CB don't update like their suppose to and I should dispute it.

So , I paid it off on March 2 and I disputed on March 5th. Was that too early? I know it takes 30-45 days to finish a dispute. I disputed online, and it showed that I should have my answer by April 1st. (soo hope it will be deleted). They haven't reported anything on my CR as of today..

Also, since my 100% utilization will be gone, and the acct will be closed should I get a secure card, so I will have a revolving line of credit?

Will this boost my score by alot? I only have 1 more collection account that I will try a PFD.

Re: 1 Revolving Acct. In Collections.100% Utilization

RobertEG — Mon, 14 Mar 2011 03:39:22 GMT

You probably jumped the gun a bit on the dispute, but I dont see that as being a real problem.

The CRA will forward your dispute to the OC. The people at the OC who review your disptue may not yet have been informed of the promised CR deletion, and thus may verify the delinquencies.

All that CR deltion requires is the reporting by the OC of a simple deltion of each derog. CRA removal is not discretionary if reported by the creditor. I would not have disputed until a month or so later, letting the paperwork at the OC clear the desks. It may cause some confusion at the OC, and possibly delay its deletion, but in the end, you should arrive at the desired result.

Re: 1 Revolving Acct. In Collections.100% Utilization

Anonymous — Fri, 18 Mar 2011 04:06:38 GMT

Re: 1 Revolving Acct. In Collections.100% Utilization

Anonymous — Fri, 18 Mar 2011 12:34:24 GMT

And yes, once you have that and that collection taken care of, opening a secured card will help your score.

Also, it's against ToS to advocate disputing accurate information.

Re: 1 Revolving Acct. In Collections.100% Utilization

MBOhio2 — Fri, 18 Mar 2011 18:35:35 GMT

I don't think OP was advocating the disputing of correct information. What she disputed was the 100% utilization/balance of the account, which after her PIF was technically incorrect. Unfortunately, A LOT of creditors take the stance of "yes, we'll update, but sometimes it's gets missed, delayed, etc so just dispute it to get it updated corrected" - it's basically taking responsibility off of them to affirmatively correct soemthing because they're lazy and it's easier to just wait and respond to a dispute with the correct information.

I've been in a similar situation where the creditor actually told me that they would NOT affirmatively correct something (totally the creditor's mistake), but that I could get it fixed by disputing and then they would provide the corrected info. It's a frustrating thing that creditors sometimes do.

Re: 1 Revolving Acct. In Collections.100% Utilization

Anonymous — Fri, 18 Mar 2011 19:23:33 GMT

More correctly, I should have said that "instead of disputing, give them 30-45 days to update your status"

Re: 1 Revolving Acct. In Collections.100% Utilization

Anonymous — Fri, 18 Mar 2011 22:28:03 GMT

More correctly, I should have said that "instead of disputing, give them 30-45 days to update your status".

Yes, i probally should have given them time to update, but i was so excited and the person that i spoke with actually TOLD me to dispute it, however, i didn't ask how long to wait before i disputed. My mistake, but i do have the corrected, kinda)

Equifax (wonderful): account status changed to pays as agreed, no balance, no late payments, closed at consumers request, however,

Transunion is reporting as a paid collection.

This is so weird, same account, info came back on the same day for both bureaus, but totally different reporting. Maybe 2 seperate people handled it.

Don't know what to do now. I guess wait.

Re: 1 Revolving Acct. In Collections.100% Utilization

Anonymous — Sun, 20 Mar 2011 04:11:48 GMT