topic Cap1 Executive Mosh in Rebuilding Your Credit

CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 19:38:15 GMT

Hey there... I started reading this forum in June 2008 and have begun the long journey of recovering my credit. I have decided to log my activity as I take this journey for two reasons. First, if anyone has suggestions or critiques, I would love to hear it. Second, if anyone is about to start a similar project, they may learn from my mistakes.

So, here we go!

6-4-2008 - Denied for multiple CC apps, seeking a new gas card. went online and pulled all 3 fico reports:

EXP - 577 EQU - 530 TRANS - 542

This is when I began reading everything I could on these forums. I found that much of my report was inaccurate or outright did not belong to me. I began the dispute process as soon as I had a clear understanding about how it worked.

Message Edited by p- on 07-14-2008 12:38 PM

Re: CREDIT REBUILD PROJECT LOG

Anonymous — Mon, 14 Jul 2008 19:56:39 GMT

Welcome!

Best of luck with your journey. Keep us posted!

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:03:36 GMT

Reports as of 6-4-08:

EQUI:

# Accounts Past Due - none

Credit History - 8 years

Late Payments - 18 yikes!

# of Accounts - 8

# of Accounts w/ balances - 2

Accounts opened in past year - 0

Recent Inquiries - 3

Collections - 7 range from true to impossible, spread over past 7 years

Public Records - 1 judgement from where? never recieved summons

Initial red flags:

late payments from period of unemployment on student loan, car pmt, and home phone, now current, but all 3 reported lates. old home phone acct closed in march 07 but reported late through march of 08!

EXPER:

# Accounts Past Due - none

Credit History - 7 years

Late Payments - 12

# of Accounts - 8

# of Accounts w/ balances - 2

Accounts opened in past year - 0

Recent Inquiries - 4

Collections - 5

Public Records - 0

TRANSU:

# Accounts Past Due - none

Credit History - 4 years

Late Payments - 19

# of Accounts - 7

# of Accounts w/ balances - 2

Accounts opened in past year - 0

Recent Inquiries - 3

Collections - 7

Public Records - 0

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:09:41 GMT

My initial concerns:

A lot of this is unfamiliar. I need to clear up the baddies that don't belong.

The "Legal Item" filed 9-1-04... $2,000 What is it, and how do I get it off my report?

Can I get my current account holders to clear the late payments off?

Can I successfully negotiate with collection agencies to get this information clear of my report?

I have some good accounts, can I get more, and will they help or hurt?

I still need a gas card, what is my best option?

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:18:45 GMT

Actions Taken:

6-10-2008:

Submitted dispute letters to all 3 CB's for baddies that don't belong to me. Started with basic form letters similar to this. There are many others available in these forums.

June 04, 2008

To Whom It May Concern:

After closely examining my Equifax Credit Report obtained on 6/4/2008, I have discovered the following errors:

Problem 1

The current address is incorrectly reported as:

However, I have moved. Please change my current address to:

Problem 2

The following account is not reported as closed by consumer:

XXXXXXX

Paid collection

However, I have closed this account and repaid everything I owed ON TIME. Please report this account as closed by consumer.

Problem 3

The following account is listed on my report:

XXXXXXXX

Date opened: 11/1999

However, I have never opened this account. It is not my account and it should be removed.

Problem 4

The following public record is listed on my report:

Type: Legal Item
(Judgement)
XXX
Amount: $1,955
Date filed: Sep 01, 2004
Status: Not Reported

However, I do not have this legal item. Please remove this record from my report.

Problem 5

A collection is listed on my report for a debt on an account that was never mine. The collection is:

The collection agency XXXXXX
was hired by Creditor XXXXXX

to collect debts on Account Number 'XXXXXXXXXXXXX.
Status: Unpaid
Balance: $2,113

Please remove this collection from my report.

I would appreciate your prompt response to these issues.

Sincerely,

XXXXXXXXX

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:30:04 GMT

Actions Taken 6-16-2008:

I applied for and recieved an unsecured credit card through Orchard Bank. I have a $300 limit (I spend more than twice that a month just on gas) and have begun using it. The annual fee is 20 bucks, but they hit me for another 80 to start the account. I guess beggars can't be choosers.

I am currently using and immediately paying this card every time I fill up. Average transaction, $75.00. Average daily balance $.01. Goals for this line:

Increase unused available credit as much as possible,

show on time payments for two years,

increase number of accounts in good standing.

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:34:11 GMT

Actions Taken 6-23-2008:

After reading carefully through the many threads here detailing how a PFD works, I drafted a number of letters using the guidelines I found. Here is an example of a PFD letter I have used:

COLL AGENCY

ADDY

ST ZIP

Re: Collection Account for ORIGINAL DEBT HOLDER ACCOUNT #: XXXXXXXX

Amount: $56.00

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you before regarding this account.

In the spirit of compromise, I am willing to pay 10% of the original stated debt or a total of $5.60 if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of Five Dollars Sixty Cents ($5.60) will be sent to AGENCY. in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

AGENCY agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, AGENCY will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicitly agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of AGENCY. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

I typed my name and address, did not sign.

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:50:07 GMT

Actions Taken 6-23-08 continued:

Regarding the PFD - I figure it's worth a try, right? So I sent a letter with what I thought was a reasonable PFD offer to all the CA's I have, legit or not.

Here is the list, some names may be changed to protect the illiterate:

ALLIAN___1: 3 LETTERS

ER SOLU____S: 1 LETTER

OSI C________NS: 1 LETTER

PUGE_ SOU__ CO___: 1 LETTER

SOUN_ SCRE__ SER_: 1 LETTER

I'll update as I recieve responses.

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 20:51:38 GMT

masdeocho-

RE: Welcome!

Thanks,

Re: CREDIT REBUILD PROJECT LOG

llecs — Mon, 14 Jul 2008 20:57:00 GMT

It is a fun process. And best of luck.

Per the PFDs, I recommend sending out a DV before sending out the PFD. You want to create a paper trail, and a DV helps accomplish that. Also, CAs and OCs don't have to respond to or answer a PFD. It is not unheard of for a CA to change the amount you owe once you PFD them.

I also send my PFDs regular mail.

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 21:30:55 GMT

Response Received 6-25-08 via mail from EXPERIAN:

Huge packet - notifying me that are "protecting my privacy with a temporary initial security alert" to my credit file for 90 days. How does this affect me? I don't know - any thoughts appreciated.

They state in the letter that they were notified by another agency that I might be the victim of identity theft. The report they sent had no changes from the one I recently pulled, so I'm guessing they generated this before processing my dispute letter. I don't think I need to re-send my dispute, but I'll keep an eye out for the response.

Message Edited by p- on 07-14-2008 02:30 PM

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 21:44:03 GMT

Response Recieved 7-1-08 via Email from EXPERIAN:

Of 5 disputed Collections -

2 DELETED - Yaaay

1 VERIFIED, remains unchanged, scheduled deletion MAR 2010 - this was the college I went to, I prepaid all in cash but they claim I owe $173 in collections first I heard... grrrrr...

2 UPDATED, one is scheduled to drop off in 2009. I can live with that. The other is a debt from 1999, roommate screwed me, settled in 2000, but is listed as opened in 2000, reported since 2005, will be on record to NOV 2011! How is that possible, how do I get that off my report? It's over 9 years old and settled for over 8 years. Any suggestions appreciated.

I'm guessing I'll have to DV the ramaining collections, thanks llecs. Any link to a favorite DV form letter?

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 21:52:01 GMT

Action Taken 7-2-08:

Send GW Letters to 3 companies that report me as having lates.

1. Dept of E_______n: Reports me late multiple times, now am current. Wrote specific GW letter.

2. Ver____ Home Phone: Reports me late, paid in full, have just cell with great history, wrote letter to CEO.

3. WFS Fi____l: Reports me late multiple times, now am current. Used GW letter based on examples in this forum.

Message Edited by p- on 07-14-2008 02:52 PM

Re: CREDIT REBUILD PROJECT LOG

p- — Mon, 14 Jul 2008 22:02:23 GMT

Action Taken 7-7-08:

Just joined a credit watch service offered by my bank. They seem pretty competitive; teaser free start and then a monthly fee to moniter and provide updates to me from my credit reports. It's reasonable, and I need to keep an eye on things while this project continues. Haven't recieved report from them as of yet. Goals are updated as follows:

1. Get rid of all collections agencies on credit report.

a. DV all invalid collections.

b. Aggressively negotiate PFD with valid and invalid that DV ineffective.

2. Improve all current trade lines with GW letters and any other possible means.

3. Maintain low balance and do not use available credit.

4. Figure out what to do about the Judgement. Help or suggestions from any here appreciated!

5. Avoid any unneccesary pulls.

Still awaiting response from two CB's re disputes, awaiting response from GW letters, awaiting response from PFD offers.

Still need to assemble and send DV's, need to read up on procedure in forums.

Re: CREDIT REBUILD PROJECT LOG

p- — Tue, 15 Jul 2008 14:52:09 GMT

Response Received - 7-15-08

Response via mail from ALLIAN___1 (CA):

"The settlement offer is unsatisfactory. The account must be paid in full. Please contact us immediately to resolve this matter."

Ha!

1. It's not mine.

2. It's from 2003 - My goal is perfect score in 2 years, this will be gone by then anyway.

3. No more PFD for you, time to DV. Thhhppppp!

Plan of action: DV this account using letters and guidelines provided in this forum.

Will update as situation changes.

Re: CREDIT REBUILD PROJECT LOG

p- — Tue, 15 Jul 2008 15:14:15 GMT

Credit Score Update Recieved 7-15-08:

On 6-4 it was:

EXP - 577 EQU - 530 TRANS - 542

As of 7-15 is:

EXP - 614 +37 EQU - 603 +73 TRANS - 644 +102

Holy snizzle! This is working better than I ever hoped!

Here's an update of derogs cleared compared to 6-4:

6-4-08 7-15-08

EQUI:

# Accounts Past Due 0 0

Recent Inquiries 3 3

Collections 7 6

Public Records 1 1

Revolving Acct Bal n/a 1%

EXPER:

# Accounts Past Due - 0 0

Recent Inquiries - 4 5

Collections - 5 3

Public Records - 0 0

Revolving Acct Bal n/a 1%

TRANSU:

# Accounts Past Due - 0 0

Recent Inquiries - 3 3

Collections - 7 1

Public Records - 0 0

Revolving Acct Bal n/a 1%

__________________________________________________

Tis is before sending out any DV letters. Game on!

Re: JUDGEMENTS

p- — Tue, 15 Jul 2008 15:16:38 GMT

Hello out there... Anyone know what I can do about a bogus Judgement on my CR? Any help or suggestions appreciated.

Thanks.

Re: JUDGEMENTS

p- — Tue, 15 Jul 2008 15:33:40 GMT

More info about the JUDGEMENT. (oh so dirty)

Did some digging, found the source...

Back in 2003 I rented a room at a house that was near a college campus. Decent rooomates, setup was we each rented direct from landlord, utilities included. Times got tough, and the landlord started taking some sub par tennants... i.e. tweakers, thieves, at one point we had the police raiding the place looking for a tennant.

My company offered me a promotion and relocation, so I gave 30 days notice, payed rent, and left. It was before the end of the lease.

Landlord apparantly served someone (not me, I was in Phoenix) with papers and got a judgement against me for $2,000 for alleged wear and tear of common areas since I was a no show.

Now here I am with a Judgement. It is dated 9-2004. So, my questions:

How long will that Judgement stay on my credit report?

Does paying it make a difference?

How much does it affect my credit report?

It only shows on Equifax; Should I be worried that it will show up on the other two?

Do I have any legal recourse to appeal this much later?

I live in CA but the Judgement is WA, any info on SOL?

Any help appreciated, thanks.

6-4:

EXP - 577 EQU - 530 TRANS - 542

7-15:

EXP - 614 EQU - 603 TRANS - 644

Message Edited by p- on 07-15-2008 08:33 AM

Re: GW Letters

p- — Tue, 15 Jul 2008 15:44:30 GMT

7-15-08 RESPONSE RECIEVED - GW LETTER

Ver____ Home Phone: Sent GW Letter 7-2 (RE: derog report) to Veriz__ CEO office (found name and addy on the internets).

Recieved phone call from office of the President and CEO of V______ Wireless. Very polite and understanding, confirmed that I am customer in good standing with perfect payment history.

Notified me unfortunately that Home Phone division is seperate, but hapily gave me name, address, and contact info for CEO of Home Phone. Forwarded my info to home phone, reccomended I send same GW letter to them and include my contact at Wireless CEO office.

Will resend GW Letter per instructions.

Re: Vacating a JUDGEMENT

p- — Tue, 15 Jul 2008 19:58:10 GMT

Below is an excerpt from a legal website. It sounds like this thing will haunt me until I take care of it. The SOL for the state filed as well as my residence is 10 years. If I pay it stays another 7. If I don't it could renew and stay to 2024.

My best option looks like doing the following:

1. Dispute with EQUIFAX. Maybe the court won't report timely. (I have already done this, waiting for response)

2. File a Motion to Vacate with the court on the grounds I was never legally served.

3. If the motion doesn't work, contact the JC (Judgement Creditor) and negotiate for dismissal in exchange for payment. I am concerned that contacting them may lead to more agressive collection activity. Is it worth waking a sleeper?

Can anyone here confirm or deny the accuracy of this information, or share any tactics?

EXCERPT:

"JUDGMENTS
Removing a judgment from your credit reports: How to

When a debt is in collections and you are served, you are given about 30 days to object to the filing if you have a cause. If you can prove that the debt is invalid you can get the hearing dismissed. Additionally, if an agency has sued you without giving you the mandatory 30 day notice to dispute the validity of a debt then that is a violation of the Fair Debt Collections Practices Act. But if the debt is yours and you know it then you should contact the JC (judgment creditor) as soon as you are served. You want to avoid the entry of judgment at all costs because it will simply ruin your credit. Call, fax or mail a request to the person suing you and offer a compromise to settle the debt in exchange of dismissing the case.

STEPS:: Three options: Question to the CRA: Dismiss via Settlement: Vacate
There may be several ways to remove a judgment from your credit reports. First is the judgment still legally allowed to be on your credit reports? Look at the SOL- statute of limitations for judgments and if your state allows it to be renewed. If it is still LEGALLY on your credit reports you should dispute it to the credit bureaus before you contact the JC- judgment creditor. It may be deleted without ever paying it! This is because many court records are not verified in time when disputed. The bureau has 30 days to verify the accuracy of an item and to send a request to the courts and to expect a reply within 30 days is a long shot. We all know how slow the courts can be. If the court does not verify the judgment within 30 days, the credit bureau will delete it.

However if the item has been verified as timely and you have no other documentation to prove it is not valid then you can negotiate with the JC to dismiss the judgment in exchange for money. This is a much better rating than a "paid judgment". It tends to indicate that it was dismissed therefore "legally void". This IS a better rating than showing you simply paid it- that means you owed it. Not much of a credit improvement. Make sure when you negotiate with the JC that you put your terms in writing and have the JC sign and date it. This can be used for proof later if the rating doesn't change. Once you agree, the JC will complete a form to dismiss the judgment and file it with the court. All public records are reported to credit bureaus so you should see your new rating in about 30 to 45 days.

Finally, there is a procedure called a "motion to vacate" a judgment. This procedure can be used if you have good cause to believe you were sued in error, were exempt because of retirement or SSI or served improperly. The great news is that about 80% of judgments are awarded in error- you just have to know what to look for. Getting the judgment vacated means it does not stay on your credit and you do not have to pay it so if you think you have a good case for a vacate motion then by all means seriously consider pursuing it. Contact a lawyer about this issue. You can attempt to vacate the judgment yourself or use a lawyer. If you do not know a lot about it, you are better off hiring a lawyer for a few hundred dollars.

Avoid judgments at all costs!!
The statute of limitations (SOL) on judgments is long--very long usually 12 to 20 years and many are renewable (a judgment may be renewed if the creditor files a new suit seeking to renew the judgment prior to the expiration of the original judgment) therefore the judgment could follow you around forever. Even if you pay it you will be stuck with a 'satisfied judgment" for 7 years from date satisfied not filed! This can be a hopeless situation so avoid being sued at all costs. Be sure to always check your SOL for debts if you have been served because if it is expired (and many debts expire in 4-6 years) you can use that to dismiss the case. Many debtors are served everyday for debts and they simply do not show up in court and a default judgment is entered against them- big mistake! Had half of them simply checked their SOL they would have found that the debt may have expired years before but since they did not dispute this, the judgment was awarded. You can use an expired SOL as a solid defense in court against a creditor/collector.

If you are sued- never let a default judgment be entered
You have nothing to lose by disputing the validity of the judgment or even settling it out of court to avoid that nasty record landing on your credit reports. Even if you owe the debt and it is not legally expired under the SOL and you have no claim to vacate it- you should attempt to settle it out of court---before the court date so that it can be set aside. All the JC wants is their money so calling them to work out a settlement is the only smart thing to do. Otherwise you may be forced to pay it later through wage levy or asset liens and not to mention the damage it will have done to your credit."

Message Edited by p- on 07-15-2008 12:58 PM