topic Re: Is this my problem?? Past Due Amount in Rebuilding Your Credit

Is this my problem?? Past Due Amount

Anonymous — Wed, 15 Apr 2009 18:05:27 GMT

I have PFD letters out for all of my collections but one (They are all between 2-5 years old). The last collection I sent a verification letter and disputed on my report. (I know i should have done the first then the second but I didn't know then.) Except for the three PFD letters I have out and the one that I have out for verification, my report is clean. Two of the four accounts have past due balances showing and the one c/a that I sent verificaion letter to is updating every month (which they didn't start to do until 2-3 months ago)

My score on my fico was 670 a few months ago. It is now 633. Is the CA that is updating each month (the debt was from 2004) what is knocking down my score (educated guess since noone can say for certain)? I did get a credit card 6 months ago and have paid in full before the due date for the past 3 months. The balance is being reported as -0- now. Other than that everything is on time, collections are being paid off and removed or updated to show a balance of -0-.

I am hoping to either have the last ca paid next month or verified and removed next month. Will that make my score jump back up to 670 or hopefully above? I have tried to use the simulators but I can't select pay on time for a month and pay off all LOC (one creditor is showing as a current credit card even though it is marked closed) and all past due debts.

I can't WAIT until this is done... so close.. yet not soon enough!

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 03:27:12 GMT

It's hard to say without details.

You want your CC to report 1-9% of your CL / month.

Once you pay off your last CA and increase your utilization, then your score should theoretically jump back up.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 04:25:12 GMT

Thanks for your reply.

I utilize my card.. I just pay it off before the statement posts. Last month my report said: Last payment $279. Balance 0. Limit 300. This month it was increased to 375 (which costs me 25 in addition to the 15 a month fee.) I'll pay off everything this month prior to the statement but I wont overpay like I did last month which gave me 0 balance because they add the 15 when they do the statement. So it should say 70 for last payment and 15 balance... on May's credit report.

I can't wait for the last CA to be paid... I mean I can, but I can't... ya know. I'm hoping that once that monthly hit stops I'll be moving back up so I can get my new car this summer.... *fingers crossed*

What details do you need? I'll be glad to provide them because this is completely new to me! I had my head in the sand for so long due to feeling lost and overwhelmed. I'm finally taking control. Any info is helpful.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 06:25:39 GMT

Paying off collection accounts will have no impact on your credit score. Paid and unpaid collections are looked at the same by FICO.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 11:29:25 GMT

So even though he's reporting the account every month as late and the status says recently past due (even though the delinquincy date is 5 years ago) if I pay it off it wont help my score? I was hoping that paying it would let the account age so it's not showing as new anymore which would then let my score go back up some.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 13:14:22 GMT

You want between 1-9% reporting to the CRAs for your CC.

And, you want to offer a PFD (Pay For Delete) to the CA, so they'll remove it off your record. Otherwise it'll fall off after 7 years or so. I'd just look on here for PFD letters, and see what CA it is. Check the CA out here and see how ppl have been successful.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 14:01:28 GMT

moonlitnight wrote:
So even though he's reporting the account every month as late and the status says recently past due (even though the delinquincy date is 5 years ago) if I pay it off it wont help my score? I was hoping that paying it would let the account age so it's not showing as new anymore which would then let my score go back up some.

Is this reporting in your accounts section or your collections section of your report?

Is your score decreasing every month?

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 14:37:53 GMT

It's showing under "negative accounts" in my credit report with account type of collection department/agency/attorney. Terms:1 month Date opened 11/1/04 My score has been staying around 600 to 633 every month with a note that says recent delinquincies are affecting my score. I haven't had a delinquincy in 2 1/2 years when I was out of work. I have a new credit card (6 months old that I pay on time, in full before the statement is printed.. and I just got a credit increase on it.) The only account that is showing as a collection is a medical that is paid off.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 14:43:49 GMT

moonlitnight wrote:
It's showing under "negative accounts" in my credit report with account type of collection department/agency/attorney. Terms:1 month Date opened 11/1/04 My score has been staying around 600 to 633 every month with a note that says recent delinquincies are affecting my score. I haven't had a delinquincy in 2 1/2 years when I was out of work. I have a new credit card (6 months old that I pay on time, in full before the statement is printed.. and I just got a credit increase on it.) The only account that is showing as a collection is a medical that is paid off.

Then I'd say your "recent delinquency" is coming because of the pay status on this account. I can't be certain but believe so.

It should be listed under the collections section if a CA is reporting it.

Collections, when listed correctly under the collections section, are scored the same paid and unpaid.

However, it could be different when a collection is reported incorrectly as a regular account. Having the current pay status change from "past due" to "current or paid as agreed" might actually affect your score.

However, I'd wait until the DV come back and anything else you've done on the account to be completed before doing anything else.

The accounts is misreported and this is leverage for you against the CA.

Re: Is this my problem?? Past Due Amount

Anonymous — Thu, 16 Apr 2009 14:56:58 GMT

So this has to show as a collection and they can't report it each month as late under negative accounts? I have disputed it with the cra and sent them a dv letter. I may owe a couple hundred but not a couple thousand as they are stating. So what should I do next when that comes back? I have done this route before (the dispute not the dv). I was going to send a pfd letter and just pay it off to make it go away. I shouldn't do that? Do I have other options?