topic Re: I need serious help from you awesome myfico members in Rebuilding Your Credit

I need serious help from you awesome myfico members

bott6698 — Mon, 07 Sep 2020 22:09:22 GMT

I have been a long time member on myfico and have overcome a lot of obstacles with my credit because

of the great advice through this site. I have recently got myself in such a mess and I need your expert advice on

how I can quickly bounce back my scores. I have plummeted down to a 520-550 score and I really need your advice on

the quickest way for me to get to 650. Ok before that here is my recent story of how I got myself into this mess.

After working hard rebuilding my credit I was finally able to buy a house a few years ago. Before buying my house I rented a home in which was filled with toxic mold and we literally had to leave everything we ever owned behind! Then I was finally able to buy a house then I get scammed out of $185,000.00!!! I filed a judgement and I won but I am never able to collect the money!

In my own business I prepaid many deals from this vendor with no issues but then all of the sudden they stole $185,000.00 from me. I used to sell cell phones and that market is cut throat and unfortunately a lot of scammers. So after I lost $185,000.00 it literally ruined my business and my finances and I had to let all the credit cards etc I worked so hard for go to chargeoff. Now I have had a stable job/income with a company for 2 years.
Now after 22 years of marriage my wife decides to leave me and my 6 kids. In our current house and neighborhood we are constantly reminded of her and I want to move my kids to a home and area where we can build new memories together. I went house hunting this weekend for rentals and applied for a house but after reviewing my credit I don't think I will be considered. I really need your guys help to take step by step methods and get my credit up to 620-650 asap so I can move my family. Here is my current negative accounts etc.
Bankruptcy filed July 2011
Amex
status chargeoff. balance 1,170.00. last update 8/2018.
Amex
status chargeoff. balance 2,133.00. last update 8/2018.
Discover
status chargeoff. balance 1,639.00. last update 8/2020. credit limit 1,200.00. Says Util 137% so is this still showing open?
Credit One Bank

status chargeoff. balance $0. credit limit $1000.00. last update 11/2018.

Credit One Bank
status chargeoff. balance $0. credit limit $1,300.00. last update 11/2018.

Collections

Dish Network
date assigned 4/20/2020 balance $139.00 (This was equipment left in the mold house) I was told by Dish they would remove
this balance but they never did. I disputed and waiting for results.
Midland Funding
capital one date assigned 11/2018. 1,258.00
Midland Credit Management
date assigned 10/23/2018. 1,829.00 balance for credit one bank
lvnv funding
date assigned 10/2018. 1,403.00
lvnv funding
date assigned 3/07/2017. $196.00 (windstream) extremely old account. I had paid original creditor many years ago.
I disputed and waiting on results.

Re: I need serious help from you awesome myfico members

OmarGB9 — Mon, 07 Sep 2020 23:47:02 GMT

Sorry about all the tough times you went through. One must keep pressing forward though!

As for advice, well the good news is all your collections (except for Dish, I don't know about that one; but hopefully the dispute is resolved favorably) will delete themselves off your reports upon payment (settlement or pay in full)! The only thing is, Midland won't delete until it's been at least 2 years since DOFD, which you should be at or near anyway. So I would contact LVNV and Midland and try to settle as low as you can (or pay in full, if you're able to), but just know if you settle and they forgive $600 or more in debt, you'll get a 1099-C from them next year and you'll more than likely have to pay taxes on it since the IRS counts it as income.

As for the Chargeoffs, no, they're not open, but COs with an outstanding balance factor into your utilization as maxed accounts, so also take care of those ASAP. And no, paying them off won't make them go away, but at least they'll update to zero balance and you'll slowly gain some points back. Note that since those CO accounts haven't updated in a while, once you do pay them off, you'll most likely incur a hefty score drop, BUT you'll regain points every month since they'll no longer be "maxed" with a $0 limit and outstanding balance. Also they'll begin aging with time and hurting you less and less.

Re: I need serious help from you awesome myfico members

bott6698 — Tue, 08 Sep 2020 05:22:42 GMT

Thanks for the reply. Since when does paying a payment to a collection agency remove it from credit?

I never heard of this before is this something new? I know sometimes you can pay off collections and have them disputed

etc but I never heard of them dropping off just by paying them or setting up payment plan.

Re: I need serious help from you awesome myfico members

Anonymous — Tue, 08 Sep 2020 05:44:14 GMT

@bott6698 wrote:
Thanks for the reply. Since when does paying a payment to a collection agency remove it from credit?
I never heard of this before is this something new? I know sometimes you can pay off collections and have them disputed
etc but I never heard of them dropping off just by paying them or setting up payment plan.

It absolutely is a thing for CAs to delete from your CRs. Luckily for you both midland and LVNV both do this and I believe is even their policy on their website. You may have to PIF or they may accept settlement, i cant remember off the top of my head, but if you search the forums and the CAs websites, you should find the answer.

Now having the CA is greatbecause you are no longer hut with the double whammy of both the CA and OC reporting, but this does *not* remove the OC, and it remains. Now, Credit One has been know recently to be very generous deleting the OC via GW letters. So I would pay those certainly (CA pfd first!) and then GW afterwards. Some have reported GW success with Cap One recently, as well, so I would definitely attempt it with them.

COs definitely are all calculated into your revolving util which really supresses your scores because it considered maxxed

out +.

You are getting close to the 10yr mark on your BK, you could possibly see about EE from TU and EX once you get closer to the drop off date.

I would pull all 3 of your CRs from annual credit report for free (no scores, but free to pull weekly through 4/2021 to keep track of baddies falling off and age off dates).

TU will list "estimated date of removal" you can request EE (early exclusion) 6 months prior to that given date.

EX will list "on record until". They offer 3 months EE, but they are a little more confusing since the build in 2 months of that EE into the "on record until" date. You can request EE 1 month prior to that given date.

EQ is a mess when it comes to EE and it is only 1 month, so it is best to let those TLs fall off naturally. They will have listed "date of first delinquency". Add 7 years to that date and that is when it should naturally age/drop off your CRs. Many have reported TLs falling off 1-4 months early, anyway, so just let that one be.

Good luck!

Re: I need serious help from you awesome myfico members

bott6698 — Tue, 08 Sep 2020 05:37:58 GMT

Wonderful thanks!

Re: I need serious help from you awesome myfico members

Anonymous — Tue, 08 Sep 2020 05:44:59 GMT

@bott6698 wrote:
Wonderful thanks!

I updated my post woth some info about derogs aging off and EE.

Re: I need serious help from you awesome myfico members

OmarGB9 — Tue, 08 Sep 2020 07:14:31 GMT

@bott6698 wrote:
Thanks for the reply. Since when does paying a payment to a collection agency remove it from credit?
I never heard of this before is this something new? I know sometimes you can pay off collections and have them disputed
etc but I never heard of them dropping off just by paying them or setting up payment plan.

You're right, normally they don't do that (and in fact it's technically against the CRA policies), but in your case, you got lucky and got 2 of the few CAs that are willing to do PFD. I would hurry and pay them quickly or set up a payment plan before they resell the debt to someone else who will NOT offer PFD.

Re: I need serious help from you awesome myfico members

bott6698 — Tue, 08 Sep 2020 15:06:59 GMT

Thanks everyone! This is such great advice. I will pull my annual credit reports and see what the ages

are and let you guys know and contact the 2 CA's for PFD etc. Thanks so much!

Re: I need serious help from you awesome myfico members

Anonymous — Tue, 08 Sep 2020 16:17:59 GMT

@bott6698 wrote:
Thanks everyone! This is such great advice. I will pull my annual credit reports and see what the ages
are and let you guys know and contact the 2 CA's for PFD etc. Thanks so much!

Feel free to come back and ask for clarification with any steps you are ready to take prior to taking them. Most of us here are open and willing to help others as much as needed.

Re: I need serious help from you awesome myfico members

bott6698 — Tue, 08 Sep 2020 16:48:14 GMT

Ok here is what I pulled from Annual Credit Report. So seems most are past 2 years of DOFD so

LVNV and Midland should work with me for PFD options.

Discover DOFD 2/2018
Credit One Bank 1 DOFD 3/2018
Credit One Bank 2 DOFD 3/2018
Amex 1 DOFD 11/2017
Amex 2 DOFD 11/2017
Collections
Midland DOFD 3/2018
Lvnv DOFD 6/2014
Midland DOFD 4/2018
LVNV DOFD 3/2018

Bankruptcy shows Date filed 7/2011 and dropping 7/2021

Re: I need serious help from you awesome myfico members

bott6698 — Tue, 08 Sep 2020 17:32:45 GMT

Ok I called Midland to start. Person that barely spoke English answered so I hung up.

I called back and got a lady that also barely spoke English. So I told her I wanted to see about

working on a few accounts listed on my credit reports. Once she looked up my name she said

you have to call 800-844-0045 for capital one account. I googled it and shows Aldridge Law

and 877-366-1520 for credit one account. Is there an email address I can send to instead?

Re: I need serious help from you awesome myfico members

Anonymous — Tue, 08 Sep 2020 19:14:16 GMT

@bott6698 wrote:
Ok I called Midland to start. Person that barely spoke English answered so I hung up.
I called back and got a lady that also barely spoke English. So I told her I wanted to see about
working on a few accounts listed on my credit reports. Once she looked up my name she said
you have to call 800-844-0045 for capital one account. I googled it and shows Aldridge Law
and 877-366-1520 for credit one account. Is there an email address I can send to instead?

Not sure the English proficiency is relevant to this. I'd call the OC directly and ask who is handling this collection account.

Re: I need serious help from you awesome myfico members

bott6698 — Tue, 08 Sep 2020 20:26:41 GMT

I called LVNV. They said they own the capital one account for $1,403.00

but they said it is being handled by Stinger&Stinger on behalf of LVNV and

I needed to speak to them about getting a settlement etc. I told the guy at Stinger

my situation and he offered to settle for $1,200.00 or take a payment plan of $50 per month.

He said if I pay the payment plan I can request LVNV to delete it from credit while I am paying on time

but not sure if it will work. He also said I have to sign a paper that agrees to the judgement and that I accept

to pay $50 per month on a judgement. If I do this won't it change from collection to judgement on my file?

Re: I need serious help from you awesome myfico members

FireMedic1 — Tue, 08 Sep 2020 22:29:34 GMT

Credit One if you can pay them back are forgiving and they delete more entries on credit reports than any other creditor. Fact is CO's after a BK is a tough mountain to climb. Having the BK fall off next year will help. Clean up all you can until then. Good luck!

Re: I need serious help from you awesome myfico members

Anonymous — Tue, 08 Sep 2020 23:37:53 GMT

You should hopefully be able to request EE (early exclusion) of the BK in 1/2021 from TU, as long as they listed "estimated date of removal" as 7/2021.

Since your DoFD is fairly new for the others, that is why you were being sent to law firms, as they were probably planning on suing since you are well within the SOL, which makes settling for significantly less more unlikely. Whatever you do, deal with those before they do sue you and you end up getting garnished, etc.

The 3Bs no longer list judgements on your CRs since 2017 (I believe, since that is when mine all fell off). So just either settle, PIF, or set up a payment plan. It is highly unlikely that they will remove the CAs before you pay them completely because you could just choose to stop paying ince they remove them, so they will not risk that. Once paid they def should come off. You can then work GWs from Credit One and Cap One.

Re: I need serious help from you awesome myfico members

OmarGB9 — Wed, 09 Sep 2020 00:10:31 GMT

@bott6698 wrote:
I called LVNV. They said they own the capital one account for $1,403.00
but they said it is being handled by Stinger&Stinger on behalf of LVNV and
I needed to speak to them about getting a settlement etc. I told the guy at Stinger
my situation and he offered to settle for $1,200.00 or take a payment plan of $50 per month.
He said if I pay the payment plan I can request LVNV to delete it from credit while I am paying on time
but not sure if it will work. He also said I have to sign a paper that agrees to the judgement and that I accept
to pay $50 per month on a judgement. If I do this won't it change from collection to judgement on my file?

Well yea it seems they've outsourced to law firms while retaining ownership of the debt. Good news is the PFD offer will remain, but you must deal with the law firm for payment first. And no, the collection won't go from collection to judgement; judgements no longer show on CRs after a class action suit involving multiple DAs vs the Big 3 CRAs. The only thing is, it WILL show up on a public records search of your name within the county you reside in. But that won't affect your credit reports.

Also I wouldn't trust what they say about the CA coming off as soon as you begin a payment plan. As mentioned above, you could in theory stop paying once it comes off. Of course they could also just turn around and re-add it, so I guess there has to be some sort of unspoken agreement on that. But I digress. I would just pay on it until paid in full, then ask for deletion.

Re: I need serious help from you awesome myfico members

bott6698 — Wed, 09 Sep 2020 01:01:50 GMT

OK great thanks to all of you for giving me a plan of action I can follow.
I will setup payment arrangements with all that won't settle and at least avoid getting sued.