topic Re: need advice! in Rebuilding Your Credit

need advice!

Anonymous — Sat, 07 Nov 2009 12:38:54 GMT

Hi,

My name is Cheryl, and I handle the family accounting - and that now includes working to repair credit for us. We live in a bad neighborhood that is just getting worse and worse, and we need to get out of here. My mother is a veteran, so she has access to lenders who will still approve you at even a lower score. This is the same with FHA as well, but I dont know their full requirements so Ill mention the ones we were advised by one lender - which was at least two of the credit scores are at 620 - and with a collections under $5000.

Our city has a down payment assistance program that weve applied for, and if we get it we will need to be pre-approved by January - so its kind of a rush to improve it as best as possible by then.

As of the end of September, my mothers scores were: EQ - 601, EX - 620, TU - 580. By January we will have her collections less than $4000, so its just a matter of getting Equifax up by 19 points. I dont know if this will be possible, but we are trying.

Im preparing dispute letters for each of the CRA's, but I have questions about things on her report.

1) Back in 2001, my mother got an installment loan from Citifinancial. She hit a few rough spots over the years that she just could not make any payments for months, like about four times. Each time they worked with her they deferred the payments she had been late on and I guess you could say she refinanced the loan.

Well instead of updating the one file when doing their report - she instead has Citifinancial listed five times (one of which is the 'current').

Its making it look like she has received 5 different loans from Citifinancial, rather than just the one thats been modified. Its really making her total number of items high, and I suspect making a big impact on her credit.

So my question is, is this something she can dispute and tell the CRA its only been the one loan, and to please remove the other four?

2) She had a Target account which became a charge-off (and is still showing a balance), but she also has a CA (Asset Acceptance) reporting this debt as well. They sent her a debt settlement offer that says if she pays the settlement they will consider it settled completely, and she called and agreed to pay it. She was told she could not ask for a PFD, that they couldnt do that, but was told (and we have a letter saying they will update the CRAs showing it is paid etc.

Tonight, I just saw a post on this forum about how if the OC is still showing other than a $0 balance, that its possible they still own the account. If this is true - what happens with her paying it off through Asset Acceptance? Does Asset Acceptance have the power to tell the CRA's to show not just their entry is updated, but to update the OC's? Or are we going to have to contact Target once we have our letter from Asset that acknowledges payment was made, and tell them 'hey this is paid, heres proof, please update the CRA's that this account is settled'?

3) She has a First Premier chargeoff that is showing up on EQ and EX only. Neither give an estimate of when its supposed to drop off the credit report, but EQ report shows DOFD of 01/2003. EX doesnt list this date, it only lists date opened, reported since, date of status, and last reported. Its not showing on their end, the date it went delinquent - but it must be the same timeframe as EQ.

I was looking tonight trying to find out where we could go to find out how to pay them - because the address on the credit report says "tape only" in it, so I dont know about writing there... when I found this forum. Now we were going to write and ask if we could pay it off in payments, as the amount is too high to pay at once. Every time someone has looked at my mothers report, they all get this reaction to First Premier, so Im thinking its imperative to get it off. But now Im thinking we should wait on this one, because hopefully by January, it will be off due to the 7 years.

Should I do that instead? And on another note, she needs an unsecured credit card in order to help raise her score - and I read on this forum that surprisingly with a chargeoff on their CR, enough time passed people were able to get a new card with them, so Im thinking she should go ahead and try to apply...

Thanks!

Cheryl

Re: need advice!

LIGHTNIN — Sat, 07 Nov 2009 14:54:34 GMT

Welcome to the forums, Where did you get the scores and the CR's for your mother?

And was Asset Acceptance paid for the target account?

Re: need advice!

Anonymous — Sat, 07 Nov 2009 15:43:55 GMT

The VA mortgage broker weve been working with ran her credit in the beginning to see where we stood to get a loan, and sent us a copy of it per our request. Do you mean where did I personally get them, as Im not her? If thats what you meant, she my sister and I are all part of the same household/live together - and I do the budgeting and everything financial for everyone - so that includes looking up how to repair their credit.

My mother agreed to pay Asset via electronic withdrawal that was set for the 11-03. Its not reflected in her bank account yet, but Im sure next Tuesday when the banks reload it will pop up.

Message Edited by judydyoung on 11-07-2009 07:43 AM

Re: need advice!

LIGHTNIN — Sat, 07 Nov 2009 22:29:55 GMT

What I meant about CR's and CS's , was what web site did you use, if any.Some have FAKO's, but only a few have FICO scores.

You can not buy an EX FICO score,since Feb2009. Lenders and a CU in PA can pull EX FICO's.

I suggest to Google "myfico discount code" to save $$ to use here for CR's and scores, when code is available.

EQ Fico score can also be purchase at Equifax.com and TU at transunioncs.com (note the cs)

To get CR's with the most detailed info, you can go to the CRA's directly or by law, you are allowed 1 free CR from each EX,EQ and TU every 12mos thru annualcreditreport.com

Since she paid Asset Acceptance already, the only thing now you can do is send a GW letter to remove.

Paid collections and unpaid collections score the same.no change in fico scoring.

The 5 installment loans from Citifinancial do they have different account numbers or the same? Is all 3 CR's showing 5 Citi loans?

I suggest reading Credit Scoring 101,Freq req threads and What steps do I take?DV?PFD? You can use the links below or stickys at the top

Message Edited by LIGHTNIN on 11-07-2009 05:29 PM

Re: need advice!

BungalowMo — Sat, 07 Nov 2009 22:41:34 GMT

@Anonymous wrote:
The VA mortgage broker weve been working with ran her credit in the beginning to see where we stood to get a loan, and sent us a copy of it per our request. Do you mean where did I personally get them, as Im not her? If thats what you meant, she my sister and I are all part of the same household/live together - and I do the budgeting and everything financial for everyone - so that includes looking up how to repair their credit.

My mother agreed to pay Asset via electronic withdrawal that was set for the 11-03. Its not reflected in her bank account yet, but Im sure next Tuesday when the banks reload it will pop up.
Message Edited by judydyoung on 11-07-2009 07:43 AM

NEVER give a CA your banking information!!!!!!!!! EVER. Especially if you are paying a % rather than in full. They can pull the full amt & that is a can of worms you do NOT want to open!

I had always paid mine by check (which is also bad) or Money order (BEST!)

Re: need advice!

Anonymous — Sun, 08 Nov 2009 02:09:38 GMT

Yes I already am aware of that information, I was reading before I posted

The Citifinancial loan shows different account numbers on every one, which is why its coming across looking like she borrowed money 5 separate times when she hadnt.

As for the score, outside of the report the lender pulled and sent us, I only ever came here to myfico to see what the scores were.

Our next free yearly CR is not til January.

Re: need advice!

Anonymous — Sun, 08 Nov 2009 02:12:01 GMT

Well if they try anything they will be taken to court because we have a written letter from them that specifically states that this payment considers the account settled. Plus it is very clear authorization for one time payment.

To take money beyond that, they will see legal action as it will be theft.

Re: need advice!

Anonymous — Sun, 08 Nov 2009 02:14:14 GMT

By the by Im not seeing an answer to my question about Target in that...since she paid Asset Acceptance, will they update the Target entry as well (do they have that authority since they took over the account) or do we have to send Target proof of payment and ask them to remove it.

Re: need advice!

Anonymous — Sun, 08 Nov 2009 04:01:58 GMT

If you paid the CA, they'll update your tradeline with the CRAs to paid. Your Target account should update to paid as well (not sure why it shows a balance if it was charged off). You won't see a score increase from this, but it should make the lender happy. If your Target account doesn't update, you can dispute the status. You may luck out and get a delete instead of just an update.

You can GW your paid collections and see if someone will help you. You should also make sure your utilization is low (under 10%, IMO). High utilization has cost me as much as 30 points. The good news is you're close to that 620 mark.

Re: need advice!

Anonymous — Sun, 08 Nov 2009 04:10:11 GMT

Thank you - this really helps

Ive seen yesterday on the boards the mention of utilization, but Im not understanding what exactly that is much less how to equate the percentage shes in. I did a search on the forum using the search function for this term, but the only results I found were others mentioning it, no explanation of what it was.

Re: need advice!

Anonymous — Sun, 08 Nov 2009 04:18:34 GMT

Total amount owed on credit cards divided by total credit limit multiplied by 100. That's your utilization rate. (Ex. If I owe 750 with a total credit limit of $4000, my utilization rate is 19%.)

There's some argument as to what the ideal percentage is, but there's no dispute that under 10% will help a lot. Utilization is a big part of your score.

Re: need advice!

Anonymous — Sun, 08 Nov 2009 05:36:47 GMT

Well, last night I submitted an application for the unsecured First Premier credit card so that she would have a credit card.... and Ive made it clear dont max it out, and were going to make sure no late payments.

But outside of that - she doesnt have any active credit cards. Any credit card she used to have (like Target, or Providian, etc have long since left OC to CA). So trying to figure out her credit limit might be a little tricksy.

**edit: I think I found the limit, on this report it says 'high credit terms', which Im going to add to the list below as HCT.**

This is what she has on her credit report - Im going to list from the one from the lender because its condensed all three into one report. Im adding notes to updates since this report. This report was ran the end of September.

1. Midland Credit (HSBC). Shows $1988 balance. Last update - 09/09. HCT: 1635

2. Greater California Financial Services (Chase Providian). Shows $1746 balance. Last update - 07/09 HCT: 1199

Note on the above two: They already went to court to get a wage garnishment but the job she has, she doesnt make enough for them to be sent anything, and now she hasnt been able to work due to severe health issues, she may be put on permanent disability. We are planning on writing them to ask if she can get an agreement for monthly payments. Also, I know that these can be considered public records which make a huge impact on whether or not a lender will approve you for a loan; however (knock on wood) they have yet to report it to the CRA's.

3. Citifinancial (1) - installment loan. this one is the one that is the current updated one to reflect her loan. Shows $1746 balance. Last update - 08/09. HCT: 2572

4. First Premier bank - old credit card she had, chargeoff. Still reporting a balance. Says purchased by another lender but doesnt say who. Address given for First Premier says *tape only* which denotes the address is a warehouse... dont have a drop off date on EX or EQ but as mentioned before EQ DOFD is 01/2003. Shows $764 balance. Last update - 02/04. HCT: 764

5. Asset Acceptance (Target) - waiting for this payment to clear bank. Settled for 50% off. I should also note that the lender we have been talking with (since shes a veteran they have a program where you can get advice from them on how to repair credit) and at the time I asked them about the settlement offer, and they told me to accept it - because even if it wont drop off the CR it will show a 0 balance and thats whats important. But once everything goes through and we get our acknowledgment letter Im going to try a GW. Shows $567 balance. Last update - 08/09. HCT: 448

6. Cashcall - installment loan. She finished paying off this loan with Octobers payment, and weve received a copy of the loan agreement stamped paid. So to get it removed from record at this point have to ask for GW I assume. Shows $394 balance. Last update - 09/09. HCT: 2600

7. Target (see #5) - in notes says charge off. Shows $374 balance. Last update - 05/06. HCT: 374

8. Asset Acceptance (Pacific Bell) - this too was recently paid, in full - waiting for acknowledgement letter. Will send a GW letter - can I write them one letter referencing both the Target and Pacific Bell, or should I do one letter per? Shows $269 balance. Last update - 08/09. HCT: 210

9. Riddle Associates (DirectTV) - going to write for a DV. Shows $203 balance. Last update - 02/07. HCT: 203

10. Global Payments (Kaiser) - she paid this in September and we have an acknowledgment letter. Will send a GW. Shows $55 balance. Last update - 03/04. HCT: 30

11. Global Payments - duplicate entry, and if they dont have it updated will dispute with CRA's. Shows $55 balance. Last update - 03/04. HCT: 30

12. Chase (see #2) - charge off. Shows 0 balance. Last update - 05/05. HCT: 1215

13. Citifinancial (2) - says open/current which is not true since #3 is the current one. Shows 0 balance. Last update - 11/08. HCT: 5634

14. HSBC bank see (#1) - says chargeoff. Shows 0 balance. Last update - 06/05. HCT: 1634

15. WFNNB/Lane Bryant - shows closed by credit grantor, current account. She had paid them off in the 90s and stopped using the card so they closed it. CRA lists this account 'in good standing' but on the CR from the lender its landing in the total list of derogatories. Account opened in 1989 so is helping her credit according to myFico report. Shows 0 balance. Last update - 04/09. HCT: 249

16. WFNNB/Roamans - same exact as Lane Bryant above. HCT: 166

17. Citifinancial (3) - shows 0 balance. Last update - 04/03. HCT: 5261

18. Citifinancial (4) - shows 0 balance. Last update - 11/00. HCT: 5250

19. Citifinancial (5) - shows 0 balance. Last update - 11/03. HCT: 6232

These extra Citifinancial entries make it confusing how to total up. And if Asset will show a 0 balance on Target, and Target gets updated to a 0 balance. Im not sure what to calculate here.

Message Edited by judydyoung on 11-07-2009 09:36 PM

Re: need advice!

LIGHTNIN — Sun, 08 Nov 2009 16:55:30 GMT

high credit terms = highest amount that you have owed on an account to date.

You said that she pulled her free CR's last Janurary. Do you still have those CR's?

If so, look on those and see if there is a credit limit.

Credit limits are in even numbers like 300,500,1000,1200,5000.

I think if you look on those CR's you will find what you will need.

You're doing great!! See you soon.

Re: need advice!

Anonymous — Mon, 09 Nov 2009 03:15:45 GMT

Hi thanks -

I did save them, and just pulled up Equifax to start.

Everything on Equifax except for Wamu(Chase Providian) shows a $0 credit limit.

TransUnion only three things show a credit limit and one of them says $0.

Experian has credit limit and original balance on the same line, so everything is showing a figure including installment loans.

And how do you determine which to add up. Like if you have the OC on there reporting and the CA, do you add both? Or do you just add OC's only. Should installment loans be included in the count - since they are not revolving debt?

Also, I was looking and the Riddle Associates one I listed, that I was going to send a DV... it says its supposed to drop off the CR in March. I was just reading on the board that if SOL is that close, that you should just leave it, because otherwise you awake a sleeping giant.

Im trying to do everything I can to get her up those 19 points by January, so in actuality it would be better if I disputed this one directly through the CRA's, that way if they cant validate they can instantly remove the record from her account, and maybe that will help raise points... but on the other hand if it comes back validated... it might re-age her SOL on that account. So do we take this risk.

Do I dispute the Citifinancials? Im not really seeing an answer if Im right or not that they are erroneously reporting.

And also one other thing - I keep reading you should send dispute letters to the CRA's CMRR but on credit 101 page it says to do it online. Which should I do, snail mail or online?

Re: need advice!

LIGHTNIN — Tue, 10 Nov 2009 22:24:04 GMT

@Anonymous wrote:
Hi thanks -
I did save them, and just pulled up Equifax to start.
Everything on Equifax except for Wamu(Chase Providian) shows a $0 credit limit.
TransUnion only three things show a credit limit and one of them says $0.
Experian has credit limit and original balance on the same line, so everything is showing a figure including installment loans.

And how do you determine which to add up. Like if you have the OC on there reporting and the CA, do you add both? Or do you just add OC's only. Should installment loans be included in the count - since they are not revolving debt?

CA don't count in util. FICO model looks at credit util in 2parts. 1 for each CC separately and 1 for overall CC's.
I believe installments are counted separtely. CC util is CC BAL divide by CL, then multiply by 100.
(Ex. bal $100 divide by CC limit $1000 is .10 or 10%).

Do I dispute the Citifinancials?

Check her CR's and see if all 5 accounts have the same DOFD,same Credit Limit/Orginial Amount. Are the 3 CRA's reporting 5 Citi loans?

looking and the Riddle Associates says its supposed to drop off the CR in March. comes back validated... it might re-age her SOL

I think your confusing SOL with CRTP very common but both very different. CRTP starts at DOFD and ends 7- 7 1/2yrs later on your CR's. SOL is the legal part, time your state sets, a creditor to sue you and win, Check out "State Resources" sticky at the top of this board. Or use the search box, very useful for checking past threads for info.(Example try SOL vs CRTP) As for riddle Assoc. if passed SOL send a PFD, the only problem with a DV they dont validate is that they will send it to another CA to bother you.

Message Edited by LIGHTNIN on 11-10-2009 05:02 PM

Message Edited by LIGHTNIN on 11-10-2009 05:24 PM

Re: need advice!

Anonymous — Wed, 18 Nov 2009 23:25:56 GMT

Hi,

I was referring to both SOL and CRTP, they affect each other.

Riddle - CRTP is supposed to drop off March of next year. SOL in Ca. is only 4 years and has already run out - but I dont want to renew/restart it by having her send a PFD request as it would be an acknowledgment and renew the SOL.

As for Citifinancial, the entries jump around on the reports, and the different bureaus have different terminology that makes it a little difficult. Like one says high credit limit, and the other gives the same amount but says credit limit. This number, on all the reports, are different. And at least two of them show a different opening date.

I copied just the entries from each report and removed all private information including the account numbers. I replaced those with #1, #2 etc. Needless to say #1 on TU is the same account as #1 on EX and EQ but not the same as #2, etc.

Message Edited by judydyoung on 11-18-2009 03:25 PM

Re: need advice!

Anonymous — Wed, 18 Nov 2009 23:33:07 GMT

Just to update - I filled out the online dispute for TransUnion and Equifax, and we will be mailing a letter to Experian.

My mother was approved for a First Premier credit card afterall, we will be making first payment December. This account has already shown up on her credit report, but there has been absolutely no change to her score. Is this because we have to wait until after a first payment has been made?

From everywhere I have looked and read and seen - a positive revolving account can make a significant point difference in the credit.

Anyways with the disputes - I disputed Citifinancial, Target, Global Payments, and Asset / Pacific Bell. I know that last one we just paid it off 11/03 so its not even been 30 days but I did so anyways because we are on a time limit.

Oh yeah, also - it was strange - we got our first ever myfico alert - and it shows that the remarks on the credit report are changed to say dispute in process. But it doesnt mention at all that theres a new entry on the reports (First Premier card)

Message Edited by judydyoung on 11-18-2009 03:33 PM