Rejected for 1 point! :-(

[Anonymous]

Since I was successful in negotiating the removal of a very small collection account from my Experian credit report I decided to go into my CU to apply for an auto loan. 

I was devastated when she came back telling me my application went to review because it's short by 1 point!! Their minimum score requirement is 660 and I have a 659! 

Alittle background info; the only thing on my report that's causing them to want to look into it further is a CO from Seventh Avenue (which is PIF but not showing up as paid yet)  I gave them the letter from Seventh Avenue saying the balance owed is currently $37.79 (I made the payment for $37.79 on April 28) and showed them my bank statement showing the funds have been paid to them.

To be honest I would've rather have been off by many points instead of just by 1.  And to top it off since its under review, I wont hear anything back from them until Monday at the earliest. 

Could anyone give me any feedback on what they think could happen?

[maynie]

It depends on how firm they are about the minimum score requirement. But I think a manual review in this situation is good. An actual person will look at it and see it's only a paid collection. I had 4 collections on my report when my credit Union approved my loan. All I had to do was show they were paid and they approved the loan. Good luck to you!

[Anonymous]

I would simply try to get financing through a dealer.  You will only need about a 600 to work with them.

Honestly one small charge off should not be hurting you that much.  You must be lacking in credit cards, or need to pay them off because a 659 is not very strong.  Only like 15% of people have a worse score than you.  I would suggest opening more lines of credit and keeping them paid off.

good luck

PETE

[Anonymous]

Thanks for the advice! I have 3 credit cards (longest open 3 yrs and never late) and between the 3 their balances are below 15%.  I did have 2 more collection accounts on my report but they've been paid and completely deleted from my report.  That's why I'm at a 659, my score has begun to climb back up since the other collections are now gone.  I was told I would hear something back from my CU sometime tomorrow and I'm hoping it will be good news

One more quick question, I've just checked my experian credit report and the Seventh Avenue account has now reflected my first payment of $151, so it has a balance of $37 (I guess my final payment to them was made after their cut off date of reporting).  If I get a firm no tomorrow from my CU, should I just ask them to run my report again?  When it was checked on Friday, no payments were showing up yet.  Does anyone think since my 1st payment is being reflected on my report now, might give me that 1 point I need?

TIA

[maynie]

I would so no to having them check your credit again. The payment you made wouldn't reflect that quickly AND having it paid will not raise your score. Only having the collections deleted will. That and time. Your credit union should accept a document saying it was paid if they are even willing to extend credit with a score under their minimum. But if that's what it would take they would just tell you that. All you can do now is wait until you hear back and then go from there.

[m3v8]

Once you paid account off, your score changes only after balance is reported by creditor. Once creditor reports the balance,- your score changes immediately.  You can also submit "online investigation" to credit agency telling them balance is wrong,- and some agencies are as fast as about a week and a half to get it corrected that way. Also, you can request a letter of balance from creditor, and submit that to credit rating agency to correct report. Bottom line,- every creditor has a Due Date for you to make a payment, but they all have various and different dates that they report your balance to credit agencies. As an example, if your due date for an account is on 16th of each month, they might report the balance on the 17th, or they could do it on 30th of each and every month! If you examine your credit reports closely, you could see "reported on" which means that is the date your balance is being reported on that particular creditor. I find, to be knowing that date is very helpfull to keeping those balances $0.00 ! Just pay off your card to $0.00 right before "reported on" date, and after that, use the card/account again, but rest assured,- balance has been reported as $0.00 for that month,- which is nice for your credit ratings!

[Jazzzy]

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@Anonymous wrote:

Thanks for the advice! I have 3 credit cards (longest open 3 yrs and never late) and between the 3 their balances are below 15%.  I did have 2 more collection accounts on my report but they've been paid and completely deleted from my report.  That's why I'm at a 659, my score has begun to climb back up since the other collections are now gone.  I was told I would hear something back from my CU sometime tomorrow and I'm hoping it will be good news

One more quick question, I've just checked my experian credit report and the Seventh Avenue account has now reflected my first payment of $151, so it has a balance of $37 (I guess my final payment to them was made after their cut off date of reporting).  If I get a firm no tomorrow from my CU, should I just ask them to run my report again?  When it was checked on Friday, no payments were showing up yet.  Does anyone think since my 1st payment is being reflected on my report now, might give me that 1 point I need?

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You say this was a charge-off. Does Seventh Ave show a credit limit? This payment may or may not affect your score.

I'd wait to see what they have to say on Monday. If you get bad news, ask them their advice on having them pull another report.

[m3v8]

+1 !!! Only having collection removed will help credit score.

[Anonymous]

GOOD NEWS!!  I got approved through my CU!! The only thing I'm not too happy about is the apr, they gave me a 10.4% but I'm still happy about the approval overall

Just another quick question, should I try refinancing if the paid charge off on my credit reports gets deleted (fingers crossed) because of the the goodwill letter I just mailed to 7th Ave? 

I'm hoping in 6 months time, my score will have begun its upward climb by making all my payments to my credit cards and of course making all the car payments on time as well.