Credit Mess Advice

Anonymous · ‎04-13-2008

Hi, I'm looking for some advice on how to improve my credit score. I'm currently wrapping up graduate school and will be looking for my FIRST auto loan around Sept. 2008.

FYI: I'm unable to access my actual FICO score via myfico.com because of an issue with the system at the moment. However, my FAKO scores are: TU: 594 EQ: 604 EX: 654

Here are items that are negatively affecting my score:

1. I have approximately $125,000 in student loans (that number includes accrued interest) which are all currently in deferment that will end October 2008. 13 of these loans are with Sallie Mae. When I initially began graduate school, I sent in my deferment loan late, so each of these loans has a delinquency of 60+ days. I have asked sallie mae to remove these late charges as I was in graduate school already at the time, but they have not done so. Which kind of letter should I send them to have them removed? Is there an address that has a particularly high success rate? Do I need to send the letter certified?

2. I have a CO account with Wells Fargo (it's a credit card) that has a balance of $2800. This account initially became delinquent in Dec. 2007. Currently, the arrangement between Wells Fargo and I is a payment of $110/month, with no new interest accruing. However, during the summer I may be able to pay off the amount in full. Is it possible that I can negotiate with Wells Fargo to remove the CO from my CR if I Pay my balance in full? If so, which kind of letter should I send? Should it be certified? How successful is this approach?

3. In 2006 I switched residences from Arizona to Indiana and missed a water bill payment which was subsequently reported to TU only. I did not discover this derog. until Feb 08. I called the Water Company in Tucson, and offered to pay the balance in full if it was removed from my credit report. They told me it could not be removed for 7 years. I then explained that I had never received a phone call or written letter that I still owed them a balance to which they replied that I change my address with them. I replied that I did in fact forward my address with the US Post Office to Indiana. They told me there was nothing I could do, and that the only thing they could do was send me a letter explaining the situation and that I had paid the amount in full. They told me that I could show this letter to lenders in the future. I paid the amount ($76) directly through the water company, despite the account having been turned over to the collection agency. Is there anything I can further do to have this removed from my CR?

4. I have 2 additional federal loans with another institution (AES) that show a 190+ delinquency over the summer of 2007. I was a student during this time, but since I was not registered for classes (instead, I was doing my thesis field research in China for 3 months) AES did not recognize my deferment form. Is there any kind of letter I can send them to have this removed?

Other information that may be useful: Outside of the CO CC account with Wells Fargo, I have two other CCs. One is with Macy's and is in good standing (but I've only used it once - way back in 2001) and the other is with Capital One, which has been in good standing for the past 11 months, but also has a few 90+ delinquencies. My credit limit on the Capital One card is $1000, and my balance is $293. The Macy's card has no balance.

In addition, come Sept., I'm going to need a car and I will require a loan (as I don't have the means to buy one with cash alone) and I'm wondering how badly all this will affect my chances of actually getting an auto loan. I'm also wondering what, if anything, I can do over the next four months to improve my credit score. Obviously I will continue to pay my bills on time, but is there anything else I can do? Will I even be able to get an auto loans with scores like mine?

Lastly, over the course of the summer I should be able to pay off a few student loan accounts that have low balances. Will this positively impact my CR? I apologize for writing a novel! Any advice is greatly appreciated as I'm hoping for a miracle here. Thank you for your help!

Message Edited by ebrenne on 04-13-2008 03:11 PM

fishbjc · ‎04-13-2008

I don't see any problems with you getting an auto loan.

I would absolutely discuss with Wells Fargo the removal of the lates if you make payment-in-full.

4. I have 2 additional federal loans with another institution (AES) that show a 190+ delinquency over the summer of 2007. I was a student during this time, but since I was not registered for classes (instead, I was doing my thesis field research in China for 3 months) AES did not recognize my deferment form. Is there any kind of letter I can send them to have this removed?

Can you ask for a reconsideration?

3. In 2006 I switched residences from Arizona to Indiana and missed a water bill payment which was subsequently reported to TU only. I did not discover this derog. until Feb 08. I called the Water Company in Tucson, and offered to pay the balance in full if it was removed from my credit report. They told me it could not be removed for 7 years. I then explained that I had never received a phone call or written letter that I still owed them a balance to which they replied that I change my address with them. I replied that I did in fact forward my address with the US Post Office to Indiana. They told me there was nothing I could do, and that the only thing they could do was send me a letter explaining the situation and that I had paid the amount in full. They told me that I could show this letter to lenders in the future. I paid the amount ($76) directly through the water company, despite the account having been turned over to the collection agency. Is there anything I can further do to have this removed from my CR?
They're so full of shi*, they're eyes are brown. Keep writing them to try to get a removal. Has this been marked as PAID with CRA's? In this instance, since it was sent to collection....try to get them to remove it. You never know!

I've seen people having luck with Capital One removing their lates....get that GW letter out.

Welcome to this forum! Stick around and you'll get plenty of excellent advice.

Anonymous · ‎04-13-2008

Thank you for posting! Glad to know I haven't totally ruined my chances at an auto loan.

As for the collection account with the water company, it was only reported by TU and it has not been reported as paid in full yet. The strange thing is - I was never once contacted by this collection agency - no letters, emails, or calls...never, not once. So I'm rather peeved they refuse to remove it when I never even knew I owed them (and to be sure, my phone number has not changed). My TU CR notes the account was reported in June 07, but I never heard from the agency.