GW confuse me.

[Anonymous]

Okay I have been looking into GW and have a few questions I would like answered.

FIrst can you use a GW on old accounts that you know longer due buisness with?

Second how old can account be to use a GW?

Third can you use GW on collection accounts already paid in full a year ago?

[SmartCookie]

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daisylove wrote:

Okay I have been looking into GW and have a few questions I would like answered.

FIrst can you use a GW on old accounts that you know longer due buisness with?

Second how old can account be to use a GW?

Third can you use GW on collection accounts already paid in full a year ago?

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You would use a GW letter on a paid account, collections included, that is reporting accurately on your CBRs.  Doesn't matter how old it is, though typically if over 7.5 years it should not be reporting anyway.  Some use a GW to keep the TL and update it positively, some to be deleted entirely... depends on the situation and how it will help or hinder your FICO.

You can also use a GW letter on a current open account, but I wouldn't until you have shown good history on it since the 'incident'.

Edit: typo, add'l info

Message Edited by SmartCookie on 10-03-2007 04:20 PM

[Anonymous]

Thank you I think you just cleared up my confusion. What is a TL?

[SmartCookie]

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daisylove wrote:

Thank you I think you just cleared up my confusion. What is a TL?

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Welcome daisylove.  TL is a tradeline.  Here is a link for common abbreviations for you http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=1325

And to expand on the when you should use a GW... read on the PFDs as well.  This would be used when there is a balance, but to my knowledge you are all current.  In any case, make sure you dispute anything that isn't reporting correctly since there is always a small chance the TL will disappear and you won't have to bother GWing.  Small chance... but still a chance.

[Anonymous]

Thanks

       You really are a smart cookie

[SmartCookie]

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daisylove wrote:

Thanks

       You really are a smart cookie

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Welcome again and thank you.  Everything important I've learned from this community, so I give them their kudos.

Hopefully you can do more clean up and then apply for your card.  See, the more cleanup... the better the FICO... the better card and CL you get.  You don't want a bunch of hard INQs that resulted in denials only to get a secured 200 limit card with a $50 annual fee this month if you can get an one hard INQ for an unsecured $500 with no fee next month or two.  You don't want your 'oldest' open card to be something crummy you have to pay each year indefinitely...  everything impacts something here.