29 with a 428 - Need help strategizing for repair

[vntrsc]

---

@Anonymous wrote:

---

@FireMedic1 wrote:

---

@vntrsc wrote:

@FireMedic1

@Boisvert

Unless, within the last 30 days, the OP has received a dunning letter containing the 30 day validation notice, his right to request validation has not been triggered.   He can send a validation request, but the debt collector will not be required to validate.  At most, the debt collector would only be required to mark the TL as disputed.  

---

I was speaking about getting loans when the OP already has student loans. Why waste a HP on a loan when it could be used to get his own credit while already having student loans with a score of 490. Playing the dispute game hoping they would fall off. You never win in most cases. Adding AU accounts without adding the OP's own credit in his name since he has no cards on file. This will help his credit mix. OP knows what he owes and is going to pay them. I advised try the OC first and just maybe the OC may recall the debt. Dispute happy isnt advised on here. I back out now. Been here 3 and half yrs compared to 3 months. Think I've helped quite a few more posters in similar situations. Others a lot more than me. I bow out respectfully and to stay within the FSR rules. Peace out.

---

1. It is not being 'dispute happy'. You are suggesting that term, not me. It is exercising your rights under the law to have the information under your credit to be accurate, complete and verifiable. In fact, in this case we are talking about disputing with the CA, and not the CRA, and making sure this debt is still valid and verifiable.

I just find it contradicting. With a BK for example, you owe the money you are filling under a BK, yet the law allows you to file a BK and not pay that money even thought you owe it right? That's like here saying "We don't condone BK here because you owe the debt, it is yours". The same goes with disputes. I understand we don't recommend to dispute here, but that's your right under the law even thought the accounts are yours. You still have the right to make sure your information is being reported correctly. They are your accounts, and no one is suggesting to dispute as "not mine" but you still have rights and protections under the FCRA and FDCPA to make sure things are done correctly even thought they are yours. No one is suggesting to dispute accurate information, but to dispute inaccurate or information you might believe is not complete or verifiable are rights we should be able to exercise. 

2. Self Lender, doesn't do a hard pull.

3. I have been a myFICO subscriber since 2008 and been lurking the forums since then just never officially have joined and contributed, but don't confuse my 3 months for a lack of experience. 

Remember, my advice is based on what I would do, which in no way would cause harm to the OP. I respect your contributions and knowledge and I think you have help a lot of people. Just try to make sure your responses don't come out as authoritative and definitive as that might put others in a defensive mode. 

“In fact, in this case we are talking about disputing with the CA, and not the CRA, and making sure this debt is still valid and verifiable.”

And again, if the dispute is a validation request under the FDCPA, the debt collector is not required to validate because credit reporting is not considered to be an initial communication.  

If the dispute is made according to 623a(8) of the FCRA, the debt collector is not required to verify with the consumer.   In addition, there is no private right of action for possible violations of subsection (a).  

[calyx]

I would add that the SelfLender loan is also a bad idea because it will unnecessarily decrease his AAoA.  
It's far better to rehab the loans and get them current.  Sure, it will take 9 (or however many is left) months, but with a score in the 400s, you shouldn't be rushing off to get new lines anyway.   Fixing what's wrong up front will help more than getting extraneous accounts.

[calyx]

---

@Anonymous wrote:

My debt:
-10,400 in student loans that were in default, and have recently been rehabed. I'm back on my feet. However the company that was handling the rehab sold my loans off (coastprofessional sold to FedLoan Servicing). Never told me, and I got 122 days behind on paying them, as I thought I was golden and had auto pay. I contacted them and got up to date on 9/17/19, but I believe they dinged my credit. I have gotten, but not filed, a form/letter to request they undo this as they never contacted me either. Whole thing is shady.

OP,  Student Loans are my jam, so I'll focus here:

The bad news, is that damage from lack of communication is depressingly common.   The good (?) news is that it's only been 120 days and you didn't default.   I wouldn't file a letter if you haven't already, I would call them immediately.   Talk it through with a rep.  If they're not super helpful, hang up and try again.  If you don't get some headway in 2 or 3 reps, go ahead and write/send that letter.  But bring that account current immediately to stem any further damage. You did this, sorry, reading comprehension fail

If they are being stubborn, you can see if they'll grant you a retroactive forebearance.   Technically, they shouldn't do it, but I've seen servicers use this as a way to bring this current.    If they absolutely won't cave, pay to bring it current and then start a goodwill campaign (saturation technique is in the forums).   Student loan servicers don't grant often, but it's been known to happen.  You may be stuck with this black mark - but it's not the end of the world, just kinda sucky for a while.

Getting any new loans will not help your score, so I would not get self-lender or share loan or anything like that, it will not help your score, and could harm it in the long run.  Never mind that you'll be paying interest for no good reason.

-I have two collections on medical bills, they total about $414 dollars. One is 5 years old and one is 2 years and 7 mo.

Look up the HIPAA method.  We cannot discuss it in these forums, but it helps people remove medical debt.

I'm trying to talk my girlfriend into adding me as an Authorized User onto her USAA OR Discover Card (which I actually have on me for emergencies). She has 16 years of credit history roughly.

---

I would only get put on as an AU to one card - pick the oldest one (or the one with the best utilization).  There are anti-abuse algorithms out there, and I think if you get too many AUs, you might trigger that.

But honestly, just start building your own credit beyond your loans.  Take care of your collections (through HIPAA or pay them off), get PFD if you can, do goodwill saturations if they won't PFD (and you don't HIPAA).  Get a secured card or two.    Check the banks that you have relationships with to see if they have secured cards that graduate or see if you can prequal with Discover or Citi.       If no one will prequal you, go with Opensky.    I used them, they're great for starting history.

I know you're in a hard place right now, but you can do this.  You have a girlfriend who can help, and your windfall (I would use some of that for your security in these cards - high enough limits that you don't have to pay every darn week to keep utilization in check!), and you seem to have a desire to make this better.  It's ok - I had bad credit too, but you're starting off nearly 15 years before me, I have no doubt you'll do great!

[AllZero]

I applaud you fine folks wanting to help a member out.

Please, let's stay on point and address how best we can achieve the member's goals.

[Anonymous]

I’m taking a seat. Understood I still have much to learn.

[FinStar]

---

@AllZero wrote:
I applaud you fine folks wanting to help a member out.

Please, let's stay on point and address how best we can achieve the member's goals.

---

To add, let's ensure the while there can be certain disagreements even with the diversity of experiences on the most effective approach, all posts must conform to the Friendly, Supportive and Respectful guidelines.  Thank you for your understanding and cooperation. 

FS. 

[Anonymous]

Holy cow ya'll there are SO many replies and I can't quote them all. Thank you all for being so responsive so quickly.
Let me try to clariy everything and make it concise.
→ Student Debt
-I owed $10,400 after I had finished my rehab as of August 2019.

-I called MyFed loans seeing that it was transferred immediately, and I had a chunk of cash. I paid off $5700 of the remaining loans. That cleared 2 of 3 loans entirely. The math here is tricky because I paid ahead of schedule, meaning my interest, and thus total owed is in flux and will be less than $10,400. I believe this has saved me around $2500 just in interest over the 9 year pay back.

-My minimal payback rate is $76/mo where $35/mo is interest payments. I upped my remaining payback amount to $115/mo. This has dropped my payback schedule to 3.8 years instead of 9 years.

→Medical

-I have $414 reporting on real FICO (not FAKO). This is in 2 accounts roughly $155 and $260

-I called both CA's today and requested PFD. The first said they didn't know what that was even with an explantion. Second said they knew but "they weren't that kind of company, they represent their clients accounts and aren't really a debt collector"...right after they read the debt collector spiel about being recorded etc. Is that true? Are there different kinds of CAs, some of which can't do PFD or something?

-Second CA said that I really owed them $420 and not $250 and asked for it all. FICO says $250.

-I'd like to pay them PFD and be over and done. I'm going to let them stew on it. However, if they won't bite I'll send HIPPA. The 2nd CA already said they knew more than they should over the phone. I work in health care and with data. I know what PHI is, and they are over the line by a smidge.

→Authorized User

-GF's Discovery history is 13 years old account. Its also at 45% utilization (we bought a washer and dryer and some other needs in Sept for her new house and are paying it down). Its an $8k dollar limit and the only AU account I want to attach myself to. We need to paydown $2600 to get her account into AU territory. It sounds like a lot but its probably doable in 4-8 weeks.

→FAKO? FICO?

-I finally got onto Experian, paid my $1, and got my scores.

-Experian: 535
-Equifax: 553

-TransUnion: 547

Yeah I'm feeling really dumb right now. But hey, thats like gaining >100pnts over night right?


Now that everything is more clear, it seems like I should get the CA's off my back...then wait to get an AU and then 1-2 credit cards? Or get the graduating cards and get on an AU when possible??

Thank you all again!

[Anonymous]

The debts are about 5yr 2mo and 2yr 6mo IIRC. They're within the 7 year statute in Virginia I believe. I live in Michigan now.

Is there any value in trying the Experian boost? I've done pretty well with paying my auto insurance, electric, gas, etc. They haven't gone deliquent I don't think. Not in awhile anyways.

I didn't know I could go back the Doctor's office and beg to pay back them directly?? Is that advisable? I really have no moral qualms about paying them. They rendered a service, I didn't pay. I'd be pissed if it was the reverse situation. At the same time, I'm not going to take a penalty if I can avoid it. I'd rather just part ways amicably if I can.

[Anonymous]

---

@Anonymous wrote:

Holy cow ya'll there are SO many replies and I can't quote them all. Thank you all for being so responsive so quickly.
Let me try to clariy everything and make it concise.
→ Student Debt
-I owed $10,400 after I had finished my rehab as of August 2019.

-I called MyFed loans seeing that it was transferred immediately, and I had a chunk of cash. I paid off $5700 of the remaining loans. That cleared 2 of 3 loans entirely. The math here is tricky because I paid ahead of schedule, meaning my interest, and thus total owed is in flux and will be less than $10,400. I believe this has saved me around $2500 just in interest over the 9 year pay back.

-My minimal payback rate is $76/mo where $35/mo is interest payments. I upped my remaining payback amount to $115/mo. This has dropped my payback schedule to 3.8 years instead of 9 years.

→Medical

-I have $414 reporting on real FICO (not FAKO). This is in 2 accounts roughly $155 and $260

-I called both CA's today and requested PFD. The first said they didn't know what that was even with an explantion. Second said they knew but "they weren't that kind of company, they represent their clients accounts and aren't really a debt collector"...right after they read the debt collector spiel about being recorded etc. Is that true? Are there different kinds of CAs, some of which can't do PFD or something?

-Second CA said that I really owed them $420 and not $250 and asked for it all. FICO says $250.

-I'd like to pay them PFD and be over and done. I'm going to let them stew on it. However, if they won't bite I'll send HIPPA. The 2nd CA already said they knew more than they should over the phone. I work in health care and with data. I know what PHI is, and they are over the line by a smidge.

→Authorized User

-GF's Discovery history is 13 years old account. Its also at 45% utilization (we bought a washer and dryer and some other needs in Sept for her new house and are paying it down). Its an $8k dollar limit and the only AU account I want to attach myself to. We need to paydown $2600 to get her account into AU territory. It sounds like a lot but its probably doable in 4-8 weeks.

→FAKO? FICO?

-I finally got onto Experian, paid my $1, and got my scores.

-Experian: 535
-Equifax: 553

-TransUnion: 547

Yeah I'm feeling really dumb right now. But hey, thats like gaining >100pnts over night right?


Now that everything is more clear, it seems like I should get the CA's off my back...then wait to get an AU and then 1-2 credit cards? Or get the graduating cards and get on an AU when possible??

Thank you all again!

---

That's a great update!

Those scores are definitely workable. We have seen (very recently) someone recovering from 540 to 770-780 in a little over a year so I`ll let the experts chime in over the best strategy. You didnt gain 100+ pts overnight since you were comparing another scoring model to FICO. Your bank or cc company probably use a different scoring model than FICO. FICO is the standard scale used by most lenders so we tend to guide ourselves by those. 

These are a lot better than 400s!

-Experian: 535
-Equifax: 553

-TransUnion: 547

I'd definitely dispute those accounts with the CA especially since you are uncertain if the balances are accurate or not. Depending on the response I`ll see the best way to request a PFD. I'm curious if you have tried paying the creditors directly? 

You are in much better shape than you thought! I'm sure with the sound advice you've gotten here and careful planning you`ll be well on your way.  

[Anonymous]

---

@Anonymous wrote:

The debts are about 5yr 2mo and 2yr 6mo IIRC. They're within the 7 year statute in Virginia I believe. I live in Michigan now.

Is there any value in trying the Experian boost? I've done pretty well with paying my auto insurance, electric, gas, etc. They haven't gone deliquent I don't think. Not in awhile anyways.

I didn't know I could go back the Doctor's office and beg to pay back them directly?? Is that advisable? I really have no moral qualms about paying them. They rendered a service, I didn't pay. I'd be pissed if it was the reverse situation. At the same time, I'm not going to take a penalty if I can avoid it. I'd rather just part ways amicably if I can.

---

I'm not keen on Experian Boost since I feel it's very invasive. But others might like it. 

I'd definitely try to call them and try to pay them directly. That could be a positive step towards trying to get those tradelines removed.