Beginner Needs Help!

[Anonymous]

Hello Out There,

I’ve learned a lot by reading these forums and would like to start by thanking all of you. I have a few questions however as I begin the process of repairing my credit.  I currently subscribe to both credit keeper and free credit report. I like FCR because I can check my report for free at any time. I like CK because I get all three reports monthly and I also like the scenarios they allow you to run. If anyone would like to recommend a different service that they feel has more value please let me know.

I’ve had a lot of lates in the past but from what I’ve read it’s the lates in the last two years that count the most. With the exception of the two accounts I’ll mention below all of my lates will be older than two years in April of 2010. The April of 2010 late is with GMAC and I’ve heard people have good experience with GWing them to remove bad credit lines. As reported by CK my credit scores are EXP: 591, EQ: 610, TU: 620. I only have one credit card with a $300 limit which I usually pay off before the billing cycle ends every month.

The first account I want to take care of is an old AT&T Universal card that is now with CITI bank.  The card went delinquent over 2 years ago. I was then contacted by a CA called United Recovery Systems. I entered into an agreement with URS through which I pay $100 dollars monthly on the account and the account accrues no more interest. I thought this was a great deal when I entered into this agreement because I thought I could pay off the card slowly interest free and be none the worse. Much to my dismay when I first checked my credit report in July, I found that CITI has been marking me as delinquent on the account every month for over two years (Only on the CK EXP report though. The CK EQ report shows I’m current). I have the money to PIF for a PFD but am wondering what the best way is to go about it? I’m thinking I should contact CITI because URS doesn’t even show up on my credit report. Should I try writing CITI or try to call through a back door number?  Also, CITI is reporting a balance of $5,260 with a past due amount of $4,000. I don’t want to have a settlement on my CR but am wondering if I should start negotiations by trying to only pay the smaller amount.  Also, can I expect any retaliation from URS for sidestepping them and paying this off through the OC.

The second account is a note loan through Wells Fargo I took out around 3 and a half years ago.  I went delinquent on the account and ended up entering into a settlement with a law office and received a letter stating I had paid the account in full. Then when checking my CR I found a delinquent account reported by a company called Zenith Acquisitions.  When I contacted Zenith I traced them back to WFF. I sent Zenith the letter saying I had paid the account in full. They responded by changing the status of the account to “legally paid in full for less than the full balance” and also did me the favor of re-aging the account in the process. The difference between the settlement and what I actually owed was less than $300 so I wouldn’t necessarily be opposed to paying it off. Again my question is how I go about doing it. Or, should I dispute to the credit reporting agencies with the PIF letter as ammo. Also, has anyone had any luck with GWing WFF for a delete or change of status?

Thanks in advance to anyone who has the time to help me out.  Your help is much appreciated!

[llecs]

Welcome to the forums!

If you like FCR, then consider using CCT instead. Same layout, but you can pull all 3 daily, vs just EX. While FCR, CK, and CCT don't offer FICO scores, the report info is great.

Be persistent with GWing.

Ideally, you'd want at least 2-3 CCs, with one being a store charge card. However, you can certainly hit the high-700s with just one. If you only have one open CC, then continue to pay as you are. You may benefit via a few extra points if you pay the balance down to $1 vs $0.

Don't worry about the CA. They aren't reporting and Citi still owns the account. Contact Citi via a PFD-type agreement whereby they remove the lates and CO reference in exchange for a payment in full.

Unlike OC accounts, a "settlement" remark with a CA doesn't hurt. However, the CA's reporting hurts just as bad as if the balance was reporting $0 or $10,000. I'd send a GW to the CA and ask them to delete. Per the OC, WFF, send them GWs asking them to remove any derogs.

[Anonymous]

Thanks for the help llecs!

[RobertEG]

As for account 1, if it went into collection, the OC cant report subsequent OC account delinquencies on a closed account.

Are you sure the OC closed the account?  If the CA has not reported to a CRA, how do you know about them?  Did they send you a dunning letter?

As for account 2, did you pay before the CA entered the fray?

[Anonymous]

Robert,

For account 1, the OC is still reporting a balance so I think they do actually still own the account. Whether it is actually closed I don't know. When I try to call them my call is automatically forwarded to the CA. The CA is who I've actually been making the $100 monthly payments to. They contacted me shortly after the account went into delinquesncy with the OC. I'm not familiar with what a dunning letter is. The CA originally contacted me by phone.

For account 2, Yes. I did pay through a seperate law office and didn't even know about the CA until I checked my CR. I contacted the law office I worked out the settlement with and they had never heard of the CA either. To my knowledge I never recieved any correspondence what so ever from the CA.

Thanks so much for your help!

Message Edited by Stephano on 10-20-2009 05:42 PM