@Anonymouswrote:Just discovered this site so it's been like drinking from a fire hydrant....but I couldn't find anything that addressed the situation I'm currently in...if there's a better resource for me, please direct me to that and delete this post.
I had three CC in college, MC, AMEX, and Discover. Kept them current for the most part through college, after took out a car loan and paid that off after six months with funds gifted to me by my parents. My credit score was peaking around 750-760. After college I moved away for a job and didn't understand this thing called a "budget" and a new concept of "living within your means" and it all came crashing down on me. hard. Eventually all three accounts we to collections, and I paid all the collections off in full. I went a year without a CC, but got serious about rebuilding my credit about two years ago and got a secured card through WF. Besides a couple late payments and going over the limit a few times I've always paid in full. I've now built my score up from 480 to 618.
A few months ago I got engaged and started the home buying process. My score is on the threshold for most FHA loans, so I'm doing everything in my power to clean up my report. Got my three hard copies of my CR from each reporting agency and have been trying to make sense of what is on there. Discovered an unpaid powerbill from a few years ago that I promptly took care of. But how each agency reports the collections looks funny and it's hard to make sense of it all.
I talked to WF about graduating my CC to unsecured, but my account wasn't elidgble, and they were unsure I would be approved for another CC, and I wasn't willing to risk a hard credit check dinging my CS.
Beyond when my secured CC has a blance, I have zero debt. I own my car and have zero student loans. I think my debt to asset ratio is something like 99%.
That's my credit story. Here are the things I need help on....
1. Account Classification on my CR
Looking strictly at my EF report under the revolving account section, there are four entries. I have two accounts that are listed as a CO, one with a $285 balance and $59 as the "charge off ammount". Is it worth contacting that account and getting it paid? If updating monthly yes, if not wait till after mortgage pulls, you will have to settle before you can close.
The other account from Discover, the balance is listed as 0, and designated as PAID, with nothing listed next to Charge Off Ammout. What should I do with that account? Zip leave it alone you dont want it updating as it would cause a Fico drop and there is no CO amount once its been paid. A CO amount is typically left if in comments if they sell the account to a JDB.
The fourth account is with Chase, which I never had a card with them to my knowledge. Zero balance, designated as "Paid and Closed", but what's odd is that next to owner it says "Undesignated", where as the other three all state "Individual". Why aren't these accounts listed under my closed accounts with my AMEX account? What's the best way to go about correcting these errors, if there are errors at all? AU on someones Chase card at one time??? If its positive leave it alone. I would not challenge the listings as they are clearly closed. If you dispute something and it updates it looks new to Fico as the status date comes current, this is why you dont want to get small things corrected on derog accounts once its been paid and showing such with 0 balance.
2. Goodwill letters
I didn't know anything about PFD when I paid off the collections, so while I have coorespondance from the CAs that the accounts are paid, all the accounts are still on my CR. I didn't negotiate for a lower ammount with the CA, but I did ask to split the payment up with one CA into seperate payments. Would it be worthwhile for me to send out GW letters? If so who do I send them to? The CA or the CC company? GW letters go to who is reporting on your CR typically to the office of the CEO. If you have an OC and a CA you would send one to each. OC typically wont remove unless error is on them but you always try. Welcome to the board
Hopefully this makes sense! Thank ya'll in advance!
An account showing a balance and not showing paid is bad. Pay that off and you should get some points. Up to you if you want to try for a pay for deletion, but given your need to deal with this sson, you need to get it paid no matter what. The presence of the other charged off accounts will minimize the score improvement of getting them to delete it in the near term. In the long term, it would be one less negative account to remove later through Goodwill.
Any mortgage lender will want you to bring all accounts into a paid or paying as agreed status. After you get everything paid off, as time puts it farther in the past, the less drag it has on your scores to a point. Severe lates like 90+ and especially charge offs have more negative affect that never truly disappears till they fall off 7 years after the date of the first missed payment.
If you want to try Goodwill letters, it takes patience. But it helps to have paid everything off into a good standing and show a period of making your new payments with no new negative activity. It boosters your claim that you learned from your past mistakes and turned over a new leaf.
You didn't mention how long the accounts have been behind. If it's been 6.5 years, you may try for an early exclusion directly with the CRAs.
I would ignore any closed accounts that have no negative information showing at the moment even if you don't recognize them as they aren't hurting your score. And they nay even be helping. You can clean it up after you get your mortgage.
Any mortgage lender will want you to bring all accounts into a paid or paying as agreed status. After you get everything paid off, as time puts it farther in the past, the less drag it has on your scores to a point. Severe lates like 90+ and especially charge offs have more negative affect that never truly disappears till they fall off 7 years after the date of the first missed payment.
If you want to try Goodwill letters, it takes patience. But it helps to have paid everything off into a good standing and show a period of making your new payments with no new negative activity. It boosters your claim that you learned from your past mistakes and turned over a new leaf.
You didn't mention how long the accounts have been behind. If it's been 6.5 years, you may try for an early exclusion directly with the CRAs.
I would ignore any closed accounts that have no negative information showing at the moment even if you don't recognize them as they aren't hurting your score. And they nay even be helping. You can clean it up after you get your mortgage.
That makes a lot of sense! Thank you so much!
One weird thing I noticed reviewing all my CR was a descripency on my Experian report in regards to the Discvocer account...All three are not reporting monthly so it may not be worth mentioning. TransUnion lists the pay status as "Account paid in full, was a charge off", Experian states the status is "Paid, Closed, $2,599 written off", and Equifax lists the status as "CHARGE_OFF" with a $0 balance. There is no reference to the $2,599 ammount in either the Equifax or TransUnion CR.
Also learning that UTL is a majort factor for mortgages, so staying off my CC for now. Which is super funny because my limit on my secured card is $300. I know, that's a HUGE risk to have a $250 blanace on that....
If you have more than 6 months before you are actually going to request a mortgage loan you would want to add 2 more open revolving accounts as you need 3 open to boost Fico in a rebuild.