Credit on the rise, what to do now?

[Anonymous]

So, Same story as most people. I was irresponsible with my credit when I was in my late teens early twenties, I was in chexsystems and couldn’t get a checking account, etc. When I was 23 I traveled abroad for work and have remained abroad the last 6 years. During that time I just ignored my credit as I wasn’t using it while abroad and all of my old collection accounts fell off by themselves as they aged out. I then got a secured cap1 credit card more than two years ago as I needed a visa branded card for something online. Then I checked chexsystems, my old blemishes were now gone so I opened up a checking and savings account online. Then July last year I got married to the love of my life, and I knew I was going to move back to the states in the next year so I needed to get my **bleep** together. You can see my history and scores in my signature. My goal now is to get them up to 720 before I move back stateside this fall.

Negative nasties still remaining are:
- 6-7 student loan accounts, all in default, totalling 18K
- 1 (30 day) missed credit card payment on my cap1 secured card from 2017
- Car loan charge off. Charge off date 7/01/2013. $4,403

What I’ve done:
- I entered into student loan rehab in september last year, my final payment in the program will happen next week May 10th.

- Disputed the 30 day missed payment, however, capital one just corrected the date from 11/17 to 10/17, they didn’t remove it.

- Disputed the car loan charge off. They only updated the balance of the charge off, didn’t remove it. (I was going to wait for this to just fall off, as I heard it’s supposed to fall off after 6 years after the charge off date, which would be 2 months from now, but I don’t want to wait, I’d rather get it removed if possible,haha.

Questions:
- My student loan rehab is almost over. From what I heard, once i finish, within 60 days my loans will transfer to a new provider and the default status is supposed to be removed from the old accounts and show closed paid as agreed, and new accounts would be opened under the new provider. Some people have said they have had the old defaulted accounts removed entirely, including the months/years of late payments that occurred before or during loan rehab. Some people said the accounts just showed closed, paid as agreed or back dated to the time before the first missed payment occurred. I don’t know what to do with this. I would like to have the new student loans put on there with the new loan servicer, and have the only accounts just removed completely or at least backdated before the first missed payment occurred so I don’t have that negative history. Even now as I am paying, its still reporting each month as a missed payment, it just looks bad. Not sure what to do with this.

- The missed payment from my secured capital one card i would like to get it removed. I called and ask them about this last year, they didn’t remove it. I disputed it. Still didn’t remove it. Is there anyway to get it removed. Is it affected my score a lot even if it happened 18 months ago?

- This charge off just needs to go. These people also keep doing a hard pull on my credit. 2-3 times a year every year since I gave them back the car and they charged off the loan, they have been pulling my credit for no reason. So i’m racking up inquiries on my credit because of them. So i need the charge off to be removed and I need them to cease and desist with pulling my credit.

Also if anyone has any experience with getting NFCU products, I’d like to hear from your about their score requirements. My sister is a veteran and I just had her sign up with them yesterday, after her account is approved she’ll give me the code to join also. I’d like to get their CLOC and credit card.

[calyx]

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@Anonymous wrote:
So, Same story as most people. I was irresponsible with my credit when I was in my late teens early twenties, I was in chexsystems and couldn’t get a checking account, etc. When I was 23 I traveled abroad for work and have remained abroad the last 6 years. During that time I just ignored my credit as I wasn’t using it while abroad and all of my old collection accounts fell off by themselves as they aged out. I then got a secured cap1 credit card more than two years ago as I needed a visa branded card for something online. Then I checked chexsystems, my old blemishes were now gone so I opened up a checking and savings account online. Then July last year I got married to the love of my life, and I knew I was going to move back to the states in the next year so I needed to get my **bleep** together. You can see my history and scores in my signature. My goal now is to get them up to 720 before I move back stateside this fall.

Negative nasties still remaining are:
- 6-7 student loan accounts, all in default, totalling 18K
- 1 (30 day) missed credit card payment on my cap1 secured card from 2017
- Car loan charge off. Charge off date 7/01/2013. $4,403

What I’ve done:
- I entered into student loan rehab in september last year, my final payment in the program will happen next week May 10th.

- Disputed the 30 day missed payment, however, capital one just corrected the date from 11/17 to 10/17, they didn’t remove it.

- Disputed the car loan charge off. They only updated the balance of the charge off, didn’t remove it. (I was going to wait for this to just fall off, as I heard it’s supposed to fall off after 6 years after the charge off date, which would be 2 months from now, but I don’t want to wait, I’d rather get it removed if possible,haha.

Questions:
- My student loan rehab is almost over. From what I heard, once i finish, within 60 days my loans will transfer to a new provider and the default status is supposed to be removed from the old accounts and show closed paid as agreed, and new accounts would be opened under the new provider. Some people have said they have had the old defaulted accounts removed entirely, including the months/years of late payments that occurred before or during loan rehab. Some people said the accounts just showed closed, paid as agreed or back dated to the time before the first missed payment occurred. I don’t know what to do with this. I would like to have the new student loans put on there with the new loan servicer, and have the only accounts just removed completely or at least backdated before the first missed payment occurred so I don’t have that negative history. Even now as I am paying, its still reporting each month as a missed payment, it just looks bad. Not sure what to do with this.

Typically, a rehab just removes the default and you keep your history.  Some lenders remove the lates, though it is not required/expected.
Because this is a federal student loan, you have very little control over what is going to be reported and you may need to resign yourself to that.   

Since it defaulted in 2012, the lates will probably fall off naturally once the account is brought current - I wouldn't sweat it.

- The missed payment from my secured capital one card i would like to get it removed. I called and ask them about this last year, they didn’t remove it. I disputed it. Still didn’t remove it. Is there anyway to get it removed. Is it affected my score a lot even if it happened 18 months ago?

There is a chart floating around that shows how much of an impact lates of various severities have for a period of time.   A 30 day late isn't terrible.  If it was correct, you should not have disputed it, because 1)  disputes are for incorrect information and 2) it probably just annoyed Cap1

If it was a one time late and you've had an otherwise perfect payment history, I would call them and explain the situation (you messed up just the once for whatever reason) and see if they'll remove it.  Many lenders will, many lenders won't.  I don't know if your dispute will hurt the process.
If they refuse, then I would try the Goodwill-Saturation technique.  Otherwise it will hang around for up to 7 years.

- This charge off just needs to go. These people also keep doing a hard pull on my credit. 2-3 times a year every year since I gave them back the car and they charged off the loan, they have been pulling my credit for no reason. So i’m racking up inquiries on my credit because of them. So i need the charge off to be removed and I need them to cease and desist with pulling my credit.

The best way to take care of this would be to pay it if it is within the SOL. Or wait til it falls off in 2020 <- I can't math, and I'd wait for the 7yr mark.
You could call them and try to negotiate a smaller amount and/or a pay-for-delete (PFD).  If they won't do a PFD, pay it off so they stop pulling and the account starts to age off.   Then start doing the goodwill-saturation technique described here in the forums.   There is no guarantee that they'll remove it.

Also if anyone has any experience with getting NFCU products, I’d like to hear from your about their score requirements. My sister is a veteran and I just had her sign up with them yesterday, after her account is approved she’ll give me the code to join also. I’d like to get their CLOC and credit card.

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[simplegirl]

That car loan would fall off next year because the fall off date is 7.5years from first delinquency. In New York theirs is different because things can fall off in 5 years from the credit bureaus. 

[Anonymous]

+ about the student loans

Regarding Capital One, once in a blue moon someone reports getting a Goodwill from them. Most of the time it's not worth it though. They all just get rerouted to the Executive Office, where they are really nice and say they'll look into it, but just send it a generic letter saying they have to report accurately. Then kindly put a dispute code on your reports (even though you said it's not a dispute) that you have to spend time getting removed.
Besides the fact that the 30 day lates impact will be reduced over time, I've had complete success with early exclusions. 6 months until deletion and they'll remove them with a dispute.

[Anonymous]

Thanks for all of your replies. I really appreciate everyone’s advise.
Regarding the student loans, let’s say they do follow procedure by the book and don’t delete my old accounts when the new servicer puts on the new accounts, and the old accounts only remove the default and negative information post default, essentially backdating it to right before it went into default. That’s what the financial aid website says. If that’s the case then I think my score would still be good because my loans defaulted on 2010 and 2012. So if they remove the default status and only shows the several late payments in 2010 and 2012, that was 7-9 years ago right? So it should affect my score negatively that much right? Just wondering. My credit report only shows me 24 months of history (the credit reports I get from my Experian membership)

[Anonymous]

In NY only paid/settled CO’s and collections drop off after 5 years. If they’re unpaid, I believe they stay on the report for 7.5 years.

[Anonymous]

That's correct, once you rehabbed the lates will be removed 7 years after DOFD. It's on the getting out of default page of the website where it talks about the difference on your report between rehabbing and consolidating.
If your lates don't fall off after you rehab, you could always do a dispute and have them removed. You could attach a PDF of the loan website page with the deletion part highlighted to speed things along.
Some places for credit reports are Experian's free monthly score and report at freecreditscore.com or the $1 trial at creditchecktotal (don't forget to cancel) for your score and report from all three CB. I love the latter because you can cancel and get the trial again.

[Anonymous]

I know this is many month old, but hits closely to my situation with the SLs. I have 3 sets of SLs (dates/lenders) as some of you may know. The TLs are set to drop 4/21, 8/21, and 8/23 (this last one is absolutely wrong, but I won't diverge from the topic here, as I have covered this before), per my CRs.

I want to clarify (and maybe it can't be clarified absolutely because I get that SLs and their reporting can wildly vary depending on which way the wind is blowing!) that if the rehab is completed prior to the remove by dates listed on the CRs, then the TLs will be updated to paid as agreed (or whatever, but basically they are no longer in default status) and may no longer be eligible to be removed on these dates? Or would they? Or would the accounts remain another 7, 7.5, or 10 years because of this updated status, just with the lates/COs dropping along as time goes on? I would of course prefer the TLs drop completely like any other baddies...

Would it be wiser to set up rehab with each lender/servicer/CA (whatever) so that the timing is where I complete the rehab right around the time the TLs are to be removed from my CRs? That way they can't be reestablished and placed back on my CRs at that point? I guess I could always dispute them since the rehab was completed prior to them reinserting themselves..... or is this another hair brained idea of mine to maximize my options to improve my CRs and scores? Will it even matter in the end? It seems like it must matter a little bit because if it was all good with their verbage after rehab, no one would worry or care about the TLs being removed haha!

I am truly sorry that I seem to keep being a pest with all of my questions. I just want to do the right thing, but benefit myself a little bit too, and everyone can be happy, right?

I only ask because if rehab takes 10+ months (reporting updates, finding a new lender or reestablishing the TLs with the OC, etc.), this means I am at a nearly good point to try it for the first lender and maybe just hang back a couple months to reach out to the second lender to start the process?

I am doing rehab of my own accord and not being actively sought out by any of the 3 lenders currently, so I get time is of the essence, but I feel like there is a little wiggle room to approach them, and it doesn't all have to be done on the same day, right?

Thanks for hearing me work this out and carry on about it!