For the last six months, I have been trying to rebuild my credit.
Student loans in default, but they are "only" hurting me from a "Late Payment" aspect.
I have a local cable company(Xfinity) who sent a $187 over charge to a collection agency, who placed it on my credit for $235.00.
However, Paragon Emergency Services billed an insurance company that I didn't have, nor ver gave them three years ago.
Of course they weren't paid and claimed they mailed me to letters, but while speaking with a supervisor, verified that they had the correct street address, but they wrong city, so that's why i never receive those letters.
They sent it to Midwest Recovery Systems, who placed it on my credit early in 2018, that caused my FICO score to drop 78 points, making my score too low to apply for unsecured credit cards.
I've been told that they legally can't bill me if I had insurance at the time of treatment, which has been verified.
In essence Paragon Emergency Services is breaking the law and are making me jump through hoops to clear something they did wrong.
I know I'll eventually get them to get if off my credit report, all three to be exactly, but I said all that to ask this:
I just finaced a 2019 Honda Civic with a 581 Fico score at 9% interest and I've been turned down for 100% of unsecured credit cards I've applied for, due to this fraudulent medical bill.
Once this medical collection is taking off of my credit report for good, can I refinance my car loan for a better rate?
Also, since I have five, yes five unsecured credit cards(Bank of America, TD Bank, USAA, Capital One and Citi) who have all turned me down for even their entry-level unsecured credit card, better known as bottom-teir unsecured cards, all in the last 30 to 60 days, would it be unwise to reapply after this medical collection is taken off and hopefully shooting my credit score up the 78 points that were lost when it first was reported orf should I wait a few months before reapplying for unsecured cards from Discover and America Express, of whom, i was told that their algorithms will automatically declince you if, you have applied in the last 30 to 60 days?
You have alot going on.The student loans if you have not defaulted will hurt your Fico score depending on to what degree you have been late(30 days,60days late etc),how frequent and how recent.The presence of the collection is a major derogatory and is resent it is both carry alot of weight.If the collection is deleted from your cr,If your cr is generally the same as before your Fico score should get all those points back.With a 581 it's pretty low you should use your auto loan to build a solid history of monthly on time payments and avoid anymore derogatory information.If the collection is removed yes you should reapply and if all else fails their is always secured cc's.Make sure which ever cc you apply for reports to all three credit bureaus.GOOD LUCK...
I actually have five(5) Secured credit cards:
1. Bank of America Cash Rewards Platinum Plus Secured MasterCard.
2. USAA Secured American Express.
3. Capital One Secured MasterCard.
4. TD Bank Platinum Cash Secured Visa.
5. Citi Secured MasterCard.
I've had them all since July 2018 and managed them perfectly.
I was hoping that once I get this medical billing company to remove this collection that my credit would increase enough and after about six on-time car payments my score will be in the 700s so, I can refinance and get unsecured credit cards.