to opt out or not to opt out? that is the question.

[Anonymous]

So, if I am in the process of GW some collections and lates, should I opt out?  What are the pros and cons?

And if I am also in the midst of going for a mortgage, does that change my options?

Also I recently saw a post on the mortgage thred that says if you dispute an item it will re-age the account.  Does that mean if I GW something now it will stay on a credit report for another 7 years??!???

Seems like navigating credit scores shouldn't be so difficult.

Thanks again everybody?

[Anonymous]

This is a huge misconception.  Disputing does not re-age the account. 

The only thing that could re-age an account is changing the DOFD.  That is illegal but it does happen.

What they probably mean is that when they disputed the account was updated.  This happens a lot and it can hurt your score.  It makes the account look current.

Nothing, not GW, not disputing, can make an account stay on your report longer than the 7 - 7.5 years.

[Anonymous]

This is good to know.  I had know idea that updating an account would affect my score.  Will DVing the CA casue an account to update?

Does opting out help alleviate any of the reporting that goes with the updating?

How do I know if I should opt out? 

Thanks Guinness 56!

[Anonymous]

If you do no want the CRAs to alert the CAs that you are seeking credit is one reason to opt it. It prevents them from selling your info to 3rd parties.

The other type is opting out with creditors in good standing.  It prevents Junk Debt Buyers from buying and selling bogus collections.

One way it benefits you is no longer getting pre-approval offers in the mail.

When you are repairing your credit, it is always good to opt-out.

When they update an account that has been dormant for a long time it can cause a score drop.  Dving should not.

[Anonymous]

Thanks again Guinness56.  i just need a little more clarification.  Don't mean to be thickheaded....

Are there really two kinds of opting out?  Or does opting out once on the optoutprescreen.com take care of both types of opt out?

I am going to be applying for a mortgage mid-March.  Will opting out prohibit them from being able to do the mortgage app?

Thanks!

[Anonymous]

No, there is going to be more than one choice for opting out. You will need to opt out twice.

And you are not thickheaded.  Cautious.

Opting out does not prevent them from pulling a report.  That would mean you had frozen your report.

Message Edited by guiness56 on 02-13-2010 09:44 AM

[Anonymous]

For anyone reading this who's as unsure/cautious as I am....  here's a link for a post from fused that I found in the archives.

                                     ###

Step #1: You must Opt Out of two things: Your Credit Reports and All Creditors. The first one ensures that the CRAs will not sell your personal data to anyone else (haha…no more data mining). The second one will prevent JDBs (and CAs) from buying and selling bogus collections.

Use this link to opt-out of your credit reports

OPT-OUT CREDIT REPORTS (or call 1.888.567.8688)

Use this link to opt-out from all of your CURRENT creditors that you're in GOOD standing with. Do not attempt to opt-out with any CAs or current creditors that you're in BAD standing with (i.e. charge-offs).

OPT-OUT ALL CREDITORS

                            ###

 So, I think I am going to go ahead and do both versions of opt-out..... but one more clarification.  when fused says 'Use this link to opt out of your CREDIT REPORTS'  he/she really means to say CREDIT OFFERS, right?

Thanks again!

[Anonymous]

No, he meant CR but not the way you think he means.

Opting out of the credit report keeps them (CRA) from selling your information.  It will not keep anyone from pulling a report.

[Anonymous]

Opting out so JDB can't buy/sell your info seems like an excellent idea.  If you've got collections out there that are not showing on your credit report, is there any way that this procedure could 'wake the sleeping dragon?'

I know I seem overly cautious, but I'm sitting on a pile of collections from 6 and 7 years ago  (please drop off), that I have no idea whether they are paid or not.  I've moved enough times that it looks like I outfoxed them  (??)  I just don't want it to come a bite me back.

Thanks again Guinness 56!!

[Anonymous]

Negative items that are over 7 - 7.5 years can not be on your CR.  But they do not go away.  They are stored in your credit file.

Under some circumstances creditors have access to that file.  One is applying for a mortgage $150,000 or greater, annual income of $75,000 or greater and insurance of $150,000 or more.  (I could be incorrect on the exact amounts).

Opting out may keep the old collectors from finding out, I do not know for sure.

A debt, is a debt until it is paid.  They can continue to attempt to collect forever, just not sue you after that SOL has expired.