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Best way to redistribute debt?


toomuchcredit
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I'm a newbie to this board. Here's my story...I recently sold my house and my Experian score fell 11 points to 641. What I have left is a lot of credit card debt with one 30-day late payment on the old mortgage. I think the problem is that I don't have any installment payments. Would it be better to try to get some new cards and transfer some (not all) of the balances so that I'm not at 64% usage, or should I get a debt consolidation loan for half of the debt? I'm afraid that the loan would show 100% usage (isn't this bad). I'd like to buy another house with a no-income/no-asset loan, but it requires a score of 700. HELP!

[Edit by toomuchcredit on Wednesday, April 23, 2003 @ 03:18 PM]

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First off on that 30 day late try www.planetfeedback.com to write a goodwill letter to the creditor asking their consideration to help you out & remove the late date listing.

If you have more then 3 or 4 credit cards; leave off on opening any more of these types of accounts. You need to move over to a personal finance loan better yet a bank installment loan.

Balance transfer what you can; but don't transfer the complete balance leave about $50 behind; then pay the rest of the way down by minimum payments (this way the status of balance transfer won't show up on the credit report).

You really want to pay what debt you have down to under 40% utilization.

On the installment loans it will take a hit for a bit; being a newly opened account with 100% utiliation - but as you pay it down your scores will greatly benefit from this new type of account.

Also remember pay as agreed & stay below the credit limit - want two years strong of good payment history your scores will make a rebound in time with full force once you have all the good activity fall in place.

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Thanks, kb9tbq. Is it possible that planetfeedback might work if I've already written directly to the mortgage company, and they've refused to remove the late-pay? It was a bill-pay goof up, and the mortgage company refuses to "acknowledge" third-party errors. Ever heard of this before?

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With planet feed back; it will give you the address to mail to as well as the CEO; President of the company & the sort. So you might just get a different response all together.

Question would be: was the 3 party billing company through the mortgage company or on your side to pay them?

If on their side would point out to them that you don't believe you should be penalized for a 3 party messing up on the billing.

If not at least stress how important this is to your good credit and if they would please reconsider; since you have been paying as agreed since this one time mix up.

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Bill-pay mix up was on my side. My bank was new at it at the time and didn't tell me that mortgages were "paper" transactions, not electronic. There was a processing problem on the bank's side, and it took three weeks for my payment to get to the mortgage company. The bank initially gave me this info. verbally but wouldn't admit it in writing, though. I'd like to find out if anyone else has had this problem. I'll try the "please reconsider" with Planet Feedback. It's worth a try. Thanks!

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