Lainee Posted October 16, 2004 Report Share Posted October 16, 2004 Hello all!I am looking for some advice on what the best course of action for me would be. The situation....I am sitting in the low 600s score-wise right now. A few variables I could use advice on:- I have a loan that was sold a few months ago. It is unsecured and has always been paid on time. The origninal amound was around $8000 and now it is around $3000. The new "owner" of the loan has not been reporting it. Is this hurting my credit score? If so, what is the right course of action?- I recently had a wrong collection account removed from my credit. The process took me over two years. In that time, I disputed it with TU twice. The second time they said my claim was frivolous (which it turned out NOT to be - the debt was not valid). Did that hurt my score, and if so can I have that changed?-I check my credit often and I use the "credit similation" tools a lot. One of the scenarios is about paying down debt. They ask how much you will pay a month. Does this count the interest you are paying or should you just enter how much wil be paid on the principle?Overall, my credit issues are due to too much debt, even though it is paid on time. I can't think of much else to do to make it better than to pay down my balances, but any other advice would be appreicated. Thanks so much! Link to comment Share on other sites More sharing options...
Ahntara Posted October 19, 2004 Report Share Posted October 19, 2004 The $3k loan you have is not showing on your report. So that is not hurting you, since your primary issue seems to be usage ratio and DTI. The incorrect CA that you had removed...Was it removed from TU? If so, it is no longer affecting your score, nor is the designation of "frivolous".As far as credit scoring models and projections, I find them worthless. Having your debt as low as possible will help you, period!It doesn't matter whether you factor in P, I, P&I, the color of your eyes or your nephew's birthday. If usage ratios and DTI is an issue, pay down/off what you can to change those ratios. Link to comment Share on other sites More sharing options...
edubb007 Posted October 19, 2004 Report Share Posted October 19, 2004 Hello all!I am looking for some advice on what the best course of action for me would be. The situation....I am sitting in the low 600s score-wise right now. A few variables I could use advice on:- I have a loan that was sold a few months ago. It is unsecured and has always been paid on time. The origninal amound was around $8000 and now it is around $3000. The new "owner" of the loan has not been reporting it. Is this hurting my credit score? If so, what is the right course of action? I believe this to be effecting your score if the original TL has been removed and substantial time under it! Aging is a huge factor in score power. If U R to lose both the TL's (Old and Bought) than you might dispute to put former owner of debts TL back on! This is probably best started by speaking with the original lender. They just will update it to sold.- I recently had a wrong collection account removed from my credit. The process took me over two years. In that time, I disputed it with TU twice. The second time they said my claim was frivolous (which it turned out NOT to be - the debt was not valid). Did that hurt my score, and if so can I have that changed? This DID hurt your score while it was on your CR and won't be a factor now that it is removed. You can try to sue TU under the FCRA for past damages but my guess would be that you might want to let it lie and be happy it was removed from all 3 CRA's! -I check my credit often and I use the "credit similation" tools a lot. One of the scenarios is about paying down debt. They ask how much you will pay a month. Does this count the interest you are paying or should you just enter how much wil be paid on the principle? Paying debt off and lowering your revolving debt is alawaya great way to help a FICO rise! It all factors into your debt to income ration( DTIR ) that helps lenders figure your credit worthiness. It's a no brainer, really!Payoff debt to earn a lenders respect!Overall, my credit issues are due to too much debt, even though it is paid on time. I can't think of much else to do to make it better than to pay down my balances, but any other advice would be appreicated. Thanks so much! sounds to me you have a good start! Good Luck!EDUBB007 Link to comment Share on other sites More sharing options...
retmar Posted October 19, 2004 Report Share Posted October 19, 2004 In regards to the loan, if the new owner is not reporting, then your balance is not dropping even though you are current on payments. But, if the amount is dropping, then the new owner is reporting, but, reporting under the name of the original. This does happen on some TL's. An example is when FCNB went BK and sold all accounts, the new owner just continued the reporting using the original TL.As to the collection account being deleted, it could possibly affect score for a short period as it did cause "action" on your file. Time frame varies.If you keep CC's down to less than 30% use will help keep score up. Paying more than minimum on other debt helps drop balance faster, but, I don't think it will affect the score that much.If your goal is to get the scores up, there are ways to pay your debt down faster so as to decrease your DTI ratio. If so, let me know as I have a way that worked for us. It was shared with some others in the past who also realized good results. Remember, it is a workable way, not a perfect way. Link to comment Share on other sites More sharing options...
edubb007 Posted October 19, 2004 Report Share Posted October 19, 2004 In regards to the loan, if the new owner is not reporting, then your balance is not dropping even though you are current on payments. But, if the amount is dropping, then the new owner is reporting, but, reporting under the name of the original. This does happen on some TL's. An example is when FCNB went BK and sold all accounts, the new owner just continued the reporting using the original TL.As to the collection account being deleted, it could possibly affect score for a short period as it did cause "action" on your file. Time frame varies.If you keep CC's down to less than 30% use will help keep score up. Paying more than minimum on other debt helps drop balance faster, but, I don't think it will affect the score that much.If your goal is to get the scores up, there are ways to pay your debt down faster so as to decrease your DTI ratio. If so, let me know as I have a way that worked for us. It was shared with some others in the past who also realized good results. Remember, it is a workable way, not a perfect way.U R Good!Nice and quick!EDubb Link to comment Share on other sites More sharing options...
Lainee Posted October 20, 2004 Author Report Share Posted October 20, 2004 Thanks everyone!This place is such a great source of information. I guess the part about the loan was that although the "old" lender did report the account as sold, I thought maybe it would be good for the new lender to report and show that out of $8000 that I have paid $5000 and continue to pay. Sorta like having $5000 open credit?? Because it is an installment deal, that isn't truly the case, but I thought it might "read" that way. Am I way off? Probably! Look out 700s here I come! Link to comment Share on other sites More sharing options...
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