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CRA Verified


bcobb
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Hi there!...I have disputed some stuff on mine and my husband's credit reports. Today I got a response from Experian saying that the two I disputed were verified and updated. What is the next step to getting these removed? I am trying to get rid of three that are still showing balances due. I have one in collections, and two that were charged-off about 2 years ago, but are still showing balances due. The others are all zero balances. Also, last July I was trying to get a home loan (didn't work out) and I kept all my credit reports in a file. I pulled my credit reports the other day and noticed that Sears (one of the charge-offs still showing a balance due) has the TL showing it was Paid as Agreed until Feb 2005 then was CO. That's not true. On the report from July 04, it shows Sears TL with the CO in Nov 03. That's correct. Is this illegal? Are they trying to re-age the account? One more thing. The CA I mentioned earlier has not tried to contact me in any way. Can I still send them a validation? I'm trying once again for a home loan. I want to at least get this collection and 2 chargeoffs with balances off. Thanks for any help!

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Worst possible time for you to be working on your credit. Reason is: If you are Not successful, your score may end up worse rather than better because of verification updates.

How did you dispute (ie, "not mine")? If so, they have been verified as yours. Find something else wrong in the TL and dispute that. Rinse and repeat.

While you do this, do a FACTA dispute with the DF. You can't just send them a vanilla dispute letter. FACTA calls for documentation or else they will think you are claiming ID theft. Seems like you need to do a lot more research before you make (what might be) further errors.

What was your score when you were denied? Do you have any positive, ongoing, credit accounts? Do you need 100% financing?

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I disputed the one as "paid before collection/chargeoff" and the other as "balance incorrect."

The first time I was denied my score was in the lower 500s. Yes, I need 100% financing. I can't afford a 8-9% interest rate that I know I will get. My husband's credit scores are better than mine, but he makes less than me. I was told mortgage lenders use the credit score of how makes more. I am a veteran and can use my VA because they don't go by credit scores, but I don't think I can get it with the negative past. I do have two credit cards, a personal loan, and two car loans (one car loan is brand new, first payment made this month) that I have been paying on for about a year in good standing. No lates. But with the chargeoffs and the collection, I don't even think I could get a VA loan.

The situation is that this houses I want to buy will go on pre-sale in a month or two (they are brand new being built). The first phase sold out already. I'm sure phase II will also sell out and I want one. They won't be complete until sometime next summer, so I won't actually close for another 8-10 months, but I will still need to be pre-approved way before then. Probably during the pre-sale so they will hold one for me.

Thanks so much for your help!!!! :D

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FACTA=Fair and Accurate Credit Transactions Act of 2003, the latest amendment to the Fair Credit Reporting Act. One of the new provisions allows consumers to dispute information directly with the data furnisher as well as with the CRAs.

bcobb-You're right, you probably will not be able to use your VA benefits. To use FHA or VA, your score needs to be a lot higher. Even then, those gov programs are a real pain. Be sure to find a mortgage broker who is very experienced in gov stuff.

The new car loan is depressing your scores right now. After that gets 6 mos of age, the deductions will be offset by additions to your score. You can also dump some points into your scores by keeping your CC balances between 1% and 9% of the highest credit used (as showing on each bureau).

You need a good broker. Explore ARMs. Since you gotta have that particular house, a 2/28 or 3/27 Adjustable Rate Mortgage may make it affordable for you right now. Then you have two or three years of fixed interest rate (depending on which program you go with) to improve your scores. You refinance before your rate starts adjusting (unless prime is in the basement and you actually lower your payment). A good broker can steer you into the best deal for your situation.

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