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Stuck with Credit Repair - Need Help !!


slynbrown
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I began my credit repair about 1 yr ago and this is my story. I have disputed every item at least twice and I have 9 neg items left on my credit report which is the most neg of the three CR which ironically is not my worse score. I didnt find out about DV until after I disputed he items twice and the same items have came back verified and later previously verified or verified again so I am scared to dispute again because the 5 CO are verifying and updating monthly. The items below are on my CR.

1 late pays on car note (current for past yr) loan ends 12/06

1 Foleys current/was 90 late once a little less then 2yrs ago

2 paid default student loan 7yr mark in Dec 05

1 Charge off (Conns $2200 ) 4yrs old

1 Charge off (RJM/Orchard $1500) 5yrs old

1 Charge off (Direct Merchant $800) 5yrs old

1 Charge off ($300) 1yrs old

1 Charge off (Bally's $1400) 6yrs old

All of the debts listed above have came back verified by lender. I dont know how to handle the items to increase credit score. Should I let the items stay because the are so old or write settlement letters for pay for delete. I am mainly concerned about the 5 CO

I have opend a secured CC for 300 on 7/05 and

2 secured line of credit with bank for positve TL which are now paid/never late.

I dont know what my next step should be. Open more secured CC/LOC or try to make settlements. However if they dont delete then what because I know my score wont go up if they are just paid collections.

I have done my homework about opening secured cc, disputing, and understanding my SOL but I would like to get a home within the next yr as well as continuing to repair my credit and I need help. My Fico sores are 560, 580, 580. I need to know from a credit repair viewpoint and a mortgage viewpoint.

Thanks in advance

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Hi Slynbrown, Your at the right place. You are not alone in this. He's what I suggest you do. For the one's that you still have an active account that you still pay on, Send them a Goodwill letter. In my experience the goodwill letter has worked since you still have an account with them. There are plenty of goodwill letters if you do a search but modify to your situation. As far as you charges off's are they showing $0 balances? If so look into your states SOL.. If you are within it you may want to chill on awaking that beast. If not, see if you can still settle with original creditor and try for a pay for delete. Any CA, DV'd them CMRR. Don't apply for any more credit because inquires can pile up to drag your score down. Also, if you haven't already "Opt Out" That's just the tip of the iceberg. Continue doing your research and really learn the laws so you understand what your doing and your'll see improvement in your credit . Hope this helps. :D

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Your situation is moving along just fine. Since you want to buy a house next year, that's feasible. Some of the derogatory data will fall off by that time, other stuff will not impact your scores as much as they do now. Focus on your goal and get a mortgage the minute you can qualify. You can always refinance in 2-5 years when your credit has completely recovered.

A mix of account types will help your score. It may help you to obtain a loan of at least $5000. Some mortgage lenders look for this when qualifying a borrower.

If you were my client, I would advise you not to pay anything off, or settle. Simply pay your current accounts on time, Opt Out, open an installment account and wait.

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I called up my apartment office from a few years ago today, who gave me a neg tradeline ($276) which stayed on my report after repeated disputes. I was told they will call the CA to delete it if I send them a check and pay in full. I called the CA as well, was told the best they could do is to mark it as paid in full unless the original creditor instruct them to delete the trade line - I guess that's why it's hard to negotiate PFD with CA's. I will try to get the tradeline deleted through the OC.

I suggest you try the same see if you can get the OC to agree on PFD, especially on the ones with lower amount owed, as the CA's are mostly impossible to work with, and as I was told today, unable to delete neg tradeline unless instructed by OC.

Regarding mortgage, most builders in my area require a score of minimum of 620 or above.

I

I began my credit repair about 1 yr ago and this is my story. I have disputed every item at least twice and I have 9 neg items left on my credit report which is the most neg of the three CR which ironically is not my worse score. I didnt find out about DV until after I disputed he items twice and the same items have came back verified and later previously verified or verified again so I am scared to dispute again because the 5 CO are verifying and updating monthly. The items below are on my CR.

1 late pays on car note (current for past yr) loan ends 12/06

1 Foleys current/was 90 late once a little less then 2yrs ago

2 paid default student loan 7yr mark in Dec 05

1 Charge off (Conns $2200 ) 4yrs old

1 Charge off (RJM/Orchard $1500) 5yrs old

1 Charge off (Direct Merchant $800) 5yrs old

1 Charge off ($300) 1yrs old

1 Charge off (Bally's $1400) 6yrs old

All of the debts listed above have came back verified by lender. I dont know how to handle the items to increase credit score. Should I let the items stay because the are so old or write settlement letters for pay for delete. I am mainly concerned about the 5 CO

I have opend a secured CC for 300 on 7/05 and

2 secured line of credit with bank for positve TL which are now paid/never late.

I dont know what my next step should be. Open more secured CC/LOC or try to make settlements. However if they dont delete then what because I know my score wont go up if they are just paid collections.

I have done my homework about opening secured cc, disputing, and understanding my SOL but I would like to get a home within the next yr as well as continuing to repair my credit and I need help. My Fico sores are 560, 580, 580. I need to know from a credit repair viewpoint and a mortgage viewpoint.

Thanks in advance

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mike111 wrote: "...it's best to take care of them one way or the other before that."

This looks like advice to pay a collection, which is not in the best interests of anyone looking to obtain a mortgage. Paying a collection that has not been recently reported (if it gets updated upon payment) can cause a significant deduction to the scores. Following this advice has left many consumers out of luck at the time they need higher scores the most.

If a consumer cannot obtain a PFD, (sometimes it's best not to awaken sleeping giants), it is much better to let the lender force you to pay off derogatory accounts at closing.

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It depends on how you interpret the definition of 'take care' :wink: it's best to get these drop off the report either through dispute, DV or PFD - one way or the other.

Because if they all stay on the report, he will be looking at paying a total of 6200 to satisfying the lender at closing time. That's a lot of money to pay at one time, most people are short of cash at closing after down payment and closing costs. I suggest getting rid of at least a few to leave an amount that's easier to stomache at closing.

You are right, paying it without removing the tradeline may do more harm than good.

mike111 wrote: "...it's best to take care of them one way or the other before that."

This looks like advice to pay a collection, which is not in the best interests of anyone looking to obtain a mortgage. Paying a collection that has not been recently reported (if it gets updated upon payment) can cause a significant deduction to the scores. Following this advice has left many consumers out of luck at the time they need higher scores the most.

If a consumer cannot obtain a PFD, (sometimes it's best not to awaken sleeping giants), it is much better to let the lender force you to pay off derogatory accounts at closing.

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Let's look at these one by one. But first, take the advice earlier in this post and these tips.

1. Don't apply for any more credit.

2. Opt out. https://www.optoutprescreen.com/

3. Forget disputing these with the CRA's. They are only going to "verify" by comparing databases to datebases and tell you its accurate.

4. Use an Unauthorized Credit Inquiry Removal Letter to any public inquiries and try to get them removed. Each inquiry less than 1 year old drags your score down about 5 points.

5. Don't pay off any accounts that are charged off or over 180 days late. This will not help you, unless the amount is small enough to handle and you can get a letter of guarantee that satisfying the debt will result in a permament deletion from the OC.

6. Use DV's to your advantage. DV the CA first, then wait for the CRA to "verify" and then trip them up. The CRA's are easy to catch if you do it this way. There are many letters and articles, just run a search.

OK, for your accounts, my advice:

1 late pays on car note (current for past yr) loan ends 12/06

Write a goodwill letter.

1 Foleys current/was 90 late once a little less then 2yrs ago

Write a good will letter

2 paid default student loan 7yr mark in Dec 05

Wait till Dec. then ask for immediate deletion per FCRA 7 year requirment.

1 Charge off (Conns $2200 ) 4yrs old

DV- Too old; records are likely not avail.

1 Charge off (RJM/Orchard $1500) 5yrs old

DV- Too old; records are likely not avail.

1 Charge off (Direct Merchant $800) 5yrs old

DV- Too old; records are likely not avail.

1 Charge off ($300) 1yrs old

Negotiate a settlement and letter of guarantee to remove. Shoot for 50% of amount owed. They should go for it.

1 Charge off (Bally's $1400) 6yrs old

DV or 1, 2 "punch" with DV of CA/OC and dispute with CRA's as obsolete

Remember to CMRRR everything and Don't pay anything until you get a letter of guarantee to remove FIRST!

Good Luck!

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For the ones no records are available, if CA doens't respond or validates, what would be the next step since the TL will stay on the report? - Is suing the next step? I tried DV before, they waited a while and then came back verified, I was like 'now what' - I must be missing some thing/weapon here.

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For the ones no records are available, if CA doens't respond or validates, what would be the next step since the TL will stay on the report? - Is suing the next step? I tried DV before, they waited a while and then came back verified, I was like 'now what' - I must be missing some thing/weapon here.

No sure I fully understand your question, but if there are No Records Found, then its not verfiable. If the CA does not fully validate or fails to respond, make sure you sent the DV CMRRR, send a copy of DV request, after 30 days, to CRA showing that CA never responded to DV and ask for deletion.

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Both Bally's and Conns are OC therefore I cant DV. However, I am getting conflicting replies as is the same by reading the board.

1)If a consumer cannot obtain a PFD, (sometimes it's best not to awaken sleeping giants), it is much better to let the lender force you to pay off derogatory accounts at closing.

Dont you awake the sleeping giants if you are sending a letter to obtain a PFD and wont you get a high interest rate at closing or not approved?

2)If they all stay on the report, he will be looking at paying a total of 6200 to satisfying the lender at closing time. That's a lot of money to pay at one time, most people are short of cash at closing after down payment and closing costs. I suggest getting rid of at least a few to leave an amount that's easier to stomache at closing.

So would you just pay the collections items even if they dont delete?

My score is only increasing a little with paying on time each month which I dont know if I can get a middle score of 580 going that route. I am not applying for any new credit but dont I need to take some action to increase my score?

I understand that if I was simply repairing my credit I would probally wait out the term but that isnt the case so now what? I dont wish to speak to a lender because I am not ready to buy and you cant just speak to someone for advice.

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"...I don't wish to speak to a lender because I am not ready to buy and you can't just speak to someone for advice."

Of course you can. Many loan officers, brokers and bankers would be more than happy to advise you in the hopes of getting your mortgage loan business in the future. This is the perfect time for you to seek out expert advice. Just make sure you speak with an LO who knows their stuff.

(is it)"...better to let the lender force you to pay off derogatory accounts at closing..."

The suggestions offered here are not written in stone. Most posters are trying to inform you of the ramifications and share their own experiences. You may settle and have absolute success. You may settle and tank your scores to the extent that you couldn't get your loan. There are no guarantees.

In general, if you pay, the DF should update the TL to a zero balance as of NOW. You need to allow the NOW to age at least 13 mos because for 12 mos from date last reported (combined with any derog field) the TL will hit your scores particularly hard. If you don't have the $ to pay all at once or have 13 mos to wait, then you do better to let a lender force you to pay at closing (more expensive but preserves your current score). If you are able to obtain a PFD, that is a Win-Win for both you and the DF.

"...don't I need to take some action to increase my score?"

By paying your current accounts on time, you ARE taking action. Get your CC balances above 1% and below 9% . Limit inquiries until after your loan closes. Don't open or close any other accounts. Stay focused on your goal.

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it definitely is possible you may renew the interest to collect if you contact the creditor. But it probably make sense to take some actions proactively rather than wait till the very end.

I'd first try redispute(every 60 days or so), debt validation, the usual stuff, but after that you pretty much hit a wall and left with options to either sue or pfd?? I'd take the risk and call them all up or send a letter to offer PFD, and play nice, to test the water. If they are not negotiable, then considering legal action for their violations.

Let's suppose you settle 50% on all the accounts, it still beats paying 6200 at closing. Credit score aside, high balance/liability wouldn't be good for getting a loan any way. Even if they don't do PFD, sometimes when you settle, and dispute later, it may drop off. suppose you settle 50c on the dollar, but no one deletes anything, later you redispute and 2-3 accts dropped off - that's a success in my book. Although it depends on your financial situation as well.

I know some people would disagree, but if I had 6+ negs, I'd be agressive and try anything, but be patient at the same time so I don't driving myself nuts when things are not happenign fast enough.

Dont you awake the sleeping giants if you are sending a letter to obtain a PFD and wont you get a high interest rate at closing or not approved?

So would you just pay the collections items even if they dont delete?

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