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Introduction/credit report strategy


cooljazz1994
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Hello,

I wanted to say hello to everyone in the forum. This is my first post to the forum, seeing that I thought I'd never need the assistance, but who really does? I've been researching my credit situation and have come up with a strategy that I'd like some feedback on:

I pulled my credit report from the reporting agencies and it's not too bad, but bad enough. The breakdown goes like this:

Experian: 1 60 day late, 4 collection, 3 charge off

Trans Union: 1 60 day late, 9 collection, 2 charge off

Equifax: 1 60 day late, 5 collection, 3 charge off

On Experian the 3 charge offs account for 3 of the 4 collection. On Trans Union, 1 of the 9 collections are charge offs. On Equifax, 2 of the 5 collections are charge offs.

According to Experian, anticipated collections will be removed Oct 2011, Dec 2011, Apr 2012, Sep 2012; anticipated charge offs will be removed Oct 2011, Nov 2012. One of the charge offs has no date reflected.

According to Trans Union, anticipated collections will be removed Jul 2011, Jul 2011, Jul 2011, Nov 2011, Dec 2011, Feb 2012, Mar 2012, May 2012, Jun 2012, Nov 2012; anticipated charge offs will be removed Jan 2012, Feb 2012.

Equifax shows no anticipated removals.

My intention is to debt validate the collections and dispute the late payments and charge offs. I anticipate by some of the dates mentioned that some of these will fall off by themselves, but for others I have to be proactive. I had to go back to school after losing my job (major part of the problem) and would like to have a number of these resolved before I start interviewing next year. Any thoughts?

Thank you in advance.

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EXPERIAN

60 day late, 4 collection, 3 charge off

3 charge offs account for 3 of the 4 collection.

Collections will be removed Oct 2011, Dec 2011, Apr 2012, Sep 2012;

Charge offs will be removed Oct 2011, Nov 2012, ?????

If 2012 is your worry I would let the 2011 dates fall off naturally. I would question why the dates don't match on some. Your removal date should be based upon your date of first deliquency regardless if the debt is still owned by the original creditor (OC) or they sold it to a collection agency (CA).

Unless there is a glaring inaccuracy I begin with the "not mine" dispute process with the Credit Reporting Agency (CRA).

I then fold in the 623 method outlined on the link at the top of this page. Usually a long ago charged off and sold debt by the OC is more headache then it is worth. If you catch them in the 623 trap they will likely just remove the tradeline (TL) in what amounts to a few months early.

CAs on the other hand have an invested interest in you paying (you might as well be dead to the OC) but generally have poor documentation. For them I go the DV route. Their validation is usually weak and unconvincing (but strangely enough, complies with the law) if you get anything at all. If the account is past the statue of limitations (SOL) in my current state of residence, the company's state, and/or the state the contract was signed in, then I go for broke. You can try a PFD, but if you think they don't have decent validation you might consider filing a complaint with your small claims court (depending on the amount).

If the TL is actionable (which means the account is within the SOL and they can still sue you) your flurry of paperwork may draw attention to yourself and trigger a lawsuit against you...I usually leave those sleeping dogs lay. If they are a small amount (under $500) you might attempt a PFD (pay for delete). I would expect to pay in full and hope they agree to delete the TL. If they don't agree to delete you are still paying at this point to avoid a lawsuit, so I think it is risky.

Since most of your TLs seem to be close to falling off naturally I doubt they are actionable, but some states have SOLs past the 7.5 year reporting time...be sure to check first.

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Gus,

Thanks for the info. I've been trying to figure out how each of the TLs can differ so much between CRAs. Even if I wanted to PFD I'm not sure who to pay, since some of the TLs are duplicates of the same account. As far as SOL, some of these accounts were in different states due to my time in the military, so I'm not sure which "clock" to use. As they are starting to fall off on their own I'd like to let sleeping dogs lie, but since I'll be finishing school next year and interviewing I'd like to start with a "clean slate". The longest of these "clocks" is almost out of sand, so I take it that is why they're falling off.

Yes, Experian doesn't mention a status of some of the TLs (how long they will be reported), not sure why. Maybe due to the type of account?

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If all of your negatives will be gone within the next year, I wouldn't worry about it. Accounts that old are hardly affecting your score. The time you would need to spend removing items 6 years old will not be worth the yield. I would focus on rebuilding new credit, paying debts and building assets.

According to Experian, anticipated collections will be removed Oct 2011, Dec 2011, Apr 2012, Sep 2012; anticipated charge offs will be removed Oct 2011, Nov 2012. One of the charge offs has no date reflected.

According to Trans Union, anticipated collections will be removed Jul 2011, Jul 2011, Jul 2011, Nov 2011, Dec 2011, Feb 2012, Mar 2012, May 2012, Jun 2012, Nov 2012; anticipated charge offs will be removed Jan 2012, Feb 2012.

Equifax shows no anticipated removals.

One thing I might do is save those Credit files. They could come in handy once the reporting period has passed. Equifax likely shows no anticipated removals because they show you the DOFD instead. [At least they do on the reports they send in the mail] Just add 7 years [+ 6 months] to the DOFD...

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