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Old Debt On Credit Report


faiths13
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I have a debt on my credit report that I would like to try to get off, if possible. It is really old - over 5 years or more. When I look at my credit report it is a little confusing though - it says the Date Opened is 10/07 and the DLA is 06/06. It is from a dentist bill and I'm not sure when the last time I saw that dentist was, but I don't think it was in 2006 - maybe 2005. I just don't have the money to pay it off, and it is the last thing on my credit report now. I need some advice on what to do. Thanks.

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I have a debt on my credit report that I would like to try to get off, if possible. It is really old - over 5 years or more. When I look at my credit report it is a little confusing though - it says the Date Opened is 10/07 and the DLA is 06/06. It is from a dentist bill and I'm not sure when the last time I saw that dentist was, but I don't think it was in 2006 - maybe 2005. I just don't have the money to pay it off, and it is the last thing on my credit report now. I need some advice on what to do. Thanks.

If a collection agency or JDB is reporting the account, the 10/07 date is the date they received the account. It doesn't reage it or keep it on your CR longer.

Considering how old it is, it probably isn't hurting your score much, especially if you have current accounts in good standing.

You could file a dispute with the CRAs. I'd dispute the date of first delinquency. Who knows? If the furnisher doesn't verify it, the CRAs will delete it. Make sure it's outside the SOL first. If it's not outside the SOL, you don't want to make yourself known to the furnisher.

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I forgot to mentioned I have disputed it and just heard back from Equifax that it has bwen verified. Sorry. Also, my husband and I are trying to buy a house. Otherwise I would wait ir out.

It could depend on how soon you want to buy a house. A lender could tell you if that one negative item would affect your chances. Unless a lender has told you it needs to come off, you may not have to worry about it.

If it has to come off, you could send a dispute and validation request to the company reporting the account. There's no guarantee that they'll answer. If all else fails, you could contact the dentist to see if he knows when you paid him last. If the date of last payment is correct, you might have to negotiate a payment.

If the date of last payment is incorrect, you'd have send proof to the CRAs. In addition, you'd have violations against the furnisher.

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I dont actually know what my credit score is at this point. we start a month ago in the process of looking into buying a house and that is when we saw our credit reports. Both our scores were NA because we hadn't had anything reported in so long. We were able to get 4 things removed from our credit and we both got a secure card, so we are just waiting to see what our score is. Im pretty sure this will need to come off - unless I just wait until 6/12? Then it's been seven years and will come off? Or how does that work?

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So should I try to contact the CA and make a deal? If so, how little do you think I can whittle it down to this close to it coming off? Or is there possibly another option?

Paying the debt doesn't delete the entry from your CR. The CA would have to agree to a pay for delete. If they don't agree to that, and if you pay, the entry would still be there, but it would show it as paid.

Have any lenders told you that the entry on your CR will affect your chances of getting a mortgage at a decent rate?

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I wouldnt just pay without first getting something saying they would delete it. My husband has been talking to a lender who is a friend of a friend about the steps we need to take to clean up our credit. We are getting an FHA loan so I believe we need to get it all off. I will check to make sure though.

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I just got an FHA loan last year and had two repos on my CR due to a divorce. At the last minute it cost me an extra 4K, but, I still got the loan. The repos had been since 2008. I had two banks willing to give me the loan.

Go straight to a bank or Credit union and explain your situation, have them pull your CR and go over it with them. You could get a better idea of whats going on by just going to one and have them review your CR. After that, you will have a better idea of how the other lending institutions will react. That's how I did it and really had no problems.

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The lender is telling us we need 3.5% down. Seemingly impossible at this point.

Faith,

Find out your credit score. It's important to know where you stand, otherwise it's like driving in the dark.

As BV80 mentions above, make sure that you have current accounts in good standing. This will do a lot to elevate your credit score.

HUD has some good programs. In addition to the 3 1/2 percent low down payment, in some states right now (until November 2012 I believe), you can buy for as low as just $100 down, though I don't think that California is one of them, unfortunately.

There are other programs you can apply for too, locally. In Florida for example, buyers can apply for $10k free money if they make under a certain amount and if they make over a certain amount it's 5K at low interest that doesn't have to be paid back for 10 years. And it can go towards down payments, repairs or closing costs.

Just be persistant with things, it will get better.

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I would love to find out my score. Im just not sure if I should check yet or not though. I was thinking about waiting until I made a payment on my secured cc. My husband has made a payment on his secure card and supposedly got everything deleted off his credit though.

There is a program here that pays for most of the down payment, but supposedly it is hard to get and takes 2 months to get approved for the money after you get a loan.

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well i paid for a $1 experian credit report and my experian score is 586. so not too bad - i need to get it to 620 to get the loan. there is still one item that was supposed to come off that hasn't, and i have to pay my first payment on my secure card. hopefully it goes up after that!

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Faiths13, there is a new FHA rule going into effect next month, April 1, 2012: All collections equal to or over $1000 have to be paid or you have to have 3 months of payments toward the collection on an agreement before you can close, even medical. The notices were just sent out last Friday (Mar 2) regarding this new rule. See this link: http://portal.hud.gov/hudportal/documents/huddoc?id=12-03ml.pdf

So if you have more than one collection, for example, and they total more than $1000 they all have to be paid.

If you apply for a mortgage the CA is going to see a mortgage inquiry and be less inclined to negotiate so do your negotiating before making application with any lender.

For others, the old rule is still in place so if you find a property and you meet the other qualifications you are good to go as long as you get the FHA case number before April 1, 2012. To get a case number you have to have a contract on a property and make formal, official application and they have to have it in the system to get the case number assigned.

Edited by Denita
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Yes, but certainly don't tip your hand by saying that you want to buy a house when speaking to the attorney/debt collector/CA. They will stick to the amount if they think you are cleaning up your credit file to buy a house.

Make sure to get everything in writing. The amount either needs to be deleted off your report if its just a collection, especially if they can't prove that it's your debt or if they don't have the authority to collect; or, if it is your debt and they can prove it, you need to settle it

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