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So Many Things Wrong With My Credit

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Hey guys, 

 

First time poster here, so hopefully my questions are specific enough.  I have a lot to talk about.  In a nutshell, I decided to check my CreditKarma score today, and had an unsurprisingly low 525 (yikes).  I'm going to be looking for a new rental home in the next 6 months or so, so I'll want my credit to look as clean as possible (I have no problem paying old debts; they don't total much).  I lost my job in 2011 (Texas - school layoffs) and moved up Michigan immediately after.  

 

So, here's goes:

 

1.  In 2010 I opened a credit card account with Capital One.  It had a $500 limit which was never increased.  I haven't paid on that account since 04/2012.  Now, for some reason, my credit report shows two accounts for this single credit card:  One charged off account of $488 (apparently "Transferred from another lender; moved to another office");  One charged off account of $793;  Lastly, I also received a letter dated March 7th, 2014 from a debt collection agency saying that my debt has been assigned to them for the $793.00 amount (doesn't yet show up on the credit report).  Should I attempt to have the debt verified from the collection letter?   They say I have 30 days to do so (one week from now).

 

2.  I have a paid collection on my account of $1200 to comcast .  I have had Comcast internet in the past, but I can't possibly forsee the bill having reached $1,200 for $200/mo internet.  It's old (date updated 02/2011).  Can I possibly verify the accuracy of this, along with the accuracy of the payment, or should I just deal with?

 

3.  I have an energy bill that was placed into collections 06/2013.  Bare in mind I haven't lived in Texas since 2011, so the last payment would've been about June 2011.  How is this just now showing up in collections?  Doesn't that increase the SOL?

 

4.  I have three other accounts in collections all being report from about 2012 to 2013.  I'm thinking the best thing to do with these accounts is simply pay them off, since they're so fresh on my credit report.  Would that ever have a positive effect on my credit score?

 

I can probably safely pay all of these debts off easily over the next year, but I don't want to damage my credit report further (i.e. paying off a $488 account which doesn't seem to even have ever existed).  Also, my girlfriend and I aren't married, but I pay all of her bills.  She doesn't work (stay at home mom and student), but her credit is decent enough to get a place.  Is it possible to use her credit and my new income to get into a new place?

 

Any advice you guys can offer to improve my score for a rental agreement would be hugely beneficial.  Thanks!

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1. DEFINITELY send a certified letter to the collection company IMMEDIATELY asking them to verify. This must be done before 30 days. Send it certified with return receipt. (do it TODAY)

Cap1 is VERY aggressive and derogatory with their reportings as it's part of their business model. Be diligent and proceed with awareness.

 

2. Dispute that via Debt Validation letter too. If it's not 100% accurate, they are legally obligate to remove it. Send it certified mail , return receipt also to all the CRA listing it.

 

3. The can place it any time they want. The SOL begins from the date of last activity. If they report that inaccurately, they are in violation. Also DV this account.

 

4. Are these accounts still open or are they charged off? If open, pay them up asap. If they are charged-off do NOT pay them off right now. Get a handle on them and try to pay for deletion once you understand the process. If they are charged off and they are harassing you, send them a cease-and-desist letter (find it here). Be sure again (and always) to send certified mail, return receipt requested. If they continue to hassle you, they are in violation and may end up paying YOU!

 

Good luck!

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So, here's goes:

 

1.  In 2010 I opened a credit card account with Capital One.  It had a $500 limit which was never increased.  I haven't paid on that account since 04/2012.  Now, for some reason, my credit report shows two accounts for this single credit card:  One charged off account of $488 (apparently "Transferred from another lender; moved to another office");  One charged off account of $793;  Lastly, I also received a letter dated March 7th, 2014 from a debt collection agency saying that my debt has been assigned to them for the $793.00 amount (doesn't yet show up on the credit report).  Should I attempt to have the debt verified from the collection letter?   They say I have 30 days to do so (one week from now).

 

The balance ballooned thanks to late fees and the interest rating escalating to the maximum allowed level once you defaulted until the account was charged off.

Capital One does NOT do PFD and if the debt has been sold then you have the JDB and potential lawsuit to worry about.  The SOL in Michigan is 6 years and since you lived here prior to the default that is the one that will apply.

 

2.  I have a paid collection on my account of $1200 to comcast .  I have had Comcast internet in the past, but I can't possibly forsee the bill having reached $1,200 for $200/mo internet.  It's old (date updated 02/2011).  Can I possibly verify the accuracy of this, along with the accuracy of the payment, or should I just deal with?

 

If it is paid it is no longer hurting your credit score.  Deal with this last you have bigger problems to fix at the moment.  You can try a good will letter to Comcast asking them to delete and see if it works.

 

FYI:  the other response is DEAD WRONG.  They are not required to remove an inaccurate trade line.  They are only required to correct the errors.  

 

3.  I have an energy bill that was placed into collections 06/2013.  Bare in mind I haven't lived in Texas since 2011, so the last payment would've been about June 2011.  How is this just now showing up in collections?  Doesn't that increase the SOL?

 

No it does not increase the SOL and it is NOT a violation as the other poster suggested.  The "date opened" is when the collection agency got it and it is not a violation to report when they got the account.  It has NO affect on the SOL for reporting which for.  Utility bills are almost never sued on though.  

 

4.  I have three other accounts in collections all being report from about 2012 to 2013.  I'm thinking the best thing to do with these accounts is simply pay them off, since they're so fresh on my credit report.  Would that ever have a positive effect on my credit score?

 

Paid is better than unpaid.  Since the debts are all relatively new and you are within the SOL to be sued AND could have to live with them a LONG time on a credit report the sooner you deal with them the sooner you will see an improvement in your credit score.  

 

When at all possible you should deal with the original creditor and not collection agencies.  Sending a settlement letter with an enclosed copy of a settlement often gets the quickest results.  You can send a DV letter to the original creditor but that will only delay the amount of time it takes to get the accounts settled if that is your goal.

 

DO NOT send a cease and desist letter to ANYONE of these if you are trying to clean up your credit.  That removes their ability to communicate with you at all.  It also motivates many creditors to go straight to a lawsuit.  

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Capital One does have its own collection arm.  Maybe they are two separate accounts.  

 

It's strange though, because I've only ever had one account with them.  

 

I appreciate the advice I've found on this forum, though.  Hopefully it will help move things in the right direction. :)

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Clydes is certainly correct on my post being wrong about them having to remove the erroneous trade...meant what she said, "They must CORRECT it. If not, THEN you have grounds for further action."

Capital One is known to be very aggressive and persistent. They sued me twice and I beat them twice.

 

The balance ballooned thanks to late fees and the interest rating escalating to the maximum allowed level once you defaulted until the account was charged off.

Capital One does NOT do PFD and if the debt has been sold then you have the JDB and potential lawsuit to worry about.  The SOL in Michigan is 6 years and since you lived here prior to the default that is the one that will apply.

 
 

 

If it is paid it is no longer hurting your credit score.  Deal with this last you have bigger problems to fix at the moment.  You can try a good will letter to Comcast asking them to delete and see if it works.

 

FYI:  the other response is DEAD WRONG.  They are not required to remove an inaccurate trade line.  They are only required to correct the errors.  

 
 

 

No it does not increase the SOL and it is NOT a violation as the other poster suggested.  The "date opened" is when the collection agency got it and it is not a violation to report when they got the account.  It has NO affect on the SOL for reporting which for.  Utility bills are almost never sued on though.  

 
 

 

Paid is better than unpaid.  Since the debts are all relatively new and you are within the SOL to be sued AND could have to live with them a LONG time on a credit report the sooner you deal with them the sooner you will see an improvement in your credit score.  

 

When at all possible you should deal with the original creditor and not collection agencies.  Sending a settlement letter with an enclosed copy of a settlement often gets the quickest results.  You can send a DV letter to the original creditor but that will only delay the amount of time it takes to get the accounts settled if that is your goal.

 

DO NOT send a cease and desist letter to ANYONE of these if you are trying to clean up your credit.  That removes their ability to communicate with you at all.  It also motivates many creditors to go straight to a lawsuit.  

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