Allright here is the story.
I had one CC with a 2k balance. Wnet out of the country for 2 months then returned then moved states . The paperwork to change my address never arrived at the CC company, so i forgot about it like an idiot.
Looking for some advice...


Thanks in advance..

Don't declare bankruptcy.

It may not be on there for 7 years if they stop reporting.  If the collections agency is still reporting, you can try getting that off.  If the bank is still reporting, you might be able to dispute that off.

If you haven't gotten a new CC, you might want to consider getting one (preferrably unsecured) for a while. Even if it's got high rates.  Carry a small balance for about 6 months.  After that, pay it off, and if there's a yearly charge, drop it before it charges, or call and ask them to not charge it.  

Credit scoring is a crappy, fucked up, system that is cooked against consumers, and should probably be dropped for the benefit of all.

Try here:

[url]http://www.creditboards.com/phpBB2/index.php?sid=fe3b4b95f44700bd1286010a535a2200[/url]

Lots of good info.

Pull all three of your credit reports and make sure it is shown as paid off on all of them.  If it's paid off it will hurt your score a little but it won't prevent you from getting a loan or CC.  I have three collection items on my record, all closed.  I was able to buy a house and get a loan for a car.  I also just got approved to refinance the house.

Here is the problem man

I can tell you exactly what the problem is with your credit and how fucked you are.

But not without looking at your bureau.  If you have access to your credit report, let me know.  I only need to know a few things and none of them are personal/confidental.

In general, if you have a VERY low debt to income ration, only ONE collection/deliquency/slow pay, and a bunch of satifactory accounts (8 or more) then your score doesnt take too big of a hit.  But your debt to income is VERY high and that is MOST likely what is driving down your score.  12k of CC debit is very high.  

A lot of ifs :)

That was you.  If you have 20 satisfactory accounts and a couple of $100 collections, your score isn't going to take a big hit.

If you have 2 satifactory accounts and 1 collection for 2k, your score is going to take  a huge hit.

Take most of the advice you get from people about credit with a grain of salt.

First, get your credit report from the big 3:
[url]www.transunion.com[/url]
[url]www.experian.com[/url]
[url]www.equifax.com[/url]
If you have been turned down for credit recently the reports should be free.
Collections are not that bad as long as they were paid promptly, if you are trying to buy a house it will lower your fica score, but for everyday credit it should not matter. Chances are that the collection agency is not reporting that account as paid, if not you will have to file a dispute and it should be corrected.
Tom

some collection agencys WILL NOT STOP REPORTING !

I was young and thaught.. " hell in 7 years it will be gone.. "  5 years later that unpaid montgumery ward <$1200> is killing me.. EVERY time I apply for anything I get a letter from them saying "pay up and we will leave you alone.. "

every year in december they relist the item with all the buerues.. so Now I have the same $1200 reported at LEAST 5 TIMES!! < Yes thats five time PER agency.. >

I wanted to neg the debt down and pay to get it off but it sounds like even if I pay it doesnt come off.. is that right ?

Hey LT...congrats on the new job!  
RE: this topic.  I have a question.  I fell behind on my credit card payments (two of them, both same bank) with the divorce and all, and collection agency EFG called me on it.  I paid them off on the entire balance - $1200 to settle the debt on both accounts.  It stayed on my credit report with the original credit card company.  When I called the credit card company to dispute it, they claimed I still have to pay them and that they will continue to report it to the credit bureaus until I do.  WTF?  How do I fix this?

Geoff

I've got a SURE FIRE way to keep your credit report in PRISTINE condition...




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Pay your bills in a timely fashion.

TheHappy(749)Blaster

Good advice.....for those who haven't f**cked up yet.  I don't see that it helps anyone who has posted to this thread....though it may in the future.  Glad to see you have managed to keep your obligations so well.  Some of us (5 life threatening illnesses followed by major surgery, 4 years of $6/hour jobs, 5 years of trying to catch up with a real job with a bloodsucking wife, followed by divorce) have apparently been not nearly as smart as you.

The (540) Kill

Dispute with the credit bureaus.  If you get your report online, it will only take a second, but it will cost you no matter if you've been turned down or not.  I've had stuff deleted off of all three of mine recently.  Transunion will decrease the fee, but the others say since it's an online service, you have to pay.  You can get it for free through the mail, but you have to wait.  You can dispute everything online and they will send you a new credit report after the investigation is through.

thans

If you can pull it...  put money into a savings account in a credit union then get a secured loan to pay off your debt.

This is what we're doing...  we owe 8k(ish) from a few years ago (ccs) and we now have enough in cash to pay it off.   However, that won't make GOOD credit.

What we're doing is putting the money into a savings account and borrowing against it (same amount), then paying the debt with the loan.  We then pay on the 8k for a year and we get GOOD credit from that.

Just an idea.
Alex

You've got a lawyer for the divorce right?  You have a record of having paid the debt with the collection agency right?

Put two and two together.  Have your lawyer send them a notarized copy of the receipt of payment from the debt collection agency as well as a copy of the cancelled check.  A nice letter to the affect of "Stop f*cking with my client or legal action will ensue," would also be a nice touch.

If you can prove you paid your debt with their collection agency, copies of the entire paper trail with account numbers, amounts, etc. will help here, they can't ask you to pay the debt.  You've paid it once, asking you to pay it again to get them to clear it off your report is called BLACKMAIL and is a felony.  Really.  You are only responsible for paying your debts ONCE.

You sound like you are in a very similar situation as what I've been in.  Except I still have 20k+ in CC debt.

What is your total debt to credit ratio for just your credit cards?  If you go to [url]http://www.creditexpert.com[/url] and sign up for their service, which I strongly recommend for someone in your position, you can see your "credit score" and they also have tools that let you see what your score will be by making changes to your debt.  The tool shows that the more available credit on your credit cards the higher your score will be.  The actual amount of the credit line didn't seem to matter.  So for example, if you have a 5k limit and have 4,900 charged on it, your score would be lower than if you had a 10k limit with 7,000 charged on it.

If you want a car loan, go to a car dealer and have them pull your credit.  They will let you know if the collection item will stop you from getting the loan.  My paid collection items, one of which was in the thousands, did not stop my loan.

Also you need to know that every time you apply for credit and an inquery into your credit is done, your credit score will be lowered.  If you have too many inqueries over a short period of time you will be denied for credit because it is assumed that each inquery will result in you getting some type of credit.

I had no luck with Lending Tree either.  So don't feel bad about that.  Work with banks and credit unions.

I have about $1500 in disputed medical debt.  I either paid it when I was recovering or the provider waited a year to bill me.  I have ignored the creditors and they have stopped f'ing with me.  I've heard that medical debt can not be used against you for loans, cars, houses,etc.  Is this true?

TS

About eight years ago I leased a pick up truck for a three-year lease. On the third year, my first born was brought into the world. My wife had difficulties in the pregnancy, and medical bills started to pile up. The truck payments fell behind about a month. Two months before the lease was to expire and I turn the truck in, they called and said they wanted the truck or $764 dollars! Well I didn’t have that much all at one time, so I made an agreement with them, that I would turn the truck in early, and they could keep my security deposit (which if any one has leased a vehicle, knows it can be quite high) take the $764 and early termination fee’s, etc, etc IF they didn’t pop my credit! They said ok deal! So I turned the truck in, thought all was well, when a few weeks later I get a call from the finance company! Apparently they ‘Found’ some excessive wear (tires, go figure!) and they wanted another $90 bucks to be ‘Western Unionized’ to them, and they assured me that everything would be A-OK after this last payment! Got the woman’s name, got a letter from them and everything saying what the deal was!

Well I found out last year, it’s on my credit as a repo! Called that finance company back, woman no longer works there and they’ve never heard of me!

I started to get mail from collection agencies a few months later, saying I owed $500 bucks.... And I noticed it was from different agencies after a few months of no response from me!

One woman I spoke too from one of the agencies, I told her my attorney was looking into the matter, she quickly hung the phone up!


And as for paying your bills on time! It’s one thing to be lazy and not give a shit, but everyone has a little misfortune! God bless ‘ya if you haven’t…. But keep on living you’ll get yours!


On a different note…. How did our parents and grand parents get approved for things? I mean did they have the bull shit credit reports way back when? Or did the advent of computers just make everyone’s life a number?

Actually the advent of the Credit Card is what has hurt people.
Back when my parents were in their early 20's, the only places that gave you credit were stores, and bank loans (for cars, houses, and other big ticket items).
The advent of the credit card system that we have now has created both a lot of good, and bad things.

I believe that one of the reasons that consumer goods are expensive now a days in the fact that people have no problem charging it.

Credit card companies handing them out in college is what got me.  I bought about $15,000 worth of sh*t and paid about $50,000 for it.

Actually that happens quite abit if the parents share the same name.. just call them and they will straigten it out..