Weighing my options

Mar 142011
 

I currently have 4 store charge cards that all have between 950-1300$ on them apiece. I have not made payments on any of these cards since about September of 2010, due to losing my job. I just recently won an appeal to get a lump sum of back pay from them, and it’s just enough to cover the outstanding debts as they currently stand. Now I am attempting to weigh my options, whether I should pay in full, pay for delete, or settle, or some one way, some another.

To start, last week, I arranged with WFNNB to pay in full two of the cards (~$2000 total), both still being held through them as the OC. I wasn’t really aware of any other option so I gave them my bank account info and set it up that way, as they were threatening legal action if I didn’t do it on that day (I realize this was probably just pressure tactics but I was scared and had intended on paying anyway so I just went with it). The payment will not post until the end of the month, and I was told I could call and cancel it if I was unable to make it. Now I am reading about “pay for delete” and things like that and am wondering if I should just consider that ship sailed (as I’ve basically admitted I have the money), or if I should be calling, cancelling that payment, and asking about PFD. Is PFD going to cost me substantially more? If so, I can only do it for some of the cards– Literally my whole backpay amount is taken up by these cards, since they include late fees.

The other two accounts (Citi and HSBC) I have not yet made arrangements with. They have both offered me settlements which I did not respond to as I did not have the money at the time. I don’t know how to find out whether the debt is still held by the OC or a CA at this point– Looking at my yearly credit report, Citi is listed as charged off but still shows a recent balance, HSBC is just listed as “closed” but also has a recent balance, however the settlement offers I recieve from them are not coming from HSBC, but “firstsource advantage”, so I don’t understand who owns it anymore.

So basically, I am trying to consider the best option for me, both short and long term. Up until the last 8 months, I have always been on time with my payments. I don’t know if my best options are to just pay it off in full and move on, or if I should even be considering settlements, or PFD (some of these accounts are barely 2 years old, some since 2004). I have other accounts in both good and bad standing, but it’s just these four I can’t keep up with and am ready to get away from. Thanks in advance for any advice that you can offer.

To reinstate or not to reinstate HSBC (Best Buy)

Nov 142010
 

Hello,

 

I had a best buy account opened in 06/2007 with a limit of 1500. I was current up until Dec 08 (30 days) then again in Mar and Apr 09 (60 days). Since then, 18 months now, I’ve been on time and even paid off my balance to zero just last week. The account must have been closed since I see my available credit reads as $0 on my statements, for some time now, probably since the 60 day of lateness. The account was not sent to collections and I paid directly to the OC (Best Buy/HSBC). The 0 balance has yet to be reported to the credit bureau.

 

I do see on my reports that Best Buy is reporting a limit of 1500 still this whole time. I’m confused by this.

 

So, my question is, do I request a reinstatement of my account to keep my credit limit reported as 1500? Do I send a GW letter to remove the lates? Do I do both?

 

My only other loan/credit is a car loan since 3/2006 and a Crapital One card with a measly $300 limit.

 

Background- I had 3 credit cards in 2006 that I used Creditsolutions.com to settle with. I had no working knowledge of credit reporting and credit scoring at that time. I was over 10,000 in debt and was being eaten alive with interest. The last settlement is scheduled to delete around 9/2013.

 

I see I’m reported as having a credit limit of 1800 (300 for Crapital One and 1500 for Best Buy). I don’t want to lose the 1500, in fear of my credit to debt ratio being affected.

 

Should I consider opening a new credit card to rebuild a positive credit history? How much would it affect my score, considering a hard inquiry would result of that?

 

Currently i have a myFico score of 636. In one year I plan to prequalify for a home loan, most likely a FHA loan. I’ll be a first time home buyer. I appreciate anyone’s advice. Thank you.

Sallie Mae – Heroes Act of 2003

Aug 302010
 

Hi Forum, 

My situation is I have a 120 day late with Sallie Mae while I was deployed in Afghanistan. I made the mistake of not enrolling to auto pay and wasn’t able to make any payments for the first few months while in theater. I recently read about the Heroes Act of 2003 and hope this might help my credit.

 

I was deployed from MAY 09 to NOV 09

Sallie Mae

90 Day Late JUN 09

120 Day Late JUL 09

 

Ive been on time with payments since then, making it over a year now. Does anyone know how Sallie Mae usually handle these cases?

I’m sure they will need my deployment orders which I should be able to get from S-1.

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Is deletion possible after settlement?

Aug 122010
 

I made over the phone settlement offers with all my chargeoffs.  I got all but two to send that in writing.  I asked for a pay for delete but never had any luck.  I have received all my letters, the money orders have gone out and I sent them all CMRR.  My question now is, did I jump the gun and not send letter to settle with PFD’s??? The chargeoffs were less than a year old.  Most were with collection agencies but only one of those collection agencies was reporting on the credit report.  The other chargeoffs still show with the OC.  Once they are paid, will I be able to successfully go back and ask for the deletions?  I asked Barclays Bank already and they won’t delete.  I am wondering if the orignial creditors won’t delete it is only the collection agenices that delete????

 

Second Question:

  I didn’t get my scores here, but did true credit, and those are TU 599, EXP 594, and EQU 602.  When I applied for a mortgage just 3 weeks ago was told my score was 484.  The chargeoffs arent showing paid yet, so why did he get an unbelievably low score, and I see these scores which are very shy of the 620 I need???  I have 2 other open trade lines that have been on time since January 2010.  I know this will take time, but once all the chargeoffs show paid, am I going to be able to get the boost in my score like I need? 

 

We are thinking if we wait until next February or March, with our on time payments we should get the boost we need.  Of course, I am not patient and would like it before that.  Anyone been there done this and see the increase I need?

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Time to get the credit fixed- heres what I have! Help please.

Apr 292010
 

 

 

I have been reading these forums for the last 3 nights, and it has spurred me on to get going and fix my credit!

Its come to that point in my life where I have decided to dive into my credit files and see whats up.

 

Long story short, my wife passed away in 2002, and to be honest, I didn’t care if bills got paid or not.

 

Over the last year or so, I’ve tried paying bills on time, and even got a new AMEX in exchange for paying off a charged off AMEX account. The economy hasn’t helped me, and I have had some issues paying 3 of my loans..the bank has worked with me, and I think I have everything on track.

 

The good:

 

I have a loan thru American Honda for the last 16 months that is perfect..never a day late.

 

Same with my AMEX..perfect going on 2 years.

 

I have 3 bank loans that have been on time for about 4-5 months now.

 

The bad:

 

I have several smallish medical bills in collections, and a nasty Sears charge off of 2300.00

 

I have tried to settle the Sears C/O, but when offered a deal, the CA WILL NOT send me a letter saying the debt will be PIF once the negotiated settlement is sent. The good news, of sorts, is that debt is scheduled to come off in 2012.

 

I also have a Verizon bill for 646.00 that I actually owe 300.00 on, but with the crazy “fees”, its 646.00 Sceduled to come off in 2011. I have never been contacted by anyone in person to pay this bill. EVER. Just letters.

 

I have the 3 current bank loans still open, with probably 7-8 30 days late payments scattered across the 3 loans, but they go back over a year ago. my current (within the last 3 months) payments have been on time.

 

I also have a Visa in my Dads name ( I am a Jr.) showing up on MY credit report. It has perfect pay history, but the balance is over 20K. Credit limit is 50K. Not sure if thats hurting me either?

 

My FICO is 520.

 

Any idea how much of an impact the 30 day late payments are killing my score, or is it mostly the Sears and Verizon accounts?

 

I have all 3 current CR’s, and I haven’t seen anything worth refuting other than my Dads Visa in my CR…most of it is pretty good.

 

I have read the FAQ’s, but still not sure where to start.

 

Help or advice?

Older "late" marks

Apr 232010
 

How do older “late” marks on your CR affect your scores? 

 

I have a couple of accounts where there are many, many lates.  However, I am still paying paying on them and they have been on time for the last four years. Wondering if I would have any luck getting the lates removed since I’ve been on time for the last four years.  NFCU is the OC.