Mortgage and Insurance

First time poster who just found this board in looking for answers for how to address my wife’s recent credit spree. 

 

Long story but, for various psychological reasons, about six months ago, my wife went on a “credit spree” using her excellent credit to open up 7 store-based accounts and maxing them out within a month (total of $12K) — even though she had no means to pay them (unless, of course, she came to me since I manage our bank accounts).  

 

She concealed this from me including lying about where she got things (e.g., gift from her mother) and intercepting the bills before I got home.  Since opening the accounts, she has barely made any payments on them; almost all are closed and looking at her CR, they all seem to be at 120 or 150 days late.   I found out about them when she neglected to grab a couple of bills from the mail and I opened them when I saw the words “statement enclosed” on the envelope — my initial thought was identity theft since she got a notice from her work about a data compromise a few weeks ago, but I was in for a big surprise. 

 

Needless to say, we have a bunch of personal issues to resolve but my short term focus is on what to do about these bills — especially since several seem to be close to the 180 day point where per other posts, they get charged-off (which I take to be an even bigger hit than simply paid very late).  The cards are in her name only.  I am prepared to pay them but want to minimize the impact to her credit scores (and of course, would not mind reducing the fees and penalty interest rates that have been applied)   — especially since we will eventually (5 years or so) from now want to move to a new house and will need a mortgage (before this we both had upper 700′s scores).

 

The credit cards are from:

 

Bloomingdales/DSNB (2 accounts – one basic + one major purpose on store card)

GE/Lord and Taylor

WFNNB/Ann Taylor (2 accounts – one Mastercard + one store account)

WFNNB/New York and Company

Victoria’s Secret (does identify WFNNB on CR but does so in materials they sent)

 

A few questions –

 

1. My main objective is to get the negative history deleted.  What is the likelihood of the OC agreeing to delete all of the negative history (or even the whole account) in exchange for PIF?  A variant on that, do you think they would (1) delete the account or (2) delete the negative history and state the account was paid in full while waiving some the late fees and penalty interest rates?  (Please indicate if you have seen this work/not work with some of the listed OCs).  Will OCs delete history/have sympathy where a compulsive mental disorder led to the buying?

 

2. Since many of the accounts are owned by WFNNB, is it better to deal with all of the accounts at once or call individually for each account?

 

3. What is the difference in terms of FICO hit from (a) 150 day day, paid in full; (b) 150 day late, settled in full and (c) charged off, settled in full?

 

Thanks for your guidance

K the C

 

 

 

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