Paid Charge off vs Charge off

Mar 172011
 

Hi Everyone!

 

I have heard various opinions about paid Charge offs vs Charge offs. I hear some folks say it doesnt make a difference on you score and really only matters when you have a manual review. Also heard that it can actually hurt your score because it effects the DOLA. On the other side I heard it can help your score becasue the unpaid charge off amount is included in your utilization percentage rate. But I also heard that once you paid the charge off everything zeros out so its a wash when it comes to calculating your utilization rate.

 

Some folks say you should only consider paying a charge off when you can get a PFD. I think that makes sense but I think its practically impossible to get a PFD on a revolving account. Just seems like people have success with PDF for things like uitlity bills and medical type bill, and not any kind of revolving credit or other types of accounts through a financial institution.

 

Curious to hear your thoughts on this.

 

 

 

 

 

 

Looking for advice on HELOC

Mar 162011
 

Thank you in advance for your thoughts and experiences.  I had a California home which was foreclosed about 2.5 years ago by the first position lien holder.  I had taken a 2nd, which was a HELOC from Wells Fargo (non-purchase funds, making this a recourse loan) with a balance of about 150.  We stopped paying it about 3 years ago.  From what I understand the clock for the statute began when the last payment was made.

 

  1. Does anyone know what state the Statute of Limitations is based on?  I tried looking for the paperwork from this loan and could not locate it.  Is it California because it was a California home or is it Delaware because Wells is incorporated there, or is their lending division incorporated in yet another state? 
  2.  Is there a forum where specific lenders are openly discussed and their actions compared to get an idea for their internal policies?  This may not be relevant as it would be the collection agency who would have the option to take action. 

I was unemployed for a year and am just now getting back on my feet.  I don’t have the ability to settle this, and don’t see having that ability in the near future.  Opinions on riding it out or other options I hadn’t considered are welcome.  However, please don’t offer moral or ethical judgements, those are not needed or welcome.

 

Thank you

Thinking of closing all credit

Mar 092011
 

Hello Fico Family,

 

I’m looking for some advice. I’m in the position to pay off all old charged off debt as well as my car in the coming months. With this being said I feel like my life has been ruled by credit cards and the debt I accumulate. Simply put, I think I can’t manage it. I’m starting to dream of days of not even owning a credit card. I know this will affect my FICO tremendously and for a long time. I do hope to buy a home next year, so I wouldn’t close everything right now. Just eventually close everything. What are your thoughts?

 

~Tired of the madness and lack of funds :(

A Twist to a Settlement Letter

Mar 062011
 

Dear Forum Members,

 

I have been writing a settlement offer letter to a collection agency once a month for the past 4 months, and they have not answered any of these letters.  I have proof of their receiving them, and I am able to see who signed for them.  For this reason I obviously know they are just ignoring my letters.

 

I was thinking of writing a letter to them basically saying the following:

 

“I see you have received my settlement letters on (date), and I would like to thank you for not rejecting my offer.  It is nice to see a company working with a client in such a bad economic environment.  I just wanted to let you know that I have the amount of money listed in my settlement letter that you did not reject waiting to be sent to you for settlement on this account.  As the settlement letter stated, I just need a letter sent to me on your company letterhead stating the offer that you received from me. Thank you again for not rejecting the offer.’

 

I know this letter is choppy, but it is a really rough draft which I hope to get your thoughts on.  My hope is to get a response from them, or at least have ammunition showing a court (if they ever sue me) that I have reached out numerous times without a response from them to work out the debt.

 

Thank you.

Americans use credit cards to pay bills, and that’s good?

Feb 072011
 

The first line in this article tells me that the “journalist” is absolutely out of touch with Main Street. 

 

“WASHINGTON — Americans are putting more money on their credit cards after more than two years of cutting back, a sign that they are gaining confidence in the economy.”

 

What world is this guy from?  Americans are putting more on credit cards because THEY ARE RUNNING OUT OF MONEY, not because they have confidence in the economy.  What are your thoughts?

 

 

Let’s See How High we Can go In 1.5 Yrs.

Feb 012011
 

I am here because like many I want to make sure that my credit score does not **bleep** me out of a good rate on my first home.  I plan on buying a home in May of 2012 and need to maximize my score between now and then. 

 

Right now I am sitting at a 696, I have been as high as 750+.  My most detrimental areas are a high balance to limit ratio, a 30 day late in July 2010  (auto-pay did not work on a credit card), and a collections account that is listed as “KD” from 2005.

 

Accounts:

I have a Card with a $5500 limit, currently sitting at around $5200.  This has the 30day and was opened in 2004

I have a Banana Republic Card with my Fiance that has a $500 Limit, sitting at $300.

I have a $1000 line of credit at my bank.

$4400 left on a student loan.

$3000 left on a line of credit I used to buy an engagement ring.

 

I should be able to paydown everything but the student loan by this time next year, leaving just the student loan with a balance.

 

My first question, I am interested in the impact of opening a second card with a no-interest on balance transfers so I can save on interest while paying down the $5200.  What are your thoughts here? 

Also, on the collections account when should I expect that to fall off, the only date I see listed is 11/2005.

 

Thanks, looking forward to working on this!

 

 

GW Letter to EOS CCA

Jan 262011
 

I am sending this GW letter after fully paying my balance. I just wanted to get your thoughts on it. Also is this a type of letter that I sign?

Thanks!

 

 

1/24/2011

 Regarding Account No. xxxxxxx

 

EOS-CCA

xxxxxxxxxxx

xxxxxxx

 

 To Whom It May Concern:

 

I am writing to you concerning a collection enacted against me. The collection was for an outstanding payment to AT&T Mobility. I moved around a lot and did not have a permanent address until 4/2010. For whatever reason, I did not receive a bill they mailed me for $xxx. It was only once I discovered this collection on a credit report did I realize that I owed a balance which I promptly paid in full on 1/5/2011.

 

I am writing asking you to delete this negative information from my credit history. I have a stable income from a full time job and would have easily paid my balance if I had known about it. I have never been late paying any bill, credit card, or loan and, other than this collection, my credit history is excellent.  Honestly, I feel a little silly having a negative mark on my credit report for such a relatively small amount of money.

 

I am shopping for a home mortgage and negative reports such as this may preclude me from receiving a good interest rate or even qualifying for a loan at all. Since this past collection does not reflect my current ability to pay my balances on time I am asking you to please ask the credit agencies to delete it from my record. Since this collection will be removed from my history in a few years anyway, I am kindly asking you to erase it just a little earlier. I know that you are under no such obligation to do so, but I am begging you to show some goodwill and help assist my family and me in our search for a good home. Please let me know if any additional documentation would assist in reaching a positive outcome, and I than you again for the time you have spent reading this letter.

 

Sincerely,

 

Name

Address

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