A few years ago, I got myself into some credit problems. Now, all these accounts have been charged off, most in collections, and I want to know where to begin. I have read about debt validation, and pay for deletion. I guess, I just don't know which one to start with. This is what I have: HSBC (Original credit card) - $0 Charged off, purchased by another lender *Not sure how to handle this one? Arrow Financial (Collection for CC) - $728 Capital One (Credit Card) - $1759 past due w/ $1322 written off Credit One (Credit Card) - $1097 charged off LVNV (not sure what this is from) - $1461 past due NCO (Gas bill) - $61 past due United Collection Bur (Medical) - $194, $194 past due (there are 2 for the same amount) I think the LVNV might also be old medical bills, but I can't even recall. So, that one for sure, I'll want to do debt validation, right? Then, I don't know what to do about the HSBC that is listed as 0 and then there is the collection account as well. Do I need to contact the original creditor and the collection agency? I'm confused about that one. I guess after reading anything I can get my eyes on for the past week, I am still a little overwhelmed and don't know where to begin with all of this. Any help would really be appreciated.
If you've been contacted by a CA for any of these debts, I would start with those accounts first. DV them and dispute any inaccuracies or missing information through the CRAs as well. For the HSBC card in collections, you'll need to deal directly with the CA. If the debt is validated and then you're successful in negotiating payment and removing the negative mark, you may be able to convince the OC to remove the original charge off too. Some members have had success doing that, while others have not. However, there's nothing the requires the OC to remove the charge-off, as that's exactly what it was for them.
I have not been contacted by any of these creditors, as I have moved and had my number changed a couple of times since I acquired the debts. Does that matter? Also, I figured out that the LVNV account was from the charged off Credit One card. I have already disputed it with all three CRA. Was that something that I should do?
I always think it's a good idea to dispute missing or inaccurate information through the CRAs first. Also, if you haven't been contacted by any of the CAs yet, then it's up to you to either get the ball rolling or wait until the first contact happens.
I figured I'd have to be the one to contact all the agencies, as none of them have any current info on me. I've started with the dispute process for LVNV, hopefully that goes well. If that TL gets deleted, then where do I stand with the OC? Can I then try to settle with them? I have also sent a PFD to NCO for the $61. I am hoping that since it is such a small amount that they will agree. I'm waiting to see what happens with that before I try any others.
I'd say not to worry. They will most likely find you soon enough. You can always try to settle with the OC but it might not do you much good. What far too many folks don't realize is that getting a tradeline disputed off their credit reports does not stop collection efforts including law suits. So while getting a tradeline off helps your credit report numbers all that time and trouble will be wasted if they sue you. Another thing most folks don't stop to think about is that it is never a question of whether they will be sued but rather when they will be sued that is of importance. There isn't any way to predict that. It might happen at any time or it might never happen. The time frame to be especially watchful for lawsuits is when the statute of limitations is about to expire on them. Some like to wait until the last moment to sue in order to get the maximum amount of interest and other fees added into the amount they sue for to make it more worthwhile. On the other hand a $61 account isn't going to look as bad on your account as a $6100 or $61,000 would and the older a R9 or I9 is the less impact it has on your scores regardless of the amount. How much good getting rid of adverse listings will do you also depends on your income level. If you earn $1,500 a month you probably will never get a high score while if you earn more than $3,000 a month you should be able to build a pretty good score and get high limit cards.
I never really thought about that. I assumed once it was off the CR, it was gone. Thanks. I guess once I get the money, I should just try to settle or pay them off. I really don't want to get sued! This one is fairly recent, so I think it would benefit getting it deleted in terms of the age of my TL. That makes sense. So, basically, someone working at a minimum wage job will never really have a good score?
That's not entirely accurate. FICO scores are based solely on the information in your credit reports, and "income" is one piece of information you will never find in your reports. A six-figure wage certainly won't hurt your ability to get approved for a higher credit limit or a loan with better terms, but it's entirely possible for someone who makes min wage to have a great credit score if they pay their bill on time and use what credit they have sparingly.
