I paid off an installment loan about 2 yrs early and saved myself lots on interest. I did this because my credit was bad when I got the loan and therefore they gave me an extremely high interest rate. Now here's the problem: the creditor has not updated the account with all 3 CRA's since I paid them off. The balance is stuck at several thousand dollars. The tradeline is perfect but the balance needs to say zero. I want it corrected because a new installment loan is now reporting and it looks like I have more debt that I really do. I asked the creditor 40 days ago to update and they have not. I'm afraid if I dispute, the whole tradeline will be deleted. Is there anything I can do?
Call them and find out why they haven't updated. Did you send the letter CRRR? If the lender was a finance company, it may work out in your favor if it the tradeline ends up deleted: http://101-creditreport.com/score.htm
No didn't send a CRRR letter. I talked with them on the phone. Yes it's with a finance company. Thanks for reminding me that finance companies actually harm your credit. This would be the first paid-off installment loan on my credit. I thought it would do some good especially since it has a 2 yr perfect history. What does everyone think? Will it do more harm than good if it's updated to paid vs. deleted?
Killer, My wife has perfect CRs. Never a late, all good. But apparently somewhere along the line she used 2 finances companies. The finance tradelines show a perfect history. But her number 3 reason that her score isn't higher on Privista is: You have 2 finance trade(s) listed in your credit report. I don't see that on the CE score analysis, so take it for what its worth.
Looks like I need to dispute with the CRA's and hope it gets deleted! Now that's a switch...dispute a positive account and hope it gets deleted..LOL Anyone else care to comment?
Why do loans through finance companies hurt ? Especially if the payment history is perfect ? Does it really lower your score ? If so, any idea by how much ? Thanks Cathy
From what I've read, closed finance company tradelines don't have a negative effect, but there seems to be some cloudiness about this issue. I think it depends on whether the person pulling your report is using the old scoring software or the new. I have some old finance company tradelines on my account, but they are closed/never late. I'm hoping they don't have a negative effect. L
Hey everybody looks like I spoke a little too soon. I just logged on to CE and the creditor has updated the installment loan to paid never late zero balance. My score increased by 15 points. Oh well I guess they were just slow. It also says that the tradeline will remain until 3/2012. If closed finance tradelines hurt score, I'm stuck for 10 years! I'm guessing TU and EQ will update real soon also. Fifteen points on those 2 will place me comfortably in the 600's. EX remains far far far behind. I just love to inceases! This is fun and very addictive.
That also means that my subprime cards like Orchard will remain 10 years after I graduate to prime and close them. Potential creditors will assume I once had bad credit.
seems so A postive account used to affect you Neg.for 10 years isn't much better if any than Neg Info. reported for 7 years is it ?
The 3 kinds of Info. on CR Reports. 1*Positive 2*Negative 3*Positive Negative-which is positively negative.
Finance companies will not hurt your score if there is a $0 balance. Finance companies only hurt the score when a balance is being carried on that particular account. Please don't delete the tradeline. It is helping you as long as the creditor is reporting it as paid. A paid installment loan always helps your score (and your report) as long as it is in good standing. It doesn't matter if it is a finance loan or not. Dani
Dani, I'm curious, how do you know this? The reason I'm asking is, up 11 or so posts, I posted about it showing as a reason code why my wifes score isn't higher. She has 2 finance tradelines that are paid, never late, $0 balance. I realize this is Privista using the CreditXpert scoring model not FICO. But they plainly list it as a reason her score isn't higher. So I thought I'd ask you, how you know it doesn't hurt?
Pat, I have one revolving line with a finance company and two paid finance company installment loans (one through Citifinancial, the other with Associates). I'm really neurotic when it comes to my credit reports and watch them constantly. Based on the six years of tracking that I have done the first hit with the finance installment loan is the hardest, once the balance decreases and the account ages the score goes up gradually. Once the account is paid in its entirety it is treated as any other installment loan. Revolving finance company (eg. Best Buy/CompUSA) accounts are not much different. I have almost got it down to an exact science (on my reports, at least). When I use the account (and it gets reported) the score goes down - even for a $50 charge. When I pay it off, score goes right back up. It is very strange how it works. Do finance loans (revolving/installment) hurt your score when you carry a balance? Yes. Are they tiered differently than other credit cards? Yes. But, I see no effect in the score when the loan is paid in full. This is just my generalization, based on my reports. The factors that the credit bureaus give us I take with a grain of salt (along with their scores). Usually, the first two factors are the ones that should be taken into consideration. My fourth factor once was "too many inquiries". I didn't even have any inquiries on the report (not even 1). After that I kind of ignored the last two factors. Hope this long winded explanation (generalization) helps. Dani
It does, Thanks I didn't put a whole lot of faith in the CreditXpert reasoning, but was curious where you were coming from. Thats good info!
