My husband and I would like to purchase a house relatively shortly. We ran our reports. His score - 525 My score - 537 My husband's score is down because of some 120 day lates on student loans that are now current and we are communicating with the student loan folks because we moved and didn't know the loans were due. They are investigating and should get back to us in a week or so (they say) about whether or not they will remove the bad marks. Mine is low because I have high balances and late payments on my credit cards, and a $314 bank collection that I don't know anything about yet, although one report says it is "deposit related". I have 5 90s and 19 60s and 37 30s. I have payed off two cards in full with restricted endorsements to see if they cashed the checks. They both did. Don't know yet if anything will come off yet. I am not unwilling to pay off the rest, but I want my credit cleared of these late payments, or else it doesn't seem worth it. The remaining two credit card companies, MBNA and Direct Merchant's will settle for 50%, but have not agreed to report as paid in full/never late. I am current with both of these accounts. I would like to know the next steps to take. After reading this forum for awhile, I would be willing to sign up with Junum if necessary, since after reading 20 websites and two books I am still very much in the dark ...pj
I would probably consider filing chap 7 or 13 depending on specific situtation. And with that much derog on acct. You will have to wait for all the SOL to take care of all those acct. W/ Bankrupcy if you build w/secured cards you will essentially be free and clear after 2 years.. Anybody else w/suggestions..but at the very least join Junum. And pay off balances on any good standing cards (ones w/ no lates ever) and keep them close all others.. my2kgt
If you file bankruptcy it will stay on your record for 10 years and it will cause you serious problems (in most states, you can only keep one car, you won't be able to buy the house, it might take several years before you can get decent credit and a lot more). Even if you think bankruptcy is your only option (I donâ??t think so), try debt consolidation first. Good luck!!!!
Indeed, bankruptcy hasn't entered my mind since I can actually pay these off. I just would like some advice on how to proceed in getting at least some of the major derogatory references off. Seems that sometimes those willing to pay are penalized ..pj
With that many derog's I would be safe in saying it would take a serious amount of time and effort to get some of them removed bankruptcy would clear it all, seems like the logical choice unless you want to wait 7-10 years for the others to fall off. When like I said BK is only a 2 yr commitment with serious rebuilding effort. Just my $.02 my2kgt
I understand what you are saying, but the majority of the late payments are lumped into 4 accounts that I have brought current and/or paid off. I don't know what the bank collection is at this time. Seems like I could take a shot at getting enough off to purchase a house before going the bankruptcy route ..pj
I hear what you are saying flogg. Those late payments on paid off accounts are not worth a BK on your credit file. Where do you live? I mean what state? I live in NY and we have a 5 year rule for paid chargeoffs and collections. Its 5 years from the DOLA, not date of payment. This may be a way to get those to fall off. ALso, maybe joining Junum or Lexington will help those lates to go away. Good luck!
I suppose that settling for 50% of the remaining two accounts with restrictive endorsements (hey, may as well include them, they cash the checks anyways) will at least get me out of debt and onward to rebuilding my credit. Then I can possibly get some help from Junum to clear up some of the lates. Just getting the 90 day lates would be a large improvement ..pj
May I suggest that on those to accounts that you can settle for 50% ask the creditor to unrate the account. This is a neutral rating that will not impact your credit score. Although I'm sure some creditors may delete late pays for a lump sum payment I'm sure most don't. After all, it does look rather odd that you go from an R9 to an R1. As for the BK, I did it 9 years ago and if I knew then what I know now I wouldn't have done it. I would take Erica's advise and hire Junum or somebody to work on your credit. Good luck to you and your husband. Manny
GEORGE is correct. Most cards now have clauses that don't allow restrictive endorsements. They will keep the money anyway. Why would they list it as paid in full with no lates? You won't be paying in full and you were late.
Also if RESTRICTIVE ENDORCEMENTS worked... Everybody would put "by accepting this payment and depositing it in your bank, you agree that this payment which is $10.00 of the $8,000.00 I owe is good enough for payment in full and you will report on all three credit reports that I have paid in full and never was late"!!! ****SEE****
Ahem. Some interesting advice-- based on little information. This is a forum called Straight Talk. Let's talk straight. "My husband and I would like to purchase a house relatively shortly." I would like to be the king of the world tomorrow. You're going to have to wait-- unless you can make a down payment on a nasty non-conforming loan. "... we moved and didn't know the loans were due." What's the connection? "Mine is low because... " What is the fourth reason? Credit scores are delivered with four. "I have 5 90s and 19 60s and 37 30s." Whoa. What's up? How much money do you have in the bank? "I have payed off two cards in full with restricted endorsements to see if they cashed the checks." A cheap tricks. The only way they'll succomb to that gag is for you to sue them. Even then, imagine what you'll say to the judge: "I heard that if I write 'Paid in Full' on my check, I can get out of paying on a technicality." "I am not unwilling to pay off the rest, but I want my credit cleared of these late payments, or else it doesn't seem worth it." You mean the only way you'll pay legitimate debts is if the creditor lies about what really happened? What will you do if they don't go along with the scheme? "... I am still very much in the dark." That's because you're not being realistic. In general, would you say that you're looking for some way to get around paying your debt, and making your credit report reflect a history that never was?
Actually, G. you are incorrect. I paid in FULL with the restricted endoresements for around half my total debt. Why not include the letters when they cash the checks and you have recourse in court should you decide to take it? I am only considering paying the 50% on the remaining two accounts. I would be happy to just pay these off, but I am a bit more realistic than you think about the impact it would have on my scores. If I just wanted out of the debt I would have jumped on the bankruptcy thing and waited two years for a better score. As to why so many delinquencies, I can only say that it was the result of a divorce and having too many bills. If I had to go through it again, I would do things a bit differently. I am willing to pay the balances, but as I stated before, FICO seems to be on the side of those that prefer to work the system. I have cash to put down and a good income. I have assumed from the start that I would have to go the sub-prime mortgage route, but would prefer to clean it up to "b" as opposed to "d". I have begun to think that a lease purchase for six to twelve months to give me time to look at this properly may be my best course. As for my husband's student loans, they were in deferrment when we got married and he moved into my place. We had no idea they had come out of derferrment shortly after he moved. He notified them of the change of address and they didn't make the change and sent his statements to his old address. His credit profile reflects what actually happened, since all other payments on his account are current or paid in full, but those two have a cluster of deliquencies. We have filed for forebearance and brought the account current as of May and the Student Finance Commission is reviewing the account to see what they can do ..pj
I read this thread and did want to share some info with you. I am about in the same place as you are-multiple lates (mostly 98-99) and some collections. I am also overbalance on a couple of cards due to late fees/interest. I have been at the credit cleanup for about a year. This is what I know to be true: Go over both credit reports with a fine tooth comb. Is it accurate? Are the addresses, inquiries, etc. accurate? If not, get them updated. At all 3 CBs. I have paid all of my bills on time for a year. Usually more than the minimum. As a result, or coincidentally, I have noticed some 30s and 60s from 96-97 drop off. Again, I cannot say why, but I have noticed this recently-that seven year reporting stuff seems applicable only on some accounts in terms of lates. Find out what the collection items are. Dispute. You will find plenty of good information on how to here. I have read here that prior to getting a mortage, many companies will require that those be either paid, or show proof of payment for collection accounts. What is the date of your collection? Could the SOL expired, or is the 7 year reporting time up? I have recently acquired two new Visa accounts, and have dilligently paid on them to start rebuilding. One poster above said it doesn't happen overnight. They are correct. My score is slowly improving. I expect to see better results this time next year. Patience and persistence-you can do it.
"Actually, G. you are incorrect. I paid in FULL with the restricted endoresements for around half my total debt." How is paying one half "in FULL"? I spent a week on this page yesterday. "If I just wanted out of the debt I would have jumped on the bankruptcy thing and waited two years for a better score." "I am willing to pay the balances, but as I stated before, FICO seems to be on the side of those that prefer to work the system." Let us know if you're successful in working it. Lots of people would want to know such an easy way to pay 1/2 their debt and have better credit than if they paid it all. I know I want that kind of silver bullet. "I have cash to put down and a good income." So, I don't get it: You're saving your money but not paying your debt. Why? "He notified them of the change of address and they didn't make the change and sent his statements to his old address." How do you know that? When did he think they would come out of deferrment if something other than what was on the contract? If you have a forbearance, and can't afford to pay all your debt, it doesn't follow that you would be taking on such a major debt as a mortgage loan. Your situation doesn't make any sense. What's your debt? What's your income?
I am really sorry for the confusion, G., but I haven't settled any accounts yet. I paid two off in full and two remain with balances right at the limit. I have negotiated settlements with the remaining two accounts, but have not sent the payment yet. After much time in this discussion, I probably won't settle and will continue to make timely payments for a year as suggested earlier. Both have agreed to drop the interest rate to 9% for six months, so it makes the most sense. Thanks so much everyone for making this much clearer for me. I will pay them off, just not in one lump sum, but over time ...pj
Forgot to address one other question, G. My ex-husband recently sold our house and I am working with the proceeds to pay this debt. I don't have unlimited amounts of cash, but it is enough to work with the credit card companies in the manner I discussed. I will just pay the remaining half in payments so I don't end up with settlement references on my credit report. Our combined income is above $80,000 and my mother is giving me a down payment as a wedding gift. I will have very little debt left ($4000 down from $16000). We are in fine position to afford a house now, but my credit needs improving. Your caustic writing style is a bit off-putting, but I really appreciate the advice. It is a good bit more sound than what I came up with on my own ..pj
"Our combined income is above $80,000 and my mother is giving me a down payment as a wedding gift. I will have very little debt left ($4000 down from $16000)." Will have? After what? That's 5% of your yearly income-- no big deal. I'm still trying to figure out why you were trying to beat the debt-- or, in general, what the big problem is. What percentage down payment is your goal? House price? What are the four reasons given with the scores that they are not higher? I would change my writing style to Wishy-Washy Mish-Mash but the name of the forum is Straight Talk.
No problem with me on the writing, I can see where you are coming from. After going over this discussion I have decided not to pursue the settlements. I really never wanted to shirk my responsibility, I just want this to end. Until my ex-husband sold my previous house, it seemed like an endless hole I would never climb out of. I got a loan on my retirement to catch up the payments and bring the balances under the limit. Now I want to use the house proceeds to get the remaining balance down to about $4000. My husband is a teacher and he is working all summer break to work on paying this old debt from my previous marriage. I had $16000 balance on an $11000 limit just one month ago. The overlimit and late fees were killing me. At the end of this month I will have $4000. I really don't think this shows a desire to rip anyone off and you can see the picture is a little less rosy than it seemed at first. The retirement loan only has 10 months left, so it wouldn't be counted in debt/income ratios. My car is paid off. I am finally seeing light at the end and forgive me for wanting to finish it up too soon. I have changed my mind, and will pay off the remaining $4000 over time to establish a good payment record ...pj
