Credit Problems

Discussion in 'Credit Talk' started by Brian, Dec 25, 2000.

  1. Brian

    Brian Guest

    Hello everyone,

    Here's the facts. When I was 18, I received my first credit card from Chase Bank, with $500 credit limit. Well, after about 6 months, I maxed it out, and stopped making payments. My account was shut off at that point, and I haven't paid anything since. I still get hassled every once in a while for it. But it seems it's completely messed up my credit report for the last 7 years.

    For those that didn't want to do the math, I'm 25 now :) - but I'm still having mucho problems. Any time I apply for ANYTHING, I get shot down. This past year in April, I was able to buy a new car (with a co-signer), and FINALLY was approved for a credit card from Capital One ($200 limit). I thought I was finally on the way to credit repair, so I decided to apply for the Aria card, which everyone on here said was so easy to get. Well, I was turned down on the spot, which was like a smack in the face back into reality.

    So now I want to know what the best way is to restore my credit. I'm not getting any younger, and credit is going to be very important going forward in my life. As it's been just about 7 years (give or take a couple of months), does it make sense to try and settle that outstanding debt from 1993? Or just wait for it to disappear? Once it expires, does it have any future impact on my credit rating? (as far as I can tell from that FCC web page someone posted under another topic, it shouldn't...) Or should I bite the bullet and pay the debt, plus penalties?

    One other question, I know people that have filed bankruptcies and have had MUCH worse credit in my opinion, and they're able to secure credit cards and loans still to this day. Why is my $500 debt so bad? I don't really understand that, I guess. Anyway, if anyone can offer some advice, or a link to some more information, I'd greatly appreciate it. Hopefully everyone has had a lovely holiday.

    Thanks,
    Brian
     
  2. sam

    sam Well-Known Member

    RE: your problem isnt so bad.

    But One black mark is ALL it takes, and prime credit, good-bye.

    1. When what the charge off declared? Wait 7 years from then, and it will fall off.

    or

    2. Pay the full amount, but negotiate in writing for full removal of any derog info. Many places will co-operate. Make sure you have the cash to pay off the debt+interest+charges ready. Get it in writing from them, before making ANY VERBAL or WRITTEN committment.

    My credit sucked, aria gave me a card, after showing exactly 6 months of good payment with capital one.

    Get other secured cards meanwhile to give more tradelines. (ask around here for suggestions).

    Work your capitalone card. Use it, but dont make ANY mistakes. They offered me $600 in line increases in the first 9 months, and immediately thereafter a non-secured gold $500 limit.

    Its important to make 0 mistakes with your credit. Even a single late payment does major damage to your score. We all make mistakes, but people don't realize how little it takes to screw yourself for 7 years.

    Best of luck my friend. Many of us are in the same boat.
     
  3. Killer

    Killer Guest

    RE: your problem isnt so bad.

    Brian,

    Have you obtained a copy of your report from the 3 major bureaus? I would do that in order to know exactly what needs attention. Do that and then ask folks around here for help with specific problems. Good Luck.
     
  4. netKat

    netKat Guest

    It sounds like your 7 years are just about up, so I would leave that debt alone and wait for it to drop off.

    What was the reason given for your turndown on the Aria card? Is it possible that you have too many inquiries in a short period of time with too little established credit?

    My advice, take it slow and easy. It sounds like you are just now beginning to establish some positive credit history. And, like Killer suggested, get a copy of your credit files and see what the story is there.

    Best of luck in the New Year!

    Kat (plenty of links to more credit info below)
    http://creditexpert.tripod.com/home.htm
     
  5. Saar

    Saar Banned

    RE: your problem isnt so bad.

    Once you obtain your credit reports, make sure Chase Bank and its collectors did not re-age your delinquency date. The item will fall off approx 7.5 years after the reported delinquency date.

    If any of the figures displayed at the derogatory entry is inaccurate, dispute it with the bureaus, WITHOUT acknowledging its your debt.


    Saar
     
  6. Brian

    Brian Guest

    Thanks for the tips, everyone. I checked out a summary of my report from Experion (I'm going to go about ordering an official one tomorrow), and found something interesting here:

    One account shows up with a balance date of August 94, with a balance of $1380 showing as past due (Performance Capital is the name of the Debtor, anyone ever hear of it?). I'm assuming this would be the credit card from Chase that I goofed on, and they passed on to this Performance Capital collection agency (assumption). However, another account also shows up, this time from Chase with an unpaid balance of $620, and shows as past due. It seems like I'm getting hit with the same bill twice here. Anyone else ever have this happen to them? Is that legal at all (I highly doubt it).

    The only other item on my credit is my car payment account, which is current, with no late payments. Only odd thing about that is it only shows up to October 1, it doesn't have my October/November/December payment on there (which was all paid on time). Odd?


    Suggestions are definitely appreciated. Thanks for the help in advance.

    - Brian
     
  7. Saar

    Saar Banned

    Although your debt is near or after the SOL period as well as the reporting period, for reasons discussed here before, you may want to try paying off the debt directly to Chase (the original creditor).

    Mail Chase a check (if you still have your account number with them). If they cash the check, send a copy of the cancelled check to the collection agency claiming they do not own the debt since there IS NO outstanding debt. They would have to remove their collection entry from your credit report.

    Another benefit is that you'll be able to apply for credit or do any other business w/ Chase in the future.

    On the check you send Chase write a short statement, saying it does not signal acknowledgment of debt, and that payment is made out of goodwill. Be sure the check is not negotiable and made payable only to Chase.

    While normally people have no incentive to pay 7-year old debts, given he small amount in your case and the benefits involved, you may want to consider it, if only to screw the collection agency :)


    Saar
     
  8. BGOLDEN

    BGOLDEN Guest

    BRIAN,
     
  9. BGOLDEN

    BGOLDEN Guest

    BRIAN,

    TRY DISPUTING BOTH ACCOUNTS WITH THE CREDIT BUREAUS (EQUIFAX, TRANS UNION AND EXPERIAN) INSTEAD OF PAYING NOW FOR IT. THEY HAVE ALREADY WRITTEN IT OFF AND GOTTEN THEIR MONEY. YOU CAN MANY TIMES HAVE ITEMS REMOVED BECAUSE THE BUREAU CANT VERIFY THE ITEM. CHECK THE DATE OF LAST ACTIVITY ON YOUR CREDIT REPORTS, IF IT IS OVER 7 YEARS DEMAND THAT IT BE REMOVED.
     
  10. Nevo

    Nevo Guest

    This is not good advice.

    First off, if Chase has sold the debt to another company, Brian does not have a debt to Chase; he has a debt to the collection agency.

    Secondly, at this point, it's probably eaiser to let the 7 years expire and have the information drop off his credit report. Making payment won't cause the negative information to go away.

    Thirdly, if one debt is indeed showing up twice on his credit report, this is illegal and Brian should dispute it to have one instance removed.
     
  11. Saar

    Saar Banned

    You obviously don't know a lot about the law, and did not read past experiences of other people on this board, who successfully satisfied their debts with the original creditors, even after they were referred to collection agencies. In all instances, if the original creditors cashed the check, the collection entries were removed from respective reports.


    Saar
     

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