Equifax and negative accounts

Discussion in 'Credit Talk' started by ACX, Sep 6, 2003.

  1. ACX

    ACX Well-Known Member

    Ok, heres a question for the credit gurus on the boards. Ive got a collection account (Student loans) that are currently showing in my "negative accounts" section of my Equifax credit report. The account is showing "paid collection" in the remarks section, and showing "120+ days past due" in the current status section. Now, by making a few phone calls, I managed to get a letter from the original credit that states that the current status should reflect "paid as agreed". Now this brings up a strange situation. If all goes the way I think it will, the account will show as a paid collection in the remarks section, and then "pays as agreed" in the current status section. Will this be enough to move the account from the negative accounts section of my credit file? I actually tried disputing the account as not mine to see if it will drop off, but they validate it ever month, so I guess this is the next best thing? What do you guys think?
     
  2. jlynn

    jlynn Well-Known Member

    A paid collection account is never a positive. The very fact that it went to collection is a negative :( sorry.
     
  3. Phreedom

    Phreedom Well-Known Member

    I had two student loans on my EQ report. Both showing zero balance, and 120+. They were from the early 90's. When I disputed, they came right off but my fico dropped two points. Go figure!
     
  4. ACX

    ACX Well-Known Member

    I guess my concern is, will having the account that is currently showing as an R5, then being changed to an R1, will that have a significant impact on my credit score?
     
  5. shawbee

    shawbee Well-Known Member

    Having an r5 become an r1 should help a lot unless there are many other negative. Its will not hurt.
     
  6. ACX

    ACX Well-Known Member

    Thats what I was hoping for. These are the last 2 "negative" accounts on my credit report, and though I couldnt get them deleted, I believe that when the status is changed on them that it will help out my score. Currently its at 596, and im hoping that it will put me over the hurdle of having a 600 credit score. It will be quite an accomplishment for me too seeing that in December of 02 my score was at 472 with a ton of collections, and about 4 chargeoffs. Now I only have these 2 collections and no chargeoffs. :)
     
  7. shawbee

    shawbee Well-Known Member

    It will probably give you quite a few points. Just going from an r9 to an r5 cost me 40 pts. An r5 can seem that you are currently 120 days late when it really could have been years. Changing it to an r1 could mean even more , matter of fact I wouldn't be surprised to see 50 or more. Please let us know how much when it happens. Congrats
     
  8. ACX

    ACX Well-Known Member

    Yes, im keeping my fingers crossed for that. I will definitely let everyone know once its a definite thing thats changed and let you know how much of a difference it made in my score.
     
  9. shawbee

    shawbee Well-Known Member

    One way to check if it is causing you a lot of points is to look on your fico report and see if it says that your recent derogs are too recent. When I had an r9 in the positive category it said derogs were old or unknown, but when it went to r5 a new remark said derogs was new or recent so it lets you know that its counting that 120 as current. On my equifax it cost me, but for some reason transunion did not read it the same way. My equifax dropped from 712 or something like that to 669. I called C. One and begged them to change it back to r9. When they did it went back up to over 700. On sept 2nd, my capital one r9 disappeared, thank you Lord, and my score is 723
     
  10. ACX

    ACX Well-Known Member

    I think this is the problem with my score right now. I applied for a credit card and it says the reason I was denied was because of serious deliquency. These 2 paid student loans are the only negative accounts I have showing 120+ days past due. I have some lates, but they are about 8 months old, so I couldnt imagine getting denied for that. I could be wrong though. Hopefully Equifax will accept the letter that I got from the creditor and change the status to an r1 so I can see how much change there will be. Im really hoping to get a mortgage by years end and this will go a long way in getting me there if it works.
     

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