Hey Everybody, I am looking for opinions/help from my fellow Creditnetters with my 20 year ols sons disaster of a credit report. The account are only two years old. He also quit paying all his account in 1 year ago, then made a deal to pay very small payments and the accounts show closed. He has 3 reporting accounts: Associates/Citi Visa Card $800 limit Chevron 400 limit Best Buy/Beneficial Installment account for the purchase of a laptop computer $1500 Reporting: Chevron many lates(one for each month for a year or so), paid off. -Closed Bet Buy(many lates, shows closed, still making small payments) Associates/Citi Visa (many lates, shows closed, making small payments - Was originally an Associates card) He has no money to pay off or negotiate payments. I think he should stop paying Citi Visa and Best Buy. Let them go charge off. Associates was sold to CitiBank. Maybe they won't be able to validate. Also, maybe when they go to collection their will be FCRA or FDCA violations. Worst case if they stuch, at least his seven years would start now. My son and I appreciate your opinions. Thanks ps he says he learned his lesson on the importance of credit.
Does your son have a job? I know that sounds mean, but he's 21 years old and his hands are writing checks his wallet can't cash. Maybe he should get a job, if he doesn't have one and pay on the cards instead of letting them chargeoff. I can speak from experience, CHARGEOFFS ARE BAD!!!!!! Late payments aren't as bad as a chargeoff and a related collection with lots of lates. Pay on the stuff. Get it paid off. Don't let it chargeoff. You can negotiate late pays, chargeoffs and collections are REALLY hard to dispute off. PS: Don't bet the farm on FDCPA and FCRA violations. Most of them don't violate.
I agree Pay off the OCs. Even if the lates stay on the full 7 they will fall off at 7 but the paid tradeline stays for 10.
You know, when cc balancs are under a $1000 the minimum payment is usually only $10 or $15 a month. The kid needs to find a way to make the minimums. This is terrible advice. Exactly what lesson has he learned about credit if he can't figure out how make a $10 payment?
He has worked since he was 15 at the same job. It was the first time he was on his own when he messed up his credit. Like many young people he did not understand the ramifications of not pay. He is currently paying minimum payments. Also he pays $350 a month in insurance and a $279/mo car payment in my name. My question was that since if he pays minimum payments, his negative information will last a long time. At least a charge off will only last seven years. It is discussed all over this board that the credit system does not reward you for working to pay off problem accounts This was my questions, not his. I pay all my bills on time. Unfortunately, I can not pay his acoounts off. Even if I did he has negative information that will now last for seven years. Q. Is the quickest way to clean up his record by not paying?
cash, If your son continues to make minimum monthly payments on time, what will happen is, eventually those late pays will become obsolete (over 7 years old) and they'll fall off his account. Once the last late pay for a particular account falls off, that account will go to a positive status, therefore increasing it's "life" on your sons' credit report by 3 years. (derog info stays for 7, positive info stays for 10). While if he just lets them get charged off, he runs the risk of being sued and then having a judgement against him. Also, once a charge-off becomes obsolete (7 year mark) it will simply fall off - not change to a positive status like the original account would as I pointed out above. BTW, if you don't mind me asking, what does he pay $350 a month in insurance for?
Yeah, it is discussed that the credit system doesn't reward for paying accounts. I think what they mean is OLD accounts. I have a chargeoff that is almost 5 years old that isn't paid. If I had it to do all over again, I would have paid it. But since there is only 2 years left, why pay? In addition, if I pay, it will restart the 7 year clock because the debt was from before 1997. So what is the incentive for payment? Nothing. Your son's situation is COMPLETELY different. His accounts aren't even in collections yet. It will take about 120 days to go to collections and then about 180 days after that it will chargeoff. That is alot of time. He can pay a little on it. Just get it paid off. A closed but paid account with lates looks MUCH better than a closed, unpaid account that has been charged off. Please, if you tell him to do anything, tell him to pay. What I don't understand is, if you didn't want to hear what I have to say and you had your mind made up that you were going to let him ruin his credit even more than he has already done, why ask for advice?
Why do people keep stating it will restart the clock??? This is illegal. It is already charged off, the clock will not restart legally. He should pay the cards off... why is he spending $600 a month to drive while he can't make some $15 payments? Most of the advice here is for people who already screwed up, like myself.. save these small debts from charging off!!!
I keep saying it because it's true. Any debt that was made prior to 1997 can be restarted. Debts after 1997 cannot. Most creditors follow the post-1997 law, but they don't have to.
A charge off may only last 7 years, but a judgement, depending on which state may last INDEFINITELY. Gib
Q. Is the quickest way to clean up his record by not paying? There is no quick way to clean up a record even by not paying. I paid and I am still cleaning up, others havenâ??t paid and are still trying to clean up. â??Like many young people he did not understand the ramifications of not pay.â? As they sayâ?¦ it all starts in the home. If you pay your bills on time why are you teaching your son not to? My mom is still on me to this day, and I have been out of her home for 11 years, for mistakes that I made 4 years ago. If your son is not in school, he should get a second job. Not only will it help with the ccâ??s but with that $600 dollar auto/insurance payment. Remember thatâ??s in your name. (What is he driving? I was 18 and driving a Camero Z28 and I wasnâ??t paying anywhere near that.) Six months to a year on a second job will be a cakewalk compared to fight he could have to do to get it removed. Also if he continues to make just the minimum payments he has a better chance to keep his cards with a goodwill letter and some sweet talk. If he charges off he could be stuck in sub-prime hell for God knows how long.
What I don't understand is, if you didn't want to hear what I have to say and you had your mind made up that you were going to let him ruin his credit even more than he has already done, why ask for advice? [/B][/QUOTE] Erica, I asked the whole board for opinions based on their experience. I posted a second time to answer questions from the first posting(ie. does he have a job). This board is an exchange of information that helps us all learn from each other mistakes, and avoid mistakes. I am not sure why you seem to be taking these questions as a personal attack on you. If you don't want to help by sharing your experience, skip the post. Also, if I knew all the right answers I wouldn't need to ask for other peoples opinion. lighten up a little.
Your son's accts are in the OCs hands still and not charged off. That is a GOOD thing. Pay the mins or a little above them is better. The good payment history will improve his score over time if he brings the accts current. DO NOT let the accts get charged off. It will be a mess to clean up and open the doors for lawsuits and harrassment. Its not worth it. It may not be an instant fix, but it will be worth it in the long run.
Whyspers, He has a 2000 Acura Integra. If you don't have 16yr-25yr old kids, you may not know how bad insurance rates are for young drivers. The insurance is in my name, multi-car discounts, no accidents, no tickets, homeowners discount, drivers training discount, major insurance company(Farmes) preferred policy. Rates are just outragous. His previous 1988 Nissan Sentra, liability only was $244 a month.. But the insurance game is material for a whole 'nother board.
cash, $350 a month for liability for 1 car!? $4200 a year? I'm sorry but, OMG that's insane. I'm not trying to OT this thread but (and please don't take this wrong) can't your son drive a less expensive car? I have my gf on my insurance, and I drive a somewhat serious sports car with liability only, and with the two of us I only pay $584 a year. I'm sorry, I guess I just see the $350 a month as money better spent paying off his bills. Even if he (and I don't pretend to know your whole home situation) dropped insurance for a while, left the car in the garage and got a ride to work, even for 3-4 months, that could be $1000-$1400 more he could have to wipe out those debts. Like I said above, please don't take any of this the wrong way, I'm just looking for ways for you to help out your son take care of some debts.
