I am trying to clean up my credit and don't know how I should approach this account. I have the money to pay it but don't know what is best to do. Arrow financial has never contacted me because they had my old contact info. Last month I ran my credit and found them on it I called them and told them I did't know what this was for but that I would pay it if they provided written removal from all 3 bureaus. They said they would not do so, so I politely hug up. what do you think I should do in this situation. FIRST PREMIER BANK - High Balance: $440 Account History: Charge Off as of Oct 2002 to Jul 2003 120 days as of Sep 2002 90 days as of Aug 2002 60 days as of Jul 2002 30 days as of Jun 2002 Charged off to - ARROW FINANCIAL SERVICE Status: Collection account. $750 past due as of Sep 2006. reporting KD since April 2005
If you don't know what it's for, your first step is to send a DV letter, CRRR, to find out the reason for the charges. What does "reporting KD" mean?
Key Derogatory** I knew I owed the balance to first premier, but Arrow financial has never contacted me and is trying to collect on the debt. How should I try and go about payment or trying to get this cleaned up.
Is it past SOL? What effect is it having on your scores? Are you planning on refinancing or buying a home in the next couple years?
I live in CA SOL is 7.5 yrs right?, and I plan to purchase a home in 18-24 months... How can I tell what effect it is having? It is one of 2 that are reporting as collections. from around the same time frame... thx for your help.
The Statute of Limitations for lawsuit (4 years in California) is different than the reporting period (7 years or 7 + 180 or 10 for bk). It definitely looks like it's outside the SOL. Offer them a PFD in writing, see what they say. How old are your other accounts? Generally speaking, a chargeoff under $500, especially one outside the SOL for suit, won't be a barrier for a house. Your first baddie can cost you 60-80 points, but if it's not the only baddie, it probably won't change your score much to have it deleted, and if it's one of your oldest items, it can (weirdly) cost you points. However, a clean report is ALWAYS better if you can manage it.
