hello guys -- i'm new and have been reading around. I have no other place to go so I figured I ask you guys. I gladly thank you guys so much for your help and concern. I am 23 and had some bad mistakes and need the advice of the wise and experienced. So I thank you advance for taking your time and concern with my nightmares. Part 1 of 2 Basically, I have a closed account (closed by grantor) from MBNA (now BOA). The limit is 18,700 and my balance is 14,000. I made a stupid mistake and I have a 60 DAY late on June 2006. They closed my account and all I have been doing for the past 2 years is paying it on time. I have saved up the 14,000 and want to pay it off. Do I have the chance to ask them for a discount payoff payment? I mean, they closed the account in June 2006 and I have been paying a little more than the minimum until now. The APR is 20% and I already asked them to lower my APR and they did not bulge. So finally, is it possible to ask them for a discount payoff payment? If so, how and who should I look for when I call? Part 2 of 2 Is there any way to remove late payments? I have 4 accounts: * CAP1 5234/8500 - 1 x 30 day late (June 2006) * AMEX 7500/8000 - 0 late * CHASE 3231/7500 - 1 x 30 day late (June 2006) MBNA (BOA) 14000/18700 - 1 x 30 day , 1 x 60 day (June 2006) * under debt counseling I have had these accounts for more than 5 years and those were the only missed payments list above. CAP1, AMEX, CHASE are under debt counseling and they have been paid on time since the 1 late payment. I have read about good-will letters and removal agencies such as lexingtonlaw.com. Which is the best way? I messed up bad but I have been on track for the past two years since the late payment. I have been working night and day to save up and pay off my debt. I acquired so much debt at an early age and learned my lesson. My credit score used to be 750 and now its 640. Please help as any advice will be so greatly appreciated. I sincerly thank you for taking your time. It really means a lot to me.
When you look at this as a lender you see something happened before june 2006,Is your debt program related to that and are they in standing.you need to get copie's of your credit report from the 3 agency's,not the 3 in one to see where you stand.what you could try is a offer for full payment for pfd in writing.or pay's as agreed.
Don't use a credit repair service. They won't send out good will letters for you, they will just dispute and try to get deleted an otherwise positive account. You don't want them deleted, that will hurt the score. Try asking the creditor to forgive the late, either by them re-aging the account (bringing it current and removing the past lates) or by good will where they just forgive the lates and remove them off of the credit report. You want to let them know you are sorry for the late. Let them know what happened, weather it was loss of work, illness, family emergency. Just explain what happened that got you behind. And point out to them that since the late you have been current, and are asking if they can please forgive the lates and remove them off of the credit report. If you can't get good will, then you might dispute, but I would say "never late" and see if they update to current. Be careful on the wording, a misinterpretation and they could easily delete the whole tradeline.
I would use this forum for credit repair look at some of the posting's.The information you get is very good,however don't look for a quick fix,it will take time and patience,but you will see progress,i've had very good advice and i'm into my 2nd week of my trip to a score of 700+.don't get discourged.
I don't believe he's using a credit repair service, he's using a debt counseling service. It still isn't good. Many of them don't make your payments on time and you end up with your credit trashed, plus you've paid money for the privilege. As far as case #1, you can always try to negotiate a lesser amount. What you want to do is see if they will either delete the account or delete a lot of the late payment notations. Since it's BoA, I think the answer will be no. As far as case #2, I doubt that they will remove any lates while you're in debt counseling. That in itself is usually seen as a negative. The one that is not in debt counseling, you can try a goodwill letter, if you've been paying on time since that. Write and explain that you made a mistake, but you've been keeping up your payments since, and ask if they'd consider removing that late as a gesture of goodwill. They may do it, they may not. But they won't if you don't ask.
Yeah I heard him say he was in credit counseling, but he also mentioned the possibility of using a credit repair company. Least with the credit counseling the notation comes right off as soon as he finishes paying the accounts off. It is viewed just as bad as if he had filed chapter 13 bankruptcy. Can't get any new credit while on the program.
When you go through a debt counseling service,they don't really help your credit score.When you finish all you get is a letter in your file.Most of them get a% of the payment back from the oc if their dealing with them,if their dealing with ca's you don't get anybreak's no interest break so it take's forever to pay off.alot of the time the bank over look's the fact that you were trying(bank manager told me that.)
thank you guys thank you so much for your help -- it was more than I expected. It is a debt counseling service by a non-profit. all they did was negotiate a term with my creditors and they closed the three accounts and lowered my interest. So far, they have paid on time and I have been current since june 2006. My credit score actually went up since 2006 from 542 to 640. It seems like its going go every month slowly. I have made a bad mistake back then and I have surely learned my lesson. Saying so, I fully understand the consequences (late payment on my credit history). I will try negotiating with BOA but I am happy to just pay the 14,000 in full and pay off the card. I just wanted to know how you guys would handle such a case. Thank you so much again guys -- you don't know how much it meant to me. I guess I just have to take it like a man and wait out 7 years until those 3 late payments get off my record? Any other suggestions?
whoa .. Deletion by payment? I see on the LETTERS section that is is a letter so that I can remove my entire BOA account from my credit? My current BOA (formally MBNA) is $14,000 / $18740. I do have the $14,000. Should I write this letter to them? Is it wise? It looks like it will remove any mentioning of MBNA/BOA from my entire credit history? Its a closed account anyway with 1x 60 day late. Please let me know. I cannot believe I did not find this site years ago. Thanks again guys.
I would try to negotiate a lower payment. How old is the letter you're looking at in the samples? Many of them are years old and may not work anymore. If it were me, I'd rather pay a lot lower amount (I'd offer about $7K to start and go up as they come down--in small increments). I'd rather keep some cash to invest or use for other purposes. Your scores will go up as the accounts age. If the account is still open, then I'd pay a little more and have them keep it open. The length of history will help.
You can always ask if they will settle for a smaller amount. The worst that can happen is that they will say "no," and you'll be right where you are now. Try to negotiate the reporting -- you don't want a "settled for less than the full amount" on your credit reports if you can help it. As for the late payments, you can try sending goodwill letters to have them removed. Again, it can't hurt and it might help. Realistically, though, late payments don't have much effect on your score after they are two years old.
And also - if you settle for less - they will send you a 1099 for the amount not paid - which you will have to list as miscellaneous income on your tax returns, increasing your tax liability.
astity, $14k is a lot of money to a card company these days. It gives you a whole lotta leverage. Before I'd even think about handing over all that dough, I'd call and talk to a supervisor. Explain the reason for your hardship and lay it on pretty thick. Also, be sure to mention how you were young but have now learned your lesson etc. What I would try to negotiate is for them to reopen the account (even with a lower limit if necessary) and remove the lates. We're only talking 1 -30 and 1 -60 right? To get $14k in one lump sum, they should do it. Trust me, if you go up the ladder and are persistent (even a pain) somebody's gonna want the $14k. Just make sure you are dealing with someone with the authority to follow through on the agreement reached. Get their name, position, direct line, etc, etc. Asking for it in writing would probably be pushing it though. DO NOT pay in full until someone agrees to do this!
What made you have to get debt counseling, it was more than just those 3 credit cards right? I don't know much about DC actually...does it mean those 3 cards are closed or are they still open? If open, I'd definitely think about paying down the AMEX. Do whatever it takes to preserve your relationship with them. Be proactive...get on the phone and talk to people. You'd be surprised what you can accomplish with cash, especially right now. Cash is king!
My experience with BOA is that they will settle for as little as 25% if you have missed three or four payments. They offered me this deal, payable over ten months. But of course this will screw up your credit. But I don't think you will get a deal from them unless you are behind. There is nothing in it for them.
