1. Would it help my credit score if I get my mother to add me to one of her older cards with $0 balance and perfect history? I still have 3 to 4 charge-offs (depending on report) that probably will not be removed. 2. After reading about reporting status, would it be wise to try to get a R5 status changed to a R9 status on an 3 1/2 year old charge off?
Im no genius here, but last time I checked an R9 was worse than an R5. But from what Ive gathered BOTH suck and one shouldnt pay a dime to have an R9 changed to an R5, and certainly not pay to have an R5 changed to an R9. I think they will do THAT for free!
I don't plan on paying anyone anything unless I have to when I try to get a house. Made that mistake before. After reading yesterday, my understaning is that the older an R9 gets the less it effects your score. Whereas a R5 is considered as a current late and has a greater decrease on your score. So the older a charge off is, it is better as an R9 instead of an R5. Am I not understanding it correctly?
What would be the carrot stick to get the creditor to change the rating to an R5? Even a minor late, never mind several charge-offs, are pretty severe on your score. You may see a slight improvement from being an authorized user on your mom's account, but the best strategy is probably to stay current with open accounts.
I really don't know. I was thinking I would call the CRA and request the R5 be changed to R9. I don't think they would mind since an R9 is suppose to be worst than a R5. I was hoping in case I get a RMA and Cheveron off because they have reaged my tradeline that the older line of credit would be of some benefit then. I have 4 months before I start house shopping.
Re: Re: Is this smart? 4 months?! You'll have to do a Speedy Gonzalez with this. How old is your most recent charge off? Whatever you do, don't tell them you want a reduction in the rating because you're house shopping. Ask them flat out if they're willing to delete the payment history, if not the tradeline. If they say no, let them work you up to the R5 (basically treat this like a salary negotiation). Are all your scores at least over 620, but preferably around 680? Even 650 might be passable, but the lower your scores, the more points you will lose for hard INQs. Hopefully you have a large enough down payment to make up for the credit problems.
Re: Re: Re: Is this smart? Okay, you're really scaring me. All my charge offs are from 1999 except Chevron. It falls off in May. However they reaged it 3 months on another report. My Equifax FICO score is only 583. One of my fako scores is 655. I will have about $6000 for down payment and close but was told by someone who works for a mortgage company that I qualify for $0 move in. He also told me that with my score I should get around a 7 or 7.5 rate. When I did the FICO simulator, it said with no lates in the next 6 months my score would be around 620. Hope it's right. I am really hoping to get Sears, RMA and Chevron off since they have both reaged the tradeline. I don't think I have any chance with Goldsmith and Chase. I really don't want to, but I hope I can build the courage to sue if I have to. Probably will with RMA.
Re: Re: Re: Re: Is this smart? Well, at least all the baddies will fall off around the same time. I don't understand what you mean by $0 move in??? Did they do a pre-approval? I can't believe the 7.5% you were told because according to FICO's site, it would be more in the range of 8.25%. With your score so low, the mortgage broker may submit your application to multiple lenders, causing your score to fall lower, and your rate to go higher. And $6K total is rather low, unless you're buying in a part of the country where you can buy something decent for $100K or less. 2002 saw a record number of personal bankruptcies & foreclosures. Unless you have a strong & stead stream of income, stay put for another year at least, so you'll have a better chance.
Re: Re: Re: Re: Is this smart? I'm with Rina, Just because you get TL's off your consumer disclosure doesn't mean they won't rear their ugly head in the future: § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c] (b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more; (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more. For a transaction is excess of $150,000 a "Full Factual" report is rendered and reveals a lot more info than your consumer discloure. I'm a big proponent of waiting until we get our scores up before doing anything. So I'd recommend waiting until you can get those scores up to at least 680.
Re: Re: Re: Re: Is this smart? And don't request they change your ratings from R5 to R9. That would be pure insanity.
Re: Re: Re: Re: Re: Is this smart? I am hoping to qualify for 1st time home buyers programs where I don't have to pay for my own closing. He was telling me that he had just did a loan for someone with similar scores and got a 7.5 rate. I haven't gotten preapproved for anything. I can get a nice home for under a 100K in my area.
Re: Re: Re: Re: Re: Is this smart? OK, but what about that re-ageing of the debt you speak about? That is highly illegal and although since its scattered between reports they might get away with claiming it was an honest mistake, it is hurting you. One collection agency got whanged for $2million in California for that by the FTC and although they got off the hook in the end, it sure ought to make one stop and think about what happens if they sue the next one. Probably couldn't get any $2million out of it but even 10% of that would be an awful nice piece of chump change. If I were in your shoes I'd dispute and see if they would verify the differing dates and then maybe go hang a good one on them if they did.
Re: Re: Re: Re: Re: Re: Is this smart? I know for a fact the RMA has reaged the Sears account. Do you think the rest is reaged. Sears: TU 8/98, EXP 8/98, EQU 9/98 RMA: EQU 5/99 CHEVRON: EXP 11/97, EQU 5/96, TU removed GOLDSMITH: TU 4/99, EXP 8/99, EQU 12/98 CHASE: TU 6/97, EXP 9/99, EQU 11/98 EQU description is date of late activity. TU description varies with each tradeline between paid off 8/98 and closed 6/97 and 4/99. EXP doesn't really have a description. I was going by the date is scheduled to fall off.
Re: Re: Re: Re: Re: Re: Is this smart? Yes, it seems that they are. One thing that might be pertinent and that you might want to check into is that the FTC sued a collection agency for the $2million for reageing the debt, not an OC. Personally I don't think that should make any difference but I would say that you might want to get an actual determination on that from the FTC before jumping off the deep end.
Re: Re: Re: Re: Re: Re: Re: Is this smart? How do I determine which one to contact first? Chase has been paid. Chervon never used a collection agency to my knowlege. I actually never signed for Chervon. My ex got it when he was in boot camp and never paid for it. He signed my name on the app. I disputed as such as it cam back verifed. How do you suggest I start with RMA?
Re: Re: Re: Re: Re: Re: Re: Is this smart? I tend to think that the answers to your questions are simply a matter of personal choice.
Re: Re: Re: Re: Re: Re: Re: Re: Is this smart? I think I'm going to try validation and CRA dispute. What is my dispute with the CRA: not mine or DOLA wrong?
Re: Re: Re: Re: Re: Re: Is this smart? Just FYI but don't forget that you most likely get hit with PMI -- which can add $$ to your monthly payments. My apx. $100k mortgage - absolutely PERFECT credit at the time (I mean like over 800 score) but $0 down and the property was rough (so the prop more than us - scared the lenders) and the necessity of that PMI adds $55 every single month. Just FYI. Good luck and it WILL happen! Just be ready and it sounds like you are working toward your goal.
Re: Re: Re: Re: Re: Re: Is this smart? I don't know if the person I talked to was lying to me but he said I wouldn't have to pay PMI. He said that the mortgage companies he deal with don't require it.
