My credit report. Strategy anyone?

Discussion in 'Credit Talk' started by cguin, Aug 14, 2003.

  1. cguin

    cguin Member

    Hello all! I'm kinda new to this board (lurking for about 3 months) and would like your opinions as to what I need to do. I finally ran my OWN scores from all 3 places (from MyFICO). This is only after I realized that pulling my own doesn't hurt me . I was under the impression it counted as another hard inquiry. But anyway....

    Background Info:

    1.) 8/13/03: TU = 628, EX = 683, EQ = 604

    2.) 6/3/03: TU=619, EX=686, EQ=603

    3.) I am maxed out on revolving debt ($12,500). I realize that I should pay it off when I can....whenever that will be...and that will significantly improve my scores. This would probably be the quickest way to raise my scores...if it were possible. (Read the bottom of this post to see a scenario where I ask if it is possible.)

    4.) The reason for the major discrepancy b/w TU&EQ vs. EX is that EX doesn't get reported my car loan from Huntington Bank....which now has 6 recent, consecutive 30 day lates. I REALIZE THIS IS A BIG PROBLEM, BUT WE FELL ON HARD TIMES, AND IT IS NOW SOLVED...NO MORE LATES NOW.

    Questions for you:

    1.) Going forward, can anyone tell me if there is a solution for handling these 6 30-day lates? They are very recent, so a "not mine", or validation probably would be a waste of time. And there is about $18k left on the loan, so a Nutcase is probably out of the question. Any other ideas???

    2.) I also have 4 student loan accounts that each had a 60 day late in 6/99. I'm wondering if I should try to erase those 4, or since they are a little older, if I would be better to just leave them alone for now and reap the benefit of having more age on the account? My oldest accounts are from 1991-1993, and these make up about half of those old ones. Should I try to get these deleted or not?

    3.) I refinanced my first mortgage this week (went from a 6.75% 30 year to a 4.75% 15 year at almost the same payment!!!). However, I rolled the closing costs, escrow and a little cash back into the loan thereby raising the amount by $4,000. Will it have a negative effect on my score? If I'm going to get a second mortgage, should I do it quick before this gets reported and lowers my score further?

    4.) I am looking to get a HELOC or HEL to free up cash flow (lost a part-time side job several months ago), but my credit is not good enough for anybody except the "Alternative Lending" department of USBank, and they will only do a Home Equity Loan (as opposed to the Line-of-Credit) and do it at 11.5%. Here's my thinking....if I do this now and consolidate my credit cards ($13k) and the remainder of my current HEL ($3k), this will totally free up my revolving credit. Wouldn't that immediately raise my score significantly? Then in maybe 6 months try to get a new HEL at a much lower rate?

    5.) One last thought would be to apply for a HEL or HELOC with someone that I know would only look at the EXP score, but I didn't see anyone on the "Who Pulled My Credit" (excellent job though, Doc!!!....and I added one of my own for Kentucky). Does anyone know where I could apply for one that only pulls EXP? (P.S. - KY people need to post more on there...there's only 4!)

    Well let me know what you all think! And thank you so much for what you've already provided in the posts! I've learned so much already, and am trying to sponge up anything else I can.

    -CG
     
  2. jshimmer

    jshimmer Well-Known Member

    Dispute the lates as "NEVER LATE, ALWAYS PAID AS AGREED AND ON TIME".

    Only do one account per letter.

    Do it two or three times per account. Wait to get the results back from the first dispute (to that account) before disputing that account again.

    It's no guarantee, but heck, sometimes it works.

    Failing that, contact the original creditor to see if they'd be willing to agree to remove the lates. Most won't, but some will, based on your activity SINCE the lates occurred.

    As for the HELOC or second mortgage -- if you can avoid it, most people will tell you NOT to get a second mortgage or HELOC in order to pay off current UNSECURED debt. If you lose your job or run into hard times, you can lose your home if you don't pay BOTH the 1st mortgage AND the second mortgage. But if you leave them on the credit card(s), you won't lose your home if you don't pay the credit card company. Do you really want to put yourself in that situation? I think not.

    Get a second or a HELOC for home repairs or upgrades, etc., but NOT to pay off current unsecured debt.

    I seem to recall a recent nasty thread about this subject. Just can't quite put my finger on who caused the ruckus, though. Must have been TOO MUCH to remember ... :) (inside joke).
     
  3. cguin

    cguin Member

    Bump, please.
     
  4. cguin

    cguin Member

    Seeking advice, please! I'd love to hear your thoughts.

    (one last bump)
     
  5. jam237

    jam237 Well-Known Member

    1.) Going forward, can anyone tell me if there is a solution for handling these 6 30-day lates? They are very recent, so a "not mine", or validation probably would be a waste of time. And there is about $18k left on the loan, so a Nutcase is probably out of the question. Any other ideas???

    ** Try writing a letter to the company asking if they would be able to come to some agreement to remove the late notations. Goodwill letters may work in the case of a temporary hardship, and maybe you'll be working with a company that chooses to agree to resolve the issue, at whole or in part.

    2.) I also have 4 student loan accounts that each had a 60 day late in 6/99. I'm wondering if I should try to erase those 4, or since they are a little older, if I would be better to just leave them alone for now and reap the benefit of having more age on the account? My oldest accounts are from 1991-1993, and these make up about half of those old ones. Should I try to get these deleted or not?

    ** You may not want to get these deleted, but again, maybe you can get the student loan company to work with you to remove the 60 day late... Is there any chance that you had sent a correspondence that got misdirected at the time? If you were late for reasons of economic hardship, they may be able to work with you to find a solution. I had a similar problem which the agency sent an update to correct.

    3.) I refinanced my first mortgage this week (went from a 6.75% 30 year to a 4.75% 15 year at almost the same payment!!!). However, I rolled the closing costs, escrow and a little cash back into the loan thereby raising the amount by $4,000. Will it have a negative effect on my score? If I'm going to get a second mortgage, should I do it quick before this gets reported and lowers my score further?

    ** What should happen is the first mortgage will show "paid/refinanced" or similar. The second will then begin reporitng. If the first mortage is a positive tradeline, it should become a positive zero balance account.
     
  6. cguin

    cguin Member

    So will that positive zero balance account possibly increase my score any?
     
  7. jlynn

    jlynn Well-Known Member

    I don't know if I would mess with the student loans. The age may be affecting you more positively then the late is affecting you negatively. (Had that one bite me).

    How recent are the lates? Have you reestablished good on time payments since then? Sometimes PFB works, but it is all up to the lender.
     
  8. zumwald1

    zumwald1 Active Member

    I have had really good luck with the student loans and goodwill letter. With citibank, the first one was denied that I sent to their dispute department but I sent another one through PF and explained I had been through a hard time when the lates occured & let them know I was thinking about consolodating again & I had been real happy with them in the past so I might consider using them again!!! I think the key is to keep sending it until it gets to the right person!!!!

    DiSpy
     
  9. cguin

    cguin Member

    Re: Re: My credit report. Strategy anyone?

    I'm still going back and forth on this one. They are older, but they are 4 Tradeline 90-day lates. I had them removed from TU less than a year ago, and there is about a 20 point difference between my TU & EQ scores.

    As far as the recent lates go, I just got caught up with them a couple of weeks ago, so I don't think there's much luck there for goodwill yet. Maybe after 6 months of on-time payments. I'm thinking about disputing them as "NEVER LATE, ALWAYS PAID AS AGREED AND ON TIME" (as jshimmer suggested), but I'm conflicted with the moral issue there...they were late...and were not always paid as agreed on time. :)

    Thanks for your story zumwald1. My fear is that they will just adjust all 4 90-day lates down to 60-day lates or something like that. But I guess that would still be better than nothing! I got them all 4 deleted from my TU by just asking for verification. I guess I'm just spoiled by that response, and want it to be that easy with the others too!
     
  10. zumwald1

    zumwald1 Active Member

    Re: Re: My credit report. Strategy anyone?

    I think I did dispute first with CRA on some of my goodwill successes & then tried the goodwill letter 2nd. Another thing I am trying now is on most of my lates they are reporting unevenly on all 3 reports, one will say 3 times 30 days late & another 7 times 30 days late, etc... I am requesting deletion due to it being reported inaccurately. I will let you know how this goes for me, I just sent out the first letter today!!

    DiSpy
     

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