Hello all. I came across these forums while searching the net to see what I could do to raise my credit score. I've done a bit of reading here and it seems to be a very helpful forum... so I thought maybe it can help me? Heres my situation... My current credit score from all three credit bureaus is between 610 and 630. The only negatives that I can see are medical bills that have been turned over to collection agencies - 8 of them for a total of approximately $1200 (ranging from 1 year ago to 5 years ago). I have 2 credit cards. One with $12,000 limit / owing $9,000 (this account was closed by the lender about a year ago) and the other with $7,000 limit / owing $6,000. Never a late payment on either card. My only other current loan is a mortgage loan (8 yrs old) with no late payments. I have paid off many loans (car loans, personal loans, etc...) without missing any payments and all my utility bills and such have been paid on time for the last 18 years. -------------------------------------------------------------------------- I would like to get my score into the mid 700's. I am not disputing any of the medical collections as I know that I do owe them. From what I understand, even if I were to pay the collections they will still remain on my credit report - just marked as paid. Paying the collection bills is not a problem as the total amount is fairly small, I just need to figure out who to pay and where to send the money since I dont actually have any of the original invoices or collection bills. I've ignored the problem for too long. Still, it seems to me my score should be higher since there are no other negatives (at least that I can tell). Sorry to ramble on, just wanted to be as complete as possible. Any input on ways to help wold be much appreciated. Any questions just ask. Thanks.
Welkom, and I know nothing about medical stuff, but is it possible to get the card opened back up? You said you hadn't had late payments....so did they give a good reason why they closed it? Scores are strange, and there alotta people that think their scores should be higher with no negatives....so you aren't alone. And those collection accounts are what's hurting. About payin, IF you decide to pay, get EVERYTHING in writing, and only offer payment for deletion. BUT, there's a chance you can get rid of them before you do anything (read the archives, stickies), cause they gots lotsa info on how to do that, and the many ways to do it. And - hehe, if you don't have the info, and it's been a long time - maybe they won't have it either...haha. Good luck, and I hope others chime in with exactly how to get rid of the medical stuff.
My non-expert opinion: I agree with ArmondoNLA - there's a chance to get rid of them - read the stickies and archives. Even if you know they are yours. Many people, I used to be one, believe doing the right thing will produce great results. But the rules are not set up that way, sadly. So we have to know the rules, play by the rules as THEY established them, to level the playing field, so we are all playing the same game by the same rules. If, by the rules, you can get rid of something without paying, do it. "They" don't have a problem playing by the rules and leaving you penalized for it, so it's ok for you to do the same. Having an item removed is better than having an item there saying "paid". Therefore, I would dispute negative items that are 4-5 yrs old, see what happens. As another option (I would say option #2 for older accounts), try the "pay for delete", but as Armondo said, get everything in writing first, and read more in archives, etc. I also wondered why that one account was closed by lender if all payments were good. And, please read more here, both in archives, etc, and from others who are wiser than I. I'm still learning, but I think I've learned that part correctly. Armondo's advise was good, and after you learn more, it'll mean more.
Thanks for the advice. It really is appreciated. I will spend some time in the stickies and other posts to see what more I can find out... I really want to get this taken care of. Like I said before, I've waited too long. As far as the two options that have been mentioned, who should I try and bargain with? The original creditor or the collection agency? The only information I have to go on is the abbreviation for the collection companys that show up in the credit reports - I dont even know who the original creditors are. They called me and said that I needed to pay $300 more than the minimum payment on the next payment due date to keep the card valid. They said it had something to do with a new federal law or rule and that many of their customers were being affected by it. I refused to do it and later got a notice that the account had been closed. I had had the card for 14 years. I am going to spend some time reading the stickies and posts on the forum and see if I can learn a bit about how this all works. Hopefully I'll be able to report back later with some good news?
Although there was a recent change in requirements for making an adequate minimum payments to pay off revolving accounts in a reasonable time, under FCBA their notification to you of any changed minimum payment should have been reflected in your billing statements. If you received a bill saying what the minimum payment was, and relied on that to make your next payment, they would have been in violation of FCBA for requiring some other terms verbally, particularly if you were notified less than 14 days before it would have been late. They could still raise the minimum due, with the next statement, under whatever procedure they are required to notify you of a change of terms. With the account closed, and presumably the terms frozen, that is probably water under the bridge. However, as a sophisticated consumer, you choose your business relationships based on reliability and competitive terms, and hedge your risk by having more than just one or two accounts. By its sloppy business practices and legal non-compliance, this company has clearly failed reasonable standards to qualify as an on-going partner in your financial affairs. They decided to amend your terms with inadequate notice, you brought the issue to their attention, and they chose to cut you off. You now know what you are worth to them. That doesn't mean you sue them. Just find alternatives.
Hello ontrack. What you have stated in the first part of your post is exactly the way I thought about it at the time... and continue to think the same. If the next billing statement would have reflected a higher minimum payment, I would have simply paid it and thought nothing of it. But to send the statement, then call to demand more money be added to it is simply wrong. Even if I could get the account reopened, there is no way I could bring myself to do it. It opened my eyes to, as you said, "What I am worth to them". I have since started doubling the payments to get the card paid off and be done with that particular company. My next credit card will be based on much more research/information as I plan to really study it first. It's sad that 14 years means so little to them :/ I am not one to hang on or hold a grudge. As you said it's water under the bridge. I would rather pay the card off and be done with it (and also be done with the company behind it). Chalk it up as a lesson learned. It may not look great on my credit report but I really can't imagine it's THAT BAD? I'm really alot more worried about the collections.
It is a closed, paid as agreed, account. That is positive. Once you get it paid off, it will stop affecting your debt to available credit ratio, and become more positive. If you have open medical collection accounts, that is probably hurting you the most. Make sure all insurance claims have been submitted and paid. If problems in insurance billing have resulted in illegitimate CA accounts, you pay twice, both in money you don't owe, and for a collection account you should never have had. You may be able to get insurance claims and payments issues cleared up, and get the resulting now paid collection account off your reports.
