Newbie needs help....(long)

Discussion in 'Credit Talk' started by shell26mi, Apr 24, 2001.

  1. shell26mi

    shell26mi Member

    OK I have looked and searched and looked even more and I still have not been able to figure out what to do. Here is my situation.
    My husband and I are in need of a car loan. We were denied from the bank due to poor credit. On his report it shows two charged off credit cards from 1997. These were caused by a job switch and an incredible reduction in his pay. We could no longer afford to pay them. We also have some unpaid medical bills thanx to those A@@ hole insurance companies that take your insurance premiums and then don't pay your bills. Now my question is, How the heck can we clear this up. We have some money saved up that we could use to "settle" most of these accounts but we beleive the charge offs are the ones hurting us the most. They have both been sold to other companies, who by the way are not on his CR. How can we settle them with the "original" creditors? Also, we are afraid of "restarting" the seven yr clock by settleing. Any advice? All the accounts appear to be reported completly accurate as well. Thanx
  2. Shantel

    Shantel Well-Known Member

    Re: Newbie needs help....(long

    As far as the 7year clock, it depends on WHEN the accounts in question were charged off. Anything done BEFORE the new FCRA 1998 CAN and probably WILL be re-aged and your clock will start over. Anything done after 1998, they cannot start your clock over.

    The best thing to do is to write to the CRAs and have them verify the debt. It may come back as verfied or they may not be able to, in which case, it'll drop from your report.

    If you just want to settle, you can try to settle with the original creditors for 50% of the amount owed in exchange for complete removal from your CRA or have them report that account "paid as agrees". Don't send a dime unless they do have no incentive to pay if it's not removed or at least not reported as negative.

    As for the car loan, try finance companies. Banks are pretty hard to get loans from. There may be some other regulars here who can recommend a finance company that will work with you.

    While you're waiting to hear back from around here, do a search on "car" or something like that and see if you can find some info.

    Good luck!

    Oh yeah, can one of you apply alone (if one has better credit than the other?)
  3. Anon

    Anon Guest

    Re: Newbie needs help....(long

    The FCRA revised in 9/97, but most go by the new rules and the CRA are SUPPOSED to go by the new rules as well. I had this discussion with Eq and they said they use the new revisions for all reporting clocks no matter what the original date was(before 9/97)
  4. Shantel

    Shantel Well-Known Member

    Re: Newbie needs help....(long

    I may stand corrected Anon, however, I suggest you and anyone else that wants to know, go read the new revisions of the FCRA and verify for yourself what is true and what is not.

    As far as your conversation with Eq goes, that may be all well and dandy. But I KNOW I read someplace that older creditors have the choice to re-age the account if the debt was incurred before the new revisions.
  5. Bill Bauer

    Bill Bauer Guest

    Mercury Finance, Money Store

    Mercury Finance or The Money Store are a couple of places you might try to get a car financed.

    Most dealers know about both of them

    Bill Bauer
  6. shell26mi

    shell26mi Member

    Re: Newbie needs help....(long

    this account reads as follows on his experian report...

    date opened/reported since: 3-93/6-94
    date of status/last reported:2-98/5-2000
    type/terms/monthly payment:revolving/NA/$0
    credit limit or original amount/high bal.:N/A
    recent balance: $1,112 as of 5-2000
    charge off as of 2-98 to 5-2000
    collections as of 12-97, 1-98
    $792 past due as of 5-2000
    scheduled to continue on record untill 8/2004

    so are you saying then that if we settle and they won't report it any way other than paid then it will still come off in 2004? Just try it I guess.

    Also, My credit report is not as bad as his however I have like 6 unpaid medical bills on mine all of which are in collections through collection agencies. Would it be better just to clean up mine instead even though He is the income generator and I have no good tradelines?
  7. Shantel

    Shantel Well-Known Member

    Re: Newbie needs help....(long

    If you don't pay it, it will come off 2004. If you pay it and it's re-aged (if they do this is up for debate around here) then your clock starts over.

    Also remember, the older the debt, the less significant it starts to be for you.

    I can't answer the question about who's to clean up, but in either case, you should clean up both and you should get some tradelines on there girl! Providian and Cap1 come to mind.

    Try the companies that Bill suggested (the immediate solution) and be prepared to pay higher interest.

    Then start knocking out those collections, etc on both reports. If he's generating the income, you'll HAVE to take his credit report with it when applying for credit.

    Good luck!

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