Posted on: 16th Apr, 2007 12:41 pm
upto 2005 I had very good credit with credit score of about 720, during that time due some medical probs we had to pay about $6000 bills but were able to pay only $5550 and $450 was left. paying this $5550 resulted in financial strain and we started missing payments on cards which we always paid on time. by mid of next year, the bills for due $450 were in collection, sixty day late on 2nd credit card and one twenty late on card one, and both in collection. just 2 weeks ago we were able to pay off the $450 and one of the card and bring the other current, so by now everything is current and we were uptil 2005 always current with all of our accounts like we had 2 cars paid off and credit union personal loan we were never late on. but still we are facing problems getting credit as becuase of the $450 that was sent to collection and the other cards that we were late on and it has dented score which is now 552 , just a few months of financial strain has this affect on score. now after paying off everything when can I see score improve? and by how much it would go up ? is it possible to improve it quickly.
Tarlton,
You had maintained your credit quite nicely up to the time you had some medical problems and were not able to pay the medical bills and the balance on the bill went into collection.
Credit score does get affected if debt goes to collections. As now all payments are current or paid off, you should get an agreement in writing & negotiate to get those trade lines removed. That way they won't be able to sell the account over to some other collection agency.
In the long run it is better to have the paid off items removed from your report than just to have they status updated to be collection paid. And also try to get a written conformation about it if they agree to remove them.
Miller
You had maintained your credit quite nicely up to the time you had some medical problems and were not able to pay the medical bills and the balance on the bill went into collection.
Credit score does get affected if debt goes to collections. As now all payments are current or paid off, you should get an agreement in writing & negotiate to get those trade lines removed. That way they won't be able to sell the account over to some other collection agency.
In the long run it is better to have the paid off items removed from your report than just to have they status updated to be collection paid. And also try to get a written conformation about it if they agree to remove them.
Miller
"just a few months of financial strain has this affect on score. now after paying off everything when can I see score improve? and by how much it would go up ? is it possible to improve it quickly."
If you continue to stay regular with all your payments then improvements will start to show gradually. You will have to build a continuous and steady record of timely payments so that creditors would know that the bad patch you were in is now over and you can now manage debts and be able to repay the debts regularly.
If you continue to stay regular with all your payments then improvements will start to show gradually. You will have to build a continuous and steady record of timely payments so that creditors would know that the bad patch you were in is now over and you can now manage debts and be able to repay the debts regularly.
Hi Tarlton,
Welcome to Mortgagefit discussion board.
I would give one advice that do not close unused accounts after their balance have already paid as it can change the ratio of the amount of total debt to total credit that is available. And if you do close some of the unused accounts, try not closing the oldest ones.
The reason is that if the old accounts are closed out then future creditors will get a wrong impression that this person is a new borrower. So managing your credit history is quite important from the view point of improving your prospect of getting approved for new credit.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
I would give one advice that do not close unused accounts after their balance have already paid as it can change the ratio of the amount of total debt to total credit that is available. And if you do close some of the unused accounts, try not closing the oldest ones.
The reason is that if the old accounts are closed out then future creditors will get a wrong impression that this person is a new borrower. So managing your credit history is quite important from the view point of improving your prospect of getting approved for new credit.
Do let me know if you have any other questions.
Thanks
Blue
Hi Tarlton,
Welcome to our forums.
It's true that late payments and collections have a negative impact on the credit report. But the good thing about your credit status is that you have finally made all payments. No doubt, you had quite a few debts including the credit cards, medical bills, car loans as well as a personal loan. And, I must say that you have been lucky to have paid them all in full. Most people stumble when they are behind on one loan and fail to carry on with the payments on the other. But I guess you have been lucky enough to havepaid your debts before the situation became worse.
Since you have made all payments in time, your credit score is likely to improve within a certain time period. Well, it will take some time but do not worry. Things will certainly improve – just wait for some time if possible and then you can qualify for credit at some of the best rates possible. Also, update the credit bureau with the latest information on your debt payments.
Your creditors may have informed the bureaus about your payments but then it's better that you verify it either from the bureau or your creditors. This will help to keep your credit report updated with the recent information so that when you apply for credit, the creditors will be able to get the latest information on your payment history.
Good luck!!
Welcome to our forums.
It's true that late payments and collections have a negative impact on the credit report. But the good thing about your credit status is that you have finally made all payments. No doubt, you had quite a few debts including the credit cards, medical bills, car loans as well as a personal loan. And, I must say that you have been lucky to have paid them all in full. Most people stumble when they are behind on one loan and fail to carry on with the payments on the other. But I guess you have been lucky enough to havepaid your debts before the situation became worse.
Since you have made all payments in time, your credit score is likely to improve within a certain time period. Well, it will take some time but do not worry. Things will certainly improve – just wait for some time if possible and then you can qualify for credit at some of the best rates possible. Also, update the credit bureau with the latest information on your debt payments.
Your creditors may have informed the bureaus about your payments but then it's better that you verify it either from the bureau or your creditors. This will help to keep your credit report updated with the recent information so that when you apply for credit, the creditors will be able to get the latest information on your payment history.
Good luck!!
why all my three reports show some cc charge offs almost three four times, does such thing happens if some different ca buys that account, but even then why a same account gets listed many times and does the date of charge off keeps changing when account passes from one ca to other and when does a charge off gets removed from my report.
Hi Zillman,
Welcome to Mortgagefit forum.
Any negative account cannot be reported more than once. You need to dispute with the credit bureaus these additional reporting citing them as being duplicate reporting. After you send in your dispute the bureaus will investigate it and let you know what they find out or will delete the accounts within 30 days time. If such accounts are deleted then bureau will send you a corrected copy of your credit report.
Regarding the charge offs, even if the account moves from one collection agency to some other different one, the charge off date doesn't change. It is quite possible that the collection agency is attempting to re-age that account so that negative information stays for some more time on your report.
As per laws the entry will automatically be removed after seven yrs. from credit report from the date when first delinquency occurred. If the entry does not get removed on its own then you will have to get in contact with the credit bureaus to have it removed.
Colin
Welcome to Mortgagefit forum.
Any negative account cannot be reported more than once. You need to dispute with the credit bureaus these additional reporting citing them as being duplicate reporting. After you send in your dispute the bureaus will investigate it and let you know what they find out or will delete the accounts within 30 days time. If such accounts are deleted then bureau will send you a corrected copy of your credit report.
Regarding the charge offs, even if the account moves from one collection agency to some other different one, the charge off date doesn't change. It is quite possible that the collection agency is attempting to re-age that account so that negative information stays for some more time on your report.
As per laws the entry will automatically be removed after seven yrs. from credit report from the date when first delinquency occurred. If the entry does not get removed on its own then you will have to get in contact with the credit bureaus to have it removed.
Colin