No replies to my Q on Debt Q&A...

Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
No replies to my Q on Debt Q&A...
8
Sat, 02-05-2005 - 3:07pm

So if any of you venture over there and wouldn't mind reading my post under "credit reports" I'd really appreciate your feedback.

Sarah
iVillage Member
Registered: 05-30-2003
Sat, 02-05-2005 - 3:21pm

I'll go wander over there (don't usually make it past this board, lol)-don't know if I can help any, but I'll take a shot!

Lisa

iVillage Member
Registered: 05-30-2003
Sat, 02-05-2005 - 3:28pm

OK-could it be those last 3 accounts that is holding you up somehow?

Are they yours or his? That could also be part of it. My credit score is just a bit lower than my DH's, but that's also because I had more 'open' accounts(my credit history got 'combined' with his mom's, lol).

Are the house and car payments listed as paid off? I'm reaching here, and I know it, but I'm wondering if that might have something to do with it. And, are the open accounts still pretty close to their limits? That also might be a factor.

I hope someone can help you answer this better than I can (although at the rate I'm going, it won't take much, LOL!)

Lisa

Avatar for sohappilyme
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Registered: 03-26-2003
Sat, 02-05-2005 - 3:35pm
I'm just dealing with his credit report here.
Sarah
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Registered: 02-19-2004
Sat, 02-05-2005 - 4:08pm

Paying off debts only helps if you are creating available credit. So if you have a credit card with a $10k limit and it's maxed out (so you owe close to $10k) that is bad for your score. If you pay it down and only owe $4k, then you have $6k, or 60%, available credit. That helps your score. If the account is closed then your limit is zero and no matter how far you pay it down, it never helps your credit (it does help you financial situation though). If the account is charged-off or settled, the only thing that will help is when it drops off your report in 7 years.

The fact you have openned no new loans might be hurting your score. Having recent, good credit history improves your score. Again, it depends if the loans you've been paying on are opened, closed, or charged-off. If they are open, then your score should be improving. If they are closed I am not sure if it helps, but I think it should (you aren't creating available credit, but you are showing good payment history). If they are charged-off, then it probably doesn't help to show good payment history on those (if it is even being reported).

If you have accounts that were never late or were only late a few times over year ago - then those accounts were never negatively affecting your score in the first place, and paying them on time now does nothing to change the score.

I am not sure if your score is worse by having 7 unpaid collection accounts or 3 unpaid collection accounts . Having 3 unpaid collection accounts is probably negative enough to keep the score lower.

The thing that is really weird is that the score is exactly the same. That seems like a really weird coincidence. Sometimes you can do something you think is positive (like closing an account) and it can have the opposite effect and your score goes down. There are so many factors that go into your score that it's impossible to know why. Have you tried calling the credit bureau and asking them? Which bureau is it (or has it stayed the same on all three bureaus)?

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Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Sat, 02-05-2005 - 8:35pm

The reason I'm expecting the score to go UP is b/c I've done this before.

Sarah
iVillage Member
Registered: 07-10-2003
Sat, 02-05-2005 - 10:57pm
Paying collections will not help your score, it may in fact hurt it. I agree with paying any money owed but it restarts the clock on the last activity of the account which will tank your score, however anyone manually looking at it will see it (hopefully as positive) also to improve score get your credit balance under 30% of your available credit.
Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Sun, 02-06-2005 - 8:26am

There's some sort of law (which I read about on bankrate) that will NOT let them restart the clock for debts that were originally opened after 1997, which all of these were.

Sarah
iVillage Member
Registered: 03-27-2003
Sun, 02-06-2005 - 1:05pm

Maybe it's just a mistake. If no one, even the experts, can figure out a reason, then maybe there's not one. Even the credit bureaus make mistakes. Perhaps your husband can call and get it cleared up.

Good luck. :)

Heather

P.S. And good job and doing so many great things for your financial standing. It *will* pay off, even if your credit score doesn't show it right away.