NunnyaBusines

184 Contributions 388 People Helped Top Contributor

Member Since: January 2015

About Me: I was a mortgage loan officer for 5 years, specializing in credit repair for sub-prime clients. I worked with some over a period of years to help them get qualified for mortgages. In some cases my clients only needed a few points here and there, so we would devise a plan that worked best for their scores. Most of the time, their credit reports were able to gain slightly higher points in short amounts of time by doing small credit clean ups that anyone can do if you simply learn how credit works and don’t fear it. In that time I feel I have learned a few things about credit repair that people with access to just one credit report don’t have the vantage to see. But like a mechanic who works on cars all day long, I never worked on my own credit and I let it slip into really sad shape....... until now.
So I hooked up with Credit Karma on Jan 29, 2015 with a 540 TU and 538 EQ score (VantageScore 3.0 scoring model) -- And I guess all I needed was the ability to review my credit more regularly, because after monitoring it closely, I am now 100+ points above my starting point on each report in just 4 short months. Once a year isn't very helpful at all... I love watching it go up each month (sometimes every week) with simple tasks that people should be doing anyways.
I'm finally on track to good credit, regardless of the scoring model used, because I'm finally able to see the information being used in all of those scoring models AS IT HAPPENS. Credit Karma, and its community has given me the tools to maneuver my credit to 'my' advantage instead of the other way around.
So as my thanks to the Credit Karma Community, I hope to be able to help you back a little with community responses to questions you may have about credit repair.

Most Helpful Contribution

Paying a collections account with original creditor or collection company

Jul 30, 2015
Validate, negotiate, pay, and/or remove
Helpful to 51 out of 52 people

Outstanding debt is always a negative on your credit reports.  And since your credit scores are made of positive factors versus negative factors, paying this debt should improve your score overall.  So if you are ready to negotiate on a debt, you will probably be better off talking to the creditor directly instead of a collection agency. This is because the creditor has more discretion and flexibility in negotiating with you, and may see you as a former and possibly future customer; thus more willing to assist in repairing your credit.

However, finding who OWNS the debt and if it’s current owner has all the required proof that the debt is truly yours will be your first priority. 

If a collection agency bought the debt from the original creditor, rather than the original creditor just assigning the debt to the agency for collection, the collection company owns the debt. And if you negotiate with and make payments to the original creditor after they already SOLD the debt to a collection company, the collector/owner of the debt may refuse to credit you for those payments and continue to pursue the debt through its own collection practices because they actually own the debt.

If the debt was sold to the collection company. You can still call the original creditor and ask if you can negotiate on the debt directly with them or if you must continue to discuss it with the collection company.  Just understand that original creditors that sell a debt to a collection company, might not be able to purchase the debt from the collection company, and you may be forced to work directly with the collection company anyways.

Ideally, the original creditor will immediately negotiate with you, and you’ll be able to work something out. Unfortunately, that’s rare. It’s more likely that the creditor will only take the debt back if you negotiate with the collection agency, establish a repayment plan, and make two or three payments under the plan. If this happens, the creditor may eventually give you a new line of credit, helping you rebuild your credit.

You can negotiate payoff of the debt in one lump sum, or perhaps you can negotiate a better payment plan. These are the same options available if you negotiated directly with the collector, although the creditor may be more flexible and willing to compromise. Also you may want to ask to have the negative credit information on the debt removed from your credit file, or shown as payment in full, if you make the payments under the new agreement.

Most importantly, is that whatever outcome you negotiate, you need to GET IT IN WRITING!!!  Put in writing any agreement you reach with the creditor (preferably in a letter from the creditor to you, although a letter from you to the creditor confirming the agreement and asking the creditor to correct any errors is better than nothing). Part of the written agreement should be an acknowledgement by the original creditor that it owns the debt and is willing to request a deletion of the debt once the balance of the payment arrangement is paid. Send a copy of the letter to the collector.  Once the debt is paid, they original, and any subsequent collection accounts should fall off of your credit, or if they don’t, you now have a letter confirming the arrangement that you can send to the credit bureaus for deletion of all of the associated accounts listed in your credit report.

Hope this helps.  Please humbs up if it does.

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Paying a collections account with original creditor or collection company

Jul 30, 2015
Validate, negotiate, pay, and/or remove
Helpful to 51 out of 52 people

Outstanding debt is always a negative on your credit reports.  And since your credit scores are made of positive factors versus negative factors, paying this debt should improve your score overall.  So if you are ready to negotiate on a debt, you will probably be better off talking to the creditor directly instead of a collection agency. This is because the creditor has more discretion and flexibility in negotiating with you, and may see you as a former and possibly future customer; thus more willing to assist in repairing your credit.

However, finding who OWNS the debt and if it’s current owner has all the required proof that the debt is truly yours will be your first priority. 

If a collection agency bought the debt from the original creditor, rather than the original creditor just assigning the debt to the agency for collection, the collection company owns the debt. And if you negotiate with and make payments to the original creditor after they already SOLD the debt to a collection company, the collector/owner of the debt may refuse to credit you for those payments and continue to pursue the debt through its own collection practices because they actually own the debt.

If the debt was sold to the collection company. You can still call the original creditor and ask if you can negotiate on the debt directly with them or if you must continue to discuss it with the collection company.  Just understand that original creditors that sell a debt to a collection company, might not be able to purchase the debt from the collection company, and you may be forced to work directly with the collection company anyways.

Ideally, the original creditor will immediately negotiate with you, and you’ll be able to work something out. Unfortunately, that’s rare. It’s more likely that the creditor will only take the debt back if you negotiate with the collection agency, establish a repayment plan, and make two or three payments under the plan. If this happens, the creditor may eventually give you a new line of credit, helping you rebuild your credit.

You can negotiate payoff of the debt in one lump sum, or perhaps you can negotiate a better payment plan. These are the same options available if you negotiated directly with the collector, although the creditor may be more flexible and willing to compromise. Also you may want to ask to have the negative credit information on the debt removed from your credit file, or shown as payment in full, if you make the payments under the new agreement.

Most importantly, is that whatever outcome you negotiate, you need to GET IT IN WRITING!!!  Put in writing any agreement you reach with the creditor (preferably in a letter from the creditor to you, although a letter from you to the creditor confirming the agreement and asking the creditor to correct any errors is better than nothing). Part of the written agreement should be an acknowledgement by the original creditor that it owns the debt and is willing to request a deletion of the debt once the balance of the payment arrangement is paid. Send a copy of the letter to the collector.  Once the debt is paid, they original, and any subsequent collection accounts should fall off of your credit, or if they don’t, you now have a letter confirming the arrangement that you can send to the credit bureaus for deletion of all of the associated accounts listed in your credit report.

Hope this helps.  Please humbs up if it does.

how did my unpaid auto loan appear as payed off?

Apr 10, 2015
Sounds like you defaulted
Helpful to 23 out of 26 people

Items that are in default for about 120+ days are usually charged off.  Once they are charged off, they should also say 0 balance.  Notice that a debt is STILL an obligation even after the original company charges it off and you will likely be contacted by collection companies for this point on to collect the entire balance.  Unfortunately once an item is charged off you will never have an opportunity to bring it back to a current status.  In addition to that set of news, charged off accounts will be on your credit and part of your score for up to 7 years after your last payment, or in some states, up to 7 years after your last payment arrangement; even if that payment or payment arrangement is with a collection company 6 years after your last payment with the original creditor.

question on old debt past statue of limitations & pre approvals with same bank

May 14, 2015
Capital 1 is experienced in sub-prime
Helpful to 8 out of 9 people

If your card was really charged off and already fell off your credit report as an old debt, Capital One will give you a new card without thinking about that old one.  And if a collection company contacts you about the old debt, just advise them that you will not respond to old debts, and ask them to cease and desist in writing; ultimately they can’t do anything to you. 

Capital One is actually a spin-off of a company called Signet Banking Corporation (originally called the Morris Plan Bank of Richmond, Virginia) and were one of the first 'sub-prime' lending companies ever.  The company originated in 1922, with a new way of lending to less than qualified people.  Originally founded by Arthur J. Morris, Morris Plan banks filled a growing niche in the communities of the early 1900s, providing loans to individuals who were generally unable to secure funds elsewhere. It was said that any consumer who could offer two cosigners or collateral and was of "good character" qualified for a Morris Plan loan.

I tell you this because you need to understand that the company has almost 100 years of experience in high risk lending.  It's the basis of their culture.  They lend to a TON of high risk credit lines in hopes that the losses will be outmatched by the ones that don’t default and actually pay off.  They pretty much have it down to a science in that time.  So wasting time, effort, and money to capture a portion of old debts is something they generally don’t practice.  If your balance was charged off, they will generally just move on.  And since their business model demands that they create more and more positive accounts to outmatch the bad ones, they will even extend a new chance at credit with you again.  So I say go for it.

Paying off collections to buy a home.

Mar 20, 2015
To pay or Not to pay....
Helpful to 8 out of 9 people

Please understand that loan officers are just middle-men.  So dont get too caught up in what they have to say.  However, they 'do' know most of the in's and out's for underwriter conditions. 

Collections can, and do, hurt your overall credit score.  But if you look at them individually you might not want to pay them off.  The biggest reason is they could fall off without having to pay them at all.  Meaning that once an old collection is past the 7 year mark from closing, it no longer affect your credit.  The biggest part to understand here, is the close date of the original creditor as that is the start of the 7 years.  Items that fall off on their own will no longer hold your credit hostage.

However, if your debts are fairly recent, you will want to clear those accounts with a paid in full status if possible; as that's the part that most affects your credit. 

There's lots of tips on Credit Karma on what to do with recent and active collections.

How do I find account number

Jul 02, 2015
Hi and Welcome Tmoney
Helpful to 4 out of 4 people

Think of CK as a free, weekly, summary report that is meant to help you stay on top of new information being reported on your credit reports faster than any other free credit sites (and more detailed than most as well).  The CK reports mostly only show the information that affects your credit scores directly.  However, your full credit reports with the details that don’t affect your score are only available from the credit bureaus for free once a year. 

Since CK is mostly only telling you the information that affects your scores, and you have to make formal disputes with the credit bureaus anyways, you will have to use the full reports from the credit bureaus to file a dispute with them.  CKs summaries will give you the ability to stay informed of any changes weekly and for free.  So you know when to use your once a year free report from the credit bureaus by reviewing the account information that counts in your score until you see something not right.

will my score go down if I apply for a credit card and got denied.

Jun 16, 2015
Denials are not on your credit report
Helpful to 4 out of 4 people

Yes, your credit score will go down slightly if you apply for a credit card that preforms a hard inquiry of your credit report (approved or not) and the inquiry will be listed in your credit report for 2 years.  The amount it will decrease depends on your current score; i.e., the higher your score already is, the more it will drop.  However the act of denial or approval will NOT affect your score because your credit report will never say you were "approved" or "denied” when you applied.  Your credit report will only show that you authorized someone to check your credit report.  This act drops your score because when someone has multiple credit card requests on their credit report, it is typically viewed as someone in trouble financially.  (so a good rule of thumb, is to never apply for more than 2 credit cards per year to keep the number of inquiries lower.)  However with that said, if you are approved for credit, the new credit line will show up about 2 or 3 months later and your credit score could take some time to build that new credit line up with a positive history of on time payments.  Meaning that after about 6 months of good payment history, the amount your credit inquiry caused your score to drop will be washed away with the positive information of on time payments causing your score to go up slightly.

Please thumbs up if this helps.

hard hits for car loan

Jul 23, 2015
Dont sweat it...
Helpful to 3 out of 3 people

As a Fact of the VantageScore scoring model (as with most other scoring models like FICO brand as well).....

Consumers are encouraged to shop for the best loan rates and conditions. Accordingly, the VantageScore model does not penalize multiple inquiries made within a short period of time. When several inquiries are made within a shortened timeframe, it is assumed that the consumer is shopping around for a rate and not opening up multiple lines of credit.

The VantageScore model uses a 14-day rolling window in which all credit inquiries are de-duplicated. All inquiries within that window are considered one inquiry regardless of the type of account. So regardless of whether the credit inquiry is made in response to a mortgage, auto or bank credit card application, it will be counted only once during that 14-day window.

However, since you are allowed to know who looked at your credit, it will show you the other inquiries, even if they only count as one in your score.

How does switching credit cards within the same company (ex- Chase) impact credit score?

Jul 14, 2015
Yes and No
Helpful to 3 out of 3 people

It really depends on the card company themselves.  Some card companies will simply upgrade the account to another account allowing you to keep the original credit information to be reported with the new card terms.... However most will not upgrade without first closing the first card and opening the second card.  So check with the customer service of the card first.  Because closing the first card will definitely drop your score.  If that is the case, simply ask for a second card without closing the first.  And just understand that most card companies will automatically close your accounts if you use them too little.

Cap. One credit card tells me my Transunion score is 685. Here, it's 725 - 728. Why the difference?

Jul 01, 2015
FICO brand is just like COKE brand
Helpful to 3 out of 3 people

FICO brand scores are used by lenders quite often.  However, FICO is simply a brand name, like Coke-a-Cola or Pepsi.  Coke and Pepsi also use variations like Diet, caffeine free, and the dreaded New Coke and New Pepsi that no one seemed to like at all.  FICO also uses many different variations of their own brand as well. 

As I stated above there are literally THOUSANDS of different calculators out there.  So like Coke or Pepsi, your taste may differ from person to person, or your purpose for using a FICO calculator may differ from company to company depending on the needs of the company. 

So when you ask, "which score is closer in value to the fico?" The answer isn't quite so simple…

FICO Versions used in auto lending applications

Experian

FICO Auto Score 8
FICO Auto Score 2

Equifax

FICO Auto Score 8

FICO Auto Score 5

TransUnion

FICO Auto Score 8

FICO Auto Score 4

Versions used in credit card applications

Experian

FICO Bankcard Score 8

FICO Score 3

FICO Bankcard Score 2

Equifax

FICO Bankcard Score 8

FICO Bankcard Score 5

TransUnion

FICO Bankcard Score 8

FICO Bankcard Score 4

Versions used in mortgage lending applications

Experian

FICO Score 2

Equifax

FICO Score 5

TransUnion

FICO Score 4

What you REALLY need to ask is which calculator is the creditor you are applying to actually uses.  Some companies may not even use FICO brand and decide to go with VantageScore instead.  Just like different restaurants sell different pop brands like Coke-a-Cola with variations of Diet, caffeine free, or New Coke, others may instead use Pepsi Band with the same variations but COMPLETELY different taste.

We share an AMEX card. Do we EACH need to maintain activity to avoid account closing?

Jun 18, 2015
Once account, One balance
Helpful to 3 out of 3 people

Sounds like she's an authorized user of the card.  Meaning no, she doesn’t have to use the card.  Her card number is different because she can’t legally use a credit card with someone else's name on it.  Both her balance and yours are drawn from the same account.  So if she charges $1 in a month and you charge $5 in that same month, your total bill for that month is $6.  However some card companies may close the account if neither of you use the account, or use it too little.  I prefer to place my card accounts at a 9% monthly utilization of my credit limits prior to my billing.  However to give the card company more incentive to keep my accounts open, I actually charge almost full credit limit (or at least a large charge) every now and then and pay it off prior to my billing statement comes out.  So your plan to attach and pay off a certain bill each month is a good way to do this.  Just make sure you leave 9% of the credit limit as a balance on the account for the statement.  The card will report the largest credit amount used (the large amount) and my credit utilization of 9%.  Thus demonstrating to creditors that I can make larger charges, and pay them off responsibly, effectively increasing my chances of getting a higher credit limit with that card company later.  The information that gets reported to the credit reports will match the exact information for each of you. Meaning she will still get credit for the age of the account, the payment and charge history, and the utilization amounts, just like you.

Please thumbs up if this helps.

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