artgal7

8 Contributions 2 People Helped

Member Since: June 2013

Most Helpful Contribution

What does it mean when a collections account has been removed?

Mar 05, 2017
Helpful to 2 out of 2 people

Eastbaydave - I'm hearing conflicting comments on whether paying a charge off effects your score, with some saying that by paying it, the notation of that payment is reported to and by the credit bureaus and will start the clock all over again. In other words, the new status of the dept being paid will appear on your report for another 7 years.

In this regard, I don't see any benefit in paying a "Removed" charge off (aside from moral concience). You could actually end up being punished for it. I'm in a similar position, with a "Removed" charge off from 2014. If I do nothing it will disappear in 2021. If I pay it in 2017, it will remain on my report till 2024. Althought the status may be changed to "paid" rather than showing a balance, it's still a big glaring mark on your credit history. If this is incorrect, I'd appreciate hearing how "Removed Collections" really work.

Also, you state: "With the newer vantage score model I believe the collections and charge off's (once paid) dont impact your score.".The fact that CK shows your vantage score unchanged doesn't necessarily mean it's not changed with TU and EQ. You'd have to check your FICO report to know where you stand on paying off a charge off.

Activity (8 Total Contributions)

What does it mean when a collections account has been removed?

Mar 05, 2017
Helpful to 2 out of 2 people

Eastbaydave - I'm hearing conflicting comments on whether paying a charge off effects your score, with some saying that by paying it, the notation of that payment is reported to and by the credit bureaus and will start the clock all over again. In other words, the new status of the dept being paid will appear on your report for another 7 years.

In this regard, I don't see any benefit in paying a "Removed" charge off (aside from moral concience). You could actually end up being punished for it. I'm in a similar position, with a "Removed" charge off from 2014. If I do nothing it will disappear in 2021. If I pay it in 2017, it will remain on my report till 2024. Althought the status may be changed to "paid" rather than showing a balance, it's still a big glaring mark on your credit history. If this is incorrect, I'd appreciate hearing how "Removed Collections" really work.

Also, you state: "With the newer vantage score model I believe the collections and charge off's (once paid) dont impact your score.".The fact that CK shows your vantage score unchanged doesn't necessarily mean it's not changed with TU and EQ. You'd have to check your FICO report to know where you stand on paying off a charge off.

Can I apply 0% APR Bal Transfer to a card in collections?

Jun 08, 2018

jwsister - Thanks for your reply.

The little research I was able to do shows that Bank America sold the debt to a collection agency. They carried it for several years and apparently it was recently re-sold to a different collection agency. That's when the report of the debt hit my credit report, causing my score to drop.

I thought I'd read (here on CK, in fact) that collection agencies can buy up debts that are about to reach the SOL and when they do, it starts the clock ticking again for another 6 years. It can go on indefinitely and apparently it's the reason these debts resurface. Or so I've read. I hadn't been receiving any phone calls or mail regarding this old debt plus my credit score just kept rising over time so I wasn't even aware of it.

Can I apply 0% APR Bal Transfer to a card in collections?

Jun 07, 2018

Hi joeblack - Thanks for your reply.

It's a pretty old card, maybe 8 - 10 yrs. Unfortunately, I don't think there's anything to dispute. The card was in my name and was used. There's a $650 outstanding bal on it. Yes, I think it must have been getting ready to be dropped off my credit history but looks like a collection agency bought the debt and is trying to collect on it.

The bigger issue is that I'm downsizing and right on the verge of applying for a home loan. I don't have the time required to research and dispute the charge and I'm fairly sure it's legit. I'm a retired, widowed senior. I don't have a high income so I'm trying to rely on glowing credit. I was about 10 points away from "800" on both Exp and TU. When this hit, it dropped by 40 points! I'm still in the "Good" category, but I'm sure your aware that almost all lenders look at FICO scores, not Credit Karma's. So even my glowing CK score was points above what a lender would have actually seen. This being the case, I was thinking that I'd be best off to get the charge wiped off as fast as possible to allow my score to go up again. The 0% APR Bal Transfer offer looked like the best opportunity to get it done quickly and affordably. My question is whether promotional transfers can be done from a collection account, since the account is no longer with Bank America. This would be going onto my Discover Card.

Thanks again.

Urgent Request for Advice re DISPUTE!

Mar 17, 2018

Physh1, Thanks for your reply.

I believe I only get one free FICO report annually so I'm not yet eligible to get another one. It does come out on my Discover statement but that will be weeks from now. Should I contact the Collection Agency and ask them to send me the information they have that I owe this debt? Or should I call the bank? I feel I need to do something until I can get a current FICO report. 

Also, CK does have a link next to the collection claim to either agree with it or dispute it. If/when it appears on my FICO report, Is it better (faster) to dispute it directly through Transunion and Equifax rather than using the link on CK? ~Thanks

Lending Club Personal Loans

Feb 02, 2018

What a great report! Thanks for sharing your experience.

Why Did My Credit Score Drop?

Jan 13, 2017

Am I negitively impacted for having a credit card that I'm making regular auto payments on (3X the minimum amout due) but I am not regularly using the card for purchases? This is a card that, at one time, was close to the limit. For the past several years I've been working to pay it off. It's now down to 13% utilization. Just wondering if not using it occasionally will cause my score to drop a point?

how can i raise my credit score 100 points in 6 months

Aug 05, 2016

I have to agree with EddyTX. Seems to me all this frequent requesting of lenders to raise your limit is going to result in a lot of negitive inquiry dings on your score. I tried it once a year or so ago and although my acct was in excellent standing I was refused the increase but of course, not the inquiry point against my score. And all this from a credit card that I regularly made 3x the minimum pmt on every month. Booo ..Hissss!

Does transferring a balance hurt your credit score

Oct 04, 2015

I beieve your reply is directed to transfering  to a new card. What are the effects on my score if I'm transferring to an existing card with a lower rate?