5 People Helped
Member Since: April 2009
About Me: Peace Seeker and Keeper
Dispute the accounts with the credit bureaus. You don't have to say anything major, just tell them they are causing you to be denied for a home, or hindering the process and you want them removed.
The point, is to get them investigating. Once they do, there will not be any info possibly as you have paid those agencies off and they may no longer have your account info at their office so with no info it has to be deleted/removed. Sometimes the bureaus do not actually investigate so don't be alarmed if it comes back validated and not removed the first time. Dispute it again and demand removal.
Collection accounts are negative accounts whether they are paid off or not. Your score may not be improved, and it may actually drop seeing as the 2005 one carries at least 11 years. I am assuming you paid it after collections which reset that 7 year clock for them reporting it on your credit report. Get yourself a secured card and work on building good credit and having positive accounts reported for a while. (Cap One approves almost anyone). Also, if you have someone you trust in your life with good credit or at least a credit card on their reports with no late payments and a long history then have them add you as auth user. The account and positive history will then be reported on your credit report and that makes it seem as if you have a long positive credit history. It is important to know this person will keep paying that card on time because one missed payment can mess you up so pick wisely.
tamia09grad's reply was:
Your score may actually drop. Whether the account is paid, or unpaid a collection account will always report negative. Also, how old is the account. Is it more than 2 years old? If it is, def. do a pay for deletion and negotiate starting low. After that time period they really just want the account paid and may agree to do it for a super low amount. I wouldn't advise paying the account though without that letter if you want it off of your report.
If they won't agree to a pay for deletion feel free to message me. I have a whole folder on my computer with sample letters, convos, etc. to get it done.
tamia09grad's response was:
It depends on the person, Inquiries do stay on reports for 2 years/24 months and they do drop the score 5 points. The score drop only happens after more than 4 inquiries within a year's time. Then, it is 3-5 points for every hard inquiry after those 4 (meaning when you hit inquiry 5). If you have any positive items reporting monthly then that is why some may say it is only a few months because those positive accounts are maturing and make up for that possible one inquiry or two within that time span.
As stated though, credit scores do fluctuate due to lots of companies using their own scoring algorithms based on their company alone, or their algorithms based on fico, vantage,etc.
Credit Check Total is a good website that will allow you to check your 3 reports and scores for $1 and then you may cancel after if you no longer need the service.
MyFico is for those who like lots of info about their reports and will monitor on a regular basis as they have no trials.
Scoresense is also another who is similar to CCT (Credit Check Total), and PrivacyGuard
Congrats! That could possibly have been one of your oldest accounts and that's why you see a score drop. Since the account was removed, that also factors into the average age of accounts on your credit report and that went down when the account was removed. My sis just had her repo removed as well (Santander), same situation. Now, we are adding positive accounts to her report, and gardening them.
If you have any current credit cards, pay them down to 25-30% of your balance, and the following month you may see an increase in your score. If you don't have any then cap one secured is a great way to go as they approve almost anyone. Also, fingerhut is a great way to go as they almost always approve people as well and they help to add to your account mix (10% of your credit score).
Pre-approvals are soft inquiries, so they do not hurt your score.
That can be answered by looking at your credit report (yourself). When you view it, do you see any late payments, short credit history, lots of inquiries,etc. That could be why. 601 is considered bad credit, so I would advise you to seek out a secured card and use that to rebuild your credit. Cap One approves most, so start there.
Fingerhut is another great way to go that adds a mix of accounts to your report and that is 10% of your credit score. They also approve most so that is a good way to start building your credit profile as well. Late payments are 35% of your score so if you have ANY, lenders frown upon that but with other good accounts they will overlook them. Do you have any positive accounts reporting on your credit report, and if so, how long have they been there?
There are a lots of reasons, but your credit report will definitely point you in the right direction. Also, the denial letters will tell you why that particular account was not approved, look at those too and remedy those things. :)
It was forgiven how? Did you receive a letter in the mail, informed over the phone or did you pay a settled amount?
If you received this information in the mail and it does indeed show that the account has been forgiven and they are removing it from their records, then send it to the credit bureaus demanding removal ( In this case, you can also dispute the account with the bureaus and if the account has indeed been removed from the company's record nothing will be found in the investigation and they will remove it). If you were informed over the phone, have them email or fax something stating that and send it to the bureaus and demand removal.
If you paid a settled amount and did not negotiate a "pay for deletion" then you may want to reach out to them and ask for some sort of "paid receipt, etc" for proof and then send to the credit bureaus demanding removal.