Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Posted in Paying Your Bills
Confused about Statute of Limitations, (SOL), on a debt vs time debt posted on CR
This is a multi-tiered question:

I made a bad choice and took out an "Equity Line of Credit" , (HELOC), then couldn't pay it, (about 6 yrs ago), actual first delinquency 06/06, 'Charge Off / Sold' 12/06. (At least what it says on my report).

First, In my State, NC, the Statute of Limitations, (SOL), is 3 yrs for most credit debt & 6 on a promissory note. And from what I can ascertain from that, is the debt collector has no legal authority to sue you or place a judgment for the debt after that time. Is that true? Made no payments or contact throughout the entire time.

Second, the first company sold / transferred the HELOC account to a collection agency and that bad debt has run it's course and is now off my reports, how can a collection account be older than the actual loan from the original creditor? I am afraid to dispute the original via the CR agencies because I may alert them and open a new can of worms. Or should I dispute it since they can no longer pursue me in that matter, hopefully their records no longer show the debt and the CR agencies will be required to remove it.

To fill you in on my situation more; I never attempted to correct my credit score until now when the time is short for the bad debt to be removed.
My CK score is only 609, and am trying to repair it from here. [More of no credit than bad credit] - I know FICO is more important, but this is a very good tool.
My TU report only has 5 accounts, 4 closed/paid on time & 1 open all in great standing, this HELOC bad debt, but not my credit union mortgage which also is in great standing.
My Exp report is missing one closed account and also my mortgage like the TU report.
My EQ report shows 9 accounts, 7 closed/paid on time, 2 open, (a CC & mort), & 1 charge off above the HELOC, (both charge-offs are dated in 2006).

So my question is, would it be prudent for me to dispute the charge offs and hope for the best or just wait another year? Also, should I ask my credit union to report to all three?

And although I am making bad dents via hard inquiries and adding new credit now, I am in the hopes that in a years time they won't be so severe to my credit score. And maybe by then I would qualify for better credit lines with better interest. Basically asking should I pull the bandaid off all at once and get the hurt over, or only apply for one or two credit cards a year. I want to lower my one and only CC utilization to below 10 to 20%, then wait out the year for the charge offs to be removed?

Any help and suggestions are very much welcomed, thanks.
Profile Image

Question By
qtrtilldawn

6 Contributions
66 People Helped

Reply to this Question

Write your response:

Enter Your Comments
Submit to the Community