Credit advice, ask questions or just get some. - Page 6

SnotGoblin · 09/20/2007, 11:24 PM

Quote:

Originally Posted by Alan

The sad truth, and don't take this the wrong way, is I wish it was. I plan on buying a home in a little over 13 months and I don't want to get rejected just because the foreclosure rate jumped another 1%.

We are too. I hope something changes in that time so we both can get a home!

Jabber · 09/21/2007, 03:34 PM

Alan is dead on. Mortgage foreclosure rates are to blame for alot of declines right now. A totally unsecured loan is next to impossible to get unless you score well into the 700's.

My advice would be to sign up for a credit card under both your names and hope you get a high enough limit. Preferably, you want one with a low cash out interest rate that you can use for your wedding.

Once she has established herself here in the states, you guys will be in the clear from then on.

froubaby · 02/06/2008, 01:42 PM

Hey Alan... I hope all is well with you. I've got a quick question for you. I ran my credit report today after just paying off a few debt accounts, one being my Old Navy account. The report came back stating I had a 30day late payment in 2007 (I don't recall this happening and may have been a result of putting a payment online and it posting after my due date - not sure). In any event, the credit report has two statements about this account:

Status: Open/Current, was past due 30 days.
Status Details: As of Aug 2014, this account is scheduled to go to a positive status.

What would be my better option so this 1 late payment does not hinder my credit going forward:
1. Close the account now since it states the account will not produce a positive remark till 2014 - after all, it's just a department store card.
2. Dispute the late payment month to try to change the 30 day late to an "OK".
3. Leave the account as is. It's one 30day late notice and really won't do much especially now that you have the account paid off in full.

Thanks in advance. I might have a few more questions pop up after I review everything again on this report.

Jabber · 02/06/2008, 02:04 PM

Liz, I can help you with this. Alan, if you agree/disagree, please comment.

One late payment doesn't mean a whole alot unless a few other things are happening. These are privacy issue questions, so if you want further explanation, you can always PM me.

1) Do you have other late payments recently? One late out of 10 accounts that have not had late payments means virtually nothing. Every bank/lender will understand about one late payment as a rare exception.

2) Do you have very little open credit right now? If you only have one account open, and you made a late payment, that doesn't look so good.

3) Was the final payment the one that was late? Did you make payments since then that were paid as agreed?

A little more history can help me help you better, if you want to.

Not directed at you Liz, but as far as late payments for everyone else, you have to be careful on how you handle them. If it is one late payment, and you haven't had any other, I would dispute the account record, or simply forget it if it is the only derogatory mark on your bureau. If you have made numerous ones, you are probably into collections soon. Once you go into collections, the original account gets closed. Depending on your state (most are 7 years), that is how long any collection agency has to collect the money. The 7 years starts when the account was last reported as being late, OR SINCE THE LAST MONETARY TRANSACTION HAS TAKEN PLACE. That is EXTREMELY IMPORTANT. For example, if you had an account go into collection on 8-02, it will be removed on 8-09 if you have made no attempt to pay the debt. If you pay the collection agency $.01 on 5-06, they can continue to collect until 5-13.

***I am in NO WAY advocating not paying your bills. As a matter of fact, I wish everyone would, which would cause everyone else's % rates to drop. But I do understand that family emergencies arise, and it is always better to pay your mortgage or car payment than your Home Depot Card.***

froubaby · 02/06/2008, 02:24 PM

I had this one late payment and one other late payment on another account which was completely my fault (that was at the beginning of 07). All other accounts have green "ok" boxes.

Jabber · 02/06/2008, 04:55 PM

I wouldn't worry about it too much, Liz. If those are the only 2 blems, they won't keep you from getting anything. If you want, you can go online and try to dispute it. If the company doesn't respond to your dispute within 30 days, it gets changed to an X on the bureau, effectively wiping it out.

froubaby · 02/06/2008, 05:31 PM

Quote:

Originally Posted by Jabber

I wouldn't worry about it too much, Liz. If those are the only 2 blems, they won't keep you from getting anything. If you want, you can go online and try to dispute it. If the company doesn't respond to your dispute within 30 days, it gets changed to an X on the bureau, effectively wiping it out.

Cool. Thanks for your help! I'm not looking for making any big credit type purchases anytime in the next year or two so I may just try the dispute and if it sticks, it's not a big deal.

Alan · 02/06/2008, 06:41 PM

The information above is correct, but especially now I would advise to dispute it anyways. With loans getting harder and harder to get as the situation around us becomes more hectic I wouldn't want to give any loan officer for any type of loan a reason to raise the interest rate you could get. Dispute it, chances are you will walk away clean, worse case scenario it stays, doesn't get worse.

Jabber · 02/06/2008, 07:32 PM

Quote:

Originally Posted by Alan

The information above is correct, but especially now I would advise to dispute it anyways. With loans getting harder and harder to get as the situation around us becomes more hectic I wouldn't want to give any loan officer for any type of loan a reason to raise the interest rate you could get. Dispute it, chances are you will walk away clean, worse case scenario it stays, doesn't get worse.

froubaby · 02/08/2008, 10:30 AM

Quote:

Originally Posted by Alan

The information above is correct, but especially now I would advise to dispute it anyways. With loans getting harder and harder to get as the situation around us becomes more hectic I wouldn't want to give any loan officer for any type of loan a reason to raise the interest rate you could get. Dispute it, chances are you will walk away clean, worse case scenario it stays, doesn't get worse.

Good point. I'll throw in a dispute.

I'm just happy at a time like this I'm 3 years in on owning a home (3 yrs today!), I have 2 cars, don't have any big purchases that I HAVE to make, etc. No need really for a loan anytime soon.

Thanks again to both of you!

Clipzin33 · 03/11/2008, 05:19 PM

So I just ran my experian last night and had a score of 782. Jabbarsaid this was very good, but wasn't happy to see something on my report. It said I was 30 days late on a payment on my credit union credit card. Should I dispute it because I don't remember it happening.

Alan · 03/11/2008, 05:26 PM

Quote:

Originally Posted by Clipzin33

So I just ran my experian last night and had a score of 782. Jabbarsaid this was very good, but wasn't happy to see something on my report. It said I was 30 days late on a payment on my credit union credit card. Should I dispute it because I don't remember it happening.

Always dispute, even if you know you were late. The worst case scenario is it stays on your report. Best case it goes off.

Jabber · 03/11/2008, 05:33 PM

100% agreed. Dispute anything and everything NEGATIVE on your report. Regardless of whether it is true or not.

Clipzin33 · 03/11/2008, 05:37 PM

Yea I'm going to have to go back in and use the report number. Should I get the other 2 tonight as well for free from Transunion and the other one I didn't do.

Another dumb question, do i have to go to each of the three and get it taken off?

Clipzin33 · 03/17/2008, 06:11 PM

So alan or jabber, I had a 292 balance on my credit card and payed like 50 on the balance. Now will this help me credit wise not paying it off like I love to do having it outof the way. Is a 700 dollar credit limit going to be enough for me to make any progress?

Jabber · 03/17/2008, 07:27 PM

Since your limit is $700 and your balance is under $350 (or 50%), it will show as a positive on your bureau. The scoring system doesn't make a determination as to the actual dollars, just the percentage. I would recommend paying it down to having maybe $30 balance. This way, it shows as having plenty of credit left in case you need it, still shows as you having the ability to repay money (regardless of the amount), and you pay very little interest.

This is advice for the people just starting to get credit (or those that have had slip ups before and want to re-establish). People who have had credit for years can ignore the above advice.

And as far as helping your credit, yes. Eventually, they will reward you with a higher limit. As long as you have something open for an extended period of time, you will be fine. By extended I mean 18+ months. Having a card for 2 months doesn't really show the banks anything yet.

Clipzin33 · 03/17/2008, 08:15 PM

I've had that credit card since 03, the one that apparently had the 30 day late.

How can I have a balance of 30 if my minimum payment is 20. I thought you guys said to leave a balance on the card.

09/21/2007, 03:34 PM	#302 (permalink)
Jabber insert funny title Sky Wire Champion! Join Date: Feb 2005 Location: Chicago Vehicle: 2003 Audi A6 2.7t quattro Posts: 4,659	Alan is dead on. Mortgage foreclosure rates are to blame for alot of declines right now. A totally unsecured loan is next to impossible to get unless you score well into the 700's. My advice would be to sign up for a credit card under both your names and hope you get a high enough limit. Preferably, you want one with a low cash out interest rate that you can use for your wedding. Once she has established herself here in the states, you guys will be in the clear from then on.

02/06/2008, 01:42 PM	#303 (permalink)
froubaby Gypsy Lady Join Date: Mar 2002 Location: Davie, FL Vehicle: 07 tC & 89 Supra Turbo Posts: 3,286	Hey Alan... I hope all is well with you. I've got a quick question for you. I ran my credit report today after just paying off a few debt accounts, one being my Old Navy account. The report came back stating I had a 30day late payment in 2007 (I don't recall this happening and may have been a result of putting a payment online and it posting after my due date - not sure). In any event, the credit report has two statements about this account: Status: Open/Current, was past due 30 days. Status Details: As of Aug 2014, this account is scheduled to go to a positive status. What would be my better option so this 1 late payment does not hinder my credit going forward: 1. Close the account now since it states the account will not produce a positive remark till 2014 - after all, it's just a department store card. 2. Dispute the late payment month to try to change the 30 day late to an "OK". 3. Leave the account as is. It's one 30day late notice and really won't do much especially now that you have the account paid off in full. Thanks in advance. I might have a few more questions pop up after I review everything again on this report.

02/06/2008, 02:04 PM	#304 (permalink)
Jabber insert funny title Sky Wire Champion! Join Date: Feb 2005 Location: Chicago Vehicle: 2003 Audi A6 2.7t quattro Posts: 4,659	Liz, I can help you with this. Alan, if you agree/disagree, please comment. One late payment doesn't mean a whole alot unless a few other things are happening. These are privacy issue questions, so if you want further explanation, you can always PM me. 1) Do you have other late payments recently? One late out of 10 accounts that have not had late payments means virtually nothing. Every bank/lender will understand about one late payment as a rare exception. 2) Do you have very little open credit right now? If you only have one account open, and you made a late payment, that doesn't look so good. 3) Was the final payment the one that was late? Did you make payments since then that were paid as agreed? A little more history can help me help you better, if you want to. Not directed at you Liz, but as far as late payments for everyone else, you have to be careful on how you handle them. If it is one late payment, and you haven't had any other, I would dispute the account record, or simply forget it if it is the only derogatory mark on your bureau. If you have made numerous ones, you are probably into collections soon. Once you go into collections, the original account gets closed. Depending on your state (most are 7 years), that is how long any collection agency has to collect the money. The 7 years starts when the account was last reported as being late, OR SINCE THE LAST MONETARY TRANSACTION HAS TAKEN PLACE. That is EXTREMELY IMPORTANT. For example, if you had an account go into collection on 8-02, it will be removed on 8-09 if you have made no attempt to pay the debt. If you pay the collection agency $.01 on 5-06, they can continue to collect until 5-13. *I am in NO WAY advocating not paying your bills. As a matter of fact, I wish everyone would, which would cause everyone else's % rates to drop. But I do understand that family emergencies arise, and it is always better to pay your mortgage or car payment than your Home Depot Card.*

02/06/2008, 02:24 PM	#305 (permalink)
froubaby Gypsy Lady Join Date: Mar 2002 Location: Davie, FL Vehicle: 07 tC & 89 Supra Turbo Posts: 3,286	I had this one late payment and one other late payment on another account which was completely my fault (that was at the beginning of 07). All other accounts have green "ok" boxes.

02/06/2008, 04:55 PM	#306 (permalink)
Jabber insert funny title Sky Wire Champion! Join Date: Feb 2005 Location: Chicago Vehicle: 2003 Audi A6 2.7t quattro Posts: 4,659	I wouldn't worry about it too much, Liz. If those are the only 2 blems, they won't keep you from getting anything. If you want, you can go online and try to dispute it. If the company doesn't respond to your dispute within 30 days, it gets changed to an X on the bureau, effectively wiping it out.

02/06/2008, 06:41 PM	#308 (permalink)
Alan Credit Guru Join Date: May 2003 Location: Vegas Bitches Posts: 5,323	The information above is correct, but especially now I would advise to dispute it anyways. With loans getting harder and harder to get as the situation around us becomes more hectic I wouldn't want to give any loan officer for any type of loan a reason to raise the interest rate you could get. Dispute it, chances are you will walk away clean, worse case scenario it stays, doesn't get worse.

03/11/2008, 05:19 PM	#311 (permalink)
Clipzin33 Bringing sexy back Join Date: Mar 2005 Location: Maine Vehicle: 03 GS Posts: 2,340	So I just ran my experian last night and had a score of 782. Jabbarsaid this was very good, but wasn't happy to see something on my report. It said I was 30 days late on a payment on my credit union credit card. Should I dispute it because I don't remember it happening.

03/11/2008, 05:33 PM	#313 (permalink)
Jabber insert funny title Sky Wire Champion! Join Date: Feb 2005 Location: Chicago Vehicle: 2003 Audi A6 2.7t quattro Posts: 4,659	100% agreed. Dispute anything and everything NEGATIVE on your report. Regardless of whether it is true or not.

03/11/2008, 05:37 PM	#314 (permalink)
Clipzin33 Bringing sexy back Join Date: Mar 2005 Location: Maine Vehicle: 03 GS Posts: 2,340	Yea I'm going to have to go back in and use the report number. Should I get the other 2 tonight as well for free from Transunion and the other one I didn't do. Another dumb question, do i have to go to each of the three and get it taken off?

03/17/2008, 06:11 PM	#315 (permalink)
Clipzin33 Bringing sexy back Join Date: Mar 2005 Location: Maine Vehicle: 03 GS Posts: 2,340	So alan or jabber, I had a 292 balance on my credit card and payed like 50 on the balance. Now will this help me credit wise not paying it off like I love to do having it outof the way. Is a 700 dollar credit limit going to be enough for me to make any progress?

03/17/2008, 07:27 PM	#316 (permalink)
Jabber insert funny title Sky Wire Champion! Join Date: Feb 2005 Location: Chicago Vehicle: 2003 Audi A6 2.7t quattro Posts: 4,659	Since your limit is $700 and your balance is under $350 (or 50%), it will show as a positive on your bureau. The scoring system doesn't make a determination as to the actual dollars, just the percentage. I would recommend paying it down to having maybe $30 balance. This way, it shows as having plenty of credit left in case you need it, still shows as you having the ability to repay money (regardless of the amount), and you pay very little interest. This is advice for the people just starting to get credit (or those that have had slip ups before and want to re-establish). People who have had credit for years can ignore the above advice. And as far as helping your credit, yes. Eventually, they will reward you with a higher limit. As long as you have something open for an extended period of time, you will be fine. By extended I mean 18+ months. Having a card for 2 months doesn't really show the banks anything yet.

03/17/2008, 08:15 PM	#317 (permalink)
Clipzin33 Bringing sexy back Join Date: Mar 2005 Location: Maine Vehicle: 03 GS Posts: 2,340	I've had that credit card since 03, the one that apparently had the 30 day late. How can I have a balance of 30 if my minimum payment is 20. I thought you guys said to leave a balance on the card.