When Does The 7 Year Removal Countdown Start On Negative Entries?

by Ryan

Reader’s Question

Hello,
I have some negative items that will soon be at their seven year limit and will (hopefully) be removed from my credit report. Can you tell me which credit agency informs you of an estimated date when an item will be removed? Also I was wondering at what point do they start the 7 year “countdown?”

Response

Hi [name removed] -
When you get your credit report directly from Experian, they will include the estimated removal date. I don’t think the other agencies do this. To understand the 7 year “countdown” try to imagine all of your credit entries as bricks in a wall. Most of them are good entries, but scattered throughout the wall there are a few bad bricks. Now imagine that every year a new row is added to the bottom –pushing the other rows up one. Basically, when one of the “bad bricks” hit the seventh row, they are removed. So in that way, its seven years from the date it was added.

Hope this helps,
Ashley

{ 0 comments }

Should I Use A Credit Repair Company To Clean My Credit Report?

by Ryan

Reader’s Question

Hi Ashley,
I just got married last month and we still living at my mom’s. We tried to buy a house but my wife’s credit is so screwed that the interest rates were astronomical. We’ve been looking for a good credit repair company but all seem to be rip-offs or have poor results. The reason I write you is to see if you know the people at [website removed]. Sounds good to me but before expending that kind of money I’d like to have some more info, referrals.. something If they keep up their promises it might be a good deal.

Thank you for you input.

Response

Hi [name removed] -
Thanks for contacting me. I do not recommend anyone use debt settlement companies or so-called, “credit repair” companies. I will tell you right now: most of them will rip you off and you will end up in a bigger mess than before. The thing to remember is that these companies do not possess the ability to magically “fix” your credit. That is, everything that they can do, you can do just as easy –for free! I recommend that you fix your credit report on your own by tackling one thing at a time. It takes time, but I assure you that using one of these rip-off companies will not speed up the process. Use the internet and my blog as a resource to further your credit knowledge and I am certain you can do this on your own. You won’t regret it. Also, start by reading the “My Mistakes” series on my blog –that is a good place to start.

Best,
Ashley

{ 8 comments }

When to challenge an error on your credit report?

by Ryan

Reader’s Question

My fiance and I are planning to buy a house within the next few months. We recently submitted a preapproval application with our bank and I finally convinced him to get a free credit report from annualcreditreport.com. We discovered that there is a incorrect item on his report from about 7 years ago that is due to go off his report in April (approximately the same time that we’re hoping to close on a house). It’s for an unpaid utility bill for less than $50 that is listed as being written off. My fiance has documentation to prove that the utility company was in error and did not cancel his account when he moved as requested and the charges were not his (and he send multiple letters to that effect at the time they were hassling him about payment). Is it worth our effort to try to get this item off his credit reports? He has no other potentially negative items and I have “perfect” credit. Should we just let it fall off his report?

Thanks!

Response

(by the way — to the reader who sent in this question, your reply email address wasn’t working, so I hope this response finds you)

Hi [name removed] -
I would write a short letter to each of the credit agencies, simply stating something such as…


“To Whom It May Concern -
After reviewing my credit report recently, I noticed the following inaccuracy: Utility Company Inc, Acc # XXXX. I dispute this as inaccurate and kindly ask that you remove it.”

I am quite certain since it’s so old you’ll have no problems getting it removed. It’s doubtful the utility company will take the time to verify such an old account (if they even can, which it sounds like they can’t).

I wouldn’t just wait for it to fall off right before a home purchase –you don’t want it to affect your mortgage interest rate.

Best,
Ashley

{ 1 comment }

Do I have to pay credit cards that are not in my name?

by Ryan

Reader’s Question

Hello Ashley,
I recently had about 4 accounts removed from my report because they were opened by someone else when I was underage. I have been paying these credit card bills because the person who opened them stopped paying and they were affecting my credit. My boyfriend recently told me I shouldn’t have to pay since I didn’t open them and told me to dispute the accounts which I did. So they were effectively removed from my credit account but I am still receiving bills from these credit card companies. If I stop paying will they be able to put it back on my credit report?
Thanks in advance!
[name removed]

Response

Yes, more than likely they will –you need to start by calling the credit card companies right away and tell them that these are not your accounts and to stop sending you bills. If they are not in your name, they are not your legal responsibility. If you made some sort of arrangement with the person who opened the accounts and this wasn’t identity theft, I would suggest honoring that arrangement for moral reasons.
Best,
Ashley

{ 0 comments }

Negotiating WAMU Charge off

by Ryan

Reader’s Question

Dear Ashley,
I am attempting to negotiate payment in full of a charge-off with WaMu in exchange for removing the tradeline from my credit report. I wrote a letter similar to the one  you’ve made available on this site (thank you!) and received a response that says WaMu’s records are correct and if I have issues with my credit report I should take it up with the three credit reporting agencies.

I’m not sure what to make of this. My thought was to send another letter thanking them for the information but informing them they missed the point (very politely and graciously, of course) and restating my proposal.

In closing the letter I wrote “upon receiving your written agreement, I will immediately begin payments… ” but their letter was not an agreement and didn’t address my proposal. So if I send another letter, and include your closer of “your written response will serve as agreement,” will I have to immediately begin payment upon a written response of any kind?

What are your thoughts? Should I send another letter? Or should I start making payments as I proposed?

Thanks a lot for making your stories and resources available.

regards,
[name removed]

Response

Hi [name removed]

Don’t start making any payments until you get something in writing from them honoring your proposal. How old is the charge off? If it’s a fairly new charge off (within 5 years), you’re going to have a real difficult time getting them to remove it from your credit report. Your best bet (perhaps your only chance) is to offer to pay the balance off in FULL –one payment.

Hope this helps,
Ashley

{ 1 comment }

Can I deal with original creditor after a charge off?

by Ryan

Reader’s Question

Hello Ashley -
I had an account with Citi that went to collections after a charge off, can I bypass the collection agency and call Citi directly?

Thanks!
[name removed]

Response

Hi [name removed]

Yes, in most cases you can do this. As a matter of fact, I recommend always calling the original creditor first –that way you don’t have to deal with scum bag collection agencies.

-Ashley

{ 0 comments }

When are creditors willing to settle?

by Ryan

Reader’s Question

Hi -
I have several credit cards in varying stages of delinquency. How far behind does one typically have to  fall, before a creditor is ready to accept a reduced settlement? And when do creditors typically give up and send the account to a collection agency?

Response

Hi there -
In my experience, credit card companies usually do not accept a settlement before the account has been handed over to a collection agency. This is particularly true for credit card companies. However, with that said, it’s not a bad idea to ask them if they’d be willing to work something out. Your number one goal ought to be to keep these accounts out of collections. Dealing with collection agencies is not a pleasant experience. Plus, you run the real risk of adding yet another bad entry on your credit report. Basically, creditors can send the account to collections whenever they see fit. I would, however, expect to see the account go to collections after it has been between 120 days and 150 days late.

Hope this helps,
Ashley

{ 0 comments }

Ins and Outs of Debt Settlement Companies

by Ryan

Reader’s Question

Do you have any advice on debt settlement companies? I am involved with one now and I am not sure I made the right decision.
Thanks

Response

Hi there -
I personally do not like debt settlement companies and wouldn’t advise anyone to use one. The true benefit from getting out of debt is the joy and pride that is gained from knowing you did it yourself –not to mention a sincere and recognized change in your future behavior. That is, once you have gone through the hell that is required to get out of debt, you will never want to do it again. Besides, more than likely you will end up paying much more using a debt settlement company.

Best,
Ashley

{ 1 comment }

How long for a goodwill response?

by Ryan

Reader’s Question

I sent 3 of my creditors goodwill letters about 2 months ago. How long does it take for a response? And if nothing happens, what should be my next step?
Thanks 
Please help.

Response

Hi there,
Are these accounts paid in full? If not, offer them a settlement in exchange for complete removal from your credit report. Get everything in writing. If they are late payments, read my post on how to get a late payment removed. I would give it another two weeks as well.

-Ashley

{ 0 comments }

Do I still have to pay if the account is not on my credit report?

by Ryan

Reader’s Question

Dear Ashley -
I wanted to know. I have a big account on my credit report of about 17,000 dollars. It’s from a car I used to have. Is there anything that I can do about that to try to remove it. I can’t afford to pay that amount and the collection agency keeps bothering me. Please help. Also, if any account is not on your credit report do you still have to pay off any outstanding balances?

Response

Dear [name removed],
A debt with such a high balance would be near impossible to get removed. Even if you do get it removed, the company will probably still sue you before the statue of limitation is up in your state. Just because an account is not listed on your credit report does not mean you don’t still owe the debt.

Hope this helps,
Ashley

{ 0 comments }

← Previous Entries

Next Entries →