Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-13-2009, 02:53 PM
 
23 posts, read 93,810 times
Reputation: 19

Advertisements

I want to buy a house or get a load for at least $150,00 for 30year fixed.

My credit score was great a year ago, so I decided to check it out now before I apply and see what's up.

It turns out to be 638 , because for some reason I have 2,000 on my collection I didn't even know about!!!

And the rest is good, shows that I am also paying off my vechile and I owe about $17,000 still on it but record shows it's all my payments been on time.

Also shows all my credit cards have been payed on time and history for the past 6 years, and that I payed off all my other loans off, and everything is great. Except for the $2,000 I have on my collection for some reason and I'm worried.


I am NO expert, but I want to get $150,000 fixed. Also, i got a new job 6 months ago, and have been a full time employee. And i'm 24 years old single, so kind of young.


Can you explain to me if my credit is BAD, GOOD, or UGLY? or all three LOL.


Thank you for your imput.
Reply With Quote Quick reply to this message

 
Old 04-13-2009, 03:19 PM
 
26,585 posts, read 61,807,550 times
Reputation: 13161
Are you saying there is a $2000 collection account? Is it yours? If not it will be easy to get it taken off--dispute it in writing to the agencies. If it's yours, pay it off and wait for a year or two until your score improves.
Reply With Quote Quick reply to this message
 
Old 04-13-2009, 05:29 PM
 
148 posts, read 571,886 times
Reputation: 84
If the collection is yours and you pay it off or call and make a settlement agreement and agree to pay $1200 or so it will come off as a collection account within 30 to 45 days of you paying it, your score will improve right after it comes off. If you don't want to wait the 30 to 45 days, wait about 15 days after you've paid it, get a copy of your credit report with the collection still on it, and then dispute it. Since it's been paid, it will come off sooner. Granted, that collection account may have knocked your score down by as much as 90 points or maybe even more, paying it off will improve your score by only about 60 points. Still, 698 is better than 638.
Reply With Quote Quick reply to this message
 
Old 04-13-2009, 06:06 PM
 
Location: Sacramento
2,568 posts, read 6,729,069 times
Reputation: 1933
Quote:
Originally Posted by Kenezzite View Post
It turns out to be 638 , because for some reason I have 2,000 on my collection I didn't even know about!!!
So you recognized the creditor? If it not your debt just go online and dispute it as an unknown account.
If it may be your account the contact creditor at the number listed on the credit report and request they send you proof of the debt. When I say proof, I mean an account history not just a bill from the collection agency that says you owe $2000.
Is there a chance that anyone you know may have used an old credit card of yours? Or that you may have signed up for a membership to something?
Reply With Quote Quick reply to this message
 
Old 04-13-2009, 07:19 PM
 
Location: 53179
14,418 posts, read 22,365,211 times
Reputation: 14461
Quote:
Originally Posted by Kenezzite View Post
I want to buy a house or get a load for at least $150,00 for 30year fixed.

My credit score was great a year ago, so I decided to check it out now before I apply and see what's up.

It turns out to be 638 , because for some reason I have 2,000 on my collection I didn't even know about!!!

And the rest is good, shows that I am also paying off my vechile and I owe about $17,000 still on it but record shows it's all my payments been on time.

Also shows all my credit cards have been payed on time and history for the past 6 years, and that I payed off all my other loans off, and everything is great. Except for the $2,000 I have on my collection for some reason and I'm worried.


I am NO expert, but I want to get $150,000 fixed. Also, i got a new job 6 months ago, and have been a full time employee. And i'm 24 years old single, so kind of young.


Can you explain to me if my credit is BAD, GOOD, or UGLY? or all three LOL.


Thank you for your imput.

Are the $2000 in collection and you don't know what it is? How can you have 2000 in collections and not knowing where it come from unless it is not your debt?
I had $18,00 sent to collection once because of unpaid late fees from blockbuster and I can see how I missed that but 2 grand!
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 01:41 AM
 
23 posts, read 93,810 times
Reputation: 19
Will it hurt me in the long run if I just ignore collection? can the 2,000$ still go up or it's set in stone? Just really curious.

But it's something I'm not sure about, i need to find out where it came from first. Just wanted to go to the bank tomorrow and see if they can approve me for $150,000 fixed rate.

You think that $2,000 collection will not allow me to get a morgage?
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 06:43 AM
 
Location: Baltimore
1,802 posts, read 8,140,960 times
Reputation: 1975
Quote:
Originally Posted by Kenezzite View Post
Will it hurt me in the long run if I just ignore collection? can the 2,000$ still go up or it's set in stone? Just really curious.

But it's something I'm not sure about, i need to find out where it came from first. Just wanted to go to the bank tomorrow and see if they can approve me for $150,000 fixed rate.

You think that $2,000 collection will not allow me to get a morgage?
It's been a long time since I applied for a mortgage, but I suspect you will have to pay it, or, if it isn't yours, have it removed before you will be approved. I remember when I got my mortgage loan over 15 years ago, there was a medical bill on my record that was not mine (I have a very common name). I tried to get it removed, but it ended up being easier to just pay it (it was only a couple hundred dollars).
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 09:22 AM
 
26,585 posts, read 61,807,550 times
Reputation: 13161
Quote:
Originally Posted by Kenezzite View Post
Will it hurt me in the long run if I just ignore collection? can the 2,000$ still go up or it's set in stone? Just really curious.

But it's something I'm not sure about, i need to find out where it came from first. Just wanted to go to the bank tomorrow and see if they can approve me for $150,000 fixed rate.

You think that $2,000 collection will not allow me to get a morgage?
It will defintiely go up with interest/fees and an amount that high will likely go to judgement. Judgements automatically attached to real property. You will not be approved for a mortgage of $2 with an open collection account. Pay your bills and you won't have this problem. If you ar that sloppy with your finances that you admit it could be a valid collection account, you are not ready to buy a home.
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 12:53 PM
 
4 posts, read 11,388 times
Reputation: 23
Quote:
Originally Posted by mrsclmn View Post
If the collection is yours and you pay it off or call and make a settlement agreement and agree to pay $1200 or so it will come off as a collection account within 30 to 45 days of you paying it
This is not entirely correct. While it will no longer be reported as an active collection account, it will still be reported as a PAID collection account, and that distinction doesn't really matter for your score.

Sadly, it doesn't help your score at all to pay off a collection account. If you do pay it, it will not disappear from your report after 45 days. In fact, it will stay there and ruin your score for 7.5 years from the date of first default. The impact of the collection lessens after a couple of years, but it will still represent a major drain on your score because you belong in the worst possible credit score "bucket" - the bucket that's filled with people who have had serious derogatories.

Furthermore, in some instances, paying off an old collection account can worsen your score because the creditor will report the payment to the credit agencies and this updated activity may make it seem as though the collection is newer than it actually is.

If you choose to settle with the company for less than the amount you owe, the settlement will also end up on your credit report and future lenders will see that you didn't pay off the money you owed in full. This is not good either.

There are only a couple of ways to remove a collection before those 7.5 years are over.

1.) If you're not sure if the collection is yours, contact the company that put the information on your report and make them confirm that it is indeed yours. It's possible that the collection belongs to somebody else with the same name.

2.) If the collection is legitimately yours and you want it removed from your account, you have two options:

a.) Negotiate with the original creditor BEFORE you pay the bill. Send them a "pay for delete" letter in which you offer to pay off the entire collection IN FULL in return for having it deleted from your report. Ask for this in writing. Do NOT agree to this over the phone with a low-level representative and DO NOT send payment until you've received the pay-for-delete confirmation in writing. If you receive a negative response, just keep sending the letters. Your debt amount is substantial enough for them to consider the arrangment. Some companies simply refuse to do this, but you need to take a chance because this collection is going to end up costing you big time if you don't get rid of it.

b.) If you insist on paying the bill without negotiating a pay-for-delete agreement, your only option is to send them a goodwill letter afterward, begging them to delete it. This is a much tougher thing to accomplish than the first option because you have no leverage.


Also, make sure that you bought a real FICO credit score and not one of the fake versions that the credit bureaus offer. If it doesnt say FICO, it's a waste of money (a FAKO).

And last... you should Google around to find some good credit-rebuilding forums where you can learn a lot about how credit scoring works (I have a favorite, but don't know if I'm allowed to link to it).
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 03:32 PM
 
148 posts, read 571,886 times
Reputation: 84
I guess it just depends on the creditor. While we've never had a $2000 collection account, my husband did have an old cell phone bill and some other account that were considered collections accounts. The cell phone bill was settled and the other account was paid and BOTH came off the credit reports and his credit score IMPROVED. Keep in mind there is a destinction between CHARGE OFF accounts and COLLECTION acounts. What you are referring to sounds true for CHARGE OFF accounts. Collections are for once an account is non revolving or installment...like say you HAD a credit card and stopped paying and it went to Charge off...once a collection agency buys the account, it appears as paid charge off on your credit reports (still a derogatory item) and then the collection agency can report the amount as collections.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top