     David Temkin (Dtemkin) | Sunday, September 03, 2000 - 05:55 am 
Is a collection that's, say, 3 years old, worth less points off than a collection that's, say, 1 year old? Do they age like that, or is it a fixed point value until they fall off? Right now my score is 515 on my TU, which really really blows. I've got a TON of inquiries from trying to buy a car (We're talking 20-some), and I'm sure that's driving my score down too.
Thoughts? I'm wondering if I really am just better off going Ch7 |
| Senator (Senator) | Sunday, September 03, 2000 - 12:55 pm
If you wish to improve your credit score, declaring chapter 7 is the worst thing to do. You save chapter 7 for a serious illness, reorganization/loss of a job. You should not use it carelessly.
If you want to improve your score, get a copy of your credit report and begin to challenge the veracity of any negative item. You can expect frustration at trying to get things corrected but it can be done. I did it for a limited time and got totally frustrated and hired a legal firm to challenge items. They have been more successful than me. I filed 7 over a year ago and was discharged one year at the end of August. During that time, I have increased my scores by almost 100 points with both Trans U and CSC (Equifax). Experian is a disaster and I cannot answer why. So when I apply for credit I always ask what service they use and if they use Experian I run the other way. If you have a lot of inquiries, challenge them. they disappear after two years. they will tell you that inquiries are grouped together but I speak from experience that buying a car is a nightmare, they are never coded correctly and thus wipe out all your hard work of paying on time. Try and avoid inquiries like the plague. good luck and keep posting. don't do the 7. |
| David Temkin (Dtemkin) | Sunday, September 03, 2000 - 05:24 pm
The reason why I suggested 7 is because I currently have 2 chargeoffs. There's no way the score on those is going to improve, so why should I risk them getting a judgement and garnishing wages and such? I'm thinking I'm better off just getting rid of the debt.
As well, I have a few items that may hit collections soon but have yet to appear on my credit report. I will be unable to pay them in full. I'm thinking perhaps if I do ch7 now, they may never hit my report. Is this possible?
Thoughts?
-Dave |
| Shylock (Shylock) | Tuesday, September 05, 2000 - 06:11 pm
Chapter 7 is a reasonable possibility. If you think that's best, don't hesitate. It can be a very positive move for a credit report. |
| Erik (Erik) | Wednesday, September 06, 2000 - 09:02 am
To answer your original question collections do take off less points the older they get. By how much I have no idea. If you have old collections along with recent good credit stuff then I think you can still get a good credit score.
In response to Shylock I think you should hesitate and get all the facts before declaring bankruptcy. Do you really think it's likely that they will be getting judgements against you? If I were a lender I don't think I'd be very eager to lend money to someone with a bankruptcy on their report. Would you? Many credit applications ask the question "Have you ever declared bankruptcy?" It seems to me that it could affect you for the rest of your life. |
| David Temkin (Dtemkin) | Wednesday, September 06, 2000 - 10:07 am
Actually, here's the interesting thing.
I called MBNA to find out what they could offer me in a reaffirmation situation.
They willingly offered, with NO negotiation, to change my line of credit to a VISA card (which I need, to replace my Providian card that would be cancelled in ch7), and give me an ADDITIONAL $1000 credit line... All if I agree to reaffirm their account.
They said that they know FirstUSA and a few other big banks do the same thing.
Wow.
-Dave |
| David Temkin (Dtemkin) | Wednesday, September 06, 2000 - 12:54 pm
Hey, also, about that MBNA thing - Does anyone think that's unreasonable? I owe them around $3700. They'll increase the credit line to $4700 and issue a VISA card after the discharge. That will be pretty much my only debt, other than my car, to stick around. |
| Don Semler (Dsemler) | Saturday, September 09, 2000 - 05:04 am
What rate are they going to charge you to have this new card. Possibly a way for them to stroke you for a 20% rate and thus start getting interest on a debt that they wre writing off. I would ask for 1yr min no interest or something close to allow you to know the balance down. Otherwise you'll be toasted if you just make the minumum payments as this might not even cover the interest charge |
| Amy Duncan (Amydd) | Saturday, September 09, 2000 - 10:44 pm
In response to applications asking if you EVER have filed for b/k. On every application I have filled out it has always been worded "Have you filed Bankruptcy in the last 10 years". I don't think it will necessarily follow you for the rest of your life. |
| David Temkin (Dtemkin) | Saturday, September 09, 2000 - 10:51 pm
They're saying it's going to be "To the terms of the original contract", which means 15.9% interest, which for my credit isn't so horrid. What I AM going to ask them to do, however, is to refund all of the late fees from the past 6 months.
-Dave |
| Don Semler (Dsemler) | Sunday, September 10, 2000 - 06:39 pm
15.9 sound reasonable, make sure the "original contract" doesn't have soem wording that they can raise it at their option due to delinquent credit history with them or other creditors. If it does, this coudl be and "introductory rate" in your case. |
