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-   -   Cleaning up credit record? (http://www.diaperswappers.com/forum/showthread.php?t=1337587)

B's Mommy 01-15-2012 08:47 AM

Cleaning up credit record?
 
Okay - so first off, I have perfect credit - my score is 7xx even though I've only had credit 3 years, never been late one a payment (though I am constantly asking for extensions, it doesn't reflect that), nothing negative, etc. My dh's however was ruined when his ex-wife divorced him while he was serving overseas - she wrote bad checks in his name, let the truck in his name get repo'ed with $1k left on it (smh...$25k truck), etc. etc. The only thing that was on my DH's credit report that HE actually did was let a cell phone bill go to collections, but we paid that off during the first year we were married, so that isn't an issue now. That being said, he has a 5xx credit score and obviously a list of negative things on his report. We don't plan on buying a house in the near future (probably ever, tbh), we were able to get decent rates on our car loan with my credit alone (and it's only gotten better since), etc.

Anyways, everything on DH's record is from 2005 or earlier - I guess my question is, do you think once we get our debt paid off, it would be worth trying to settle each of his collections (even though technically they aren't even his...but that's a rant for another thread. lol) a little at a time, or just leave it like it is? I can't imagine what we'd need his credit for in the future, and he really has no desire to "pay for his ex-wife's carelessness" as he puts it, so this is sort of my thing. I wouldn't go behind his back obviously - if I say it's a good idea to do it, he'd go along with it - but that was his response when I basically asked him this same question, hence why I'm asking here.

momof2jmwjaw 01-15-2012 09:23 AM

Re: Cleaning up credit record?
 
No advice just wanted to say I know how ya feel. My hubbys mom ruined his credit when he was younger. Unfortunitally we are planning on buying a house in about 5 years so we have to pay it off. I have been avoiding it for years

chloecat 01-15-2012 09:28 AM

Re: Cleaning up credit record?
 
i used to be a finance manager --so i do have some knowledge in this.

any bad stuff on his credit you need to resolve. even if it's not his. if you have proof that it's another person's or even mismatched ss #'s you need to call or write (or both) the credit bureau companys. the collections and any other delinquency's will stay on his credit until he pays them.

common misconception that after 7 years they just go away. that's not true. they go away 7 years after they are settled/paid so you need to resolve them now if you ever want to have good credit

also, i would get him a small credit card with a low limit, like $200 or something. have him use it for gas or small groceries and then pay it in full every month. he needs to reestablish good credit to bring the score back up again.

B's Mommy 01-15-2012 09:41 AM

Re: Cleaning up credit record?
 
There's no way with me or my dh would be comfortable with him having a credit card. lol - it is hard enough to get him to give me the debit card receipts so I can subtract the gasoline from our checkbook, but he tends to see credit cards as free money, which is why he's never had one. I'm the only cc holder in the family, and it's staying that way. lol - I'm not overly concerned with him having good credit, but more concerned with people coming after him someday - if that is even possible... And the repo'ed truck thing - does he actually need to pay that or is it "settled" because they took the truck from her? I need to look over his report again and make a list of things. Also, how would I go about contacting someone about setting up payment plans (and since we can only afford tiny payments a month, would they even accept it or would we just cause more trouble for ourselves by drawing attention to us?)

I don't know if there is any way to prove that stuff isn't actually his, because it WAS in his name. He was in Korea, and his wife/ex-wife (yeah, she continued to do it after they were divorced) was writing bad checks and signing his name, truck got repo'ed because it was in his name and she blew off the payments, etc. If we did dispute the bad checks, wouldn't we have to go after her for fraud? That would seriously mess up things with his daughter if we tried. She doesn't "play" by the rules.

MariaLA 01-15-2012 11:01 AM

Re: Cleaning up credit record?
 
The first thing to try is to just dispute it. It's really easy. You go to the credit bureau websites and fill out a form. Explain why the debt isn't valid. Then the credit bureau contacts the creditor and they either prove the debt exists or it is erased. We had two things where the debt was in my husband's name but it wasn't his responsibility. One was an old medical bill that insurance should have covered, but he wasn't good with paperwork and never caught it. The other was a plumber bill that the landlady should have paid for a rental house. The medical bill was just erased because the creditor didn't follow up with the credit bureau following the dispute. The plumber bill is still there because they contested the dispute. But whatever.

I know writing something like, "Ex wife wrote bad checks on joint account, have been divorced since xx date" doesn't sound very convincing, but in my experience and several friends, at least some of those lines on the credit report will just get deleted due to the companies just writing it off. You don't have to prove it--you just have to say it for some of them. And then you know who really wants to play hardball and you can negotiate with them for settlement.

Once you do know who really really wants to follow up on this, then in general you want to wait until you can pay a settlement in full. A tiny payment plan won't help. You'll have better luck if you say "this is a 1K debt. I will pay you $300 today if you send me a letter that says the account is satisfactorily paid." I bet other people have better advice on that last part. But I just know that you want to have a letter in your hand that says everything is good, and there is specific wording you want.

happysmileylady 01-15-2012 11:20 AM

Re: Cleaning up credit record?
 
Well, stuff falls off your credit report after 7 yrs. But falling off the credit report doesn't meant that it's disappears.

You can still be sued for this stuff. A lawsuit can result in a wage garnishment. You can hold off or try to lessen the garnishment by showing up in court if they do sue, but obviously no one wants their wages garnished.

Quote:

My dh's however was ruined when his ex-wife divorced him while he was serving overseas - she wrote bad checks in his name, let the truck in his name get repo'ed with $1k left on it (smh...$25k truck), etc. etc.
My DH was in the military for a while and I seem to remember something about there being laws regarding debt things while a service member is deployed. You might want to poke around...because he was overseas, you might have some legit claim against even having these reflected on his credit anyway. I dunno though. It might be something worth looking into.

Also, if she wrote bad checks on an account that she was never on, in his name, that's a form of id theft and he can have all of that removed. But only if she was never authorized on that account.

L J 01-15-2012 11:49 AM

You should check out creditboards.com

It's like the diaperswappers of credit. I have been lurking for two years; they know all the tricks and have form letters, resources, break down the law where you can understand it, etc.

5PrincessMommy 01-15-2012 12:15 PM

I am in the process of cleaning up my credit. First thing I did was dispute a bunch of stuff. Two things were deleted. Next thing is I called each place and asked if they'd make a settlement offer. Things WILL be off your credit in 7 years whether they are settled or not. If some things are close to expiring let them fall off your credit. If you make even one small payment it will restart the clock. Most of the time it says you owe way more because of all the crazy fees they add on. If you can remember what you originally owed offer that. If not just say a small amount. The older everything is the more they are willing to go lower because they just want to get something at that point. If the things on his credit were from 2005 then they should be falling off soon. Just check on his credit report the day it says. Because even if it went delinquent in 2005 it doesn't mean thats when they first reported it. Hang in there. I just raised my credit score 22 points it's still bad but it's a work in progress!

jaelynsmommy61607 01-15-2012 12:28 PM

Quote:

Originally Posted by 5PrincessMommy
I am in the process of cleaning up my credit. First thing I did was dispute a bunch of stuff. Two things were deleted. Next thing is I called each place and asked if they'd make a settlement offer. Things WILL be off your credit in 7 years whether they are settled or not. If some things are close to expiring let them fall off your credit. If you make even one small payment it will restart the clock. Most of the time it says you owe way more because of all the crazy fees they add on. If you can remember what you originally owed offer that. If not just say a small amount. The older everything is the more they are willing to go lower because they just want to get something at that point. If the things on his credit were from 2005 then they should be falling off soon. Just check on his credit report the day it says. Because even if it went delinquent in 2005 it doesn't mean thats when they first reported it. Hang in there. I just raised my credit score 22 points it's still bad but it's a work in progress!

Did you dispute things that should have been there? I don't really know what it and isn't debt anymore.

I just got an offer to settle a $900 debt for 30%. They're smart enough to send it out around tax time :giggle:

5PrincessMommy 01-15-2012 12:47 PM

I disputed pretty much everything. If the amount wasn't correct, if the dates were wrong, if it was originally me exes debt but was in my name etc etc. if they don't prove it's your debt and it's all correct it gets deleted. Most things were just updated but those two were deleted.

And yes they know tax time is good to hit people up!


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