Credit Problem

[Fingolfin269]

Last night I bought a credit report because I wanted to know why I was getting rejected for little things that I should not have a problem getting. That's when I discovered a pretty major problem on my report that I can hopefully take care of through dispute.

Basically, I was on a credit card of my mother's. She ended up having the entire balance charged off and now my credit report is reflecting a charged off balance and this is the only item in my 'Negative Credit History' section. The account was closed in August of 1998.

Why did it take so long for me to notice? Quite simply, I never use credit, so I've never really needed to look at it. However, I decided that I wanted to apply for an AMEX to use in online purchases and that is when I realized there was a problem.

Does anyone think I may have grounds for a dispute, or do I need to just wait this out until it disappears? And as far as I know I was simply a name that was added to my mom's account. This was back in 1996 when the account was opened, I was 19 years old, and I really have no recollection of anything other than 'Thanks for the card mom!'. The lame thing is that I never even used the damn card.

*CLIFF NOTES*

Found a negative credit item on my credit report last night. The account was closed around 6 years ago. The card was my mother's and I was just a name added to the account so that I could use the card in the case of emergency while at college. I never used the card and am wondering if I may have grounds for dispute.

 

[StageLeft]

It should be off in 7 years total. I would leave this if I were you. If you try and dispute it and fiddle around you may just run into other hassels and in some cases the timer can be reset, though this doesn't look to be one of them (I don't know, but I've heard that if you have a write off on your card from 4 years ago and then you decide to pay it, it will reflect a paid write off, which won't go off for 7 years from when you paid).

By fall of 2005 your report should be good again.

Does anyone think I may have grounds for a dispute, or do I need to just wait this out until it disappears? And as far as I know I was simply a name that was added to my mom's account. This was back in 1996 when the account was opened, I was 19 years old, and I really have no recollection of anything other than 'Thanks for the card mom!'. The lame thing is that I never even used the damn card.

In that case it wouldn't be on your report. Since it is on your report I am guessing that your mother may in fact have set you up for an account and had you or her as a co-signer on it.

 

[Fingolfin269]

How about this. I don't really know much of anything about how credit scores are generated and am trying to figure out just how negatively this effects my score. Once this is gone will it make for a dramatic improvement in my score?

BTW, the only outstanding credit that I have 'against' me is a car payment and student loans. The amounts combine to a total $ amount that is less than what I make per year and I have not been late on either payment for at least the last 22 months (got the car 22 months ago).

I guess that is why I was surprised that my credit sucked so bad that I couldn't even get a $1 limit AMEX.

 

[StageLeft]

Yep once it's off your report should go up a good bit, though the longer ago something negative (or positive) was on your report the less it affects it. Since you have other positive items I'm surprised that this is really bad on your report, but getting it off will help. You could pull your score, since you didn't mention what it is...

 

[WHipLAsh13]

Why did you buy a credit report? You did realize that if you apply for a loan or credit card and you are denied, you are entilted to a credit report from them?
I had a good credit score but did have one item that was hurting it a bit. A card from some lady with a name nothing like mine had a Sears card that was on my report. I had this taken care of and now my report went up over 50 points to just under 800. So it will make a pretty big impact on your report.

 

[Red]

Yes, if you pay collections that are about to fall off, the timer can be reset so you're screwed for another 7 years. Always adamantly deny the account is even yours, and only in writing, agree to pay off the balance if they agree (in writing, once again) to totally remove the lines from your 3 credit bureaus (the big 3 anyway).

 

[Fingolfin269]

Well, I don't have the score. I bought a credit report on Equifax last night for $9 and mainly wanted to look at the items figuring that knowing the score wouldn't really help me get approved for anything.

Do you happen to know of a way that I can get this information for free? Also, do you know of any net resource that demonstrates the mathematics behind credit scoring?

 

[Fingolfin269]

Originally posted by: Red
Yes, if you pay collections that are about to fall off, the timer can be reset so you're screwed for another 7 years. Always adamantly deny the account is even yours, and only in writing, agree to pay off the balance if they agree (in writing, once again) to totally remove the lines from your 3 credit bureaus (the big 3 anyway).

Well, I'm certainly not paying anything towards the account that was already charged off. I'm just wondering if I should dispute it or just wait another year for it to go away. I don't want to dispute the charge if an inquiry is going to restart the counter.

 

[WHipLAsh13]

Originally posted by: Fingolfin269
Well, I don't have the score. I bought a credit report on Equifax last night for $9 and mainly wanted to look at the items figuring that knowing the score wouldn't really help me get approved for anything.

Do you happen to know of a way that I can get this information for free? Also, do you know of any net resource that demonstrates the mathematics behind credit scoring?

If you were denied for a credit card or loan, in the denial letter they usually tell you how you can obtain a credit report so you can investigate why you were denied. But keep in mind that running alot of credit checks can hurt your score as well so don't run them too many times.

 

[DT4K]

Originally posted by: WHipLAsh13But keep in mind that running alot of credit checks can hurt your score as well so don't run them too many times.

Wrong. Running credit reports on yourself does NOT affect your credit score.
Companies running promotional credit checks on you that were not initiated by you requesting credit (like when a company runs a check and uses it to send you a pre-approved offer) do NOT affect your credit score.

The only credit inquiries that negatively affect your credit score are those done by a company when you have inititiated a request for credit or service from that company.

You can get a credit report with a FICO score at myfico.com. Once you've ordered your report and score, you will have access to a score simulator that gives you an idea of how certain things would change your credit score. It's really quite handy and I think it only costs about $12.

 

[Vic]

Originally posted by: Shanti
You can get a credit report with a FICO score at myfico.com. Once you've ordered your report and score, you will have access to a score simulator that gives you an idea of how certain things would change your credit score. It's really quite handy and I think it only costs about $12.

Another vote for myfico.com. Great website. :thumbsup:

Also, I've mentioned this a thousand times before here, inquiries no longer have much effect on a person's credit score. Those rules were changed 5 whole years ago, and you can find details regarding those changes at the website above.

 

[DT4K]

Originally posted by: Vic

Originally posted by: Shanti
You can get a credit report with a FICO score at myfico.com. Once you've ordered your report and score, you will have access to a score simulator that gives you an idea of how certain things would change your credit score. It's really quite handy and I think it only costs about $12.

Another vote for myfico.com. Great website. :thumbsup:

Also, I've mentioned this a thousand times before here, inquiries no longer have much effect on a person's credit score. Those rules were changed 5 whole years ago, and you can find details regarding those changes at the website above.

I have run credit reports at myFico that actually listed "too many credit inquiries" as one of the negative factors in the summary. I'm not sure how much of an effect it has on the score though. To be clear though, that is referring to credit inquiries resulting from me applying for auto loans and credit cards.

PS Vic, you should check that other thread if you haven't yet.