Problem with Credit Score and report

[Mayfriday0529]

I ordered a Fico and Credit report from myfico.com expecting good news about my score. Well I didn?t, I now have a 655 score. It dropped down.
The report stated that I have negative feedback. The negative feedback states on one of my school loan accounts ?Included in Bankruptcy?

I have no bankruptcy, but my mom did do bankruptcy last year. She also was my co-signer on this loan. Also this loan is paid, I finished it in January 2006, it has never had any lateness, always paid on time. It?s also not the only loan she co-signed for me.

Is what they did legal or normal? What should I do?
Rossman I need help.

 

[woowoo]

Dispute it?

 

[Queasy]

That's the problem with co-signing. Your co-signers troubles become yours.

 

[wedi42]

send a letter to the loan company explaining the problem, they can fix it.

 

[Mayfriday0529]

Originally posted by: Queasy
That's the problem with co-signing. Your co-signers troubles become yours.

If the loan is for them, the loan was for me, I?m responsible for paying it. If I don't pay it my co-signer gets screwed. But that?s not the case; I paid the loan, my mom, who helped me get the loan file bankruptcy.

 

[Queasy]

Originally posted by: Jnetty99

Originally posted by: Queasy
That's the problem with co-signing. Your co-signers troubles become yours.

If the loan is for them, the loan was for me, I?m responsible for paying it. If I don't pay it my co-signer gets screwed. But that?s not the case; I paid the loan, my mom, who helped me get the loan file bankruptcy.

The financial institution doesn't look at it that way though. By co-signing you and your mother are both responsible for the loan. When a major negative like a bankruptcy or a collection hits either of you it is going to affect the other too.

 

[EvilPaper]

Originally posted by: Jnetty99

Originally posted by: Queasy
That's the problem with co-signing. Your co-signers troubles become yours.

If the loan is for them, the loan was for me, I?m responsible for paying it. If I don't pay it my co-signer gets screwed. But that?s not the case; I paid the loan, my mom, who helped me get the loan file bankruptcy.

The bank does not care who pays it; Unfortunately, you were both on the loan and one of you filed bankruptcy, which would place the account in a bankruptcy status.

 

[Mayfriday0529]

Originally posted by: EvilPaper

Originally posted by: Jnetty99

Originally posted by: Queasy
That's the problem with co-signing. Your co-signers troubles become yours.

If the loan is for them, the loan was for me, I?m responsible for paying it. If I don't pay it my co-signer gets screwed. But that?s not the case; I paid the loan, my mom, who helped me get the loan file bankruptcy.

The bank does not care who pays it; Unfortunately, you were both on the loan and one of you filed bankruptcy, which would place the account in a bankruptcy status.

None of my other loans have this problem. Only one has it.

 

[Queasy]

Originally posted by: Jnetty99

Originally posted by: EvilPaper

Originally posted by: Jnetty99

Originally posted by: Queasy
That's the problem with co-signing. Your co-signers troubles become yours.

If the loan is for them, the loan was for me, I?m responsible for paying it. If I don't pay it my co-signer gets screwed. But that?s not the case; I paid the loan, my mom, who helped me get the loan file bankruptcy.

The bank does not care who pays it; Unfortunately, you were both on the loan and one of you filed bankruptcy, which would place the account in a bankruptcy status.

None of my other loans have this problem. Only one has it.

Are all of your other loans co-signed by your mother?

 

[Drakkon]

the ammount these loans are for and for how long they are active matter a lot too. If she cosigned on say a 10K 5 year loan and you were only in year 1-2 when she filed for bankruptcy then the bank still looks at her as being a viable person to pay off this loan. Since she filed for bankruptcy it goes down as a neg for both of you.

 

[Mayfriday0529]

Originally posted by: Queasy

Originally posted by: Jnetty99

Originally posted by: EvilPaper

Originally posted by: Jnetty99

Originally posted by: Queasy
That's the problem with co-signing. Your co-signers troubles become yours.

If the loan is for them, the loan was for me, I?m responsible for paying it. If I don't pay it my co-signer gets screwed. But that?s not the case; I paid the loan, my mom, who helped me get the loan file bankruptcy.

The bank does not care who pays it; Unfortunately, you were both on the loan and one of you filed bankruptcy, which would place the account in a bankruptcy status.

None of my other loans have this problem. Only one has it.

Are all of your other loans co-signed by your mother?

Two more were co-signed by my mom and they have no problems.
Also before my mom did the bankruptcy, i asked her lawyer if it would affect me on those loans. He said no.

 

[amdforever2]

Did she file a chapter 13 or a chapter 7 bankruptcy?

 

[Mayfriday0529]

Originally posted by: amdforever2
Did she file a chapter 13 or a chapter 7 bankruptcy?

I believe it was chapter 13, but online it shows chapter 7 on my credit report.

 

[spikespiegal]

If you're trying to buy a house, a good mortgage agent will take your side and hammer your 'explanation' to the loan underwriter, and it likely won't matter provided you have paper work to back up your claims.

Car loan - little tougher.

Credit card - lot tougher since they usually could care less about a FICO numbers and look at flags in credit histories like a chapter 13 or 7.

I'd certainly contest the chapter 7 vs 11, and given the loan was paid in time I'd raise a stink to the particular agency that flagged it given there's three of them.

 

[Mayfriday0529]

Originally posted by: spikespiegal
If you're trying to buy a house, a good mortgage agent will take your side and hammer your 'explanation' to the loan underwriter, and it likely won't matter provided you have paper work to back up your claims.

Car loan - little tougher.

Credit card - lot tougher since they usually could care less about a FICO numbers and look at flags in credit histories like a chapter 13 or 7.

I'd certainly contest the chapter 7 vs 11, and given the loan was paid in time I'd raise a stink to the particular agency that flagged it given there's three of them.

I'm going to make my mom call the lawyer that did it. If he said no, he is should be responsible not knowing the law correctly.

I'm going to call the loan company also, this is BS. I need to apply for new school loans soon and i dont need these problems.

 

[QED]

When your mom filed for Bankruptcy, did she include the student loan in the bankruptcy?

If she did, then you are screwed-- but keep in mind, 655 is not that bad and in a year or two the total effect of this blemish will be minimal.

If she did not, then I would contest the notation of the account having gone into bankruptcy.

 

[Mayfriday0529]

Originally posted by: MathMan
When your mom filed for Bankruptcy, did she include the student loan in the bankruptcy?

If she did, then you are screwed-- but keep in mind, 655 is not that bad and in a year or two the total effect of this blemish will be minimal.

If she did not, then I would contest the notation of the account having gone into bankruptcy.

I don't know, going to have to talk to her laywer and her. This was done last year, its been almost a year now. Why show up now.

 

[Mayfriday0529]

Originally posted by: Jnetty99

Originally posted by: MathMan
When your mom filed for Bankruptcy, did she include the student loan in the bankruptcy?

If she did, then you are screwed-- but keep in mind, 655 is not that bad and in a year or two the total effect of this blemish will be minimal.

If she did not, then I would contest the notation of the account having gone into bankruptcy.

I don't know, going to have to talk to her laywer and her. This was done last year, its been almost a year now. Why show up now.

Also i can't wait a year or two. I had plans for a new car and my school loans. frak!

 

[QED]

If you are getting federally-funded financial aid, then you shouldn't have to worry about your student loans-- regardless of your credit score.

Getting a car loan with a 655 is not all that difficult-- in fact, while you likely won't qualify for any of the premium financing offers you should still be able to get a pretty good rate and term.

 

[Mayfriday0529]

Originally posted by: MathMan
If you are getting federally-funded financial aid, then you shouldn't have to worry about your student loans-- regardless of your credit score.

Getting a car loan with a 655 is not all that difficult-- in fact, while you likely won't qualify for any of the premium financing offers you should still be able to get a pretty good rate and term.

Also get personal loans, Federal loans cover only half of my student tuition.

 

[Mayfriday0529]

Update:
Talk to a nice lady from the loan company, She said send a letter stating the problem and their finance department will look into it.
Also on the bankruptcy forum website a user gave me the following input.

All you have to do is contact the creditor by certified letter, that you dispute the account the error is showing on. You can state that the account has been paid in full as agreed, even though your mom included it in her bankruptcy filing. The account should now say account paid in full as agreed. -0- balance.
In the comments section of the credit report you can state that co-signer filed bankrtupcy on this debt but debt paid in full as agreed.
If they fail to correct the account then dispute the report at the credit bureau and they are forced into either correcting it or removing it from your credit report.