Credit Report Question!

[Jak]

I've turned my eyes to the BG community to help me since googling didn't help me!

This is mainly towards anyone with previous experience of delinquent payments that have gone to debt collectors.


Backstory: I received some CDs from BMG music back in 2002 and BMG turned it over to a debt collector Dec 1, 2008. I received absolutely no letters or phone calls b/c the address they had burned to the ground, lol.

So now I have this icky bad mark on my credit score and it dropped my score by almost 80 points from my last credit check. This is bad in that I now only have a score of 640/820 (compared to my previous 720~) and I'm afraid my upcoming conquest of buying a house may get blasted to hell for having a much lower score and a bad mark on my score.

My question: How long will this stay on my history? Everywhere I look says 'up to' seven years. This seems awfully long for a 220$ debt. (Yes, all this for 220$ on about 6 CDs from 7 years ago!)


And if this DOES stay on my credit report for seven years, will my score at least go up some when it shows it's been paid?

[Olo401]

Seven years is an average. I still have a credit card I cancelled when I was in college on my report as a closed account/chargeoff and that was over 15 years ago, and I'm trying to get a two-week old stupid one-day-late mark removed by my college loan people because of the holiday screwing up the mail.

Having a bad mark removed from your credit report is pretty easy. If the account is current and you've been on time every time for a year or more, or the account is closed, contact whoever gave you the bad mark and ask them to have it removed. You can also contact the credit reporting agency and have them ask on your behalf.

I'm assuming this is your first time buying a home? If so, you're pretty much a shoe-in to get a loan regardless of your credit score; and a single bad mark among a sea of good ones also counts for something more than the actual score. Banks or lending agencies (HUD, FHA) tend to focus more on your job stability and monthly income the first time through. That said, a lower credit score will get you a higher interest rate and make your ability to pay on a monthly basis go down.

The irony is getting approved for a home mortgage usually gives your credit report an automatic 100 points. The down payment you give also contributes a few points as well since it establishes equity immediately.

[Pharaun]

Yes it will stay on your credit report for 7 years, but the impact it will have on your score will decrease over time. Also paying the bill will help quite a bit, unpaid collections hurt a lot more than paid ones.

[Absolutely Virtue]

Anyone else interested in what the 7 CDs were?

[Norellicus]

I'm mostly confused how a handful of CDs even made it to a collection agency, they weren't paid for before given to the consumer? >_>

[Olo401]

BMG sucks balls like that.

[Jak]

You'd laugh if I told you what they were.

And it was a "special" deal iirc where you bought 5 CDs for the price of one and later on were obligated to buy like 2 or 3 more at full retail price which I obviously didn't do.

So yah, note to you kiddies who did it 5-10 years ago.. THEY'RE STILL WATCHING YOU!!!


sidenote: have a laugh.. two of the CDs was Enya and Moby. BE KIND.

[Tyche]

I had a really weird situation when I bought my house. When the bank pulled my credit report, it showed an outstanding credit card from Zales. That's where I bought my wife's engagement ring. I paid the credit card off probably 2 years before before I bought my house. I called the bank to get my bank records pulled to show that I had paid it off, but the bank was charging $20/hr + a fee per month for old statements since I didn't bank with them anymore. I had to have around 24 statements. They had also said it would take up to two weeks to process. I was closing on the house the next day. Long story short, because of the time and costs to prove that I paid it off, I ended up paying it again so I could close on my house at a cheaper rate. It sucked terribly. I thought about persuing it further after I closed to get my money back, but it would have cost me damn near as much to get the statements as the price I had to pay to pay for it again.

[Ryany]

.....(Yes, all this for 220$ on about 6 CDs from 7 years ago!)....

That CD Company sounds like a payday loan company. That's $36.67 per CD!

[Despain]

That CD Company sounds like a payday loan company. That's $36.67 per CD!

6 CDs for that fucking much? Better have been some good CDs Jak...

[Jak]

If you like Enya and Moby it was worth it. ( ._. )



No clue what the other few were. My best guess is something between new age and trance/techno since that's what I was into in 2003~ish.

[Senoska]

Yes, all this for 220$ on about 6 CDs from 7 years ago!

Solved.

[kyod]

Yes it will stay on your credit report for 7 years, but the impact it will have on your score will decrease over time. Also paying the bill will help quite a bit, unpaid collections hurt a lot more than paid ones.

This, pay it off asap. Since it's a legit unpaid bill, you're kinda SOL for it.

[Serif]

Tyche why you using credit!

Fuck ever having a credit score.