Calling all credit Gurus

[YoungBuck]

I had a few questions about how negative accounts on your credit report.
Heres some background info: When I was about 18, I had about 4 credit card in good standing with about 7k which i was paying on time for about a year. Then, I stop paying and my credit score was sabotage. The debt accumulated to about 12k-15k dollars depending on the credit bureau.

My credit score for experian is 589, transunion 616, 530 with equifax.

Now,

1. What happens to the negative accounts on my credit report that is over 7 years old?

I was informed that they are remove from your credit report after 7 years.
2. is this 7 years once it becomes deliquent?

3. Should i negotiate now with creditors or just wait it out?

I currently have 2 CC adn trying to rebuild my credit.
one card is secure for 1800 which has been open for about 1.5 years and a unsecured card for $750 which is open for about 9 months.
have a car loan @2.9 interest for 3 years. Currently paid off 1 year already and have about 11k left on the loan.

What else can i do to increase my credit score in the next 2 years?

I plan to save up for a downpayment for a house. By the time i pay off my car loan, I hope the negative information is remove from myu credit score which would improve my score. By then, I would have a significant downpayment for a house in this southern cali market.

Thank you in advance

[Seeker]

I had a few questions about how negative accounts on your credit report.
Heres some background info: When I was about 18, I had about 4 credit card in good standing with about 7k which i was paying on time for about a year. Then, I stop paying and my credit score was sabotage. The debt accumulated to about 12k-15k dollars depending on the credit bureau.

My credit score for experian is 589, transunion 616, 530 with equifax.

Now,

1. What happens to the negative accounts on my credit report that is over 7 years old?

I was informed that they are remove from your credit report after 7 years.
2. is this 7 years once it becomes deliquent?

3. Should i negotiate now with creditors or just wait it out?

I currently have 2 CC adn trying to rebuild my credit.
one card is secure for 1800 which has been open for about 1.5 years and a unsecured card for $750 which is open for about 9 months.
have a car loan @2.9 interest for 3 years. Currently paid off 1 year already and have about 11k left on the loan.

What else can i do to increase my credit score in the next 2 years?

I plan to save up for a downpayment for a house. By the time i pay off my car loan, I hope the negative information is remove from myu credit score which would improve my score. By then, I would have a significant downpayment for a house in this southern cali market.

Thank you in advance

Responding to this though I am not a "credit guru" by any means.

I offer you this article which has some excellent advice, though geared toward students.

Tips for Getting Out of Debt and Repairing Your Credit

The advice that I would seriously follow is to contact one of the three major credit burueas and obtain a copy of your credit report -- they are required by Federal Law to provide a "free" report every year upon request. You can also get these free through the web -- https://www.annualcreditreport.com/cra/index.jsp

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The Statute of Limitations defines each states laws (and they differ by state; so advice may vary depending on your state laws) with regard to Collection Agency Fair Debt Collection policies.

Depending on your state's policy, contacting a creditor may very well "reset" the debt you owe them and thus reinitialize your states SoL.

Debt Collection Statute of Limitations – What’s the Statute of Limitations On Debt

Read the above carefully. If you are certain that the statute of limitations has expired since last contact with each individual creditor (mail response, phone converstations, etc. ANY type of "last" contact all count), then you should probably pursue through the three major credit reporting agencies --- ie. NOT through the creditors since that conversation/letter etc. may reset their ability to collect from you.

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Credit Report FAQ - How long does negative information stay on my credit report

Statute of Limitations on Credit Report Information!

You will probably have to write a letter to all three of the major credit reporting companys (Equifax, etc.) explaining that The Fair Credit Reporting Act (FCRA) provides for a 7 year have passed since your last contact with each of these CC companies and petition them each to have these debts removed from your report.

Know and understand that your debt will always be with the credit card companies, and they will never grant you credit again. If you even accidentally apply for another credit card through those same companies, you may still "reset" that old debt and provide them with the opportunity to sue you based on that last contact.

Debt is never truely erased except by: death, payment or legally (through a bankruptcy -- and even bankruptcies will usually need to be petitioned off a credit report after 10 years).

Good luck

[Seeker]

You will probably have to write a letter to all three of the major credit reporting companys (Equifax, etc.) explaining that The Fair Credit Reporting Act (FCRA) provides for a 7 year have passed since your last contact with each of these CC companies and petition them each to have these debts removed from your report.

Let me clarify this a little bit.

On the Credit Reports from those three companies, you get will have a "Last Activity" date listed for each debt.... if that date is 7 years or more ago, then the credit reporting agency is obligated by FCRA to remove that blemish upon written request.
If that date is not at least 7 years ago, then they may not have to remove it. So.... check the dates of last activity on the credit card in question before petitioning line-by-line for removal from each of the credit reporting agencies.

[YoungBuck]

Heres an update on my score
equiax 632, transunion 628, experian 548

I have an Experian credit report in front of me..

in response to "last activity date"

Theres 4 different date and I dont knwo which one is the last activity date
Date opened Mar 2001
Reported since april 2001
Date of status june 2005
Last reported june 2005

Which one would be the "last activity" date
This account was a charge off as of aug 2002 to may 2005

Thank you for all the help
Its a battle trying to clean up my credit..

If i dispute an account, will that trigger them to start a new "last activity date"?

[YoungBuck]

Another question..
I pulled up a credit report today and had a question...
on the credit report, there was 2 debt that was charged off by the credit card company and were then sold to collection agency.

The collection agency open the case on 5/2007 and 4/2007.
Now my question is will the collection stay on my report for 7 years or when the charge off comes off, the collection must come off with it?

Thank you for all the support so far

[YoungBuck]

ok I think I answer one of my questions by researching on the net.
From my understanding- The 7.5 years does not restart eventhough the debt was sold to a creditor.

[Seeker]

ok I think I answer one of my questions by researching on the net.
From my understanding- The 7.5 years does not restart eventhough the debt was sold to a creditor.

If said Collection Agency finds you, they can make your life a pain.

The question that you need to find the answer to is WHEN WAS THE LAST ACTIVITY on each of these accounts. If you made any payment, what was that date?

The collection agency would not have purchased your debt if they did not intend to find you. They can get records of earnings through your employer and contact you. It's not that easy to hide anymore. They can sue you and legally pursue having a portion of your wages garnished.

You cannot "dispute" the debt if it was not a mistake. Your debt is something you incurred. You can only dispute their right to demand collection after 7.5 years have passed (through the FCRA) without any activity.

You need to understand that your "history" will always be on the report. My credit reports show closed accounts, but the history still appears.... we're talking +20 years of data.

How does all of this affect your ability to get a loan for a house later on? I have no idea if they can look at the history beyond 7.5 years ago... that's your real question.

My understanding is that a "resolved" for a debt incurred even 20 years ago, would look better than a debt never closed.

If you want a clean credit report, pay off your debts...