Hello, I am new on here. My partner has been denied credit. As a result she requested her credit report from experian to see why.
There are a number of issues on the report I would like to clear up.
On page 4, it lists Installments, current accounts-balance (with an amount) what does this mean?
Again on page 4, Under collections-, current accounts (another amount), what does this mean
Page 5, Bankruptcy and court judgments
Fed lien tax, there is an amount, what is this? paid or unpaid?
Are Potentially Negative Closed, unpaid debts? Do these debts fall off after 7 years, then should experian be contacted to remove the debt?
Am I correct in saying if a payment is made 6 years after the debt was sold to a collector, it reopens the debt for another 7 years.
If I write to the collection agencies requesting a validation letter, will this reopen the debt for another 7 years?
Further down the report there are current closed listings, are these debts/credit that has been paid and settled?
Once I pay off the potentially negative closed debts, do I need to contact experian to delete it from the report, or if it has to stay on there tell them to show it as a paid debt.
My plan is:
1. Contact the collection agencies via validation letter, see how much exactly is outstanding, see if I can bargain for a lower payment to pay for once and for all. While making sure the debt is actually correct.
2. Do not pay debts close to the 7 year expiry date.
Many thanks in advance.
Hi Cobra,
Fed lien tax, there is an amount, what is this? paid or unpaid?
Your partner has an overdue State Tax, that has not been paid. A lien has been imposed on her property, which means that the State can have a legal claim on her property, if the tax amount is not paid.
Potentially Negative Closed, unpaid debts
This means that the account has been closed by your creditor, because you have not paid the debt. You will not be able to use that credit account for any further purchase. But this does not mean you do not owe the debt. It is a negative listing that will remain on your credit report for 7 years from the day you have become delinquent.
I would suggest, that you do not pay the debts which will soon complete the SOL period of 7 years. You can ask for a debt validation (DV) for the debts that are recent, and will affect the credit score for a long time. Asking for debt validation does not affect the SOL period of a debt account. You will find a sample of a DV letter in the Letters of Credit section. After the creditor or collection agency has validated the debt, you can request them to reduce the debt amount. You should settle for an amount that is 40-60% less than the actual debt amount.
Hi cobra,
I think you have an installment loan, that is deducted from your current account. The amount mentioned along with it is the outstanding amount that is still due. The next item on page 4 of your credit report, is a current account that has passed to a collection agency.
Is there any status mentioned beside the "bankruptcy and "court judgment" listing on the credit report? The next item you have mention is a tax lien.The Federal government has imposed a lien on your partner's property, as she has defaulted in paying a federal tax.
I would suggest that, though the credit accounts have been closed by your creditor, you should contact him and try to settle the debt. You can can negotiate with him to reduce the debt amount. Before you make any payment, you should come to a written agreement, that the "Potentially Negative Closed" accounts will be either deleted or listed as "paid accounts" on your credit report