I have a credit card question/problem

[nicholas]

So about a year and a half ago I purchased some clothes at Old Navy using my Old Navy credit card. A few weeks afterward, I moved and changed address. And even though I had my mail forwarded, I never received a bill or statement from them in the mail. And as time went on, I just forgot that I hadn't received it yet.

Then two days, I got a notice from a collection agency wanting me to pay for the deliquent charges. And that's fine; I've already made out the check and have it ready to mail.

But my question is, do I have bad credit now? If so, will it be fixed as soon as they receive this payment? Is there a way for me to check my credit report online somewhere? I'd just hate to get a bad credit rating due to this.

 

[Slipknot]

Collection Agency = to an extent bad credit. How much was it for? The amount you owe will determine how bad. Last year, I owed $400 in credit card purchases. I let it sit as I didn't have the money at the time (was laid off after using credit card) and it climbed to over $500. I can't get a credit card for a year or two because of my credit. It won't be "fixed" for a while.

 

[barnum42]

All I can suggest is that you ask the collection agency. As you are paying it off immediately I would hope that it's not going to be a problem and they will look upon it as an admin error that your details were not updated.

 

[nicholas]

Collection Agency = to an extent bad credit. How much was it for? The amount you owe will determine how bad. Last year, I owed $400 in credit card purchases. I let it sit as I didn't have the money at the time (was laid off after using credit card) and it climbed to over $500. I can't get a credit card for a year or two because of my credit. It won't be "fixed" for a while.

It was only for 50 dollars, some of which I assume is the collection agency's fee. If I remember correctly, it was two shirts I bought. So, not a substantial amount.

 

[darthdarrel]

Ugh Credit card debt!
Word to the wise DO NOT get a Discover card!

 

[mkt]

pay it immediately and explain your situation.... that should get you in the clear.

Otherwise, take a quickie loan out afterwards, and have it paid off in 30 days. That should bump your credit score up to its previous level

 

[Computer Magic]

pay it immediately and explain your situation.... that should get you in the clear.

MKT has the right idea. I would contact the Collection Agency and explain the situation. They may be willing to help you and keep this from going on you credit report. You may have to right a letter to them. Bad Debt will stay on the report for 7 years. Starting Dec 2004 everyone will be allow one free credit card report. Here is some more information from a website on how Check Your Credit Report

Check your credit report once a year. Creditors determine whether to give you credit or loan you money based upon information in your credit report. The report will show your credit cards, loans, and your payment history. So, it is important to make sure the information in the report is accurate and up-to-date, especially if you are planning a major purchase — such as a car or house.

How do I get a copy of my credit report?
Credit bureaus are listed in the yellow pages, but you may contact the three major consumer reporting agencies through their toll-free numbers or web sites.

Trans Union
PO Box 390
Springfield, PA
19064-0390
(800)916-8800
http://www.tuc.com

Equifax
PO Box 740241
Atlanta, GA
30374-0241
(800)685-1111
http://www.equifax.com

Experian
PO Box 949
Allen, TX
75013
(888)397-3742
http://www.experian.com

Depending on your state, there may be a charge of up to $8.50. If you have been denied credit, insurance, or employment because of your credit rating within the past 60 days, you can get a report at no charge.

How do I correct a mistake?
The credit bureau will send you a form to fill out to correct any errors, or you can write them a letter. If needed, send copies of documentation but do not send the original documents.

Clearly identify the item(s) in dispute, and request a reinvestigation. If the investigation shows the information to be in error, it must be removed and you will get a free copy of your accurate report. If the dispute is not resolved, you can have your version of the problem included in future copies of your report.

What if there is negative information?
You may have seen advertisements from companies that say they can remove negative information from a credit report. No one can legally remove accurate and timely negative information from your report. Negative information that is accurate can be reported for seven years. Bankruptcies may be reported for up to 10 years.

Remember, no one can "repair" your credit history for you. Only timely payment of bills can do that.

Additional Resources

Federal Trade Commission
This government agency has numerous publications about credit. You may wish to order a copy of "Building a Better Credit Record," which has information about credit reports. URL: www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm

Good Luck

 

[Debbie]

When running my credit a couple of months ago; my broker told me that $250.00 and under isn't really considered a death kneel as far as bad credit is concerned. Do what MKT said.

 

[Computer Magic]

Do what MKT said.

Except the 30 day loan recommendation :lol:




Hey your a Cub fan! So am I :lookaroun

Let send you some positive rep posts for a tough year. "Wait tell next Year"

 

[Atta83]

I agree with computer magic, do not take a loan, just something else you have to pay off. I am sure if you explain what happend, and i hope you keep records of all bills you get, will help you out .

 

[no2apprentice]

What if there is negative information?
You may have seen advertisements from companies that say they can remove negative information from a credit report. No one can legally remove accurate and timely negative information from your report. Negative information that is accurate can be reported for seven years. Bankruptcies may be reported for up to 10 years.

Remember, no one can "repair" your credit history for you. Only timely payment of bills can do that.

Some companies who promise to "repair" your credit are going to submit reports (in your name) that are requesting negative information be removed for false reasons. Like Computer Magic said, if it's accurate and timely, it can't be LEGALLY removed.

There have been several books written on cleaning up your credit reports, and a few of them describe how to "cheat" on your requests to have negative information removed. Supposedly, the Big Three reporting agencies are just like a lot of other companies...the people who do the daily paperwork are overworked and underpaid. Supposedly, most of the time they do not bother to investigate the requests to remove negative information. If the request is well written and follows the correct format, they usually approve the request without investigation. Risky, very risky.

 

[LouDisney]

I don't think $50 would go against you as bad, but check into that Nicholas to be on the safe side.