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Credit report question...

Discussion in 'Questions and Answers' started by Fishweiser, May 2, 2016.

  1. Fishweiser

    Fishweiser New Member

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    Hey folks!! Ok, two years ago or so, My mortgage was sold from BOA to Carrington. I was used to paying bi-weekly from BOA, so I wanted to do the same at Carrington. I saw my first months payment due and called and talked to a rep at Carrington to set up a bi-weekly program, and they told me I could have Carrington Draft it from my account, or I could set it up at BOA to autodraft it to Carrington on the 1st and 15th of each month. I elected to auto draft from BOA. Based on the first months bill which was similar to my monthly bills at BOA and divided it in two and had them sent on the 1st and 15th each month. Well apparently, the very next months bill went up $20 bucks and that was the correct monthly payment. I overlooked it assuming I had everything right in my auto draft. I managed to get by because I would always pay $50 to $100 bucks extra each and every month. So for 2 years, I never had any issues, so I figured everything was going well. The past 3 or 4 months though, there was a couple times I didn't add the extra money, and I wound up getting a couple late charges and it was reported to my credit and my score went from being excellent, to a 695 which is just fair. This hurts big time for me, because I was planning to refinance in 4-6 months. I know there is a lot of dumb mistakes on my part, but they were honest mistakes. I've already sent letters to Carringtons dispute department, but Im going to assume that wont help. Is there anything I can do to wipe it all away? is it worth paying one of those credit repair companies to get it fixed?
     
  2. USArmyFinFan

    USArmyFinFan Maximum Effort

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    Only thing I know of, is you have to talk to the mortgage company and see if they will remove the late payments as a courtesy because of your history of good payments. Tell them it was an over site you have now corrected. That is the only way I know of to have it removed.
     
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  3. Fishweiser

    Fishweiser New Member

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    Thanks! Yeah I had to send a handwritten letter to their dispute department. I'm not sure what they will do for me. I know I screwed up and could have avoided this if I followed everything the way I should have. My best hope is that maybe Carrington will be inclined to share some of the responsibility since the first bill was 19 dollars lower and me and one of their reps worked out a payment agreement based on that month. Im sure they have a recording, but since its been like 2 years ago, Im not sure if me and the rep discussed actual numbers or not. Knowing me though, I would have almost certainly asked "..So if I pay this much on the 1st and this month on the 16th, everything will be good?" before the conversation ended.
     
  4. Fishweiser

    Fishweiser New Member

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    If anything, my credit score is 695 now which is considered fair credit....Maybe that's ok enough, or could go up enough in 4-6 months to refinance and get the same deal as if I had a credit score close to 800...somehow I doubt it, but then again, I really don't know much more than good credit = good, bad credit = bad. LOL!
     
  5. Ohio Fanatic

    Ohio Fanatic Twuaddle or bust Club Member

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    well, you may end up with a lower interest rate for the refinance due to the lower credit score, so you may have to balance your decision on whether the higher adjusted APR is still worth refinancing. Having climbed from mediocre credit all the way up to score around 800 myself, there have been a couple of times where I determined that the refinance was not worth it.
     
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  6. Ohiophinphan

    Ohiophinphan Chaplain Staff Member Luxury Box

    You might do better if your refi is with Carrington. They would have a record of your twice monthly payments and should thus be more forgiving in your situation. The thing I would try to impress on everyone you talk to regarding this is your pattern or payment would seriously work in your favor.
     
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  7. Fishweiser

    Fishweiser New Member

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    Thanks all. Im kinda thinking about going to some of those credit repair services. I don't know anything about them but something just tells me not to trust dealing with those type places for some reason. I'm definitely not content to just accept it just yet, so I want to try everything I can first. Something tells me Ill end up throwing caution to the wind end and wind up trying one of those credit repair places before its said and done though. We will see. Thanks again, and Ill be open to any other advice that comes this way.
     
  8. Stitches

    Stitches ThePhin's Biggest Killjoy Luxury Box

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    Depending on how quickly you're planning to pay off your loan, it may not be worthwhile to refinance, regardless of your credit score. Refinancing is most beneficial IMO if you have a volatile (ie adjustable) interest rate, or if you aren't looking to pay off the loan significantly early. There's free calculators out there that can show you just how much you'll actually save over time by refinancing at given rates.

    Personally, I'm shooting for 10 years from origination (on a 30 yr), so I actually would "lose" money by refinancing between now and then at most (likely) interest rates.
     
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  9. Fishweiser

    Fishweiser New Member

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    Im planning on trying to pay it off early, right now I have a 5% interest rate. Ive paid enough extra to where if interest rates are in the mid 3% range in 6 months where I get a big bonus, Ill basically cut my monthly payment in half.....Not that Im going to pay just the monthly due, Ill take the difference of my new payment from the old and put it toward principle along with the extra Ive been putting in, Ill pay it off earlier than my current set up according to the calculators Ive used. Plus there have been small rumblings of the company I work for possibly being sold in the next 5 or so years, so I want to plan on possibly having a lower income, so if I cut my monthly mortgage obligation in half, it would definitely help if that situation arises. ...So at any rate, this whole credit thing is a big wrench in my plans!!
     
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  10. finattic79

    finattic79 Season Ticket Holder

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    Don't go to a credit repair agency, they charge you for services that you can do for free yourself. I've been slowing repairing my credit score and almost up to 700 all by doing the hardwork myself. Check out www.myfico.com, and go to the forums and read a bit on the rebuilding your credit section. What you did by sending a letter to there dispute department was the correct first step, and its called a goodwill letter. If you don't get back a positive response from them, the next thing you should do is get in touch with the CEO's office of Carrington. You are pretty much at the mercy of them making the change, but considering the circumstances, I believe you can get a favorable resolution. On the myfico forums you can find templates for the goodwill letter to compare to the one you sent, and you may also be able to find the CEO's email. Most of the time from what I've read with people sending goodwill letters to CEO's is that get very fast responses back.
     
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  11. Fishweiser

    Fishweiser New Member

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    Thats awesome finnatic!! I will follow this info as go along with it all. thank you!
     
  12. Fishweiser

    Fishweiser New Member

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    Well to update, while I haven't gotten a letter or response back from Carrington, I did notice that my credit score has gone from 695 to 807! Apparently my dispute letter was all I needed. I really thought I would have a much harder time and over a longer period than it has been. I even thought chances were that I would just have to live with the hit on my credit. Im just so glad it worked out like it did. Thank you all for taking the time to help out. Its much appreciated!
     
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  13. Ohiophinphan

    Ohiophinphan Chaplain Staff Member Luxury Box

    Great news!!!! An 807 will likely get you any break available. Don't be afraid to "use" that when negotiating for rates, terms, etc. Couple that with a payment history of extra payments and you should do well on a refi. Good luck
     
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  14. Fin D

    Fin D Sigh

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    Fantastic.

    If you ever go to buy a new car, secure a loan before you walk into a dealer. Shop around and get a great rate, then go buy the EXACT vehicle you want. on't let the dealership secure your financing.
     
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  15. Stitches

    Stitches ThePhin's Biggest Killjoy Luxury Box

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    And what if the dealer (manufacturer) is offering 0.0% interest? Or say .9% interest? Don't let the dealer secure your financing?


    Just because they are a dealer, it doesn't mean they won't have access to the best rate.
     
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  16. Fishweiser

    Fishweiser New Member

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    Ive got to remember this post..I was planning on a new vehicle in about a year and a half. Thanks Fin!!
     
  17. Fin D

    Fin D Sigh

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    Read the fine print.

    The dealers are almost always looking to **** you.
     
  18. jpep13

    jpep13 Coach Of The Year Club Member

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    In 2013 bought a new car from the Mazda dealership, had my own financing with a check in hand,
    Funny due to my excellent credit rating the dealership gave my a better percentage rate,

    That was the 2nd dealership, the 1st one I went to I didn't want them doing my credit check
    And all that hassle, in the end it worked out, 4 days later bought another Mazda as since they already did a credit
    Check and it was Presidents' Day special, no hassles or gimmicks, But when you get to the finance office to sign
    Read that **** carefully, make sure your not paying for crap u don't want.
     

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