State taxes can go into collections? I just got the letter and I'm fukking pissed yo. I only owe them $870... Can I pay them before this gets on my credit or am I too late since they sent it to collections? They never called or sent me a letter until now.
The credit Repair Thread
- Thread starter LeVraiPapi
- Start date
State taxes can go into collections? I just got the letter and I'm fukking pissed yo. I only owe them $870... Can I pay them before this gets on my credit or am I too late since they sent it to collections? They never called or sent me a letter until now.I'm pissed that my Equifax went down nearly twenty points.I have no idea how since my transunion stayed the same. I did see six inquiries compared to four but I didn't think it was that drastic to have that change. Plus a 1% higher utilization. Funny thing is some of the inquiries weren't matching on both reports. I even had to double check one since it was from citi bank which was unfamiliar but it was actually a cli from my best buy card. I'd rather have a lower utilization rate anyways. I'm just hoping this corrects itself in the near future. I'm guessing some inquiries are worth more than others.
I did notice my average age of accounts is about 4 years 3 months and the next tier is five years, so hopefully if everything stays consistent, I'll reach it when the year ends. Just gotta lower my balances and hope this small setback goes back to normal. Let me go pay off some debt and get my score back up.
1. Where are you getting your scores from? If it's on CreditKarma (FAKO) or similar, you've gotta take the score change with a grain of salt as they score different than actual FICO08 scores.
2. All 3 Credit Bureaus (TU, EXP, and EQ) score items differently. With 1 inquiry you might lose 1-2 pts on EXP and 6 pts on EQ, it's just the way the cookie crumbles and nothing you can do about it (except to not apply for anything)
3. The reason why the # of inquires aren't matching up between the 3 credit bureaus is because when you apply for a credit (credit card, loan, etc), most companies pull different credit reports. Capital One is the only one I'm aware of that will pull all 3 of your credit reports so you'll see "Cap One" on the same date under all of them. As for the rest, many will pull a single credit report (e.g. Navy Federal, Pentagon Federal, and DCU pull Equifax mainly), whereas AMEX and CITI will likely pull Experian. HOWEVER, sometimes if your credit report isn't satisfactory to that company, instead of pulling from 1 credit bureau they may pull from two. So if a company typically pulls Experian and your score isn't as good, they might pull TransUnion as well. So now you'll see XXXX inquiry on your Experian and TransUnion but NOT on Equifax. This is why you see the inconsistencies in your inquires on each reports
4. You say your utilization went up 1%, depending on what your overall and individual utilization was, it might be enough to put you in a category that increases your rate. Just like you said about the average age of account being 5yr for an increase in score, utilization has ranges as well. I don't know them exactly but many people believe a utilization of < 10% and then between 10% and 30%, and 30% to 50%, and so on. So let's say you had been at 10% utilization before (on an individual card or overall[overall is more important btw]), and you went up to 11%, then you might notice a change in score.
5. And in case you don't already know, utilization has no memory. What that means is that unless you're applying for something (credit card, mortgage loan, etc), your utilization isn't that important. Of course you don't want your balances to skyrocket due to irresponsible behaviors, but at the same time it's not something you have to worry about with respect to scores (if you're one to monitor your scores on a weekly/monthly basis). So for instance if you're at 24% utilization and you aren't applying for a mortgage until 1.5yrs from now, then you really don't have to worry about the negative effect of utilization on your scores until 1.4 years from now. A couple months before you're going to apply for that mortgage, you'd pay down your balances and you'd see an instant increase in score after they reported. And just as they went up, they'll go back down if the utilization changes the next month. So basically, keep your utilization in check, but for scoring purposes, it won't really matter until you are applying for something. (disclaimer: don't let it get out of control as lenders may act adversely on your current credit accounts)
6. Good luck brotha
LeVraiPapi
Redemption is Coming
Powerful advice. I'm buying home in 3 months and I got all my cards down. Credit jumped up 70 points. Already getting all kind of offers as well
@drjosie
1. Yeah I'm using credit karma. Will do.
2. Yeah I been having too many lately especially for cli and helping my brother get a car.
3. That's good to know.
4. I should be at the lowest range which is under 10%. Only difference is experian says 9 and transunion 8. I amount that to one of the card balances being higher on one report than the other. Maybe they report at different times to each bureaus. So I shouldn't expect much of a change of I go down a few percentage points. Simulators only have my score improving by like two points if I pay off my balances.
5. I see what you mean. I try to keep it low just to lower my debt to income ratio and pay as minimal interest as possible. I don't have a high income so I gotta make sure I don't go too crazy. Gotta be smart with your finances when you don't have much of it.
6. Thanks breh. Gonna try and not make any inquiries for now. Gonna wait until I'm ready to buy a home and then go from there but that likely won't be for another year. I guess I just gotta be patient with my score. Wait until my average age goes up and cut off the inquiries, cuz there's really no other way to have my score shoot up a high amount at this point. I've heard it's harder to go up when you're high, than when you're low.
1. Yeah I'm using credit karma. Will do.
2. Yeah I been having too many lately especially for cli and helping my brother get a car.
3. That's good to know.
4. I should be at the lowest range which is under 10%. Only difference is experian says 9 and transunion 8. I amount that to one of the card balances being higher on one report than the other. Maybe they report at different times to each bureaus. So I shouldn't expect much of a change of I go down a few percentage points. Simulators only have my score improving by like two points if I pay off my balances.
5. I see what you mean. I try to keep it low just to lower my debt to income ratio and pay as minimal interest as possible. I don't have a high income so I gotta make sure I don't go too crazy. Gotta be smart with your finances when you don't have much of it.
6. Thanks breh. Gonna try and not make any inquiries for now. Gonna wait until I'm ready to buy a home and then go from there but that likely won't be for another year. I guess I just gotta be patient with my score. Wait until my average age goes up and cut off the inquiries, cuz there's really no other way to have my score shoot up a high amount at this point. I've heard it's harder to go up when you're high, than when you're low.
LeVraiPapi
Redemption is Coming
OK I got a little situation
I got a credit card and I owe 7k on it
The interest is like 24%
I pay like 250 a month which is the minimal but it's like all interest because the number don't really go down
Now I signed up for and hope to get that chase card with no interest rate for 18 months. It also has no transfer fee
Is there a difference if I transfer the money or I use the chase card to just pay off in full what I owe to the other card
I got a credit card and I owe 7k on it
The interest is like 24%
I pay like 250 a month which is the minimal but it's like all interest because the number don't really go down
Now I signed up for and hope to get that chase card with no interest rate for 18 months. It also has no transfer fee
Is there a difference if I transfer the money or I use the chase card to just pay off in full what I owe to the other card
I agree with @LeVraiPapi in that CK scores are not representative of your actual scores. The only thing CK is good for is to monitor changes in your credit report (new inquiries, new accounts, increased balances, etc). So don't get too caught up on their scores, because for many they can be +/- up 50-100pts different than your actual credit scores that credit companies actually use. And good luck with the home purchase brotha
@JAY? What is the APR (interest %) on your Chase card? We'll also need to know the credit limit on your Chase card. These are important because the APR on your new card (along with 0% balance transfer fee) might save you a lot of money. However, if your starting credit limit on your Chase card is below or close to $7k and you were to transfer the balance from your original credit card, then you might be close to 100% utilization on the new Chase card. While the transfer would save you money (less interest per month), it would negatively affect your credit if you were thinking of applying for something soon.
If you aren't planning on applying for another credit card or loan/mortgage, and your the new credit limit on your Chase card is greater than $7k with an APR < 24%, then it might be a good idea to go for it.
Let us know what your new APR% and Credit Limit is with Chase, then we'll be able to give you more tailored advice
@JAY? What is the APR (interest %) on your Chase card? We'll also need to know the credit limit on your Chase card. These are important because the APR on your new card (along with 0% balance transfer fee) might save you a lot of money. However, if your starting credit limit on your Chase card is below or close to $7k and you were to transfer the balance from your original credit card, then you might be close to 100% utilization on the new Chase card. While the transfer would save you money (less interest per month), it would negatively affect your credit if you were thinking of applying for something soon.
If you aren't planning on applying for another credit card or loan/mortgage, and your the new credit limit on your Chase card is greater than $7k with an APR < 24%, then it might be a good idea to go for it.
Let us know what your new APR% and Credit Limit is with Chase, then we'll be able to give you more tailored advice
I owe 7k on my td with 24% apr
I applied for Chase with 0% for the first 18 months
I planned on transferring or paying the td with the chase.
LeVraiPapi
Redemption is Coming
HOW MUCH YOU APPROVED FOR ON THE CHASE ?
PS if you guys want, I can refer to a site where you pay 1 dollar for a full credit report and Fico 8 score. U gotta delete your info withn 48 hours though.
Very accurate site. You have all 3 reports and Fico for 1 dollar. A steal to say the least
I actually don't know yet. I just applied for it a few days ago. I was told it could take a week.
What I wanted to know is
If I do get the card is it better to transfer what I owe or just pay it off with the new card
LeVraiPapi
Redemption is Coming
Same thing. WHether you transfer or rob Paul to pay Pete, your credit gets the same hit. However in the long run, it looks better because You can pay the debt off quicker and you will have 2 cards reporting with high limit. 1 with high balance and the other with a low or 0 balance. hopefully, you get a good limit to pull it off
Link us and walk us thru breh.
Another question for you and @drjosie . How much do installment loans balances affect your credit? My total debt is like let's say 20k. About 10% is my car note, 5% is my credit cards, the other 85% is my brothers car. I know utilization is only looked at on credit cards but does what you owe on other loans matter? Or as long as the account is current, it can't hurt you? He said he was gonna refinance after a year. By that time, I should have my car paid off and I don't plan on doing another car note again ever if possible. Should I try and stay on his car note to have that mix of credit or just stick with credit cards for the time being? I do want to get my own place eventually but I don't want that loan affecting my debt to income ratio, but also lowering my score if I don't have that credit mix.
Should you always be utilizing 20-30% of your card? Will a 0 balance hurt you?
LeVraiPapi
Redemption is Coming
No. A 0 balance doesn't hurt you. As long as you're making transactions on the card, you're more than good.