I Really Don't Get This--About Negative Credit Reports
By pyewacket
@pyewacket (43903)
United States
July 27, 2009 9:59pm CST
Okay maybe there's someone out there who is savvy about the whole Credit Report thing. Sometime back I was able to get a free credit report from Equifax. One can get a free credit report via one website recommended by Suze Orman on her website, and one can get a free credit report from each of the three major Credit Report companies, that is Equifax, Experian and TransUnion but every four months. So one month one can get a free credit report from Equifax, four months later from Experian and four months after that from TransUnion. Okay so I decided to get my credit report from Experian (already had gotten one from Experian). It doesn't give my credit score (would have to pay for that)--but like many of us no doubt my credit score sucks.
It all had to do with credit cards. When my mother was alive I had no problem paying them off at the minimum amount and the max for each card wasn't much--I basically used them NOT for luxuries by any means but to pay bills, and have more money for food. Then when my mother died I was "stuck"--I just plain couldn't pay them not even at the minimum. The late fees kept rising, then the over-credit fees...now I was really in deep shat even though they had put me in "hardship" status they still slapped those fricking fees on my cards. By a minor (or maybe major) miracle there were some more funds due me via my mother...I opted to pay my credit cards in full and got rid of them (still have one credit card--different company and no problem of paying off)
Anyway...you would think the credit report would give one "brownie" points for having paid those credit cards in full...but nooooooooo--of course not. Because I was late in payments, that seems to be the thing they consider and now I have a negative credit report against me--and the thing is, that negative rating will haunt me for some years (five out of the seven where negative reports remain)
So this is it---why is it credit reports rate you negative for any account PAID IN FULL yet had a previous late status in payments? Anyone viewing my credit report would rate me negative and a "risk" also--is that fair????
I imagine a lot of you folks have negative credit reports as well if you were late in any kind of payments, whether credit cards, mortgages, loans, etc.---why do they have to punish us for late payment status if you DID eventually pay off the funds? Like I said...doesn't that count?
12 people like this
17 responses
@AmbiePam (120603)
• United States
28 Jul 09
I got my free credit report once, and on my credit report was a delinquent credit card balance - FOR ANOTHER MEMBER OF MY FAMILY! Apparently, some years ago one of my family members had a credit card that they couldn't make payments on. And it showed up on MY credit report. Of course I disputed the claim, and after the investigation it was taken off my credit report. But it made me mad. My name was never on the credit card, my relative made no mention of me on any papers applying for the credit card, but the stupid credit report people...
4 people like this
@pyewacket (43903)
• United States
28 Jul 09
I wonder if I can dispute my credit report? Still can't figure how your relative's credit card wound up on your report...weird--oh how NICE they didn't mention anything to you--NOT
4 people like this
@pyewacket (43903)
• United States
28 Jul 09
Yeah it does...I'll look into it tomorrow. thing is, when I got my first credit report some months ago, that's when I found out about my negative rating....I wrote to the credit card company (Capitol One)--and never heard back from them
2 people like this
@anotherxidentity (1434)
• United States
28 Jul 09
I think people need to realize that if you can't afford things in life don't opt out to use a credit card to pay bills - that is the worse thing you can do - and instead you need to get off the internet and get a second job. I never feel sorry for people that can't pay bills especially if they haven't gone to college and future their education to where they would be at the best place in life. And I also don't take excuses like money because I an considered an independent student, my father passed away and my mom is out of the picture, so after government loans and aid and scholarships that I worked hard to get after 4 years I'll have about $25,000 in loans - not bad at all. And I'll get a great job and can have that loan paid off and still make more money in my lifetime then someone who didn't go to college.
Point being made I believe it does need to stay on your credit report because even though you paid it off you still made the mistake and it wasn't like you missed one payment. Like you said you missed multiple payments. Normally a credit card company will allow you to mess up once a year on your card but if you do it time and time again I think businesses and credit firms need to realize that you haven't been faithful and you haven't been able to budget for crisis so they need to be leery about lending you money.
I can say that being 20 I have 2 credit cards with about $4400 in limit between the both of them. For me I use them in emergencies but I know to cut out spending for other things before using them. Right now I have about $1500 on my credit cards and I have never been late on a payment and I have ALWAYS paid twice the minimum amount which is why for being a student I only have a 13% and 15% interest rate which is great for introductory users. So its not that hard to get good credit you just need to be smart about your finances.
3 people like this
@pyewacket (43903)
• United States
28 Jul 09
As I pointed out the only reason I was using the credit cards was to mainly pay for bills but especially food...my then alive mother was on a fixed income and I was and still am on SSI benefits...the money between us just didn't stretch...we did need to eat...so we're not talking a luxury item here.
The one and only credit card I have now was unfortunately also used to pay bills...I got it three years ago and never used it until last year...why? My electric bill soared to ridiculousness...from last May to October my electric bills were estimated...not the actual cost....my normally $50 a month electric bill soared up to nearly a $100.00 each month...don't ask the red tape I had to go through to sort things out, and when it was finally settled, they credited ME with three months, so didn't have to pay an electric bill for three months. BUT--in the meantime the only way I could pay the bills was getting cash advances to pay them off either that or sit in the dark for a really long time
To quote you "I think businesses and credit firms need to realize that you haven't been faithful and you haven't been able to budget for crisis so they need to be leery about lending you money."
The thing is I had those cards for a good number of years and was faithful in paying them...as for budgeting for a crises...that's the million dollar question...how when one is on SSI benefits? By the time I pay all my vital living expenses I have maybe $30 leftover for the whole month...I do supplement my income by writing articles and get paid for that...but it's a very tight squeeze there
2 people like this
@pyewacket (43903)
• United States
29 Jul 09
Thanks OreoCookie
anotherxidentity I just had to add here to you...you indicate that you'll have $25,000 in loans after college and that you will get a great job to pay them back...are you so sure you'll get that great job once you graduate? The statistics are that the newer graduating classes are facing the worse job possibilities ever despite their college degrees--many are winding up getting ANY kind of job...even flipping burgers as MacDonalds instead of that high paying executive job they were counting on
anotherxidentity I just had to add here to you...you indicate that you'll have $25,000 in loans after college and that you will get a great job to pay them back...are you so sure you'll get that great job once you graduate? The statistics are that the newer graduating classes are facing the worse job possibilities ever despite their college degrees--many are winding up getting ANY kind of job...even flipping burgers as MacDonalds instead of that high paying executive job they were counting on@anotherxidentity (1434)
• United States
29 Jul 09
Are you always going to want the news though - yeah I'm going into a Journalism career and I've already landed myself an internship with 3 promising job offers once I get out of college. I've learned to network and like anyone says the news is always going to be there and college students are the best to report on it because they are the ones that know how to market with the internet - the biggest growing market at this time - better then someone who isn't into Facebook, Twitter, Myspace, etc.
And if you are complaining about living in New York why not move someplace that is cheaper and doesn't have some of the highest taxes in the united states? There are other places to live and you can't complain not moving being related to a job if you don't have one to begin with.
2 people like this
@polachicago (18716)
• United States
28 Jul 09
Any late payment is on your credit report for at least 5 years, some for 7 years...some for 10 years....I am wondering if they have it in UK? or any other country in Europe...
It is not fair and it kicks the poor, because riches can pay in full on time...
3 people like this
@pyewacket (43903)
• United States
28 Jul 09
As for the rich...makes you wonder why they need credit cards in the first place...they could use cash for a lot of things
2 people like this
@BarBaraPrz (51811)
• St. Catharines, Ontario
28 Jul 09
Judicious use of credit can increase your net worth. For example, some cards give cash back, others give points of some sort. And with the ones that give points, there are instances that will give you double points if you use a certain card in specified places. They call that "double dipping".
2 people like this
@BarBaraPrz (51811)
• St. Catharines, Ontario
28 Jul 09
Late payments = unreliability
At least, to lenders.
3 people like this
@dawnald (85137)
• Shingle Springs, California
28 Jul 09
Yep,see response above. Late payments = possibility that you will be late paying them and perhaps never pay them at all. They don't care what your reasons were...
@daeckardt (6237)
• United States
28 Jul 09
You are right. I too have lots of bad credit. I have not been able to pay anything off yet, and I don't know if it would be worth the effort since I have to survive.How long ago did you pay off the bills? I'm not sure, but I think that it will fall off after so much time. I just wish some of these bills I have would fall off because I can't pay them. Unfortunately, it looks like they keep raising their ugly heads. It should count for something, but life is seldom fair. Good luck with this. Also, have you gone to freecreditreport.com? I think that is the name of it anyway. You can get one report per year from all three agencies. Have a great day!!!
3 people like this
@pyewacket (43903)
• United States
28 Jul 09
I paid off my credit card debt two years ago--but a negative credit rating lasts for seven years total before it's removed. Well that place I went to is a free credit report per year from each company, and yes, can get all three agencies
2 people like this
@reinydawn (11642)
• United States
29 Jul 09
In Maryland, you can get your credit report from all companies at least once a year for free. If you are denied credit, you can get your credit report for free, and in Maryland you are guaranteed one free a year otherwise. I get mine every couple years just to check up on it.
For the past 8 or 9 years my credit score has been pretty good, but before that... WOOOEEEE!!! It was pathetic, it may have been negative... I actually went with a credit counseling company for a while that pretty much just called all my creditors and told them what I could pay and made the arrangements. It did suck though when I paid them off I still had the negative rating for a few years.
Now, I am in a totally different boat and I only charge what I know I'm paying off when the bill comes. If I don't have the money for it now, I know I wont have the money when the bill comes in so I just don't buy it. It sounds like you're getting back on your feet and getting there too. It will take a while to "fix" the credit, but hopefully you wont need it.
1 person likes this
@pyewacket (43903)
• United States
29 Jul 09
It really sucked that I had to wind up using that one credit card that was issued to me three years ago and never used until last year when my electric bills, all estimates went sky high...the ONLY way I was able to pay them off was getting cash advances from that card...sheesh. At least it's my one and only and can manage payments
@Kowgirl (3489)
• United States
30 Jul 09
They couldn't care less what your situation is they are only after the money. Even though the item purchased with a credit card gets paid for 3 or more times over. They are still wanting more money for it. An iten costing $100 will actually bring them around $400 or more depending on payments and interest. What really bothers me is how they put someone elses bad debts on your credit report and refuse to take them off when you have prooof it isn't yours. My son got his report from all three credit reporting companies and all were full of debts not paid or late that were not even his, as a mater of fact the social security numbers were different. Only the initials were the same, not the full name. He has never lived in the state that was on the report nor has he ever bought a boat. They have refused to take these fraudlant debts off his report and his lawyer has writen them several times. They even have some that belong to his sister who lives in another state, but since they were up to date and were in good standing they removed them as soon as he let them know they were not his.I think they do this so the intrest on all your debts can be increased. BUT we found a way not to pay the interest on our credit cards and I we now use our Discover or WaMu cards to make money...
1 person likes this
@pyewacket (43903)
• United States
5 Aug 09
I've heard from a few people here who found bad/negative debts posted on one's credit report that weren't there own
@LittleMel (8742)
• Canada
29 Jul 09
I had quite a row with credit card company a while ago. Strange thing is I was paying it full to close the a/c. I can understand if I didn't pay for months, of course that would cause problems, but I was paying it off !
I asked them how to pay my balance in full, they said I can't pay by phone, so I sent a check. Unfortunately the check arrived late and they posted the payment to someone else's a/c. So for 2 months I got charged interest where as the check was cashed already. I called them many times trying to explain and they said 'well the interest is charged because they didn't receive payment' as if it wasn't their fault. So I reported them to BBB, the rep called and I explained it and I bluntly said they shouldn't employ stupid people. She said mistakes happened, and I said this one isn't a mistake, it's plain stupidity. Even if the check arrived late, doesn't mean they could post it into someone else's a/c. They could have posted it into mine because it clearly said so in the stub, and charge me the remaining balance as usual. After a few weeks of agony, the rep wrote to BBB saying my a/c was closed, the receiving agent has been dealt with (yeah the dumb one), and my credit rating won't be affected (well who knows!)
Anyway I want to know my credit rating but I won't do it online. But yes, late payment ruined your rating for sure. They don't care about what happened to lender, unless you have something like balance protector (if you lose income in any way you don't have to pay balance). I heard paying off also bad for your rating (because it makes them lose interest which is income for them) so it's like we have no choice. as soon as we use credit cards we're trapped. I'm working hard to pay off my business loan, that's my plan for the next 3 years.
@LittleMel (8742)
• Canada
29 Jul 09
it's some kind of insurance that comes with credit card. if you have it, you can avoid paying balance remaining any time you lose income. different companies apply it differently, sometimes it applies if you lose income from work, and sometimes it applies if you lose income due to whatever reason.
balance protector is optional. if you choose to have it, they charge you small percentage of your balance. lets say it's 0.5% and your balance is $ 100. you will owe 100.5 next month. but if you lose income next month, you call them and you don't have to pay a dime. your rating is not affected because you pay the insurance and the insurance takes care of it.
we don't choose balance prot on credit cards because it's not a huge balance, we have been diligent paying it off. but since you live alone, you may want to consider it.
1 person likes this
@pyewacket (43903)
• United States
29 Jul 09
Oh---they had something like that with my credit cards, but called it Protection Plan...thing is I didn't qualify as my disability issues pre-dated when I got the cards...they could only qualify me if my disability (or loss of income) came during the years I had the cards
1 person likes this
@pyewacket (43903)
• United States
29 Jul 09
When I did have those cards and explained the situation they put me in "hardship" status yet the jerks kept slapping the over-credit fee and late fees...like huh? This was putting me in a bigger hole. Instead of the BBB to complain about it I got in contact with the Federal Reserve here...I guess the credit card company wasn't/isn't used to getting letters from the Federal Reserve about their (the credit card company) practices...
What's a balance protector?? Never heard that term
1 person likes this
@blackbriar (9075)
• United States
29 Jul 09
Ugh! My credit report so sooooooooooo in the red now that I don't know if it'll ever see black again. After hubby losing his job of 25yrs., I stopped paying all the 'extra bills' which even included my cell phone bill. Almost a year later and still no job and still paying only the morgage and utility bills with nothing left over for luxuries like medicine.
1 person likes this
@blackbriar (9075)
• United States
29 Jul 09
Some people just can't grasp the concept of what could happen until it actually happens to them, Pye. With me not being able to work a decent job cause of my disablities, I would really be in trouble if my husband were to suddenly die.
1 person likes this
@pyewacket (43903)
• United States
29 Jul 09
Thanks for your response under that under "person"---LOL
Some people don't realize a lot of circumstances that can change one's stability with money or life in general in a flash..luxuries like medicine tell me about it...I need to save money for just dumb aspirin
Some people don't realize a lot of circumstances that can change one's stability with money or life in general in a flash..luxuries like medicine tell me about it...I need to save money for just dumb aspirin
@scarlet_woman (23463)
• United States
28 Jul 09
you cannot win with the credit structure as it is.that's why they seriously need to amend it.you can get a bad rating on your credit card in some cases just for paying the full balance off ahead of time.
my brother was refused credit-why?-because he had no credit history.
now how can you establish credit if they won't give you any?
amazing,they fact that he bought and paid entirely for a car loan showed no reflection of sustainability to them at all.
the thing that really peeves me is some places are now trying to use credit rating as a basis for hiring.that should be totally illegal.anyone who wants to work should not be denied the ability to get a job.all it takes is one bad divorce,and you could be jobless through no fault of your own.
1 person likes this
@scarlet_woman (23463)
• United States
30 Jul 09
pye-they consider that secure income.you're gauranteed(sp?) income (failing removal) every month,so a lot of them have no problem issuing it.
that's like 'section 8' housing near me-landlords approve them first because they know they'll be paid.
1 person likes this
@anotherxidentity (1434)
• United States
28 Jul 09
There are credit cards you can get - but you aren't going to get the best one out there. And the reasoning behind that is great - why give you the best when they don't know if you are going to be able to handle it?
That is why most people will turn to something like citi - it was where I got my first card with when the major one said no due to the fact I had no credit and I was recommended to go with the company. Yes when I first joined I had a 24 percent interest rate but after having the card for a year I go a better card with a 15 percent interest rate and ask citi to lower my APR and they did to 13% due to being a loyal customer and always paying more than the minimum.
So you have to go with a lower company before you get a nicer card - its one year and if he really wants one he will do it.
Its not hard to research on the internet and find the companies that will give credit cards to people without credit.
2 people like this
@sumofalltears (3988)
• United States
28 Jul 09
The Credit Report Business is nothing more than a legalized scam. Credit reports are what banks use to determine your ability to pay bills and the lower your credit score the higher your interest rates go. I consider this the great wall of banks because you can't have money unless you have a bank account, you have a bank account and then you need a credit rating, once you have a credit rating they can plow you right under with all their late fees over drafts over limits and everything else that is designed to lower your credit score, including the stores you shop at. Your credit score goes down if you shop at Walmart.....why? because it is a discount store.
Any one that really thinks about this system should realize that the credit score game is not for consumer interests it is for banks. It is too keep the consumers cowed into paying their bills and fees without making any waves. How many people realize that if we were to do away with credit scores and all related items about 90% of the financial related workers would be out of a job. This seems a little over rated for a financial system that keeps people plowed under their bils without offering any chance to see the daylight. Our American Dream seems to boil down to a credit score. I can understand why so many banks are failing.....they slap the high interest rates on the people that would be most burdened by them and give the breaks to those that never have to worry about making a payment. To me that it exactly opposite of the way it should be, and many banks just don't seem to think that negotiating a lower interest rate for people having a hard time is the way to go....it is so much better to go through the foreclosure thing and throw a lot of money into lawyers pockets.
I don't have much faith in a financial system that kicks the low man down the toten pole even further. But it is all about greed and that's the main purpose of a bank.
2 people like this
@pyewacket (43903)
• United States
29 Jul 09
When did all this credit score nonsense start anyway? And despite it all...to safeguard their azzes, with all this credit score business banks are still failing, so guess not a foolproof method in the first place, right?
1 person likes this
@onedaysoon (651)
• United States
29 Jul 09
Don't even get me started on the credit cards and credit score right now. But, yeah, late payment are the number one, seemingly minor, thing that ruins your credit score. Second is your credit to debt ratio. Like if you have $10,000 credit limit on all your cards and you have $7500 charged on all those card your debt ratio is 75% and will translate really bad on your credit score.
Any late payments show lenders, in their heads, that you have a really high chance of being late again or something worse. The worst part is that your credit report does not tell the story of why so and so is late, etc. There is no heart, no story to explain what happened. So, everyone is lumped in the same catergory, no matter what. Even if in reality you have a next to no chance at ever being late again. It is not fair.
The good thing is that the more and more time that passes and the more and more on time payments, the less and less it continues to affect your score. Sure seems to take awhile though.
1 person likes this
@pyewacket (43903)
• United States
29 Jul 09
OMG--I nowhere near had that much credit card debt nor such a high credit limit...each card was only $500 each in limit--that's a laugh isn't it? You think I had owed a lot the way they act
@whiteheather39 (24403)
• United States
28 Jul 09
I know what you mean as I had co-signed for a car for my daughter who did not make all the payments. I covered a few for her but could not afford to keep it up so her car was repossessed. I paid the balance still owing off but now have the very bad repro demerit on my credit report which brought my score way down.
1 person likes this
@paula27661 (15811)
• Australia
28 Jul 09
Past behaviour predictor for future behaviour, I guess that’s how the lenders see it. I know it sucks because every individual case is different, life and circumstances are not the same for everybody but that is not how life is viewed in the business world, it is very much black and white and you have seven years to prove you have changed the way you manage finances.
I wonder if there is a Body you can contact in your country to have your credit rating reviewed.
Isn’t it funny how the negatives stick around to haunt you in the meantime overlooking all positive actions?
I am sorry that this happened to you Pye and I hope you can locate some department who can help you.
1 person likes this
@pyewacket (43903)
• United States
29 Jul 09
It really does suck...to put it mildly. Here I thought by paying my credit cards in full that I would have a sense of freedom, and yes I do, but it's like it's haunting me that I had been late in payments due to unforeseeable circumstances. I did write to the credit card company about it....to get my negative status removed..jerks never replied, so might write to the credit score agency about it and see if they can get it done from there end of it
1 person likes this
@puddytat101 (657)
• United States
28 Jul 09
Always pay on time.
Always pay a little more than the minimum amount.
Always pay as soon as you have the money, not necessarily when you get the bill. Paying online is usually free.
Something that can affect your credit report is revolving accounts. Those are still open but not necessarily active. Make sure when you cancel a credit card that the account has indeed been closed!
Good luck!
