RE Credit Score Repair *Update pg 2*

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I wanted to install a home phone in a rental home. I called Cox Communications and authorized it. My renters weren't there the first time the technician came but I requested Cox try again. It worked and was installed, but my renters never said anything so I didn't know it had happened. The bill went to that address so I never made a single payment (because I never saw it). Went to collections, I found out 10 months later when I went to get a mortgage. That was 2010.

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Boy, that was an expensive lesson, wasn't it?

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Any advice for repair?

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Disputing the charge is about the only thing you can do. Have you paid it? If not, I certainly wouldn't pay it unless they agreed (IN WRITING) to remove the derogatory mark completely due to the mistake. If you make them whole, they should make you whole - it's not like you're making this up - you're a landlord and wouldn't have intentionally dodged a $20 phone bill - you'd have disconnected it if you had known.

Not to lecture, but check your credit report annually to keep something like this from biting you in the future.

Use a secured credit card and spend roughly $100 a month on gas and groceries. Make a $95 payment each month so you leave a small balance. You want to leave a balance so the credit agencies see that you are using the card. Do not make minimum payments and do not pay the card completely off every month. Leave a small balance and do not ever max out the card or even come close to maxing it out. Check back in six months...

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I've been making minimum payments on my CC

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I would highly suggest against making the "minimum payment on your credit card" to avoid interest.

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Should I still call them even though it was 3 years ago?

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I'd call them - particularly about the collections reporting. See what can be done. The worst they can tell you is to "Eff off".

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My thinking was that it would only last 3 years... 7 irl.

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Everything is pretty much on a rolling 84 month reporting cycle - your last 84 months of credit history are all that really count - this can be doubly impactful if you had great history before rough patch - the good reports roll off, while the bad reports hang around for awhile and you don't have as many opportunities to make good new reports.

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I'm afraid to check my actual score (I check my report) because I heard that can impact the score.

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This is 100% false. Go to MyFico.com and buy your score if you want an actual FICO score. They just recently started offering Experian so now you can buy all 3 FICO scores. It's a little expensive but it will give you peace of mind to know your real scores.

As for Cox, call them and explain what happened. It can't hurt to try.

If you already have a credit card I would not suggest getting another one. Use the one you already have. Just use it properly by not paying it completely off and not ever charging up a high balance. Good luck.

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It's just a $100 balance. I'm happy to pay the $20 interest if it means I get an incremental 10 points on my credit score.

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It doesn't work that way.

All you have to do is be sure there's a balance owed when they send you the monthly statement. Pay this off in full and your score is just as good as if you'd paid the minimum.

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It doesn't work that way.

All you have to do is be sure there's a balance owed when they send you the monthly statement. Pay this off in full and your score is just as good as if you'd paid the minimum.

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This exactly. I've explained this in another thread like this one.

There are three options you have when you are paying your credit card monthly:

1. Minimum payment(Usually $25)
2. Statement balance
3. Current balance(the entire balance).

You select statement balance to pay and avoid interest and you will still have a current balance left over that goes into the next month. Does that make sense?

The statement balance is the balance that incurs before a certain cut off date.

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ETA: Hmm, do you mean the current balance spans multiple statements?

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Yes. But if you start at 0 and just charge one thing on the credit card for $1000 for the month, then the current balance/statement balance will be the same.

If you charge multiple things over the course of the month, there will be a cut off date(mine is around the 25th each month and the bill is due on the 15th for the next month) which will be the statement balance for that specific month. The current balance(remaining balance) will be carried over to the next month and show up on your next statement.

Like for me, I always have a balance its never zero but I pay the statement which is maybe around $200-400 a month.