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TJ, Esq.
TJ, Esq., Attorney
Category: Legal
Satisfied Customers: 12249
Experience:  JD, MBA
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In 2010 I had a couple of credit cards with high balances that

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In 2010 I had a couple of credit cards with high balances that had single digit credit cards. When the law was passed in 2010 that said credit card companies could raise their interest rates for any reason, these two raised my interest rates to the high 20s.

I tried to negotiate a settlement with them to pay them off at a reduced lump sum balance, and they both told me that they would do this but our account had to be at least 120 days late before they would offer a settlement. As soon as they went over 120 days, I negotiated a payoff with both of them and paid them off. Then I had to pay tax at the end of the year on the amount that the companies wrote off in the settlement (as income).

Both accounts are listed as collection charge off with a settlement for less than owed. This is causing me a problem with getting a home improvement loan even though our credit score is 740 - 755 and everything else on our credit is positive.

Is it possible to get these derogatory entries removed from my credit report?
Hello and thank you for allowing me the opportunity to assist you.

I'm sorry to say that it's not possible to get the entries removed prior to 7 years after the entries were made. The main issue here is that the credit card companies have a legal obligation to provide accurate information. They will be hesitant to contact the credit bureaus and say that they've been reporting the accounts incorrectly for the past couple of years. Still, you can certainly make the request to see what the credit card companies say, but I would not get my hopes up since there is no legal incentive for them to alter what the credit bureaus are currently reporting.

I am truly sorry to give you this bad news, but please understand that it would be unfair to you (and unprofessional of me) to provide you with anything less than an honest response. However, if your concerns were not satisfactorily addressed, then please let me know, and I will be happy to clarify my answer. I do ask that you rate me based upon whether I answered your question, and not based upon whether the answer was good news or bad news. Your positive feedback is greatly appreciated. Thank you for using our service!

If you would like to direct additional legal questions to me in the future, then please type "To VAMD" in the subject line of your question.
Customer: replied 3 years ago.
Is there anything else that I can do to help this from hurting my chances of getting a home improvement loan?
Hi again. To be honest, I'm surprised that it does hurt you this much considering your high credit score. I would likely check with different lenders. You would probably have the most luck with Credit Unions, which traditionally are not as harsh when it comes to past issues on a credit report.
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