It gets confusing

[MidwestGuy]

I have a few questions I was hoping somebody can help me with.

My BK was discharged yesterday. I signed up on TransUnion web site to monitor all 3 credit agencies. Now the question is about what it says in my credit report.

Many of them say Condition: Closed (Paid). On few, there is even amount of balance showing even though it says Closed. On few items, 2 out of 3 agencies report Closed but one reports Derogatory. I also have one Collection account which also says Derogatory and it shows balance. There is no link to dispute that. My question is, what is disputable and what does exactly Derogatory mean ? I understand Closed (Paid) is acceptable, but what else is or is not ? I'm new to this whole thing, just trying to learn as I go and try to clean up my credit report. Thanks for any help!

PS. When I click on the link "More info on this account" it gives me little pop up window where it says "Remarks:
[TransUnion] Chapter 7 bankruptcy
[Experian] Debt included in or discharged through Bankruptcy Chapter 7,11, or 12.
[Equifax] Bankruptcy Chapter 7
Auto
Included in bankruptcy

[Flamingo]

First of all, have you read all the stickys available on cleaning up credit reports on this forum? Secondly, disputing information online is really not the way to go. It's best to dispute via hard copy and send in the mail via Certified Mail. As you can see, some things you just cannot dispute online.

You have Derogatory and Satisfactory accounts broken down by at least one CRA (most just group them together on reports you receive). Derogatory means just that - it's a bad credit account on your record with that CRA.

[MidwestGuy]

I'm just trying to figure out what is acceptable term on my credit history post BK.

So far I understand that "charge off" is bad, "closed" or "paid" is good.

Derogatory I didn't fully understand, so it just means the account was in negative standing (late payments, etc ?)

If that's the case, I don't have anything to dispute then, I'm good. Everything else says "included or discharged in Chapter 7"



PS. Should there be any balance showing on accounts that are listed as "closed" ??

[Flamingo]

I'll try to make it a bit more understandable...There are Deragatory and Satisfactory accounts on your credit reports. One of the 3 major agencies actually sends them to you that way (at least via snail mail). Under the "Deragotory" section are listed all your bad credit accounts, including those in BK. Under the "Satisfactory" section are listed all your good credit items that you have not been late on, etc. or previous closed, good credit accounts. If there is a charge off listed, that account will be in the Derogatory section. If an account is closed or paid and was closed meeting all terms of the agreement and all payments on time, it is a Satisfactory account.

If you have a closed or paid in full account, they will list the terms and amount of the account and also indicate that the account was paid, no late payments with a zero balance.

[Still_Standing]

I am also confused with the derogatory term.

I have an auto lease account that's never been late.
35 good payments and one to go.

I was discharge about a week ago. Just pulled my CR
and it shows that account as "Derogatory" on the three
bureaus. Also it shows current.

How can I turn that account around to reflect that
I never missed a payment and change to a good status?

[PaKettle]

I understand what you are asking, MidwestGuy, I am also confused.
But I can tell you what I think...

First of all as I said in another thread, all 3 Bureaus have MOSTLY WRONG info on my reports. So I disputed almost every derogatory report on Experian and 65% of them on Transunion and about 35% of them at Equifax. With TransUnion and Experian I disputed online just because I COULD, and I figure I'll see if that works and if it does not, then I'll move to snail mail, CERTIFIED that they have to sign for. I sent Equifax a Certified dispute form the other day, they even had my social security number mixed up again, which I JUST HAD THEM FIX - and they did - 5 months ago! Now they have it wrong again!

Now, as I see it, the game is this:
Try to get them to list everything as Zero Balance, NO "charge off", NO balance, and definitely no "payments due". I guess you can't get them to change it if it says "Late payments" if you DID have late payments before the bankruptcy. BUT you definitely should not allow them to say that you have a balance due when you don't or that it's a charge off. Even if it was a charge off, I'd dispute it and try to get them to PROVE it was charged off.

So you are going to have to write them, include your social security number, license number, name, address, etc., and copy the letter and keep a copy and send them the dispute letter certified so you have proof of sending it and proof of receipt (you can prove receipt by going to the USPS web site and typing in the Certified number they gave you and printing out the thing that says it was received).

So basically, DENY DENY DENY. It's up to them to list things correctly and you do NOT owe balances so it cannot say you owe balances. If it was charged off, still, as I see it, that was taken care of in bankruptcy so it should not say charged off. Some say this can stand, but I disagree, you should try to get it off.

"Derogatory" means it is a mark against you and of course any accounts you paid late or didn't pay for months before bankruptcy are going to show up as Derogatory as I understand it. I don't THINK you can do anything about that.

But if an account was not used, therefore you owed them nothing and did not pay them late, then that should not be listed as Derogatory - only ones that were listed in the bankruptcy petition. However, I am no expert so take all this with a grain of salt, I'm just trying to find my way through all this as well. But these are the assumptions I'm operating with for now. If I learn more I'll post here.

There are some forums on the net that have suggested forms to send and ways of wording things in dispute letters, and there are forums on the net that specifically deal with this subject. I suggest doing some googling on this, or pm me.