bussiness debt ruining my credit file
Date: Fri, 04/24/2009 - 08:43
I have a small bussiness that was NOT incorporated..dumb mistake..Anyway, I got a small bussiness charge card to estabolish bussiness credit..mistake #2...Economy got to my bussiness, cashflow dwindled, wife got laid off, life happened to us-and the charge card unfortunately wasn't paid. My dear friends(lol) at amex closed my card and sent it to collections. It was NOT a charge off. Just this week, I called collection agency that had the card and made payment in full arrangements for this account. This was my debt and it was valid. I am not trying to screw amex outta money or charges that I actually did. Here comes my questions...
1. Should bussiness card be on my personal credit file?
2. After payment in full, what does that do the credit reporting of this card?
3. How badly can a collection hurt my credit score opposed to a charge off?
Oh yes, my friends there amex, has pre-approved me for an Optima card at 40% of my original balance for just paying this account off..What is that about? Are they crazy..lol..Any comment would be greatly appreciated..The website is wonderful-keep up the good work you do!!!!!
1. Since you are not incorporated or an LLC, they can report thi
1. Since you are not incorporated or an LLC, they can report this on your personal credit reports. You don't have the protections of the FDCPA since this is a business debt, but you do have the protection of the FCRA. Reporting must be complete and accurate.
2. It should read Paid in Full. Has it already been charged off? It likely won't erase the 30, 60, 90 etc day lates. That remains for 7 years + 180 days.
3. Both equally bad compounded if both the OC is reporting the CO and a CA is reporting the collection.
Nascar is right.. The fact that you were not incorporated or an
Nascar is right.. The fact that you were not incorporated or an LLC makes you personally responsible as a sole proprietor. You were right you first mistake was not getting INC. If you pay it off it may show Paid in full or closes but with a payment date. I have seen this alot lately where it doesnt show paid in full but it shows "closed" and then gives a payment date. Collection and Charge off are the same becasue once it is charged off they refer to an agency. Agencies that call you prior to it being charged off are usually the creditors internal collection team.
the debt has not been charged off and i checked my credit report
the debt has not been charged off and i checked my credit report just yeasterday and only amex is showing as pay status collection accout..not charge off or sold/transferred ect..
i called amex, they told me it was scheduled to co later next mo
i called amex, they told me it was scheduled to co later next month..so it is still an internal collection i was told..how does that impact my score? what is the best way this could show on my report?