Please note: I’m military, stationed overseas. There is a company I had numerous loans with, I was late a couple of times with the loans. I refinance one to bring it current and others brought current then refinanced. I also did fall on my luck and had one go into charge off but paid it off in full eventually. Now the company has some of the accounts reporting closed but currently past due xx amount of days and with payment history after the account has been closed. The representative argued with me stating”just cause you refinanced doesn’t make it current”. This confused me as I know when you refinance, that loan is essentially paid off. And if it’s paid off that means it’s not late. I don’t know what to do at this point.
Refinancing does not change past payment history, nor does it fix credit reports, nor erase charge offs.
No way to fix credit reports without a court order. Don't get suckered into believing otherwise by "credit repair" services. Your PSC station likely has credit counseling servics---might be at Personnel Support Detachment, might be at legal services office, or Base Ombudsman's office. You can also reach out to a debt attorney to get the matter resolved as best you can.
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The problem is that the Rep didn't really know how to explain it correctly. Of course, accounts that were paid off are paid off. What the Rep didn't explain:
The credit report a really a cumulative transcript of your performance on each account. Even accounts that you have paid off may still show derogatory remarks for a total of 7 years, if those remarks are true.
You can't buy your way into a spotless credit history just by paying off the debts that had been troublesome.
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