IIB vs. charge-off

gweedoh · 07-26-2008, 06:37 PM

I've got a friend with an CC account reporting IIB with all 3 CRAs. She never filed BK.

Anyone know if it's better to have an account report charge-off or IIB, even if she never filed BK and there's no BK on her report?

Enigma · 07-26-2008, 08:42 PM

Dispute it as inaccurate.

gweedoh · 07-26-2008, 10:07 PM

I know IIB is inaccurate, but accurate isn't always better than inaccurate.

It's a very large amount and I'm positive the only reason she hasn't been sued is because they somehow believe that the account was IIB and she goes poking around, they'll realize their mistake and try to sue her.

She'll be in the SOL clear in another 6 months and I told her to leave it alone until then, but if IIB is better than CO, it would be better to leave it alone until it falls off.

So back to my question.... Does anyone know if it's better to have it show as a CO or IIB?

hannah · 07-26-2008, 10:11 PM

IIB for the time being is better for her under your scenario until the account is OOS. In the long run however, CO is better than IIB as far a credit scoring goes.

gweedoh · 07-26-2008, 10:40 PM

Quote:

Originally Posted by hannah

IIB for the time being is better for her under your scenario until the account is OOS. In the long run however, CO is better than IIB as far a credit scoring goes.

Ok, I sort of figured, but having never dealt with BK personally, I wanted to be sure.

Thanks!

gweedoh · 07-27-2008, 02:16 PM

I just realized something....
Because the account is is reporting IIB, they are reporting $0 on everything. To correctly report this account, they're going to report a balance due when they remove the IIB flag and I'm pretty sure that's going to be a lot worse than how it's reporting now, no?

jlynn · 07-27-2008, 03:19 PM

Quote:

Originally Posted by hannah

IIB for the time being is better for her under your scenario until the account is OOS. In the long run however, CO is better than IIB as far a credit scoring goes.

Not necessarily. IIB's report a -0- balance.
On the flip side - if this person tries to buy a home/car, etc. they *might* have a tougher time with the IIB notation on their reports. Was this a joint account? Could the joint holder have filed bk?

gweedoh · 07-27-2008, 05:02 PM

Quote:

Originally Posted by jlynn

Not necessarily. IIB's report a -0- balance.
On the flip side - if this person tries to buy a home/car, etc. they *might* have a tougher time with the IIB notation on their reports. Was this a joint account? Could the joint holder have filed bk?

No, not a joint account. It's just a very lucky screw up on the part of the OC.

Her ultimate goal is to get a house. I think a very large unpaid CO would be more of a problem for a potential lender than an IIB notation on a single account. Since there's no other accounts reporting this way, and there's no BK on her reports, I would think it would be pretty easy to explain away as a reporting error.

jlynn · 07-28-2008, 09:23 AM

You would think that - but the mortgage industry is changing their rules by the hour.