topic Re: The Annual Disappointment in Rebuilding Your Credit

The Annual Disappointment

JoshInReno — Thu, 29 Nov 2012 20:39:26 GMT

Every year about this time I pull what scores I can to see if I am making progress to getting my scores up to a reasonable level. 700 would be nice, but I think I could live with a 680 or so. Every year, I tell myself, I'm going to buy a house in the spring. All year long I pay my bills ontime (there is not a late payment anywhere on my report), wait for some old baddies to fall off (I have 2 - they are 6.5 years old now), and make more than the minimum payments.

And every year my FICO remains flat. How flat?

That flat. I'm not sure what else I can do. I paid off an auto loan this year - also paid off 2 consumer finance loans. I now know these HURT a score - I was told originaly they were a good way to re-establish!!

I do have a judgement on my report that is about 4 years old (I think). I have 3 credit cards with a balance totaling less than $1500 (all 3 combined). Yes - my utilization is high. Really high - 92%. I would pay them all off (almost) right now, but according to Score Simulator that would barely budge my score. My total length of credit is 4 years, 5 months - so I know that is low.

Any suggestions?

Re: The Annual Disappointment

Jutz — Thu, 29 Nov 2012 20:44:08 GMT

What is your score?

If you don't have an open installment loan that hurts your credit mix, and I believe weighs heavier on your revolving. If you're at 92% UTIL, and revolving is the only type of credit you have open...that's not a pretty picture. Pay down your util <30% at least, <9% ideally. Your score will skyrocket.

Re: The Annual Disappointment

webhopper — Thu, 29 Nov 2012 20:54:17 GMT

I agree that you will likely see a huge boost by paying down your Credit Cards to less than 9% utilization. From there, your scores may jump into the 640 catagory to qualify you for an FHA mortgage.

Also, check out a secured loan from a credit union. Having an installment loan can increase your "mix" of credit, which can boost your scores by 10 pts or more.

Also, check with your courthouse docket to see if your case (judgment) was dismissed after your judgment was settled. (Mine was and I didn't know it for 2 years!)

Re: The Annual Disappointment

Jutz — Thu, 29 Nov 2012 20:56:19 GMT

I didn't even see the scores in your signature. At around 630 and your current profile, 650+ should be easy to obtain, and probably beyond.

Re: The Annual Disappointment

JoshInReno — Thu, 29 Nov 2012 20:58:57 GMT

As of this morning:

11/29/12 TU:636 EQ:633 EX:???

See the graph above - basically hasn't moved in a year.

I understand what you are saying about dropping my UTIL and it makes sense to me - but why does the score simulator disagree? Using the simulator, I paid everything off in 1 month - score wouldn't move. Then using the simulator, I paid 95% off over 3 months - 3 point change.

Now when it comes to open installment loans.... any suggestions? I just paid my truck off about 6 months ago and have REALLY been enjoying not having a payment on something. Are there other types?

Re: The Annual Disappointment

Jutz — Thu, 29 Nov 2012 21:04:56 GMT

Simulator is broken in that case. There is NO WAY that going from 92% UTIL to 9% will have no effect on your score. Do you have any open charge offs or anything random?

Re: The Annual Disappointment

tattooedhusker — Thu, 29 Nov 2012 21:12:19 GMT

+1 Like it was said before, lower your utilization from 92% to <9% and the scores will sail!

Re: The Annual Disappointment

JoshInReno — Thu, 29 Nov 2012 21:19:03 GMT

I'm not sure if this will help or not, but this is pretty much everything:

Capital One Bank Usa Na	1/2012	$691	Paid or paying as agreed	No	Details
Credit One Bank	2/2009	$554	Paid or paying as agreed	No	Details
First Premier	10/2009	$220	Paid or paying as agreed	No	Details
Dollar Loan Center	8/2012	$991	Paid or paying as agreed	No	Details
Maverick Finance	9/2011	$0	Paid or paying as agreed	No	Details
Dollar Loan Center	3/2012	$0	Paid or paying as agreed	No	Details
Dollar Loan Center	10/2011	$0	Paid or paying as agreed	No	Details
Dollar Loan Center	5/2011	$0	Paid or paying as agreed	No	Details
Maverick Finance	5/2011	$0	Paid or paying as agreed	No	Details
Maverick Finance	5/2010	$0	Paid or paying as agreed	No	Details
Maverick Finance	2/2010	$0	Paid or paying as agreed	No	Details
Maverick Finance	9/2009	$0	Paid or paying as agreed	No	Details
Maverick Finance	6/2009	$0	Paid or paying as agreed	No	Details
Maverick Finance	11/2008	$0	Paid or paying as agreed	No	Details
Maverick Finance	6/2008	$0	Paid or paying as agreed	No	Details
Nationwide Neveda	11/2008	$0	Paid or paying as agreed	No	Details

Ntl Bus Fctr

$135

$177

Jun 27, 2006

Med1 02 Remsa Ground Ambulance

XXXXXX

Individual

Placed for collection

Ntl Bus Fctr

$800

$1,055

Jun 02, 2006

Med1 02 Remsa Ground Ambulance

XXXXXX

Individual

Placed for collection

Civil judgement

C2007042719

Apr 18, 2008

$1,247

Asset Acceptance Corpo

Individual

Re: The Annual Disappointment

JoshInReno — Thu, 29 Nov 2012 21:22:49 GMT

The Dollar Loan Center for $991 was paid off last week. Just hasn't been posted yet.

Re: The Annual Disappointment

Jutz — Thu, 29 Nov 2012 21:23:46 GMT

Is there a chance that is factoring into your UTIL? I know Payday loans (or whatever you want to call them) are factored strangely

Re: The Annual Disappointment

JoshInReno — Thu, 29 Nov 2012 21:33:15 GMT

Sadly, I don't think so.

Combined credit card limits: $1600

Combined credit card balances: $1465

Utilization: 91.56%

92% is what is shown on my profile - so I don't think the consumer loan is/was factored in.

Re: The Annual Disappointment

JoshInReno — Thu, 29 Nov 2012 21:36:48 GMT

Interesting.

I have never paid on that judgement. How would a person go about checking the courthouse docket?

Re: The Annual Disappointment

StartingOver10 — Fri, 30 Nov 2012 16:31:20 GMT

JoshInReno wrote:
Interesting.

I have never paid on that judgment. How would a person go about checking the courthouse docket?

Most jurisdictions are online now. Try the Clerk of Courts section of your county to see your judgment.

The judgment is really holding you back as well as utility. That is a public record that will last for much longer than 7.5 years. Check the Nevada state statutes to see how long a judgment lasts in your area (if that is where you are). Typical is ten to twenty years and many jurisdictions have a renewal process. Also, the judgment has been accruing interest the entire time since it was issued. The interest is limited by statute, usually a prime plus type of thing, so check the statute for the permitted amount too. The judgment will prevent a purchase of a home with a mortgage. So you want to take care of it ASAP. Consider getting in touch with the judgment lienholder to see if you can get it vacated in exchange for payment. If they won't do that, then make sure you get a recorded Satisfaction for payment.

Re: The Annual Disappointment

rckstrscott — Fri, 30 Nov 2012 16:40:32 GMT

JoshInReno wrote:
Interesting.

I have never paid on that judgement. How would a person go about checking the courthouse docket?

going from 90+ util to 9 percent util caused my scores to raise almost 100 points. and I have 5 negative accounts still showing, my high is 722 for TU

knock down that util and see your scores cruise up.. there isn't even a doubt about it... score simulator be damned.

-scott

Re: The Annual Disappointment

Shogun — Fri, 30 Nov 2012 17:46:30 GMT

I agree totally, IME the score simulators are practically worthless. :)