Reply
New Member
sprinkman983
Posts: 3
Registered: ‎02-13-2013

Refinance Advice

I recently bought a car and owe about 15 thousand on the loan with 19% rate. My scores are around 550-600. I pay everything on time and have 5 open credit cards and just paid the balances below 50% on all of them. I am working now on settling some collection accounts and so far have settled 4 off with 3 of them agreeing to have the items deleted from my report. Will this make my score higher? I am wanting to refinance my vehicle in 6 months-1 year but dont know who I should try with or when I should try??

 

Any advice would be greatly appreciated. Thanks!

As of 2/13/13

Ex: 601 TU: 529 EQ:568

2/26/13
Ex: 623 TU: 565 EQ: 577
Paid off 4 collections accounts (3 were deleted from reports) & got 5 small limit credit cards below the 50% limit.
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Refinance Advice


sprinkman983 wrote:

I recently bought a car and owe about 15 thousand on the loan with 19% rate. My scores are around 550-600. I pay everything on time and have 5 open credit cards and just paid the balances below 50% on all of them. I am working now on settling some collection accounts and so far have settled 4 off with 3 of them agreeing to have the items deleted from my report. Will this make my score higher? I am wanting to refinance my vehicle in 6 months-1 year but dont know who I should try with or when I should try??

 

Any advice would be greatly appreciated. Thanks!


Collections are a major derogatory, so having them deleted from your report can have a nice effect on your score.  However, when you have a lot of them, you don't see as much improvement because the remaining ones are still holding you down.  It can also depend on whether it is the more recent ones that are getting deleted or the older ones.  The most recent collections are hurting you the most, so you'll see less benefit from the older ones being deleted, and vice versa.  Still, getting 3 collections deleted is great as you have to start somewhere. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
New Member
sprinkman983
Posts: 3
Registered: ‎02-13-2013

Re: Refinance Advice

Thanks for the advice. I paid some accounts off a month ago and checked my scores today and they went up anywhere between 20-35 points!

As of 2/13/13

Ex: 601 TU: 529 EQ:568

2/26/13
Ex: 623 TU: 565 EQ: 577
Paid off 4 collections accounts (3 were deleted from reports) & got 5 small limit credit cards below the 50% limit.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+