Reply
New Member
Posts: 3
Registered: ‎02-13-2013
0

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
Posts: 3,067
Registered: ‎11-02-2009
0

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
Posts: 3
Registered: ‎02-13-2013
0

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.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.