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Regular Contributor
strong_lady
Posts: 221
Registered: ‎03-25-2008
0

Re: My score only went up 10 points



debtisgood wrote:
Without knowing the totality of your accounts the most knowledgeable board members cannot give you a good idea of what gains are reasonable to expect.
 
If, for example, you have 10k in balances on over half your accounts and this represents over half your utility, you are getting huge dings on overall utility and percent of accounts with balances. Paying off 1 card might have a very low effect.
 
If you need to raise your score right away you would be best served to pay every card under 50%, preferably under 30%.....and to pay off the smallest of your balances so you get the % of cards with a balance down to around 40%.
 
If you don't need an improved score to apply for new credit in the short term, pay down the cards with the highest interest rates first and worry about your utilization spread later.
 
 
More specific advice would follow if we knew your current debt and accounts
 
 
Best,
 
debtisgood


I have numerous collection accounts totaling around 5,000.  I have an credit card that was just closed two months ago and I owe 460 dollars.  I have no other credit cards except Orchard Bank.  I had an reposession back in 2006 in which I now owe 4,000 dollars. I have student loans totaling around 23,000 dollars but they are in deferrment as Im in school right now but there were defaulted until I got them consolidated through direct loans.  So you could say I need to bring up my score now.  Do I pay off the small balances and get an pfd that is what I was thinking and then all the while pay off  my card in full every month and only spend no more than 10 percent on the card?
 
Experian 540
Transunion 580
Equifax 500
Regular Contributor
strong_lady
Posts: 221
Registered: ‎03-25-2008
0

Re: My score only went up 10 points



strong_lady wrote:


debtisgood wrote:
Without knowing the totality of your accounts the most knowledgeable board members cannot give you a good idea of what gains are reasonable to expect.
 
If, for example, you have 10k in balances on over half your accounts and this represents over half your utility, you are getting huge dings on overall utility and percent of accounts with balances. Paying off 1 card might have a very low effect.
 
If you need to raise your score right away you would be best served to pay every card under 50%, preferably under 30%.....and to pay off the smallest of your balances so you get the % of cards with a balance down to around 40%.
 
If you don't need an improved score to apply for new credit in the short term, pay down the cards with the highest interest rates first and worry about your utilization spread later.
 
 
More specific advice would follow if we knew your current debt and accounts
 
 
Best,
 
debtisgood


I have numerous collection accounts totaling around 5,000.  I have an credit card that was just closed two months ago and I owe 460 dollars.  I have no other credit cards except Orchard Bank.  I had an reposession back in 2006 in which I now owe 4,000 dollars. I have student loans totaling around 23,000 dollars but they are in deferrment as Im in school right now but there were defaulted until I got them consolidated through direct loans.  So you could say I need to bring up my score now.  Do I pay off the small balances and get an pfd that is what I was thinking and then all the while pay off  my card in full every month and only spend no more than 10 percent on the card?
 
Experian 540
Transunion 580
Equifax 500


Oops I got my credit scores wrong they are:
 
Experian 440
Transunion 480
Equifax 400
Valued Contributor
debtisgood
Posts: 1,126
Registered: ‎03-25-2008
0

Re: My score only went up 10 points

The good news is that your scores should jump up fairly quickly after good credit management, the bad news is that your score will have a barrier it likely won't go above until the baddies get off your credit.
 
In this situation you are losing huge points for your Payment History.
 
Closing your other credit card account didn't help because you now only have one TL on your account in good standing. If that card was not charging you an annual fee I would see if you could reopen the account with the promise of paying the money you owe them in full. That would restore another account with good history to your account.
 
As far as PFD, I have never done it so hopefully someone with that experience will jump into this conversation.
 
I hope you don't need your credit score for awhile. I think with another year of clean history on those two cards you could get a secured or 99/500 from BOA and dilute some of the collections history even more.
 
Overall just make sure you stay current on the 2 TL you have in decent shape, your Orchard and your student loans. Pay on time every time and within 2 years, and maybe with a tradeline or two to dilute your bad lines you could be at 650
Regular Contributor
strong_lady
Posts: 221
Registered: ‎03-25-2008
0

Re: My score only went up 10 points



debtisgood wrote:
The good news is that your scores should jump up fairly quickly after good credit management, the bad news is that your score will have a barrier it likely won't go above until the baddies get off your credit.
 
In this situation you are losing huge points for your Payment History.
 
Closing your other credit card account didn't help because you now only have one TL on your account in good standing. If that card was not charging you an annual fee I would see if you could reopen the account with the promise of paying the money you owe them in full. That would restore another account with good history to your account.
 
As far as PFD, I have never done it so hopefully someone with that experience will jump into this conversation.
 
I hope you don't need your credit score for awhile. I think with another year of clean history on those two cards you could get a secured or 99/500 from BOA and dilute some of the collections history even more.
 
Overall just make sure you stay current on the 2 TL you have in decent shape, your Orchard and your student loans. Pay on time every time and within 2 years, and maybe with a tradeline or two to dilute your bad lines you could be at 650


Thanks for the helpful information. Should I contact the bank and try to get them to give me an card again when I pay off the balance in full for the First Premier Credit Card?
Valued Contributor
debtisgood
Posts: 1,126
Registered: ‎03-25-2008
0

Re: My score only went up 10 points

Strong,
 
If First Premier wasn't charging you an AF, I would ask if they could reopen the account if you can keep your current history. If they aren't willing to do that I would just hold back and get a new card on your terms. If that offer doesn't work I would wait awhile and try to get a secured card from a reputable bank and then milk that TL for an unsecured line about a year later.

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