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Established Member
Posts: 18
Registered: ‎09-25-2008
0

credit cards

New to forum. You guys and gals have helped greatly. I just recently have scheduled to pay off the only collection listed on EQ. It is 85.00 and I have it set up to come out  of my checking account on Sept 30th.  Is it to late to ask the CA to promise to remove item from report upon reciept?
 
Another thing. I have sworn of using credit cards. They in the past (7 plus years ago) caused my bad financial situation.  I am now at 616 Fico (eq).
The simulators seem to suggest that getting a credit card would raise my score. Is this so? Is there another way?.
 
I would like to get it above 620 in the short term to refinance a 15percent car loan to down around 11 percent.
 
My recent history was to refinance 3000 in small loans and help pay down a car loan in order to get another car. This evidently lowered my score from around 620 to 570 when I tried to get the new car loan 6 weeks later. I did get a new car loan at around 17 percent. I went back to the previous lender and they lowered the rate to just below 15%.  Yea.
 
Do you think my plan will work?
Frequent Contributor
Posts: 435
Registered: ‎06-17-2007
0

Re: credit cards

You absolutely need at least one CC in order to improve utilization and to help your mix, and to show revolving credit. Avoiding them won't help your future financial situation. You can be responsible, especially now that you armed with the knowledge.
Sept 07 EQ 419

April 2012 EQ- 669 EXP- 680 TU-700= Proud New Homeowner!
Established Contributor
Posts: 670
Registered: ‎07-12-2008
0

Re: credit cards


nocreditcard wrote:
Another thing. I have sworn of using credit cards. They in the past (7 plus years ago) caused my bad financial situation.  I am now at 616 Fico (eq).
The simulators seem to suggest that getting a credit card would raise my score. Is this so? Is there another way?.



What if you get a card, put a small recurring charge on there, fill a ziploc bag with water, stick the card in the bag, and stick the bag in the freezer? Pay off the small charge (Netflix is a good one, if you happen to be a customer..) as soon as it shows up on your account every month. You'll build a nice history and you'll have to wait awhile to get at your card so hopefully impulses will pass.

If you're only interested in 4 points you can probably get there without the credit card. What are the other loans you have that you were refinancing? Also, how much is your car loan that you are trying to refinance and when did you get it?
Established Member
Posts: 18
Registered: ‎09-25-2008
0

Re: credit cards

The loans were 1 payday at 500.00, 2 finance companies, world finance and security finance totaling around 2000.00.  And also a local finance company at around 500.00.  4000.00 went to pay down the existing car loan to a balance of 5000.00.  I got a 2007 Tauras and paid off the 5000 dollor 2002 escort zx2 for a loan of 14,700.00.
 
 
Will the 85.00 payoff of the collection raise me the 4 plus points?:smileytongue:
My next goal is to raise to the 700 club.
 
Thx all.
Established Member
Posts: 18
Registered: ‎09-25-2008
0

Re: credit cards

BTH, I took out the new car loan 2 months ago.
Frequent Contributor
Posts: 435
Registered: ‎06-17-2007
0

Re: credit cards

no, paying a collection without deletion will likely drop you another 20-30 points.
Sept 07 EQ 419

April 2012 EQ- 669 EXP- 680 TU-700= Proud New Homeowner!
Regular Contributor
Posts: 144
Registered: ‎05-22-2008
0

Re: credit cards

There has been negative discussion here lately regarding Crown Jewelers, but they were the first "credit card" (reports as such) I got in 18 years or so, and making a small (under $100) purchase with regular minimum payments caused them to up my credit limit to 2500, which was reported within the month to EX and TU, raising my score more than 20 points, which allowed me to get a few better cards.
hth
Goal: acquire and use Credit Cards, scores in the 700's in 2009
05/04/08 FICOS: EQ = 626; TU = 636: EX = 623
06/21/09 FICOS: EQ = 692; TU = 729; EX = 731 (CCT FAKO)
10/03/11 FICO EQ = 722 (CCT EQ = 749)
Established Member
Posts: 18
Registered: ‎09-25-2008
0

Re: credit cards

OK, the CA with the 85.00 owed is csrecovery.com.  I asked them to send me an e-mail stating that they would take the collection off of the credit report.  She said no. When I asked to talk to her superviser she said that she couldn't remove it either.  I told her not to draw the check from my bank that was scheduled for Oct 1st.  And she said OK and thank you and hung up.  I will call my bank and alert them of them trying to draw it anyway.  My next step I think is to write them a letter or e-mail asking them to remove it if I pay.
 
Do you think this is my next best step? Is it worth the effort? This went into collections early 2006.
Regular Contributor
Posts: 144
Registered: ‎05-22-2008
0

Re: credit cards

I'm a novice, but from what I understand, you should first send a Debt Validation letter (DV) to the creditor to make sure the account and amount are correct.
 
Then, if they validate the debt and you determine it is yours, and you want to try to arrange to pay it in exchange for them deleting the negative from your credit report, you send a PFD (pay for delete) letter to them.  Avoid talking to them on the phone, try to get everything in writing.
 
There are example letters all over the forum for the DV letter and the PFD.
 
Good Luck!
Goal: acquire and use Credit Cards, scores in the 700's in 2009
05/04/08 FICOS: EQ = 626; TU = 636: EX = 623
06/21/09 FICOS: EQ = 692; TU = 729; EX = 731 (CCT FAKO)
10/03/11 FICO EQ = 722 (CCT EQ = 749)
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