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My EQ score is 666 and TU is 677. I got a credit card trying to pay for classes before they dropped me from all classes at the last minute. Of course I didnt have the money to pay it back and it went into collections. This was about 6-7 years ago, and it was paid off about a year and a half ago. I also found 2 medical collections on my report from 4-5 years ago that I never knew about. One was $40 dollars, and the other was $66. I paid those both off as well, after reading that anything under $100 will not lower my score for falling into the "recent activity" category. I got a new credit card 7 months ago, and have kept it under 30% of my limit, and paid it off in full, and on time every month. Can anyone give me an idea on how much my score might be raised, and about how long it might take? I hoping to get it up at least 10-20 points before seeing if I can get an auto loan, but with 174K on my current car, I am not sure how much time I have!
Hello and welcome to the forums. I see this is your first post here, but it seems like maybe you've done a little research on your own before posting. Congrats on now working to improve your finances. So, the credit card that was paid off, what's the DOFD of it? If it's from 6-7 years ago it's nearing the end of the CRTP and could be falling off on it's own pretty soon. As far as the medical bills, I've heard about the $100 but not exactly sure if it's true or if it is affected in all scoring models, and there are plenty of scoring models. You should write GW letters for all those that are paid. You could get lucky and just get them deleted. Your scores are midrange and have room for improvement. You will probably want to get another CC, you will need the TL to give your score room to grow. Looks like you're good to go for a Walmart card if you shop there or get gas there. They are backed by GE and GE is great with CLIs, it will grow with you and help you get better cards down the road. Should you have any questions on the collections, jump into the Credit Rebuilding thread and pull up a chair. We will be happy to help you there!
The first DOFD was in July of 2007, and the second one was May of 2008. I have heard both sides of the issue as far getting another CC. Many say that you should never get a second if it is not needed, and in my case it is not needed...unless, like you mentioned, to get another TL. I do worry that getting another card will just drop my score even further due to another credit inquery. How long will it take for that to repair itself? I did receive a letter from one collection agency stating that they have requested a deletion of the account, which Im assuming means it will be taken off the recored as if it didnt exist, and not marked as paid in full or anything? I checked my fico score alerts and I have not seen anything that has changed, so Im assuming that this is still on my credit report. I will give a whole month and see if it has been deleted. Since I am needing a better score sooner, rather than later, would you recommend waiting until after I get approved for this auto loan? And thanks for the help!
While I do agree that you don't get credit if you don't need it, if you have a thin file it's not a good thin either. You do need another card, your scores will not grow sufficiently without it. If you were to have at least a couple revolving and an installment account you will be generating a better score. Yes you will take a hit for HP and AAoA but these will quickly fade and allow your scores to go up.