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Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007
0

Re: Need advice



bamf70 wrote:
TNWM, The latter of your comments is what I'm really worried about.....




The fact is you don't need to shell out hundreds and thousands of dollars to get a good credit score. You're much better off getting three or four positive tradelines (like credit cards) and managing them shrewdly. Too many people get so obsessed with nuking negatives from their CRs they don't bother to do what is necessary to build GOOD credit. Then at long last when the negatives fall off, they get an 18-point FICO bounce and ask, "is that ALL?" Yes, unless you LEARN how the system works and build GOOD credit, that's likely all you'll get.
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in a credit-scoring postnuclear Stone Age...
Established Contributor
bamf70
Posts: 677
Registered: ‎05-31-2007
0

Re: Need advice

TNWM,

I think I've done that so far. I've opened 3 new CCs this year. All on time so far and all are subprime ($850 limit combined). I know I can probably step up to a Delta Amex or a Wamu or a Hooters right now as well. I have been very careful the last year and have no negatives, only current on time payments (my gas bill actually reports every month). I don't expect a 100pt jump in 2 weeks nor am I concerned with getting everything bad off my report. I paid what I needed to pay to show a 0 balance because I need everything paid before I can go for a house. I would like to have a high enough FICO to not need to go subprime if possible or not need 10-20% down. After paying my debts I would be lucky to get 2.5% on a 200k loan. I do have some investments and could cash in enough including a 401k to get to 10% but that would be my absolute last choice.
Established Contributor
Revike
Posts: 720
Registered: ‎05-04-2007
0

Re: Need advice


bamf70 wrote:
I would like to get in a house later this year or early next year if possible. I had a decent year last year and was able to buy a decent car in cash (8k ish) as well as have enough to payoff about 9k worth of my debt (maybe about 4-5k in actual payments).



OK, after the dust has settled, when you are in the 630-640 range, you might want to talk to a mortgage broker or lender about your situation. Even if the lien is a bit of a drag on your scores, 630-640 should give you some decent options. And the lien IS paid off, which in some respects makes it better than having a large unpaid collection sitting on your reports. If the date of first delinquency was in 2003, it's obviously too soon for it to drop off, and probably too soon to ask the CRAs to bump it off early. But that would make the lien 4 years old, and that might dilute its negative effect as well. Supposedly, negatives have less effect on your FICO as they age.

With all that said, investing $500 in a possibly dodgy credit repair effort doesn't seem worth it, especially if there might not be a massive amount of points to be gained. I'd hang onto the $500 and between now and mortgage time, I'd try to maximize DTI and work on the other usual FICO tweaks (utilization, etc.). Since there are 6+ months left for AU status on two of the CRAs, you might even look into that option (finding a friend or relative with an old clean TL) for a temporary score boost prior to applying for a mortgage. And hopefully things will continue to get better ...
Established Contributor
bamf70
Posts: 677
Registered: ‎05-31-2007
0

Re: Need advice

[ Edited ]
Revike,

You are correct about the lien being paid but what I read was that it's on your report for 7 years from the date it was PAID. That means it's there until Jun 2012. YUCK! But if I have to live with it I will.

I think my util is 7% according to my EQ report right now. I'm pretty sure EX and TU will show similar when they update. I think 630-640 will be as high as I go until some things fall off in 2010. Even the Suze Orman "best case" is 678ish in 24 months. Not bad but that's 2 years away. I don't NEED credit right now as I've lived without it for so long but had I had more when all my problems happened in 2003 I might not have gone so far down so fast or at least made the fall softer.

I don't think I couldlive with getting up close to 700 via AUs only to drop back to 630 when they no longer count :smileysurprised:

I could live with the gamble for $500 but I am concerned about being black listed by the CRAs or even worse losing my personal data. I'm not ready to send him any $ but I haven't completely ruled it out just yet either. You guys are doing a good job of warning me off and that's why I posted in the first place. Don't think I'm ignoring any advice. :smileyvery-happy:

Message Edited by bamf70 on 07-12-2007 07:37 PM
Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007
0

Re: Need advice

Good that you got the CCs. Treat them well, keep your balances under 10% but above zero. When you hit the six-month mark with a CC, ask for a CLI. This will help your score.
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in a credit-scoring postnuclear Stone Age...
Established Contributor
bamf70
Posts: 677
Registered: ‎05-31-2007
0

Re: Need advice

Thanks TNWM. I'm around 7% now on what I have. Because my limits are so low, should I go for the Delta/HH Amex or Hooters or Wamu or would it be best to wait and just go with the 3 I have now?

Anybody have any advice on the 1st part of my question about EQ or TC?

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