Raising my credit score....

[Anonymous]

I have been trying to raise my credit score for the past year, without much luck. My first problem is that everysite i go to gives me a different score for the different CRA's.

This is my current situation:

My credit scores are mid 500's (taking an average of the different reseluts i've gotten... the highest being experian at 616 and the same day the lowest being experian 542.)

I have 3 CO that are all over 5 years old.

And a few collections, had numerous when this journey began. I have sent PFD letters to the remaining collection agency's showing on my credit reports. All have gone ignored.

I have 4 open and current (always have been current) credit cards, total credit limit of a pathetic $5000.

Two car loans, mine and my husband's (the only reason i'm on the loans is to help my credit score.) Both have always been current.

And approx. $28k in student loans  (all are in deferred status, as I am still in school).

........ ok now for the questions:

I have been told by most that paying off the very old CO is a bad idea.... because they could potentially drastically lower my score. Plus they are way past the SOL and are going to fall off my credit reports is a year to 18 months.  I have also contacted them to  ask about PFD with very negitive responces.

Collection accounts open: 4 Should I just send checks to pay these off? Since the PFD letters have gone unanswered. Send more PFD?

We have applied for a mortgage and we're approved for a $300k FHA loan. The loan officer said that my mid score was 553 and that with a score of 580 we could really help our interest rate.  So i need to raise my score at least 27 points by mid-June, which is our estimated substanital completion date.

Please Help!!

[cobra19]

You don't say what your cc balances are.

With 4 cc's - paying 2 of them to $0 balance and leaving 2 of them with < 3% utility should get you 27 points.

[llecs]

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aknessa72 wrote:

I have been trying to raise my credit score for the past year, without much luck. My first problem is that everysite i go to gives me a different score for the different CRA's.

This is my current situation:

My credit scores are mid 500's (taking an average of the different reseluts i've gotten... the highest being experian at 616 and the same day the lowest being experian 542.)

I have 3 CO that are all over 5 years old.

And a few collections, had numerous when this journey began. I have sent PFD letters to the remaining collection agency's showing on my credit reports. All have gone ignored.

I have 4 open and current (always have been current) credit cards, total credit limit of a pathetic $5000.

Two car loans, mine and my husband's (the only reason i'm on the loans is to help my credit score.) Both have always been current.

And approx. $28k in student loans  (all are in deferred status, as I am still in school).

........ ok now for the questions:

I have been told by most that paying off the very old CO is a bad idea.... because they could potentially drastically lower my score. Plus they are way past the SOL and are going to fall off my credit reports is a year to 18 months.  I have also contacted them to  ask about PFD with very negitive responces.

Collection accounts open: 4 Should I just send checks to pay these off? Since the PFD letters have gone unanswered. Send more PFD?

We have applied for a mortgage and we're approved for a $300k FHA loan. The loan officer said that my mid score was 553 and that with a score of 580 we could really help our interest rate.  So i need to raise my score at least 27 points by mid-June, which is our estimated substanital completion date.

Please Help!!

---

The scores through this site are the real deal. These are the one and only FICO score. All others purchased from the CRAs and other 3rd party sites are affectionally called FAKO scores. FICO is used by many lenders including those in the mortgage industry. FAKO scores are a cash cow for the other CRAs; this is why so many sites are promoting these.

A CO from the org. creditor (OC) paid up and in full won't hurt your score at all. In fact, if paid, it may help with utilization if it is a revolving account. Closed CO revolving accts factor into utilization in a very negative way. If it is a recent CO, negotiate a PFD. If very old in comparison to your other accounts, removing that acct via a PFD can hurt your avg. age and hurt your score.

CAs: Don't pay them without a PFD. A paid CA causes the same damage as an unpaid CA score-wise. The only way it helps is during a manual review by a lender, but overall is will continue to hurt you for the 7 yrs. If you haven't done so, try a DV letter. Then follow-up with more PFDs over time and keep doing it until they give in. Try to vary your PFDs to the top people of the CA.

You don't have much time. Utilization is a big killer. Pay down any balances below 10%. I always calculate that for every 1% you pay down to the 10% level, you get back 1 point. That has been very close for me anyway.

Lastly, talk to your lender about paying down the CAs. Maybe you can get a deal worked out in writing that if you pay these CAs, you'll get your rate lowered x%, or something like that. I never did that, maybe it'll work.

[Anonymous]

All but one card is paid off.... the remaining one is charged to 86%  ($1718 balance on  a $2k card.)

My util is hurt by the 5-6 year old charge-offs.... all were credit cards..... two were Cap1 which I have heard is the worst!

Currently my util is showing at 78%:

CO- $672

CO-$1273

CO-$1196

Current card-$1718

Total = $4859

out of $6241 (I am assuming)

If I paid off the the open card with balance, reducing my util to about 50% would that help my score?? If so by approx how many points?

Also, if I get a CA to aggree to a PFD and sign the letter and send it back, will the CRA accept that and remove the item from my credit report? Or does the CA also have to verify it and request that it be removed.... the one's I have done it on just keep verifiying the information and it still shows negitively on my credit report?

[llecs]

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aknessa72 wrote:

All but one card is paid off.... the remaining one is charged to 86%  ($1718 balance on  a $2k card.)

My util is hurt by the 5-6 year old charge-offs.... all were credit cards..... two were Cap1 which I have heard is the worst!

Currently my util is showing at 78%:

CO- $672

CO-$1273

CO-$1196

Current card-$1718

Total = $4859

out of $6241 (I am assuming)

If I paid off the the open card with balance, reducing my util to about 50% would that help my score?? If so by approx how many points?

Also, if I get a CA to aggree to a PFD and sign the letter and send it back, will the CRA accept that and remove the item from my credit report? Or does the CA also have to verify it and request that it be removed.... the one's I have done it on just keep verifiying the information and it still shows negitively on my credit report?

---

Easy part first....If a CA agrees to the PFD in writing, it is the CA who would update with the CRA to delete. After 30 days or so after the agreement and the CA is still listed, then you can send a copy of the letter CMRRR to the CRA and they often will delete. In short, it is the CA who does the removal. A PFD letter as found in these forums, tells the CA to delete, if they agree to the PFD in writing. I hope I was clear and I didn't understand the last question.

For the utilization...More info is needed (CL on the CO CCs; use the CL listed or the "high balance" if none listed). If the one good card is 86% and your overall is 78%, then it has to be said that one or more of your COs is under the credit limit. Am I right to assume that? If they were all maxed out then your utilization would be over 86%. .........If it is 78% overall and you reduce to 50%, then I would predict a 28 point gain. You're points will go up if you reduce any cards at or above 100% utilization. The only downside on paying those now is that you reset your SOL, but on the otherhand you'll likely see at least 5-10 point increase per card you bring down under 100%. Just a guess anyway.

If you haven't done so, pull TU and/or EQ FICO report from this site. On page 2 or 3, usually, there is a mention of your utilization % per that report.

[Anonymous]

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aknessa72 wrote:

All but one card is paid off.... the remaining one is charged to 86%  ($1718 balance on  a $2k card.)

My util is hurt by the 5-6 year old charge-offs.... all were credit cards..... two were Cap1 which I have heard is the worst!

Currently my util is showing at 78%:

CO- $672

CO-$1273

CO-$1196

Current card-$1718

Total = $4859

out of $6241 (I am assuming)

If I paid off the the open card with balance, reducing my util to about 50% would that help my score?? If so by approx how many points?

Paying your one active card down to $0 will greatly reduce your utilization.

Is the CL you are "assuming" the sum of all the CL's on all your cards(active and CO cards)?

Without knowing the CL on each of the cards that are CO showing a balance, it is difficult to know if they are all being included or one that is really under the limit or a couple.

Different combinations could get you the same util, depending on CLs.

Someone posted on another thread that everytime you drop util below 90, 80, 70, 60, etc you gain points. How many is really anyone's guess.

ETA: After thinking about it more.....I don't think all the CO are being included in your util. Reason why is because you said that your current cards have a total limit of $5000, and you only assumed a CL of $6241.......that is barely enough over the $5000 CL your current cards have to cover one of the higher CO's. I think I am confusing myself now.

If you can please post each card's balance and CL-- both the current cards and CO, even if the current card doesn't have a balance.

Message Edited by sidewinder on 04-14-2008 04:29 PM