The Futility of Trying to Improve FICO

[Anonymous]

That's the rub...you wouldn't think a few charge-offs would be that bad, but I can't get approved for anything, even department-store cards. You'd think I'd joined Al-Quaeda or pulled a string of bank robberies, from the way the credit world shuns me. That's why I'll probably end up just saying the heck with it and buying a home abroad.

[dlm0820]

that carries a $79 annual fee.  It's a little steep for the fee, but all I could get 3 years agao when I applied.  I have the CL up to $1,200 which isn't bad for a rebuilder card.  I don't remember what my scores were 3 years ago, but I'm sure having the Household card helped bring them up.

[Anonymous]

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@dlm0820 wrote:

that carries a $79 annual fee. It's a little steep for the fee, but all I could get 3 years agao when I applied. I have the CL up to $1,200 which isn't bad for a rebuilder card. I don't remember what my scores were 3 years ago, but I'm sure having the Household card helped bring them up.

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$79...no thanks, that's about 8% or so of my PLANE TICKET to a country where no one's even heard of FICO...lol.

[Anonymous]

Well at least it reports better than it used to.  I'm sure its the same card I got in '03 just the fee went up.  I closed mine in 06 luckily I had another card opened at the same time so my average age didn't suffer a whole ot.

[Anonymous]

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@dlm0820 wrote:

that carries a $79 annual fee. It's a little steep for the fee, but all I could get 3 years agao when I applied. I have the CL up to $1,200 which isn't bad for a rebuilder card. I don't remember what my scores were 3 years ago, but I'm sure having the Household card helped bring them up.

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$79...no thanks, that's about 8% or so of my PLANE TICKET to a country where no one's even heard of FICO...lol.

Not to be blunt New World but your mistakes are what cost you on your FICO score.  If you'd like to improve, you'll have to pay the price of those mistakes.  Onthing that will bring your score down and keep you from getting better offers are low limits.  From what you say BOFA isn't in a big Hurry to give you better limits.  HHB does regularly increase.  79.00 may be a portion of a plane ticket. However, a 50 point FICO boost can theoretically save you thousands of dollars in subprime lending interest.

[Anonymous]

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@Anonymous wrote:

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@dlm0820 wrote:

that carries a $79 annual fee. It's a little steep for the fee, but all I could get 3 years agao when I applied. I have the CL up to $1,200 which isn't bad for a rebuilder card. I don't remember what my scores were 3 years ago, but I'm sure having the Household card helped bring them up.

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$79...no thanks, that's about 8% or so of my PLANE TICKET to a country where no one's even heard of FICO...lol.

Not to be blunt New World but your mistakes are what cost you on your FICO score. If you'd like to improve, you'll have to pay the price of those mistakes. Onthing that will bring your score down and keep you from getting better offers are low limits. From what you say BOFA isn't in a big Hurry to give you better limits. HHB does regularly increase. 79.00 may be a portion of a plane ticket. However, a 50 point FICO boost can theoretically save you thousands of dollars in subprime lending interest.

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But the problem is my score will never improve. As soon as it starts to go up, one of the collection agencies steps in to RE-report the old debt and list last month as the "First Reported" date, thus knocking my score down again. I don't mind that the old debts are listed; as you said, those were my mistakes. What I DO mind is when they are RE-listed, and RE-RE-listed, and so on, ad infinitum. The banks will never raise my credit limit until my FICO improves. And my FICO will never improve until I get things like higher credit limits. See the conundrum? So the only answer I have if I ever want to buy a home is to emigrate to a country where they've never heard of FICO.

[Anonymous]

What you are describing is called re-aging which is illegal.  Reaging is the process through which a new last date of delinquency with the original creditor is reported.  Have you noticed a change in that date? Though they don't have a right to do this, they do have a right to report it monthly as unpaid.  While true the longer it goes without reporting the less impact it has, have you ever considered paying them off to stop it?  Are they affordable?  How long has it been there?  Are you close to your reporting limits as far as seven years?

Moreover as long as its active and within the 7 yr period it can be sold over and over again and each new collection will show up on your report.

If they are reaging the debt, contact a lawyer orthe FTC.

[dlm0820]

with my HHB card and got increases about every 6 months for about $250 without doing anything except paying on time.  Yeah, it sucks that I have to pay $79, but that's the price I pay for messing up my credit.  I'll take the $1,200 credit limit and have them report as an account in good standing and pay the $79 in order for my account to age and show my ontime payments.  Same goes for my auto loan.  I'm paying through the nose in interest, but it's another trade line and I have to bite the bullet and deal with it.  My wife and I make enough so that we can make the payments, but if making a large payment on my car will raise my score and get me a prime rate for a mortgage so be it.

There are lots of things you can do NewWorld.  Have you actually tried to disupute the re-aged items?  Brammy's right, they can't keep adding it back and re-aging it.  7 years from the date of last deliquency is when the accounts hould fall off your report.  Also, you can do pay for deletes, something I wish I knew before I paid my collection account.  There's no harm in asking, just make sure to get it in writing if they say they will.

I just called Macy's last week to tell them to please update my file as the balance they show me owing was reduced in a settlement I made with their CA.  The woman was very nice and agreed to update my file.  If they don't, then I'll disupte in writing with the CA's showing the cancelled check with their Collection Agency.

Instead of compalining that you can't do anything, try doing something first.  Really look at your report and see what can be disputed.  Worse comes to worse, go for a pay for delete with the CA and see what happens.  Don't just blame FICO for your score not going up.  You are ultimatley responsible for your own actions and score.  If you keep letting everything go and not following up when stuff is reported, of course your score is going to go down. 

You gotta think positive.  Last year was a good year for me.  I managed to pass my licensing exams, my son was born and I got a decent bonus at work.  I'm gonna try to think positive for this year as well.  I'm gonna think that this year I will get above 700 on my scores so that by next year we'll be able to get the house that we want.  You'd be surprised as to how much mental attitude plays a part in what we do.  If you think you will fail and everyone is against you then you will and they are.

Credit is a game that you have to know how to play.  One strike and you're out unfortunatley.  You gottat pick yourself up and recoup. 

Good luck with whatever you do.

Message Edited by dlm0820 on 03-25-2007 02:06 PM

[Anonymous]

Actually, I have been doing a lot to work on improving my credit score...I got the secured card throughh BofA, another card through CapitalOne, I've paid them both on time.  The problem is that the FICO scoring system is configured to recognize and be influenced by only the NEGATIVE, not the POSITIVE.  Every time my score starts to rise, something beyond my control comes along to knock it back down again.

The bottom line is that this whole system needs reform.  The Feds need to step in and outlaw some of the practices that have been used against me, like endlessly re-reporting an old debt.  They need to mandate that EVERY creditor report monthly, including credit limits, and that the data submitted in these reports be current.  The FICO scoring system needs to be reformed to better take into account the positive steps people like me take to improve our credit.

But it would be easier to push Earth out of its orbit than it is for any citizen in this country to make a difference these days.  So the bottom line is it's easier for me to emigrate to another country and make a fresh start there than it is for me to improve my FICO score here in the U.S.  I've been pushing at it for six months and have made exactly zero progress.

It shouldn't be that way, but it is. 

[Anonymous]

Hey NewWorld,

Not to talk down on your or anything but is the debt you owe too great to pay off?  It seems like you're waiting for the 7 to 10 year listing period to expire and all will be forgotten.  Something tells me that it may be for a substantial amount of money since they are determined to keep your credit score down by re-listing it.  Have you considered working on paying off the debt by any chance?  Creditors and CA's are very hip to this stunt and will try anything to keep reminding you (and other potential lenders) of the outstanding debt you have. I also tried, as many people do, to wait until the listing period to expire and hope that it is erased off of my report. During which I realized that unpaid accounts typically go from late then to delinquent then to seriously delinquent/dorrogatory then to collections then to judgements. Judgements can stay on your report and hurt your score for up to 10 years and WILL NOT be removed until the judgement is satisfied through the court in which it was filed. 

The creditors and CA's bank on the fact that sooner or later, you are going to come into a situation where you're going to need credit whether it's for a house, car, student or personal loan.  Most people at some point in their lives need credit in one of those forms and that's where your credit report and your FICO score comes into play.  There are many ways they can hurt your credit score but two commom ways are simply re-listing bad debt or entering a civil judgement against you.  I'm almost ashamed to say that I've had many judgements before because I tried to "wait it out" like you and most other people.  If you could try to pay off the debt, you may find that they may be willing to be more flexible in terms of a payment plan until the debt is paid because the bottom line is they only want the debt paid.  They really don't have any interest in keeping your FICO score or you down.