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New Contributor
jru577
Posts: 63
Registered: ‎06-30-2007
0

Where to start...

Hi, I'm new to myFico. My scores are as follows: TU- 580, EQ 617, and Exp 633. I have all kinds of accounts (well, except a mortgage - which I would like to have eventually.) I really need some help, as I don't know where to start! I have a number of issues - late payments is my number one problem, but I've been on time for the last 5-6 months on everything. I have one charge-off of $5 that was on my Dad's discover card. (We thought we paid it off after he died, but I guess there was a little extra interest we missed and I was an authorized user.) I'm also paying down 2 (was 3) credit cards totalling 7K that were closed by the CCC....is that status hurting me? Is it better to pay off with a small coming winfall, or should I just continue to pay sortof slowly. (although, paying as much as I can afford every month) Student loans...what a mess...they show up in a million different ways, but I have consolidated them down to two loans for $14K each, with one late payment on each at the end of last year. It's so confusing...I have student loans from Sallie Mae from 1999 that were consolidated to the previous mentioned loans, but on one of the reports they show as "too new to rate". On another report, one of them shows "unrated or bankruptcy", but again...that was consolidated. should i dispute? Any suggestions? WHat exactly is a Goodwill letter? What does it do? Why is there such a HUGE disparity between reports? I'm living with my mom right now (to save money and partially because she doesn't want to be alone), but would like to move out in the next 5-6 months. I want to get my scores as high as possible in the next few months, but will need to apply for a small loan ($1-2k)to cover some medical expenses not covered by my insurance. ANy help or advice is GREATLY appreciated. I'm really trying to learn, but it's so confusing! Thanks for your help! Kind regards, Judy
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Where to start...

Welcome.. please start by reading the Scoring 101 thread.
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
0

Re: Where to start...



jru577 wrote:
late payments is my number one problem, but I've been on time for the last 5-6 months on everything.
...
I have one charge-off of $5 that was on my Dad's discover card. (We thought we paid it off after he died, but I guess there was a little extra interest we missed and I was an authorized user.)
...
I'm also paying down 2 (was 3) credit cards totalling 7K that were closed by the CCC....is that status hurting me?
...
Is it better to pay off with a small coming winfall, or should I just continue to pay sortof slowly. (although, paying as much as I can afford every month)
...
Student loans...what a mess...they show up in a million different ways, but I have consolidated them down to two loans for $14K each, with one late payment on each at the end of last year. It's so confusing...I have student loans from Sallie Mae from 1999 that were consolidated to the previous mentioned loans, but on one of the reports they show as "too new to rate". On another report, one of them shows "unrated or bankruptcy", but again...that was consolidated. should i dispute? Any suggestions?
...
WHat exactly is a Goodwill letter?
...
Why is there such a HUGE disparity between reports?
...
I'm living with my mom right now (to save money and partially because she doesn't want to be alone), but would like to move out in the next 5-6 months. I want to get my scores as high as possible in the next few months, but will need to apply for a small loan ($1-2k)to cover some medical expenses not covered by my insurance.


For any account with lates only, send a GW letter.
 
For the $5 Discover charge-off where you were an AU, dispute it with the CRAs. They cannot report an adverse AU on your CR. Period. Only exception is for husbands and wives living in a community property state. This was your late father's, so you are in the clear on this one to dispute and it will go away. If they wanna get stupid, and refuse, you'll have them on a solid violation of the law. There's caselaw on this that cost the CRAs and MBNA $100K. But I'm getting ahead of myself. Just dispute it with the CRAs. Tell 'me you were merely an authorized user on the account.
 
Closed by CCC only hurts on a manual review of your credit report. Say if you were applying for a mortgage and a mortgage were eyeballing the report. But the amount it would hurt is so slight that it would not make a difference. And it makes zero difference in terms of your FICO score.
 
In terms of your windfall, how big are we talking? Is your total debt owed $7K on the CCs plus $28K in student loans?
 
If your current student loans are inaccurately reporting, and I would consider BK to be inaccurate, then dispute them as inaccurate.
 
Read my GW primer. There's a link with sample GW letters. Feel free to ask any questions.
http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=5933
 
The disparity between your CRs is because the CRAs are evil idiots in search of an evil village. No other explanation fits.
 
I certainly understand your desire to get out on your own, but I suspect remaining at home for a bit longer will give you a huge boost to pay down debt and improve your credit situation. It's truly money in the bank to remain at home until you're in better financial shape.
 
For the medical expenses and loan, can you apply the windfall to those expenses? Are these expenses you've already incurred or something you're delaying getting until you have the money? I'm not probing for details about the specifics of the medical expense, and there's no need for you to reveal that at all.
 
Do you have any current, open CCs in good standing?
New Contributor
jru577
Posts: 63
Registered: ‎06-30-2007
0

Re: Where to start...

Thank Noah! I sent three GW letters today. I mostly just have late payments, so I'm hoping even for just one account to remove the lates. We'll see how it goes.

I'm trying to qualify for a mortgage in fall, so I asked my sister to add me as a AU for her CC....I know they won't count for one agency, but am hoping I can sneak in under the radar for the others.

i've already seen a JUMP of 30 points on my TU score after disputing my late father's CO card. (For $5...seriously! FIVE DOLLARS!) I've also seen a little movement on the FAKOs I got before I signed up on for myFicos, so I'm hoping that's an indicator that myFICOs will be going up too.

I have one open Cap1 card with a $500 CL but tons of lates, but generally paid off. I didn't send them a GW letter, figured I'd keep paying on time for a while, but am only using it for gas once a month to keep it active but util low. I also have my Corporate Amex, but I'm listed as an AU on that.

Not sure what my next steps are...the loan for med expenses i thought might be good because I got approved for one in March and have been paying it diligently. Notably - that's also from Cap1. I'm not sure I'd get approved for anything else right now.

Scores are currently: TU610, EX 633, and EQ 617
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
0

Re: Where to start...



jru577 wrote:
I'm trying to qualify for a mortgage in fall, so I asked my sister to add me as a AU for her CC....I know they won't count for one agency, but am hoping I can sneak in under the radar for the others.

I have one open Cap1 card with a $500 CL but tons of lates, but generally paid off. I didn't send them a GW letter, figured I'd keep paying on time for a while, but am only using it for gas once a month to keep it active but util low. I also have my Corporate Amex, but I'm listed as an AU on that.

Not sure what my next steps are...the loan for med expenses i thought might be good because I got approved for one in March and have been paying it diligently. Notably - that's also from Cap1. I'm not sure I'd get approved for anything else right now.


Never too early and never too late to ask for GW. Even if it's Cap 1.
 
If your sister would consider converting the account to a joint CC, that would give you the benefit of her good TL beyond September. You could ask her, and if she says yes, then the most the CCC can say is no.
 
If you don't have a defaulted AMEX ever or a BK in past 7 years, with a 633 EX (very likely what AMEX will pull) I think you're likely to get approved by AMEX. I think it's worth a shot. If you apply for AMEX Green, Delta and Hilton all the same day, at most you'll incur one INQ per CRA--probably only EX, maybe EX and TU. You might end up with 3 new CCs. Well, one charge card and one credit card.
 

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