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I have a 589 with no recent history I have paid of past delinquent (medical ) accounts and no longer have any outstanding debt.
I need a score of 620 to purchase a home. I am confused on what to do and how long it will take. What types of debts contribute to raising scores? Do utilities and cable etc help?
edit to add: Hi, patrickscott, welcome to the forums! I have split your post off of Credit Scoring 101 in order to start a new thread. I changed the title to make it easier for you to find, and for people to help you out. --hauling
10-03-2011 10:38 PM
Did you have a chance to read the first few posts on Credit Scoring 101, where you originally had your post? You need to pick up some background knowledge.
First of all, may I ask where you got your score? Is it a FICO score, pulled from this site? (It's very hard to get a FICO score anywhere else.) "Credit scores" are generally what we call FAKO scores; scores that do not come from a FICO scoring formula and are rarely if ever used by lenders, especially mortgage lenders. If you bought your score here, look on screen 2, over on the left where the negative factors are listed. These are what are holding down your scores, listed in order of the most damaging first. If you will copy/ paste them here, we might be able to give you some useful advice as to what to tackle first.
Secondly, "debts" don't help FICO scores per se; good credit does. If you actively use credit cards now, and you allow balances to show on your statements, that hurts your scores, even if you pay them off as soon as you get your statements.
Thirdly, paid collections stay on your reports and continue to hurt your scores. That's because it's not whether you owe money on collections that makes you a greater credit risk; it's the fact that for whatever reason, your accounts once got behind enough to go to collections, which generally takes being 6 months or more behind on your payments. (It varies a bit.)
Again, you would benefit by doing a lot of reading. Try some of the threads linked in my signature, especially Son of Credit Scoring 101 (an updated version of the thread you posted on.) The "FICO HIgh Achievers" thread gives some profiles of those with good credit and can help you get a mental picture of where you want to be.