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I need tips on improving my score in a 60 day time frame

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Anonymous
Not applicable

I need tips on improving my score in a 60 day time frame

Hi all. I am new to myFico and the forum. My bankruptcy (chapt 13) was discharged back in Jan of 2008 and I recently spoke with a BofA loan specialist who told me that my scores ranges from the 3 cb 499,555, & 594. I was dumbfounded because that is a quite a spread there. She said the mimimum score needed was 620 to be approved through them. They use the middle score of the 3. The only reason I called was I purchased my credit score through TU and it gave me a 614 (on friday). I'm not sure why I got that number when what she saw was different. She referred me to this website and said most of the time when she refers people here their scores improve dramatically within a few weeks. I've been doing a lot of reading since signing up and now see that paying down the balance my credit card will definitely help! My question is should I do it over time in big chunks or pay it down the first chance I get and leave it low (the latter is what I'm leaning toward)? Also, Ihave a collection account from At&t 2006...the specialist did suggest I either pay this off or start making payment arrangements. I have an active account with the same co (different service) in good standing and often use them as a credit reference if needed). And last but not least I went to a local store front loan co and took out a $500 loan (in an effort not to be late on 1 of my major bills i.e. rent  & car note) I paid them on time twice but had to pay late the 3rd time. Once I signed on I saw that they are showing on EQ as 30 days late. I want to pay them off as soon as my tax refund comes in! Will this help me?? The loan co didn't report any of the other payments I've made; they only reported the late one. It was a costly mistake because it didn't help me it only added more debt when I really didn't need it.

 

Is there hope that I could meet at least the minimum score of 620 by say mid March? If I pay everything on time, pay down my credit card (leaving a very low balance) and paying off that loan once and for all?

Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame


@Anonymous wrote:

Hi all. I am new to myFico and the forum. My bankruptcy (chapt 13) was discharged back in Jan of 2008 and I recently spoke with a BofA loan specialist who told me that my scores ranges from the 3 cb 499,555, & 594. I was dumbfounded because that is a quite a spread there. She said the mimimum score needed was 620 to be approved through them. They use the middle score of the 3. The only reason I called was I purchased my credit score through TU and it gave me a 614 (on friday). I'm not sure why I got that number when what she saw was different. She referred me to this website and said most of the time when she refers people here their scores improve dramatically within a few weeks. I've been doing a lot of reading since signing up and now see that paying down the balance my credit card will definitely help! My question is should I do it over time in big chunks or pay it down the first chance I get and leave it low (the latter is what I'm leaning toward)? Also, Ihave a collection account from At&t 2006...the specialist did suggest I either pay this off or start making payment arrangements. I have an active account with the same co (different service) in good standing and often use them as a credit reference if needed). And last but not least I went to a local store front loan co and took out a $500 loan (in an effort not to be late on 1 of my major bills i.e. rent  & car note) I paid them on time twice but had to pay late the 3rd time. Once I signed on I saw that they are showing on EQ as 30 days late. I want to pay them off as soon as my tax refund comes in! Will this help me?? The loan co didn't report any of the other payments I've made; they only reported the late one. It was a costly mistake because it didn't help me it only added more debt when I really didn't need it.

 

Is there hope that I could meet at least the minimum score of 620 by say mid March? If I pay everything on time, pay down my credit card (leaving a very low balance) and paying off that loan once and for all?


 

There are 2 versions of TU fico score with many lender using the one not being used here.  The problem your gonna run into is that you will have a hard time getting approved since a fha loan requires atleast 12 months if not 24 months of clean payment history by the bank/lender.  One 30 day late can be overlooked especially if other factors in your file are strong like a large downpayment or large reserves but I would assume since you were taken out one of those payday loans out that you don't have a large sum of money.  Was the at&t collection account part of your bankruptcy, if not what you can do is contact the collection agency and ask them if they would be willing to do a pfd on it (pay for delete) to get it removed off your credit reports.  If they do, get it in writing but again that recent 30 day late is enough to deny you especially with your past credit problems
Message 2 of 10
Jazzzy
Valued Contributor

Re: I need tips on improving my score in a 60 day time frame


@Anonymous wrote:

Hi all. I am new to myFico and the forum. My bankruptcy (chapt 13) was discharged back in Jan of 2008 and I recently spoke with a BofA loan specialist who told me that my scores ranges from the 3 cb 499,555, & 594. I was dumbfounded because that is a quite a spread there. She said the mimimum score needed was 620 to be approved through them. They use the middle score of the 3. The only reason I called was I purchased my credit score through TU and it gave me a 614 (on friday). I'm not sure why I got that number when what she saw was different. She referred me to this website and said most of the time when she refers people here their scores improve dramatically within a few weeks. I've been doing a lot of reading since signing up and now see that paying down the balance my credit card will definitely help! My question is should I do it over time in big chunks or pay it down the first chance I get and leave it low (the latter is what I'm leaning toward)? Also, Ihave a collection account from At&t 2006...the specialist did suggest I either pay this off or start making payment arrangements. I have an active account with the same co (different service) in good standing and often use them as a credit reference if needed). And last but not least I went to a local store front loan co and took out a $500 loan (in an effort not to be late on 1 of my major bills i.e. rent  & car note) I paid them on time twice but had to pay late the 3rd time. Once I signed on I saw that they are showing on EQ as 30 days late. I want to pay them off as soon as my tax refund comes in! Will this help me?? The loan co didn't report any of the other payments I've made; they only reported the late one. It was a costly mistake because it didn't help me it only added more debt when I really didn't need it.

 

Is there hope that I could meet at least the minimum score of 620 by say mid March? If I pay everything on time, pay down my credit card (leaving a very low balance) and paying off that loan once and for all?


Do you have the money to pay your credit cards off? If so, then go online and get them paid.

 

How many cards do you have? If you have one or two, pay the balance off and then don't charge on them again. If you have 3, pay two of them off and leave a tiny balance on one to report...and then pay that off as soon as the statement generates.

 

Basically...the amount picked up by FICO is generally the amount that is reported on the statement. That is why it is important to pay these amounts off before the statements cut.

 

You will likely have questions. Don't be afraid to ask.

Message 3 of 10
Kimberly68
Regular Contributor

Re: I need tips on improving my score in a 60 day time frame

Most importantly, if possible pay the loan off.  Your loan officer should have told you the underwriter, bank are not too happy when they see loans from places like store front loan office.  They knows they charge high interest rates and only attract bad credit.  My husband got a loan like this without talking to me when we came out of BK in 05, because someone told him to, but it really do not help.  We also had a rescoring simulator, it also said the same thing the LO said, and if we PIF it will give him 3 points.  this was a year ago.  Needless to say we PIF
Message 4 of 10
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame


@Anonymous wrote:

I've been doing a lot of reading since signing up and now see that paying down the balance my credit card will definitely help! My question is should I do it over time in big chunks or pay it down the first chance I get and leave it low (the latter is what I'm leaning toward)?

 

Also, Ihave a collection account from At&t 2006...the specialist did suggest I either pay this off or start making payment arrangements. I have an active account with the same co (different service) in good standing and often use them as a credit reference if needed). And last but not least I went to a local store front loan co and took out a $500 loan (in an effort not to be late on 1 of my major bills i.e. rent  & car note) I paid them on time twice but had to pay late the 3rd time. Once I signed on I saw that they are showing on EQ as 30 days late. I want to pay them off as soon as my tax refund comes in! Will this help me??

 

Is there hope that I could meet at least the minimum score of 620 by say mid March? If I pay everything on time, pay down my credit card (leaving a very low balance) and paying off that loan once and for all?


The sooner you pay the cards off, the sooner you get your points Smiley Happy  If you're shooting for mid-march, you really need to pay them off as soon as possible to give them time for statements to cut and the new balance to be reported.  Paying the loan off won't remove the late mark but will look better to a human.  Paying the collection won't get you points either, search for "PFD" for preferred actions.

 

I don't mean to be negative, but if you're having trouble making your payments on a loan, are you able to save money for a down payment and reserves for when you buy the house and things happen?  Furnace dies, fridge dies, plumber comes to unclog the pipe. Good luck!

Message 5 of 10
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame

i see an issue that the UW is going to bring up, but it is the type of thing the LO may not bring up.  Post BK almost always requires perfect credit history for past 24 months.  They give some room for a late or to if you are not post BK, but if you are post BK it is really hard to get approved.  Tack on to that the payday loan and an UW is going to get really jumpy on this file.  Not to say ti is impossible, but they are going to HAVE to see some compensating factors to even consider this.  They need to see low DTI and reasonable down payment/reserves would be my guess.
Message 6 of 10
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame

Thanks everyone for the advice! I paid off my credit card. I left a $30 balance on there. I am going to pay the loan off in full on Friday. I also looked at my original paperwork and remembered that my 1st payment wasn't due until 2 months later...not the very next month which is when they started calling me saying a payment is due. Now I have to get this mess figured out and show them that they are incorrect.

Message 7 of 10
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame

Hello after you filed Bankruptcy you are given another chance to prove yourself to lenders. It usually take 2 years for lenders to accept you in any situation. The only way to raise your credit score  is to pay all bills on time. If you don't have a lot of money to pay the creditor at least pay the minimum payment. I filed Bankruptcy in 2005 and my score was 500 and today my credit score is 750 or above. Don't pay for any services that tell you they can raise your score to be high in 60 days. The only way is to pay bills on time and be patient. Your score will raise. Good Luck.

 

Sincerely,

Diva1234 

Message 8 of 10
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame

Hello  the guidelines have changed in reference to needing 620 for FHA. They were tightening all restrictions last year when I purchase home in 2009. The score requirement is going to be 680 if they haven't already changed the regulations. B of A guidelines and other Banks are very different and has very strict guidelines than dealing with another Lender. I didn't attempt to qualify with any Banks. I went through private Lender. Good Luck.

 

Sincerely,

Diva1234

Message 9 of 10
Anonymous
Not applicable

Re: I need tips on improving my score in a 60 day time frame

Thanks for the tips! I paid off a loan and got them to delete an erroneous negative late payment from my credit report. I've paid down my credit card. I left a very small balance on it $30 (but did so after the statement date). I got an alert last week that my FICO score has up to 530! I am waiting to see what happens once my credit card balance is updated.
Message 10 of 10
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