Credit Repair

[Anonymous]

We used a "consolidation" company in 2005 when we started having some trouble keeping up with our credit card payments. On the one hand, they were able to help us get reduced and even waived interest rates and we paid off $45,000 in debt in a year and a half. On the other hand, almost all the issuers (some of which we'd had accounts with for years) closed the accounts. Our credit score is about 675 right now and we haven't used much credit since then but the one card we kept open now charges us 22% on any balance we carry. What's the best way to increase our score? Is there a reason to do anything at all since we really don't use credit but generally pay cash for everything?  

[RobertEG]

Keep that one card active.  Without it, you will have no revolving CL, no % util,  or active payment history in FICO.

The high interest rate is meaningless if you PIF each month.  Charge a bit each month, and PIF.  If dont show activity every three months or so, particularly with your prior credit woes, which are still showing in your CR, that one remaining creditor may close that account.

You are to be congratulated on your credit repair actions.  But just walking away from credit maintenance is not the course I would chart.

[Anonymous]

Thanks for the advice. Given that we shall continue this path and keep the current card, what else can I do to raise our score a little faster? We're paying our mortgage, utilities, cellular, etc. bills on time but the score doesn't seem to be rising at all. We recently bought a car and although our bank readily financed it, we paid it off with money we'd saved and with the proceeds from the sale of another car. Even that didn't seem to budge it.

[MarineVietVet]

---

@Anonymous wrote:
Thanks for the advice. Given that we shall continue this path and keep the current card, what else can I do to raise our score a little faster? We're paying our mortgage, utilities, cellular, etc. bills on time but the score doesn't seem to be rising at all. We recently bought a car and although our bank readily financed it, we paid it off with money we'd saved and with the proceeds from the sale of another car. Even that didn't seem to budge it.

---

Welcome to the forums.

Unless you are looking to apply for credit in the near future (within a year or so) I would not give a second thought to your score. Just keep paying everything on time and follow Robert's advice on proper use of your CC and you'll be fine. Let everything age. Paying off that car loan would have very little impact on the score. FICO looks at at unsecured debt and management of that debt much more closely than installment loans.

Good luck to you.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".