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Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012

Doing too much "good" looked at as "bad?"

[ Edited ]

Since my last baddie in December, I have been on a mission to pay off debt and become current on everything. I have managed to do the following:

 

 *all items in bold are my only open lines of credit reporting*

 

  • Home Depot- Account Closed 5/11 because of 90 day lates- Put on payment plan and paid in full $3500 by December of 2011
  • Wells Fargo C/C - Account Open - (4) 30 day lates- 7/10, 11/10,10/11,11/11- Current balance paid to $900 of available $2700 as of yesterday  33% Util
  • Barclays C/C - Acocunt closed 2/11 because of multiple lates 30 days - 9/11, 11/11. 60 days - 11/10. 90+ days 12/10, 1/11, 2/11- Put on payment plan and paid    in full $4500 by December of 2011
  • Credit Union Unsecured Loan - current - owe $325 remaining balance
  • Comerica Equity Loan - Account closed - had 30 day late in 9/11 and 60 day late 10/11 - paid in full by December 2011
  • Bank of America Mortgage - Account Open - (12) 30 day lates - 12/10,8/10,6/10,7/09,6/09,5/09,4/09,3/09,2/09,1/09,11/08,8/08. (5) 60 day lates- 1/11, 10/10, 9/10, 9/08, 04/08- Been current since 1/11

Currently I have only (3) lines of open credit- A Mortgage, A Credit Card at 33% util , and an Unsecured loan.  The unsecured loan will be paid in full in (2) months, leaving me with a Mortgage and Credit Card.  My score was at 580 before I paid my Credit Card down to 33% util.  What's going to happen once my loan gets paid off, and this card reports its new balance? What is my next move?  Apply for more credit? Assume a car note? Get another card?  I want to get my score up to 650 by December if possible.  What do I do? 

 

I always though paying debts was a good thing.  I make $83K a year, and my current DTI is at 24%....if I were to pay my Credit Card to 1%, and pay my loan off, my DTI would be 21%

 

This December I will be 1 year without lates

This January I will be 2 years without mortgage lates

 

Where to go next?  Please help me get to 650!!!

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Moderator
LIGHTNIN
Posts: 4,030
Registered: ‎03-24-2008

Re: Doing too much "good" looked at as "bad?"

Other then, the lates on these accounts.......Do you have any other negatives reporting?                  

FICO's Oct 2013 TU711 EQ713 EX723~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: Doing too much "good" looked at as "bad?"

[ Edited ]

ccubedzx3 wrote:

Since my last baddie in December, I have been on a mission to pay off debt and become current on everything. I have managed to do the following:

 

 *all items in bold are my only open lines of credit reporting*

 

  • Home Depot- Account Closed 5/11 because of 90 day lates- Put on payment plan and paid in full $3500 by December of 2011
  • Wells Fargo C/C - Account Open - (4) 30 day lates- 7/10, 11/10,10/11,11/11- Current balance paid to $900 of available $2700 as of yesterday  33% Util
  • Barclays C/C - Acocunt closed 2/11 because of multiple lates 30 days - 9/11, 11/11. 60 days - 11/10. 90+ days 12/10, 1/11, 2/11- Put on payment plan and paid    in full $4500 by December of 2011
  • Credit Union Unsecured Loan - current - owe $325 remaining balance
  • Comerica Equity Loan - Account closed - had 30 day late in 9/11 and 60 day late 10/11 - paid in full by December 2011
  • Bank of America Mortgage - Account Open - (12) 30 day lates - 12/10,8/10,6/10,7/09,6/09,5/09,4/09,3/09,2/09,1/09,11/08,8/08. (5) 60 day lates- 1/11, 10/10, 9/10, 9/08, 04/08- Been current since 1/11

Currently I have only (3) lines of open credit- A Mortgage, A Credit Card at 33% util , and an Unsecured loan.  The unsecured loan will be paid in full in (2) months, leaving me with a Mortgage and Credit Card.  My score was at 580 before I paid my Credit Card down to 33% util.  What's going to happen once my loan gets paid off, and this card reports its new balance? What is my next move?  Apply for more credit? Assume a car note? Get another card?  I want to get my score up to 650 by December if possible.  What do I do? 

 

I always though paying debts was a good thing.  I make $83K a year, and my current DTI is at 24%....if I were to pay my Credit Card to 1%, and pay my loan off, my DTI would be 21%

 

This December I will be 1 year without lates

This January I will be 2 years without mortgage lates

 

Where to go next?  Please help me get to 650!!!

 


Paying off the loan probably wouldn't get much score increase..

 

Your score was 580 before paying to 33%.. what was the percentage while the score was 580? You should push that down below 10% if possible, that is where the best FICO score lies.. FICO doesn't consider 33% as good utilization..

 

Little story.. my scores all went up over 70+ pts when I went from 85 percent util to 8 percent... but I did have 3 open credit cards..

 

Your next big threshold will come when those mortgage last mortgage lates hit 2 years old, you should get a point increase. Then incremental after since those lates are of the 60 day variety.

 

I would venture to say if you stay current, pay your credit card down to 200 dollars, work to get that Barclay's tradeline removed, and send some GW letters on all those lates, you are on your way. You might want to consider opening up another revolving trade line.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Established Contributor
Lasardo
Posts: 717
Registered: ‎04-26-2012

Re: Doing too much "good" looked at as "bad?"

Did I not see a I installment loan? I.e... Car loan or a "credit builder" account. I ask because I know that an installment loan is the next best thing to a mortgage. If you do not want a car loan I found a "credit builder' account. You can have up to 5k.I pay 84 a month for 2k that is available to me in 2 years ($44 for 1k) It posted to my account as a Positive and boosted my sore 30+ points. If you want the info I will PM you..
CS 728- 01/13 from 554-12/11
Goal: 800
Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: Doing too much "good" looked at as "bad?"


Lasardo wrote:
Did I not see a I installment loan? I.e... Car loan or a "credit builder" account. I ask because I know that an installment loan is the next best thing to a mortgage. If you do not want a car loan I found a "credit builder' account. You can have up to 5k.I pay 84 a month for 2k that is available to me in 2 years ($44 for 1k) It posted to my account as a Positive and boosted my sore 30+ points. If you want the info I will PM you..

OP has a mortgage, a home equity loan, and a secured installment loan showing.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Valued Contributor
Rhaeny
Posts: 1,502
Registered: ‎07-24-2011

Re: Doing too much "good" looked at as "bad?"


Lasardo wrote:
Did I not see a I installment loan? I.e... Car loan or a "credit builder" account. I ask because I know that an installment loan is the next best thing to a mortgage. If you do not want a car loan I found a "credit builder' account. You can have up to 5k.I pay 84 a month for 2k that is available to me in 2 years ($44 for 1k) It posted to my account as a Positive and boosted my sore 30+ points. If you want the info I will PM you..

I've been looking for a credit builder account.  The $2K sounds like a good deal.  Can you please PM me the information?  


Major CC's - Barclay's ($3.3K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($15K) | Navcheck ($22K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($10K) | Amex Delta ($10K)
Store CC's -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2K) | Sams Club ($1.1K)
Goal: Age with grace to 750 across the board
Last app: 3/3/2014
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012

Re: Doing too much "good" looked at as "bad?"


LIGHTNIN wrote:

Other then, the lates on these accounts.......Do you have any other negatives reporting?                  


LIGHTNIN- I have one collection that is 1 year and 7 months old since I paid it in full ($135) I called and asked to remove it since it is PIF, but they denied me. I sent a goodwill letter on Thursday, hoping this will rectify it. How old does a collection have to be before it doesn't affect your score as much?

Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


Take the FICO Fitness Challenge
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012

Re: Doing too much "good" looked at as "bad?"

Paying off the loan probably wouldn't get much score increase..

 

Your score was 580 before paying to 33%.. what was the percentage while the score was 580? You should push that down below 10% if possible, that is where the best FICO score lies.. FICO doesn't consider 33% as good utilization..

 

Little story.. my scores all went up over 70+ pts when I went from 85 percent util to 8 percent... but I did have 3 open credit cards..

 

Your next big threshold will come when those mortgage last mortgage lates hit 2 years old, you should get a point increase. Then incremental after since those lates are of the 60 day variety.

 

I would venture to say if you stay current, pay your credit card down to 200 dollars, work to get that Barclay's tradeline removed, and send some GW letters on all those lates, you are on your way. You might want to consider opening up another revolving trade line.

 

-scott


Thank you for the info, I truly appreciate it. This is the exact guidance I need. I'll pay it down like you mentioned, tomorrow. Should I contact Barclays to "remove the account" rather than remove just the lates? I'm hesitant on opening another trade line, but I will if it helps. I don't plan on using credit cards much anymore, but I will do what I have to in order to boost my scores. Thanks again for the tips!!!

Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


Take the FICO Fitness Challenge
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012

Re: Doing too much "good" looked at as "bad?"


Lasardo wrote:
Did I not see a I installment loan? I.e... Car loan or a "credit builder" account. I ask because I know that an installment loan is the next best thing to a mortgage. If you do not want a car loan I found a "credit builder' account. You can have up to 5k.I pay 84 a month for 2k that is available to me in 2 years ($44 for 1k) It posted to my account as a Positive and boosted my sore 30+ points. If you want the info I will PM you..
Lasardo, thank you for the suggestion! I have not heard of a "credit builder" account. Can you tell me more about it? Is it a loan, or something where you pay your own money back into account that becomes available funds. I'd like to learn more. Thanks to all of you who have responded!!! I love open lines of communication, unfortunately friends and family do not have first hand knowledge of this particular topic. You have all helped so much! Happy Fathers Day to all the fellow Fathers out there like myself!, enjoy YOUR day!!

Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


Take the FICO Fitness Challenge
Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: Doing too much "good" looked at as "bad?"


ccubedzx3 wrote:

Paying off the loan probably wouldn't get much score increase..

 

Your score was 580 before paying to 33%.. what was the percentage while the score was 580? You should push that down below 10% if possible, that is where the best FICO score lies.. FICO doesn't consider 33% as good utilization..

 

Little story.. my scores all went up over 70+ pts when I went from 85 percent util to 8 percent... but I did have 3 open credit cards..

 

Your next big threshold will come when those mortgage last mortgage lates hit 2 years old, you should get a point increase. Then incremental after since those lates are of the 60 day variety.

 

I would venture to say if you stay current, pay your credit card down to 200 dollars, work to get that Barclay's tradeline removed, and send some GW letters on all those lates, you are on your way. You might want to consider opening up another revolving trade line.

 

-scott


Thank you for the info, I truly appreciate it. This is the exact guidance I need. I'll pay it down like you mentioned, tomorrow. Should I contact Barclays to "remove the account" rather than remove just the lates? I'm hesitant on opening another trade line, but I will if it helps. I don't plan on using credit cards much anymore, but I will do what I have to in order to boost my scores. Thanks again for the tips!!!

Collection accounts with impact your score for 7 years and 180 days past the date the original account went delinquent. When you have multiple collection accounts, the damage from an individual one starts to age around two years, but when you only have one, its a pretty major derogatory and you should work on trying to get it removed.

 

Late payments: usually the impact of a 30 day late payment is lessened after 2 years, but a 90 day and 120 day will impact you for the duration of the 7 years it shows  on your report. With so many lates on the Barclays account, I would send GW letters to them asking to delete the whole trade line, since you DID pay it off. Use that in your plea, because so many people have welched in the last 5 years someone who paid 4500 dollar has to look good for a GW attempt.

 

On time payments count for 35 percent of FICO scoring, and amounts owed (util) account for 30 percent. FICO also places high value on the last 2 years, as it is designed to predict future defaults, So if you maintain on time payments, let all your late payments age two years, and have low balances on open credit cards you will see a marked improvement in your score.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX

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