Frustrated and confused

[q_thurst]

i have become so discouraged over the credit reporting industry.  I have spent the past 3 years cleaning up my credit. i have two paid collections from 2 years ago...credit one and peach direct and a closed Aspire visa where  I'm currently paying down the balance, which is at 650 right now.  I have 2 visa's each below 10% of usage - (1) a first premier..400 limit with $54  balance; and the other is an HSBC Bestbuy $300 limit $62 balance. Have not been late on either in 3 years. I also have Macy's credit  that i just opened in dec 2010 with 150 balance and 400 limit. Secured installment loan for 500 with the credit union ...i was told this would help my score...just open in dec 2010...i pay 85 per moths for 6 months. car loan ...two 30 day lates last year. My fico scores are 580 tu, 580eq, 613 exp. Shouldn't my scores be higher based on my file? Could there be some type of error in how my scores are being calculated?

[Anonymous]

q_,

First, your math may need work... You say you have two visa's each below 10% of usage. $54 balance with $400 limit is roughly 17% utilization.  $62 balance with $300 limit is roughly 19% utilization.  Get them under 10% (Less than $40 and $30).

Get Macy's under $40.

Write a Goodwill letter to try and get the two 30 day late marks off.  But if you've only had the loan for 6 months (?), not so good a chance.

Are you young; under 25?  Chances are you have limited credit history length.

No other bad items?  Public records?

Pay-off the credit union loan (is it showing on CR?) after it's been open for 6 months and use the funds to open a secured CapOne credit card.  Try to allocate minimum of $500, but $1,000 would be better.

[Anonymous]

Also, do you have a family member (almost twice your age would be best) that you suspect would have very good credit?  If so, approach them and explain how you are trying to build positive credit.  Explain that the problem you are having is that the length (age) of your credit profile is too short.  Explain that one technique that could help you would be if someone with a long, established credit card...with a low (less than 10%) utilization would add you as an Authorized User.  That would provide a nice boost to your credit score (depending upon which algorithm is being used).  Of course, you would give them the card to hold and only need to be an AU for about a year...then they could remove you.

Just another possibility to help.

[q_thurst]

Thanks for the advice. I've had the installment loan for two months now, so i have 4 more payments left. Should I accelerate payments and pay off sooner? How successful are GW letters aimed at removing 30-day lates on active account? I called customer service for my visa's and requested to no avail.  Actually I'm 40...in the process of rebuilding. I've had my two visa's since 2006 and the car loan as well. No public records, and the only bad items are the two charge-offs, but those have been paid and now show a zero balance.

Q

[Anonymous]

No, keep that installment for the full 6 months and make sure it's reporting on your CR.

Goodwill letters work approx. 30% of the time (not scientific, of course)...but don't get discouraged if it doesn't work the first time around.  Keep trying every couple weeks.  Read up on GW strategies in this forum.

[q_thurst]

thanks. As an fyi, i just checked my tu score on my fico, and it's now up to 615. Two weeks ago, it was at 580; and two weeks prior to that it was at 627. Is it common for credit scores to fluctuate so frequently?

Thanks

q  

[Anonymous]

Not without something changing on the credit report itself.