How Can I Build My Credit? My score will not move?!

[belle032]

Hi Everyone - I am sure this question is on here a million times but my FICO score is 591 and I cannot get my score to move.  I have paid off all of my credit cards and collections.  The only account outstanding is a car loan which is in perfect standing and more then 50% is paid off and I have never been late.  What can I do to help my score?

[RobertEG]

I am just speculating, since specific account information was not provided.

But one of the basis tenants of FICO scoring is that it is based on the occurance of delinquencies.  Paying any debt does not remove the fact that a delinquency preceded it, and payment does not erase the prior delinquency. 

If a debt is paid, the remaining approach is to contact the one who posted the derog, and ask for their good-will deletion of the prior derogatory reporting.

That is an after-the-fact request that is solely at their option to consider.

[Anonymous]

Hi belle032 and welcome!

You mention that your FICO score is 591, so I'm assuming you've pulled your reports and scores here.

What are the items listed under "What's Hurting Your Score" and "What's Helping Your Score"?

If you share that information with us, we'll be able to give you some good advice on moving those scores northward.  This is a great place to get helpful advice - lots of us have been where you are.  Glad you're here!

[belle032]

Hi All,

Thanks for the responses.  I'm new so I didn't realize my account is not set to receive an aalert when I get a response.

BeamMEup, here is what's helping my score: Low Credit Usage

Hurting my score: deliquency + Collections, Bad Payment History, short account history, & recent collection

So with that info I pulled I think it was Equifax and all of my accounts read payment history in "Good Standing" but myfico scorewatch shows these same accounts as payments over 30 days late.  I talked to someone about my report and they suggested that my paid off accounts need to see activity and suggested I start using my paid off credit cards and pay balances in full each month (on time of course). 

Thank you for the help and I'll be back more often.  Seems like a lot of helpful people here with great information!

[RobertEG]

Welcome, Belle, and please keep coming back.

I will make only two major points regarding your apparent lack of improvement in your credit score.

First, is that FICO scoring welcomes the payment of debt for some scoring considerations.  But payment of debt does not erase any derogs that occured along the trail on the OC or CA accounts that reported negatively to your CR.  So the major category of payment history is not improved.  If all accounts are now paid, or in good standiing, that is good for future FICO scoring. But it does not serve your current credit score.

Second is that the prior derogs remain, and FICO uses them as the primary indication of your risk for future default.

Those prior derogs drop, under provision of law, from your credit report at 7 - 71/2 years from various dates.

If you want earlier deletion, and the debt is paid, you must resort to the process of sending good-will (GW) letters to those who have posted, asking them to delete at an earlier time.  They never have to accept such GW requests.