How Many Points For...

[JamesKnox]

Hey Family!

As you all may know, I am fairly new to the forums but have already learned so much and SOOOO eager to continue to build my credit. I get so inspired when I head over to the CC Forum and see people talking about "requesting a 10k limit and the bank countered with 7.5k)!!! I WISH!! I would be lucky if I requested a $200 limit and they countered with $25. HAHA. 

Anywho I have a couple of questions...

Currently my EXP FICO is 568. 

I have...

Capital One Charge Off - $200 CL --- Balance is $355 (Charged off this year)

Bank of America Secured - Just got this card last week. $300 CL - Plan to have report LESS than 10% bal and pay in full monthly.

6 Collection Accounts (2 Medical, 4 Misc) The 4 random collections total to UNDER $700

Judgement Capital One - PAID - $1550 back in 2009

4 Inquires. 

So my exact questions are...

1. If I were to pay the Cap One charge off in full and pay the 4 collection accounts (which total under $700 -- can't pay Med right now; but soon) -- How much should I expect FICO score to move? (2 of the 4 collections agreed to PFD)

2. If I become AU on moms credit card (Limit $5k, Balance $0) and do all of the above -- How much should i expect FICO score to move?

[SunriseEarth]

Hello...

Congrats on taking some steps to improve your credit.  You definitely have some obstacles to overcome, but many of us have been there.  My EX FICO was a 590 about a year ago.  I've only very recently became aware of these forums and what I can do to raise my scores.  I'm expecting to see some progress in September scores!

As for the PR, time will negate the effects of a judgment, but other posters in the thread have offered great advice.  My Ch 7 BK was discharged in October 2005 and it will be on my CRs until 2015.  And it's definitely the big item holding me back.   Correcting that is a great priority

As for the collections, I think it's great that two have agreed to PFD.  As for the others, you can settle and try to get a GW deletion later, if they won't do PFD.  

AU on Mom's card is a great idea.  You'd really have to let it report for about 6 months to see the difference.  I also think keeping a low UTIL on the BofA secured is a great idea, too.  Once you get back into the low 600s, there's a few store cards you might be able to obtain or you might want to try for another rebuilder card to add some positive credit to your CRs.

Anyway, just keep at it.  It may take some time to really see the results on your scores, but they'll be dramatically better.

(Content edited to be more in line with excellent suggestions in thread!)

[madmann26]

James,

The Cap1 CO is being factored into your utilization right now. Pay it, whether it's settled or PIF it's not going to matter unless a manual review is done. It's CO'd and it is  what it is.

Once that is paid, Cap1 will probably due 2 updates to your credit files. Once for the settlement and another to 0 the account out. This will net the largest score boost. After paying them, start the GW process to see if you can get the payment history removed. Cap1 will more then likely not PFD.

Start working on the paid judgement. This is also causing great harm to your score currently. If you still have the paperwork from court, contact the attorney that Cap1 used and ask if they will file a 'motion to vacate'. If they do (and most likely they will), once the judge signs it, it will be removed from your credit file. This usually takes some time so please be patient with the process.

Being an AU is a great start. However, I would caution you. Some people get burned by this simply because the account holder decides to go run up the card and not pay it before it reports. If you are certain this will not happen, then go for it. It WILL help.

[JamesKnox]

bump

[guiness56]

The newer the collections the more impact on your score.  For those it is really hard to even guess at how much a boost would be. 

For the utilization, and YMMV, I always say between 5 and 10 points for every 10% paid down.

[JamesKnox]

guiness56

So let me get this right...I am like 175% UTIL right now because of that 200 limit with balance of 355. 

So are you saying that on the high end... going down to a 0 util could add 175 points?????? and on the low end...87 points??

[madmann26]

It's a YMMV type of thing.

But yes, dropping the util from 175% to 0% or a better case, 10% would net significant gains.

[rainobot]

I paid a charge-off in full a week ago. My Equifax Fico increased 126 points, TU increased 50 points. You might get some otherwise advice from gurus in the forum, but it eventually boost your score.  

[JamesKnox]

But it's a chargeoff madmann. I can't get it to 10% can I.

It's better to just pay in full to $0 balance right?

[JamesKnox]

raino..

How did your score change so fast?

You paid a week ago and your CR already updated??

x