Credit Card Center Advertiser Disclosure†
02-12-2013 08:57 AM
Hi Im new here and I was online last night reading the forum and Im so happy I found this! long story short, in 2012 we paid about 90% of collections (settled) for about $15,000. I have 2 collection still open for about $4,000. I opened a small CC in oct 2012 to help my CS. We really want to buy a house ran our credit in Dec it was middle 607 and ran it again Feb 3 2012 and middle is still 607. Why didnt it go up?? thats the only thing holding us back from buying a home. Can you have Collections removed from your CR? if so i dont even know where to start.
02-12-2013 09:07 AM - edited 02-12-2013 09:08 AM
First: Try to have the ideal mix of credit and the ideal utilization. That means 3-5 credit cards (ballpark), at least one installment loan (like a car loan) and I think a mortgage too-- but dont go buy a 500 000 dollar house for this! Also, you should only be using like 7-10% of all the credit that is avialable to you. The rest is time and making sure the baddies are reported correctly, which I think others can answerbetter.
02-12-2013 09:09 AM
Another thing: When you settle a collection, you can get them to not report it on your credit report as part of the payment agreement. So, don't pay untill they agree to that.
02-12-2013 09:56 AM
Paid and unpaid collections are scored the same by FICO. Paying them does not help your score. To have any chance at an increase you would need them removed. Since they are paid and/or settled, you can start sending Good Will letters asking for the reporting enity to remove them.
Did you get your credit reports from annualcreditreport.com? If not, that is where I would start. You get one free from each CRA every 12 months.
How is your CC reporting? Any lates? How is the utilization? There is no set in stone rule on how many CC you need, however, you could probably use one more. Only because FICO does not like to see all CC reporting a 0 balance. They like to see some usage. With 2, you could have one report 0 balance and the other report at 9% or below.
When do you plan on trying for a mortgage? Reason I ask is it is not a good idea to apply for any new credit within 6 months of applying.
What else is on your CR? Do you have installment loans?
02-12-2013 10:06 AM
Hi we had a lenden run our credit in Dec and in FEb and it hasnt changed at all. We have a instaalment loan bal of $6,000 will be paid off in Sept. 1 CC its 6 months old with a limit of $300 and it shows from $12-40 a month bal on report. I think the GW letters is what I need to do, i have about 10 collection co. to send them too!
02-12-2013 10:15 AM - edited 02-12-2013 10:16 AM
I would start with the GW route first. Getting those or some of them off, may give the boost you need.
Is the OC associated with the CAs reporting also?
Are there any lates on the installment?
02-12-2013 10:46 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.