I really don't know what to think at this point....

[Anonymous]

Rec'd an alert that I had a score change with TU.  It dropped 31 points from 688 to 657.  This is after my EX dropping 33 points yesterday from 681 to 648 and my EQ dropping 21 points from 681 to 660.  This is really depressing.  I'm guessing it's from my final payment to Citi Cards posting.  The account was being paid off; however it looks like they didn't mark it closed until this past month.  the TU alert didn't give me any reason for the score drop, but EX did which was the Citi account, so I'm guessing since they all dropped significantly at the same time that's the reason.  I also check my Equifax Score Power (FICO04) and it dropped from 606 to 596.  I really don't know what to do to get my scores back up.  I do have one revolving account with Springleaf that I'm paying off.  The line isn't available as it was bought from Household Finance about 18 months ago.  I guess I should be thankful that all the CRA's are showing the original limit of $20,000, I owe $8,200, which is about 42% util.  I'm currently thinking that if I can get the util on that account down below 30% util that it should help bring my scores back up.  It's current and I'm paying almost dounble payments, but I'll be doing my taxes soon and I'm hoping that I'll be getting a larger enough refund to pay it down to that level next month.  We want to refi soon, so I need to get my scores back up...UGH!!!  I really didn't want to go FHA, but we should be able to even with my scores since we have near perfect repayments on our current mortgage (one 30 day late from 2010...already tried to GW it but it's with CitiMortgage and they refuse) and a paid off home equity loan that has 4+ years perfect payment history.  But I just might have to deal with the PMI and then refi again after my scores recover.  

I do have one question though....I have 2 accounts, the Household one I mentioned already and a Paypal account that are listed as closed account and sold to another lender.  Actually the Paypal one was a CO, but it shows $0 balance and I have no clue who it was sold to as it's not showing up on my reports.  It was a CO from 2010.  Do you think I can get these two accounts off my reports since they were sold and if so, would it make any difference on my scores.  All the other accounts that are paid CO's are ones that won't GW delete and most won't fall off until 2016.  Also, I've been on Cap1 and Chase's website to see if I have any offers, and I do, but haven't pulled the trigger yet.  Besides the INQ's, would it be helpful/hurtful to my score to try and get add'l credit.  Maybe a secured card???  Just trying to think through my options.  I was hoping to apply for the refi this month, but I'm not sure it's possible.  GRRRRR!!!!!!

[RobertEG]

If the OC sold the debt to another, they are required to update their reporting to show $0 debt balance, which they have done.

Delinquent debt only fetches pennies on the dollar, so the sale represents a loss to them.

If they took a CO, that offset a bit more of the loss, but not all.

Even if subsequently paid after sale of the debt, the OC gets none of that.

Having taken a loss is usually not very conducive to grant of good will to the consumer.

You can try, but usualy not a very promising scenario for good will.

[Anonymous]

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@RobertEG wrote:

If the OC sold the debt to another, they are required to update their reporting to show $0 debt balance, which they have done.

Delinquent debt only fetches pennies on the dollar, so the sale represents a loss to them.

If they took a CO, that offset a bit more of the loss, but not all.

Even if subsequently paid after sale of the debt, the OC gets none of that.

Having taken a loss is usually not very conducive to grant of good will to the consumer.

You can try, but usualy not a very promising scenario for good will.

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Understood.  However, I am repaying the Household account essentially the full amount but to Springleaf.  Or does that not matter (that's what I'm thinking)?

[Anonymous]

Yes, I would say you need to get 2-3 'active' revolving accounts going. Without several active revolvers, theres really very little 'upward' pressure on your scores and they will stagnate and fall. Check the Cap One preaproval button. Also try SDFCU for a secured card if Cap One gives you no joy.

[Anonymous]

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@Anonymous wrote:

Yes, I would say you need to get 2-3 'active' revolving accounts going. Without several active revolvers, theres really very little 'upward' pressure on your scores and they will stagnate and fall. Check the Cap One preaproval button. Also try SDFCU for a secured card if Cap One gives you no joy.

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I figured that would be the case.  I'm also going to check out a secured card with my CU as well.  I really don't want any inquiries on my report then are necessary.  Right now I only have one on EQ that won't fall off for another year.  How would a couple of recent inquiries affect credit score and a mortgage app if we were to apply in the next 60 days?

[Anonymous]

Inquiries are not a huge hit - a few points generally. If you only have one inside a year, I doubt one more is going to be noticeable. I would suggest doing the Cap One pre-app button as that is a soft pull. But if if it does not tell you that you're eligible for an offer, go to SDFCU and check with them, they are a soft pull too. Their secured card I know is not a hard pull.

You might check in the mortgage forums too - not sure if a new credit line is going to drop you a bit initially or not.

[Anonymous]

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@Anonymous wrote:

Inquiries are not a huge hit - a few points generally. If you only have one inside a year, I doubt one more is going to be noticeable. I would suggest doing the Cap One pre-app button as that is a soft pull. But if if it does not tell you that you're eligible for an offer, go to SDFCU and check with them, they are a soft pull too. Their secured card I know is not a hard pull.

You might check in the mortgage forums too - not sure if a new credit line is going to drop you a bit initially or not.

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Ok...so I took the advice given and applied for a secured card with my CU yesterday.  Waiting to hear back from them.  Decided to check out Cap1 and was pre qualified for the QS1 and Platinum.  Since I want a rewards card, I decided to app with QS1....I was approved and thought I would get the toy limit of $300, which I would have been fine with since I previously had 4 accounts with them, that were CO and I finished paying them off in September.  I was shocked when it came back with a CL of.....$3000!!!!!!  Oh my word!!!!  Shocked and pleased....still can't believe it.  But what I've learned on this forum, I will be treating this card well and never abusing my credit again.  Worth the HP and depending on which CRA they pulled, it will only be my first or second INQ.   (have only one INQ on EQ when I got FiOS last year...no INQ or the other two).  My heart is still pounding.....