Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007

Look Forward, Not Back

Looking at this new board, I'm noticing practically all of the topics deal with old baddies and how to get them removed. That's an important aspect of credit rebuilding, true enough. But my advice is to not neglect the equally--if not more--important side of the coin: establishing new credit and managing it well. FICO scoring has two important properties: immutability of the past, and importance of inertia. Let me break that down for you... Immutability of the past means that once you screw up--once a baddie hits your CR--there's no way you can mitigate it. Paying collections or charge-offs does nothing to improve your score. Once lates go on, they're on. Short of PFDs, there's nothing much you can do about the past. Inertia means that an object in motion tends to remain in motion, and an object at rest tend to remain at rest. Massive objects are more difficult to change the motion of than light objects. How does this tie into credit scoring? Well, if you have six charge-offs and collections, and no accounts in good standing, that's a lot of negative inertia. You've got to apply a significant amount of force--get three or four accounts in good standing--to move that heavy "object" (your credit score) in the direction you want it to go. For more information, take a look at my blog and credit scoring guide. Benjamin
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in a credit-scoring postnuclear Stone Age...
Established Contributor
Posts: 537
Registered: ‎04-02-2008

Re: Look Forward, Not Back

here here! Great Advice!
6/9/08 FICO TU 697 EX698 EQ 618uti 6% (once new accounts hit) BIZ- DUNS 80, EX 35
GOAL 2008- 700s+ new car
2010 BE a first time buyer
Posts: 29
Registered: ‎07-19-2014

Re: Look Forward, Not Back

Thank you! I know this is old but it's inspiring :smileyhappy:
Moving upward and onward!
7/20/14 EX 576,TU 586, EQ 633
Frequent Contributor
Posts: 259
Registered: ‎06-26-2014

Re: Look Forward, Not Back

Well said! 

Starting Score: EQ 615 (MyFICO) TU 588 (Walmart) EX 576 (EX Website) Started this journey 06/26/2014
Current Score: EQ 642 (MyFICO) TU 642 (Walmart) TU 644 (MyFICO) EX 645 (MyFICO) As of Jan 2015
Goal Score: 750 or higher across the board

Take the myFICO Fitness Challenge
Regular Contributor
Posts: 220
Registered: ‎10-05-2013

Re: Look Forward, Not Back

You make an incredibly important point here. I started rebuilding in January of this year but did not open new TLs until May. I SO wish I had done so in Jan and had started the gardening process then. I have close to a clean report (sudden TW cable collection that is in DV process right now since I do not and have not had TW cable) but with my file so thin my scores still have quite a ways to go!!

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