Need advice CLD, Utilization, Tax Lien

[Anonymous]

Hello All,

I've been lurking around here for the past few weeks trying to get as much information as I can after 2 things happened to me.

1. I applied to refinance my home and got quoted a high APR because of credit scores. (I was shocked my score was in the mid 700 this time last year)

2.Two days later I received 2 CLD letters from BOA.(I assume they were already in the mail when I applied for refi)

They lowered my limits by about half which brought the credit limits to within mere dollars of my balances. I can't remember the verbiage of why... something about periodic review of accounts.

This caused me to pull free reports to verify scores lender pulled. The scores were about 70 points lower than last year. EQ - 684 TU - 659. My Utilization is now a little over 50%.

I found that I had 2 derog, a 30 day late from Kohl's that's a year old and a public record of state tax lien.

I investigated the tax lien and it stemmed from not reporting SUT for a couple of months because most were $0 (my oversight). The state assessed what they thought I should owe which was put in as a tax lien. I have been working with the state with that one to get it released. How much did that hurt my score?

I called Kohl's to see if they would be nice enough to erase the 30 day delinquent since it was over a year old I my balance has never been over $250. They said they would review and send out a letter within 2 weeks.

Is my utilization the main culprit in my lowered scores? It will take me a while to get below 30%. I've been trying to figure out how to deal with this.

Then, as if a slap in the face wasn't good enough, I got a call from BOA last night trying to sell one of their new cards. I was so mad that I laid into that poor telemarketer but afterward I was wondering if I shouldn't have taken it to increase my credit limit therefore reducing my utilization. Would that have been a hard pull against my CR? Would it have prompted yet another "review" from creditors.

Has anyone took a loan from 401k to pay down debt? is that a good option?

Not sure what to do???

BTW- thanks all, I've been getting great info here.

[Anonymous]

Does anyone have any ideas?

[mauve]

A new account would drop your AAoA (Average Age of Accounts).  I think you're doing exactly what you need to be doing: asking Kohl's for mercy/forgiveness, dealing with the state, and trying to pay down your balances.  I suppose you could write a recon letter to BoA about the CLD (reconsideration), but from what I've read here, it seems that BoA is a tough nut to crack.   

[Anonymous]

Yeah, I've been reading here about BOA and figured that they would be pretty unwilling to reconsider the CLD. I may give the reon letter a try, I guess, if theres nothing to lose.

Thanks for your input!

[guiness56]

The tax lien and high utilization are the 2 major factors in a lower score.

The late is not having a big impact on your score anymore.

I would try to get utilization down to 10% and once the lien is released, getting it removed.  Those stay 7 years after they are paid.

[Anonymous]

Anyone with any luck having a tax lien removed?