@summerblessing wrote:
Hi yall!
Ok, I started my credit repair process in October of last year. When I first started, both husband and I were in the low 500's, in fact, he even had a score around 476! it was terribly embarassing.
Anywho, we decided that we needed to buckle down and work hardcore on our credit situation, so I came here, and thank the Lord I did! I was able to get my score from 530 to 644. Most of my CA's were nice and allowed me a PFD. I still have Cap One on there that refuses, but hey. I am not complaining since my score has risen so much.
Hubbo and I both took out "holiday loans" from our credit union to pay off all our debts. Well, that worked wonders for me. He, however, is dealing with Asset Acceptance for 2 old charges (PIF in November 09) and they refused to pfd.. And he has another from WFNNB/Pacsun which refused to delete as well. His scores have risen tremendously, and now he is 576-595.
My question is.. with no more "open" collection accounts (as they are all pif), and having that loan (which I am guessing helped his score.. since he has not missed a single payment, and even pays a little extra), can we expect to see his scores go up a little more? If his holiday loan was $1000, no payments missed (it shows good standing on his reports), if we pay a big chunk, say around $500, which will leave a$200 balance, should we see a raise in score?
Just curious. I'm desperate to get him into the 600 club.
Thanks,
Summer
First of all congratulations on the score increases. I know how frustratingly slow that process can seem to take but with patience all things are possible.
But those collections are a negative whether they are paid or not. Getting them deleted needs to be a priority for you.
Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.
Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. FCRA 605(a)(5). The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.
If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for 7 1/2 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That is one single date-certain, and cannot be reset. FCRA 605(c).
If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is 7 1/2 years from the same DOFD on the OC account, and the CA cannot reset this date. Again, FCRA 605(c).
Utilization of credit is a big factor in scoring but util of revolving credit is more critical than util of installment credit. In fact util of revolving credit is 30% of the total FICO score. Unfortunately the util on that loan at the CU has very little impact on your score. Making timely payments is a big positive so keep doing that.
From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
You can do the same thing with hard work.
