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10-10-2017 02:31 PM
HI Everyone! First post and looking for some advice in the rebuilding phase. My current Fico scores are EQ:616 TS:618 Exp: 626. I am hoping to get to 700 soon. Long story short I never paid attention to my credit. I worked with cash and was reckless while young. I saw no use for credit back then but am looking to buy a home in the next year or so.
I have two accounts in collections: one for $1486 and one for $380- One reported in 2016 one last reported in January of this year (these accounts were closed over a year ago though)
I have a car payment in good standing, have had it 3 months pay a bit earlier than the due date.
A secure credit card with my credit union with a $1000 limit it last reported at $600, (I wasn't aware of the reporting date and paid it down to $30 after it reported)- The payment was on time though. (I have had this card for almost 2 years)
3 Store cards- One was increased about a week ago to $920 from $400 without my prompting. Two are just for an increase in availability. They are $250 each with zero balance.
A Fingerhut account (my oldest current account which is why I haven't closed it- only $30 used) of $400
I also have student loans, while they aren't in default as I am still attending school, I know they count towards my debt to income ratio when I attempt to apply. Everyone says time will help and I agree. Just wondering if there is anything I could do to move it along.
I am ultimately trying to figure out how to get my score to move. it hovers in this range each month. 615-630. I have no late payments on any of my current accounts although one of the companies in collections showed up on my credit report this year after I disputed it. (bad direction from a friend) Any suggestions?
I signed up for my Fico and will get a full Fico 3B score the end of November.
10-10-2017 02:36 PM
10-10-2017 02:45 PM
Fingerhut is useful for the free EQ score monthly if they still offer it. Throw them a $5 bone every 6 months to keep it open but never report a balance.
Use the AZEO Method for maxing FICO scores -- let all your cards report a $0 statement except for ONE card which reports anywhere from $3 up to 8% (then pay it in full after it reports that small balance to the bureaus).
Keep paying your installment loan, that's important -- getting the balance down will help your scores.
If you have any collections, try to get them to do a PFD (pay for delete), in writing. Then just pay them if they agree. In some rare cases, some collections can be "recalled" to the original creditor if you call the original creditor. If so, do that so you can pay them and get the collections deleted from the bureaus.
You're in great shape to see a decent rise in your FICO scores in a year or two. Don't open any more store cards unless they're valuable rewards/cashback on things you really use.
Open a savings account and start socking 10% of your income into that. Savings is more important than credit limits.
10-10-2017 04:05 PM
Thank you. I plan to try the PFD. I have also opened a savings account. When you say "- let all your cards report a $0 statement except for ONE card which reports anywhere from $3 up to 8% (then pay it in full after it reports that small balance to the bureaus)." Do you mean credit and store cards?
10-10-2017 04:18 PM
Yes all revolvers are scored the same. You want them all to report a zero balance except one to report a balance of less than 9% of available credit to maximize your FICO scoring. Then come hang out in the garden with us reprobates.
10-12-2017 02:27 PM
Thank you for this. I already started and saw a 9 point increase I am excited! Thank you all once again. I am going to look through some other posts to see if I can find answers to the questions I have instead of repeating everything!
10-13-2017 06:38 AM
Agreed. Store or bank cards both need to follow the AZEO Method. I prefer to let my $5 post to a bank card tho.
What is the AZEO method? I see you refer to it a lot - but don't know what it is.....
10-13-2017 06:40 AM
AZEO means to figure out when your credit cards report updates to the bureaus, and then make them report $0 balances on every credit card except for one card. The one card every month that reports a balance should report a SMALL balance between $5 and 8% of your credit limit. After it reports that small balance, pay it off immediately so you have no interest to pay.
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