Scores - Question

[Anonymous]

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@dallasareaguy wrote:

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@Anonymous wrote:

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@dallasareaguy wrote:

I essentially want to know if its possible to get a 660-670 score with 2 collections outstanding from 2008 and with the 5 federal tax lein public records. Other than the reporting of them, they dont show delinquent because i have payment plans with the IRS.

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Is it possible? Yes. However, the path for you to get there is unclear with out knowing ALL of your details on derogs and current credit lines. So far you've provided little in the way of details, just some summaries.

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Sorry Norman, I didn't think specifics were needed, but I understand now what you are saying. Here is everything:

Negative Accounts/Collections:

Aargon - $544 - (PFD Earlier This week - Waiting to report)

Ad Astra - $0 - (PIF - $0 - Now Reporting PIF)

Commonwealth - $896 - (Settled This Week - Waiting to Report)

Jefferson Cap - $1,567 -  (PFD Earlier This Week - Waiting to report)

Portfolio Rec - $511 - (Settled This Week - Waiting to Report)

Green Tree - $34,817 - (This was just readded to my credit two months ago. ARGH! Was a Installment Home Equity and they changed to revolving GRRR!)

Cavalry Portfolio - $9,708 - Shows falling off credit report in December/January. (Very old, from 2008/2009)

Cavalry Portfolio - $6,737 - Shows falling off credit report in December/January. (Very old, from 2008/2009)

Positive Trade Lines:

Auto Loan - $19k of $25k - 10 Months old - no lates, good standing

Auto Loan - $ 24k of $25k - 4 Months old - no lates, good standing

Installment Loan - $3k of $3.3k - 3 Months old - no lates, good standing

Revolving Lines:

CapOne: $380 of $1500 (25%)

CapOne: $387 of $2250 (17%)

CapOne: $541 of $500 (AU - 108% - Bleh!) - Get  taken off this account ASAP.

Comenity: $120 of $250 (48%)

Comenity: $155 of $250 (62%)

Comenity: $546 of $1150 (47%)

Comenity: $95 of $1050 (9%)

Comenity: $0 of $1150 (0%)

CreditOne: $4 of $600 (1%)

Fingerhut: $179 of $800 (22%)

Synchrony: $0 of $1000 (0%)

Synchrony: $1 of $200 (1%)

Synchrony: $2 of $200 (1%)

Synchrony: $593 of $900 (66%)

Kay: $0 of $400 (0%)

Kohls: $79 of $300 (26%)

MidCon: $137 of $500 (27%)

MidCon: $125 of $500 (25%)

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TOTAL:  $3344 of $13500 (25% UTIL)

NOTES: Just knocked off 5 accounts this week that were derogatory/collections. My goal for the next 60 days is to have the remaining revolving debt zero'd out on all cards except one or two and have them both be below 9%. You can tell me if thats sound advice? Yes, too many cards showing a balance (even tiny balances) can hurt your scores signifigantly. Paying off all but one or two should get you in near max FICO scoring territory for the UTI portion of your score. One other issue I see is that you have way too many store cards in relation to your bank cards. Consider closing some of them and opening some bank cards after you get your UTI settled.

Tax Leins - All From 2009-2012 Opened Dates: $80k  (Listed as Public Records)

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[dallasareaguy]

Thanks for the advice.

[Anonymous]

One thing you're going to have to do is get on a budget and stay on it. Cut out frivilous and unnecessary spending. And then make a targeted plan to pay down a lot of those cards. One thing I can attest to is that it is ego boosting to have a lot of credit card whether they are new or old, but it is not great to have a lot of credit card bills. You suffer a death by a thousand cuts. And when you have a ton of cards you have to pay on every month, you leave yourself very vulnerable to missing a payment on one because it slipped through the cracks or something unexpected happens. Pay those $250 CL cards down to ZERO. Create a BUDGET. Adopt the Debt Snowball idea to maximize your monthly payments' impact on CC utilization. 

You should adopt the Dave Ramsey approach to getting out of debt or rapidly reducing your debt ===>>>

Debt Snowball Plan

The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted. First accumulate $1,000 cash as an emergency fund. Then begin intensely getting rid of all debt (except the house) using my debt snowball plan. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

Build Momentum

Redo this each time you pay off a debt, so you can see how close you are getting to freedom. Keep the old papers to wallpaper the bathroom in your new debt-free house. The New Payment is found by adding all the payments on the debts listed above that item to the payment you are working on, so you have compounding payments which will get you out of debt very quickly. Payments Remaining is the number of payments remaining when you get down the snowball to that item. Cumulative Payments is the total payments needed, including the snowball, to pay off that item. In other words, this is your running total for Payments Remaining.

Debt Free!

You attack the smallest debt first, still maintaining minimum payments on everything else. Do what is necessary to focus your attention. Keep stepping up to the next larger bill.