cancel
Showing results for 
Search instead for 
Did you mean: 

Suggestions on Improving My Credit Score

tag
Anonymous
Not applicable

Suggestions on Improving My Credit Score

In August 2014, I decided to once and for all start the process of “cleaning up” my credit. I signed up to Lexington Law and with Experian, Equifax and Transunion. Call it over- kill, but I am also with Credit Karma. When I started my journey, my scores were as follows: Experian 560, Equifax 590, and Transunion 610. I used Lexington to remove many of the derogatory information reported by the credit bureaus and while I could have done this myself, Lexington did in fact cause a total of 14 negative listings to be removed among the 3 credit bureaus. I have recently cancelled my service with Lexington since I was satisfied with what they had accomplished and was now ready to take over where they left off. I have a few more blemishes being reported that will drop off in 2015, amongst them, a 2007 repossession and a 2008 BK. In August I opened up a secured credit card with Wells Fargo ($400); in September I opened a Jewelry Account and purchased an item for $400 which I paid off in 3 months. Also, in October I opened a Secured card with Capital One ($600) and lastly, in November, to my surprise, I was approved for a Capital One Rewards Card ($500). As of today, my scores are as follows: Experian (595); Equifax (653); and Transunion (652 Vantage Score). I keep a very low balance on each card (no more than about $50 total each month). I welcome any suggestions to help me with my quest for an Excellent credit rating.

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Suggestions on Improving My Credit Score

Your best course of action right now is...nothing.

 

You've done the right things in opening 4 new accounts.  The wrong thing (in my opinion) was to space them out over 4 months.

 

What you are looking at is "new accounts" spaced over a 4 month period.  Lenders typically like to see 6 months of aging on new accounts... Cspital One is much more forgiving.

 

Your first account would have aged 6 months by February.  But because you added 3 accounts more, your final "aged" accounts will be ready by May.

 

It is sort of a blessing in disguise, your baddies are falling off iin what months?  If it's around May, that's perfect timing.

 

My suggestion for you now is either go into gardening mode (nurture your new accounts) until May.  One thing that may help you but drag you down a little longer is for you to go get an "installment" loan in the form of a $500 Share Secured 5yr loan (you can get it for shorter years).  That will add an installment loan to your credit report .  I got mine's through Alliant CU...and it seems they never Hard Pulled my report, only softs...I don't know if I was a lucky one or if this is normal.

 

As soon as you hit May, I'd apply for some better cards.   If your baddies are due to fall off at about the same time, wait for the baddies to fall off.  If you wait it out, you should be able to jump right into an AMEX and Discover.

 

You might try the Shopping Cart trick since you are gardening anyways but get it done this month if you are going to do it.  Make sure you get 6 full months and not a day sooner of aging on your last account before going on your next "real" app spree.

 

Speaking of next app spree, my suggestion would be to app all on the same day.

 

You're oh so close, just have the patience to garden until your baddies fall off or come May.  

Message 2 of 5
Anonymous
Not applicable

Re: Suggestions on Improving My Credit Score

Thank you! Really appreciate the great advice. By May or June 2015, all “baddies” should be off my credit reports. I was not aware of the 6 months of aging on the newest account. Good information to know. I will look into a small secured installment loan. I was actually thinking about doing that with a secured CD through Wells Fargo. Minimum however is $2000. Again, I appreciate you taking the time to share knowledge on the subject. Will update periodically as to how things are going.

Message 3 of 5
Anonymous
Not applicable

Re: Suggestions on Improving My Credit Score

Try credit unions for secured loans. Mine is for $1000 but the minimum was $500.

Congrats for May. It's going to be a good month for me too. I will be out of the garden then too. Youngest card and car loan will be just over 6 months and it will be just over 12 months since I started rebuilding.

See ya in May :-)

Message 4 of 5
Anonymous
Not applicable

Re: Suggestions on Improving My Credit Score

Thanks for tip on credit unions. Congrats on your success with rebuilding your credit.

 

See you in May! 

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.