01-16-2012 01:18 PM
I have three credit cards, a car note and a personal loan-all showing as paid on time--using the score watch i have monitoring my Equifax score for months and last week I pulled my other two reports thru various sites
Equifax was a 596
Experian a 635
Transunion a 631- (scores so low due to a bancrupty I filed almost 4 years ago)
I thought i had finally achived a mid score high enough to qualify me for a mortgage so I let a lender pull my trimerge and the Transunion score was a dismal 588! Needless to say, I am heartbroken but not wanting to give up
My question is this, would it help me to pay off the small personal loan (I borrowed $2800, have about $500 left to pay off) or it more advantagous to keep making the monthly payments??
01-16-2012 01:25 PM
Well, there are other ways to get your score up, i would continue to make monthly payments so that you benefit from the history of paying it....
Since the balance is low (i am not 100% sure) but if it is factored into your util, it is relatively low...
That all being said, i think we need more information....
I would pull your reports from annualcreditreport.com and see what all is on there, and then come back and let us know so that we may help you.
01-16-2012 01:34 PM
Well I have all three of my reports and I know the thing that is dragging it down the most is the bancruptcy. That was discharged in 09/08 and since that date I have had no late payments on the cards I have open or my car payment. I had successfully paid off a car note early as well as a personal loan since then. The $2800 personal loan I have now has a balance of $500 so i thought it would look good to pay that off early.
I did have 4 medical bills that wen into collections in 2008 and I was not even aware of them until I started monitoring my credit thru scorewatch so I immediately paid them all in Mar 2011 (they totaled less than $600 which i could kick myself) I just did not know they were there.
Other than that everything is clean, even the mortgage lender said he couldnt understand why my score was low.
All 3 say I have a high number of inquiries (about 20 in two years)
01-16-2012 01:47 PM
from a scoring point, it doesnt matter whether you pay it off early (from my experience) ... the only thing that would benefit you is if it was counted into your util%...
I would google HIPPA processes to get those removed... (medical collections)
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO