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Tuscani
Posts: 6,182
Registered: ‎03-29-2007
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Re: Credit Scoring 101 - START HERE!



harlequinnade wrote:
I recently received my Experian FICO credit score. It was 699. Mainly because of a recent collection, that was not mine. I immediatelky disputed it, and it was removed by Experian. But I can't run Score Simulator or anything to see what my new Experian FICO is, and I don''t want to have to pay for it again. Any suggestions?



Sorry.. you have to pay to see the updated score. FYI.. the simulator is just a guesstimate anyway. :smileyhappy:
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oldandtired
Posts: 1
Registered: ‎07-02-2007
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Re: Credit Scoring 101 - START HERE!

I have read several postings and I am still not clear on one major question.  Does paying off old account in collection or charge-offs help my credit score or not?  And if so which ones help the most?  I would assume the newer ones would, but not sure.  I have tried some PFD letters but did not get any favorable response.  I am trying to improve my score within the next six months to purchase a home.
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hdj
Posts: 95
Registered: ‎06-12-2007
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Re: Credit Scoring 101 - START HERE!



fa4937 wrote:
I , too, am in similar situation. I have several cards with "free interest" that I have ran up. I have scores of 684,684 and 683. I need to get to 700 for a better mortgage rate. I am at 74% usage which is high.I could pay a few thousands to get me at around 50%. Anyone know how these percentages work. At 74%, im at "not good" while I am listed "very good" in other areas,I hate to pay off so much,as I give up all that cash, especially since I have "free interest" until 2/2008.Everyone says high achievers should be at 7 to 10%, but thats not easy to do.If I get at below 50%, should that change to "good", or doesnt anyone have any figures on each incremental breakdown on credit usage. Obviously 0 to 10% is excellant, but then what are the breakdown after that. Thanks!



This slide show http://www.ftc.gov/bcp/creditscoring/present/sld008.htm my hint at some of the break points. You could try to decrease your utilization by increasing your limits. Just ask the lender, but have it done in such a way that there is no "hard" inquiry. Keep in mind that your credit score is only important when you need it. You're very close to your target score. You might get there in time by paying down a little, increasing your limits a little, and even factors like time at current address, or time at job might work in your favor over the next few months. Keep enough cash for closing costs, and dump the rest on your cards is what I would do, and then keep paying as much as you can
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RobertEG
Posts: 17,456
Registered: ‎03-19-2007
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Re: Credit Scoring 101 - START HERE!

I have expanded my Excel score model spreadhseet to include multiple installment loans, and also the effect of "two-down" (two consec. late payments), and "three down" (the effect of three conscec lates).  If you would like to peer upon my efforts, just mail me.
Robert
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Credit Scoring 101 - START HERE!

[ Edited ]

hs3544 wrote:
I recently took out a home equity line of credit on my primary residence, in addition to my regular mortgage. This HELOC is 100% utilized because I bought a small condo (second home). My Transunion credit report reflects this HELOC as a mortgage and therefore (presumably) doesn't affect my credit score. But Equifax and Experian reflect this HELOC as a revolving line of credit and this bumps my total utilization of revolving credit way high.Net result, my Equifax and Experian scores are substantially lower than Transunion. Do these CRA's have different policies regarding classification of HELOCS and would I be justified in asking Equifax and Experian to adjust their Reports to show the HELOC as a mortgage. Otherwise, my scores will take a hit for years because I plan to pay off the HELOC over a 10 year period.



bump

My $50K HELOC just appeared on my USAA website, and I would like to know how the CRA's are going to treat it also. Mine won't often have a balance, though.

Tuscani or other seasoned FICO warriors?

Message Edited by haulingthescoreup on 09-22-2007 05:38 AM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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fused
Posts: 16,355
Registered: ‎03-12-2007
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Re: Credit Scoring 101 - START HERE!



haulingthescoreup wrote:

hs3544 wrote:
I recently took out a home equity line of credit on my primary residence, in addition to my regular mortgage. This HELOC is 100% utilized because I bought a small condo (second home). My Transunion credit report reflects this HELOC as a mortgage and therefore (presumably) doesn't affect my credit score. But Equifax and Experian reflect this HELOC as a revolving line of credit and this bumps my total utilization of revolving credit way high.Net result, my Equifax and Experian scores are substantially lower than Transunion. Do these CRA's have different policies regarding classification of HELOCS and would I be justified in asking Equifax and Experian to adjust their Reports to show the HELOC as a mortgage. Otherwise, my scores will take a hit for years because I plan to pay off the HELOC over a 10 year period.



bump

My $50K HELOC just appeared on my USAA website, and I would like to know how the CRA's are going to treat it also. Mine won't often have a balance, though.

Tuscani or other seasoned FICO warriors?

Message Edited by haulingthescoreup on 09-22-2007 05:38 AM

HELOCs almost always report as revolving...be responsible with this line just as you would with a CC. Another option is to ask your lender to report it as an installment...no guarantee they will agree though.
Credit Profile -
FICO 08 Scores (08-22-2014): EQ 820, EX 817, TU 815
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Credit Scoring 101 - START HERE!


fused111 wrote:
HELOCs almost always report as revolving...be responsible with this line just as you would with a CC. Another option is to ask your lender to report it as an installment...no guarantee they will agree though.

Thanks, Fused! USAA said that they report them as a mortgage loan, but that the CRA's don't always post it that way. Can't wait to see what this will do to the scores (snort). That's OK, I don't have any credit shopping in my near future, and at least we now have a just-in-case for disaster. Off to the sock drawer! Well, maybe after an eensie bit of remodeling, that is.

Sure is fun to see that $50K posted on my on-line banking. I've already beamed at it a dozen times today.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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fa4937
Posts: 4
Registered: ‎05-27-2007
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Re: Credit Scoring 101 - START HERE!

Thanks hgj for your info. I also learned today to be aware of so called "no pre set limit" cards. My Citibank card is that way. Even though it states a limit on my statement,its reported as a credit limit of "0". Needless to say, this was upseting. I spoke to a FICO rep about this and they confirmed its not good. So, I called Citibank and they said I would have to change products, as this particular Premier Pass Rewards card does not, by policy, report credit limits because they allow you to exceed the limit. So, I had to change products to a similar card, being careful NOT to apply for new credit, but retain my old history. They changed me to a "Diamond Preferred Rewards Card" which they assure me it will report the credit limit. Its just amazing the kind of sfuff we can learn and how it a affect the scoring system. Just thought I'd pass this along...
New Member
Jen916
Posts: 1
Registered: ‎09-04-2007
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Re: Credit Scoring 101 - START HERE!

First, I have learned so much on this forum, I have improved my score immensly.  One thing, I disputed many inccorect entries on my report and Trans Union very quickly removed them as did Experian, but Equifax has not....should I send a copy of Trans Unions letter of deletion to them, will that help?
 
It's crazy that there are 3 totally different entities to battle with!! 
 
Thanks very much.
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wonderer
Posts: 1
Registered: ‎09-30-2007
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Re: Credit Scoring 101 - START HERE!

Thanks! As the first post read after registering i was concerned this would be a waste of my money, but i see i was wrong. Thanks for all the great new info::womanhappy:
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