Understanding FICO® Scoring

[uderricky]

I am currently looking at a EQ FICO of 637. I have 4 former negative accounts (student loans that fell into default out of college (private student loans); however, those are now all showing "paid in full and the account closed." These were paid in full by 2010.

I am attempting to do a good faith letters to have those removed.

I have an average account age of 8 years, with a utilization of 60%..that should be down to under 10% by March.

That will leave only a car loan, mortgage and my govermental student loans (in good standing) remaining on the account. The mortgage has 105,000 left, the car loan has 11,412 remaining and the student loans are down to 21,000. If I go to zero balances on my CC's, that would leave me with 4 credit cards with balances of $5,000, $2,000, $1800, $1400.

IF the good faith letters succeed and I reduce my utilization to below 9%, how much of an increase should I see.

I have recently reduced my utilization from 91% to the 60% (over a three month time frame) and my FICO EQ score has already raised 60 points.

Thanks in advance.

[jsucool76]

Gettings derogs removed and lowering util will mean a big jump in score. I don't want to give out any specific number because it is very hard to tell exactly how much of an increase you'll get, but I think once you get util down you'll be quite pleased with your score, and if you happen to be able to get those derogs removed you'll be ecstatic with the results  

Good Luck!

[uderricky]

I certainly hope so! I have no other negative information on my reports and my derogs are all paid in full--no late payments, etc.. I also have five inquiries that will drop off.

Worst case, the derogs fall off themselves in 2014.

[jsucool76]

What in particular are you planning on apping for? Or do you just wanna get a nice score for the hell of it? haha 

[uderricky]

Definitely want to improve my score...and I will be in the market for a new vehicle soon. I have a great salary and want to avoid the high interest rate on the vehicle i purchase!

[jsucool76]

If your GW letters work and you get that util down I think you'll be in a great place for an auto loan because your score will most likely jump substantially. 

[Shogun]

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jsucool76 wrote:

If your GW letters work and you get that util down I think you'll be in a great place for an auto loan because your score will most likely jump substantially. 

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+1