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Member
keepstrying
Posts: 25
Registered: ‎11-10-2011
0

Info for others re paying big credit card debt

This might be helpful to others.  In August scores were about 715 on all.  Set a 760 goal tracking Experien. Wasted my time with FAKO and various efforts.  NADA, NOTHING, ZERO'

 

Paid off credit card balances -- big amounts and 54% of limit.  Dec 6, all three credit cards balances less than 2% or $$1K

 

53 points to 768.

 

Other facts.

 

One late payment more than 4.5 years ago to Bank of America.  $5,  Their policy produced the late payment and got me the report.  I have my oldest credit card with them (not the one with the late payment)   I keep it active using it al little. 

 

I have paid off more than a third of the original mortgage. An honest appraisal says the house is worth three times the mortgage debt.

 

Income to debt payment ratios are  a breeze with the credit card debt gone..   No other debt beyond mortgage.

 

VERY GRATEFUL FOR ALL THE HELP. I HAVE RECEIVED

 

May FAKO (Plus, Vanguard, and the names of the Devil) meet their deserved fate.  And prison for criminal fraud

 

Member
Jbrown7815
Posts: 33
Registered: ‎11-27-2011
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Re: Info for others re paying big credit card debt

I'm waiting for 2 more cards I paid off completely to reoprt the the CRA's. Hoping to get over 700 on FICO


Starting Score: 679
Current Score: 721
Goal Score: 800


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Member
keepstrying
Posts: 25
Registered: ‎11-10-2011
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Re: Info for others re paying big credit card debt

Good luck.  As I understand it, what about non-mortgage debt counts is

 

1) a big total debt (not sure how they define it.   And

 

2) the total debit to total credit limit ration with a goal of getting it down to beflow 25%(got mine down below 2%.)

 

3) installment counts.   Not sure about buy now, pay later.   My guess is that is 100% negative.

 

 

 

Established Contributor
cashnocredit
Posts: 1,028
Registered: ‎07-18-2009
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Re: Info for others re paying big credit card debt

This sounds about right. I had a mortgage for two years and it appeared not to affect my FICOs at all but it was likely because I also had some old CAs and a paid tax lien. When I paid off the mortgage my FICO didn't change. However, I was declined on two preapproved offers during the time I had the mortgage. The primary reason was too much debt even though my revolving util was only about 1%. It appeared they were factoring in the balance on a relatively new mortgage even if FICO doesn't. These days that would make sense.

 

As for FICO jumps, my EQ FICO went from 707 to 780 when the lien, my only remaining 5.5 y/o baddie, was removed. Since the mortgage shows as PIF I've apped for two lines and instantly approved.

 

 

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Member
keepstrying
Posts: 25
Registered: ‎11-10-2011
0

Re: Info for others re paying big credit card debt

Wow!  A single lien costs you 73 points? 

 

A lesson we learn as often as we wish:

 

    The tax collector is the creditor of last resort -- they still have that scorched earth policy.

Established Contributor
cashnocredit
Posts: 1,028
Registered: ‎07-18-2009
0

Re: Info for others re paying big credit card debt


keepstrying wrote:

Wow!  A single lien costs you 73 points? 

 

A lesson we learn as often as we wish:

 

    The tax collector is the creditor of last resort -- they still have that scorched earth policy.


Yep, liens are FICO killers and the more modern FICO from EQ counts them more than the older TU score. TU98 only lost about 50 points instead of EQ's 73.

That was the only negative on my CR but I only had 3 open revolving lines and 2 older closed ones. The open ones were just over 2 years old. I had Util down to about 1%.

 

What's interesting is that VantageScore (a real score if infrequently used by lenders) didn't ding me at all for the lien. Neither did ScorePlus or some of the other generic FAKOs. They all called my credit "excellent" when it wasn't. It's possible some of these distinguish between paid liens and unpaid ones and ignore older paid ones. I only know FICO doesn't.The one exception was Citi's Identity Monitor which dinged me roughly the same amount as EQ's FICO.

 

I was shooting to experiment and get the lien removed before the old CAs dropped off and vice versa on different CRAs. I wanted to see how FICO treated CAs v PRs. However, all the CAs dropped off within about a month of each other and sooner than expected so I didn't get a chance.

 

As for the IRS, I found them easy to work with and they pretty much follow what they outline on their website.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Member
keepstrying
Posts: 25
Registered: ‎11-10-2011
0

Re: Info for others re paying big credit card debt

I am going to respect fully differ.

 

1.  FAKO is real. 

 

      a,  OK, USAA uses FAKO for mortgages.   Who else?  USAA can't name anyone.  Neither can Vanguard.  Even the USAA contractor for military families doesn't use it.

 

      B.  USAA offers it, you pay for it, but they give you no warning about who uses.  But they then direct you to their own site, but off-site.  Double talk so that with your  momey in their pocket, they can absolve themselves of all responsibility for its incredible inaccuracy.  I.e. FAKO is not up to USAA standards. 

 

     C.  So I use the USAA contractor.  Can you imagine my reaction when I discovered that great credit was actually below average?  USAA just can't understand what I am talking about and banned me from reviewing anything on their site  -- not even accounts I have had active 10 years..  And a totally worthless pull to bring down my scores.

 

2.  IRS is reasonable??

 

     A.  What did they do to get Experiene to treat  tax liens treated like that. (My guess is IRS gave the green light to law changes that absolutey protect the CRA's from any responsibility for the most irresponsible of actions.)    And the taxpayers get a gigantic mark of Cain on their  foreheads for a lien..

     B.   Just once, stop on the IRS' little path -- see how reasonable they are.  And if they choose, the most ruthless of banks are poweless compared to them.

 

So, I respectfully differ.

 

Established Contributor
cashnocredit
Posts: 1,028
Registered: ‎07-18-2009
0

Re: Info for others re paying big credit card debt

[ Edited ]

Here's my definition of FICOs and FAKOs and others that are neither:

 

FICOs: A risk score developed by Fair Isaac.

FAKOs: "Scores" that are developed to sell only to consumers. These require no validation for either efficacy or equity (not use prohibited attributes, aka age or proxies of them). Most of them have quite a variance with respect to actual FICO scores. For instance a ScorePlus (Experian FAKO) had my credit at better than 98% of the population while my actual EQ FICO was at about 45%. But then Experian does say in the fine prinnt that their ScorePlus "scores" are not used by ANY lender.

 

Now while FICOs are currently the gold standard of "risk scores" they don't include information that refines these estimates . Most larger banks use acquisition scores to accept or decline new credit customers. These scores can consider things FICO doesn't like employment and home pricing trends as well as income, length of job history, and other factors which enhance both the FICO risk metric as well as whether the new customer would be expected to be net profitable.

 

Other Scores that are neither FICOs or FAKOs:

Any other score, developed for use by lenders. These aren't FAKOs because, unlike Experian's ScorePlus, they do not imply they are FICOs nor have ranges that are designed to confuse them with FICO scores. Vantage Score is one such score that is not a FAKO nor a FICO. However it is much less frequently used than FICO scores. Vantage scores are gaining some degree of acceptance in rating various banking portfolios by commercial raters such as S&P.

 

IRS:

Like the courts, the IRS does not send judgements or liens to Experian or other CRAs. The CRAs hire third parties to scan the public records for tax liens, BKs, and judgements.

 

The IRS slapped a lien on me but it was my own damned fault. I then went to their web site and reviewed all their compliance regs, followed them, filed my very late tax return (I had actually overpaid taxes) and got a refund. My only other dealing with them was an audit due to a taxable biz distribution to a group of people without a 1099. I had declared it properly and paid taxes so the audit was short and simple and resulted in a "no change."  So, yeah, the IRS is powerful. More powerful than the largest banks. But I found them pretty straightforward.  YMMV.

  

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Member
keepstrying
Posts: 25
Registered: ‎11-10-2011
0

Re: Info for others re paying big credit card debt

Thanks for filling in a lot of my blanks.

 

IRS,  A friend, a 74 year old woman, was cooperating with IRS.  But then they demanded several things she thought unreasonable and she finally said "no."  She got a call -- someone was  coming the next day to discuss when she would be moving out.  she yielded and kept her house. 

 

 

 


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