Just got my social and a bad surprise

[AlwaysUp]

I just got my first generated scores lol, it's horrible :

EX: 639 , EQ : 563

I need to have that collection removed sooon!

[haulingthescoreup]

Keep following the advice that you're getting here, and I'll add (because I didn't see it, although maybe I missed it), paying a collection will NOT remove it from your reports.

Hang tough, follow up with the police report, and get that thing off.

Just to clarify: there isn't a problem with your WF card, right? it's just that you were surprised to see it there? No mystery charges? If so, plan to pay it off every month. Don't carry a balance.

If the collection is removed, my guess is that your scores will be around 680 with just one card that is over 6 months but less than 1 year old. AFTER the collection is off all reports, you might want to add one more card. Your score won't drop when you add a second revolving account (as opposed to adding the 4th or 7th or 10th), and once it has reported for six months, in addition to your WF, I would expect that you would have scores around 720, as long as you have no negatives of any kind and low reported utilization.

[AlwaysUp]

I have no problem with my WF card. I just maxed out few times and it's showing up on my reports. I asked for a CL increase, I'm gonna try to incease it to 3K in the next 30 days in that way it doesn't look too bad on my CR.

I just need to get a copy of the police report, and they're taking forever here... I will let you guys know how it goes.

Thanks a lot for all your help!

[haulingthescoreup]

If you'll pay it off every month BEFORE the statement posts, so that it reports a $0 or very low balance, you'll get the same effect as that from a CLI.

The score formula looks at percentage of CL being used, so it doesn't matter if it's $250 out of $500 or $2500 out of $5000. Make it report only $10, and the lowered percentage will help.

[AlwaysUp]

Yes but the problem is that it's showing on the report that I maxed out the card one, it will never go away and it looks bad for the lenders (that's what my banker friend said). He recommended that I increase my CL in that way it doesn't look so bad. So with a 3K limit, the maximum balance ever reported will be $992, it will be around 30% of my CL. Better than the 99% I currently have. I hope I'm enough clear.

I also got approved for a capital one secured card (I applied for a secured one), should I confirm that I want the account or no ? Would that hurt my score? Currently I only have 2 accounts, the fraud collection and my WF card. Should I add the cap one card ?

[haulingthescoreup]

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@AlwaysUp wrote:

Yes but the problem is that it's showing on the report that I maxed out the card one, it will never go away and it looks bad for the lenders (that's what my banker friend said). He recommended that I increase my CL in that way it doesn't look so bad. So with a 3K limit, the maximum balance ever reported will be $992, it will be around 30% of my CL. Better than the 99% I currently have. I hope I'm enough clear.

I also got approved for a capital one secured card (I applied for a secured one), should I confirm that I want the account or no ? Would that hurt my score? Currently I only have 2 accounts, the fraud collection and my WF card. Should I add the cap one card ?

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Oh, OK, gotcha, I see what you're saying. It's true that other lenders might ask you how that happened. It probably isn't an automatic denial reason though. Just tell them that you use credit, and with a low-ish CL, it didn't take much to max it off, but that you do pay your bills promptly. I've actually got an historical balance reporting on a card that is higher than its current limit, because I moved the CL's around between it and another card from the same lender (USAA.) I've never had anyone ask about it, though. If they want to dig, they can see that the limit at the time was higher than the balance, of course.

Since you've already applied for the secured Cap One, I'd go ahead and take it. No point wasting a hard pull on all three bureaus. Keep using it, along with the WF, and keep building a string of clean history, month after month, while getting the fraudulent collection off. You'll look good to future lenders once you have at least a year of history on the older card and six months on the newer card, all clean.

[AlwaysUp]

It doesn't bother me increasig the colleteral account with WF to increase my limit. $3000 credit line looks better than a $1000 anyway. I'll go get the cap one, get the collection off and then go get my car loan. I'm gonna put 40% of the car price down, I hope they're not gonna rip me off with interests. Thanks a lot !

[Anonymous]

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@AlwaysUp wrote:

It doesn't bother me increasig the colleteral account with WF to increase my limit. $3000 credit line looks better than a $1000 anyway. I'll go get the cap one, get the collection off and then go get my car loan. I'm gonna put 40% of the car price down, I hope they're not gonna rip me off with interests. Thanks a lot !

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Good luck with everything. Remember, the folks on the Auto forums here are a good bunch and can help you if you have any questions. (BTW, 40% down is great!)

[AlwaysUp]

Are these Fako or Fico ?? ( From Equifax Website )

This is what I got from TU website :

The score is different from Equifax. And what does Grade D means ???  There is grades now ? It's funny!

[MarineVietVet]

Those are FAKO's. Those scores are based on the private "Equifax Credit Score" sold by EQ but they are not FICO scores and are not used by any lenders.

Equifax will still sell you a FICO score found here: www.equifax.com/web-myfico-products/