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Minor or Old Issues - how to resolve and take score higher!

New Visitor

Minor or Old Issues - how to resolve and take score higher!

I recently managed my credit score from mid-600's to 726   and now want to understand how to take it higher.  I did this by reducing credit card debt.
 
I have three credit cards and keep nearly all the balance available. that is good.
 
I have two old collections - but the total is only $126   and  i have ONE old past 30 days paid on a credit card.
 
so what do I need to do.. to take my score higher?  Do i drop one card so i lower the amount of potential debt? should i pay off all three card so there is a zero balance?  does the old collections really hurt?  and what about that one old late payment   any way to fix that?
 
thanks!
 
stephen
Message 1 of 6
5 REPLIES
Moderator Emeritus

Re: Minor or Old Issues - how to resolve and take score higher!

Send a GW for the late-

How old is the Collection?
Message 2 of 6
New Visitor

Re: Minor or Old Issues - how to resolve and take score higher!

what is a GW?
 
and - 2001/2002 on the collections. both very small     i disputed but that doesnt help much.
Message 3 of 6
Moderator Emeritus

Re: Minor or Old Issues - how to resolve and take score higher!

A "Good Will" letter.
Take a moment to read the 101 thread- links to sample GW letters.



sph001 wrote:
what is a GW?
and - 2001/2002 on the collections. both very small i disputed but that doesnt help much.



Message 4 of 6
Moderator Emerita

Re: Minor or Old Issues - how to resolve and take score higher!

If you don't have a lot of tradelines (accounts) reporting, be cautious before you try to GW a late off of a closed account. It's quite possible that not only will the late be removed, but the entire TL. If this happens, and you don't have a whole lot of history, you may well find that your score will wind up dropping instead of rising.

This is NOT common, but it does happen, and there's not a lot that you can do about it if it does.

By the way, a 726 will get you just about whatever credit access you need, assuming you have adequate income and so forth.
* 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
Message 5 of 6
Highlighted
Moderator Emeritus

Re: Minor or Old Issues - how to resolve and take score higher!



sph001 wrote:
and - 2001/2002 on the collections. both very small     i disputed but that doesnt help much.


BTW -- FICO doesn't consider the actual amount of the collections.  Once a late account passes the tipping point into The Land of Collections, it's a big ding to your score.
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Message 6 of 6