Reply
Established Member
Posts: 40
Registered: ‎06-24-2011
0

Plan for 2012... Does it sound okay?

Right now, I have an auto loan (from 8/11), 2 student loans (going back several years), and 1 revolving CC (from 7/11).  This year, I was thinking of acquiring 1 additional revolving CC and, if I'm approved, a Zync card (in the hope of eventually acquiring an AMEX revolver that will backdate to 2011 and then cancelling the Zync).  I don't have any lates on my CR, but I do have 2 judgements; one from 11/2007 and one from 11/2008.  My hope is to take positive steps now, so that when my judgements eventually fall off, I'll have a clean report with 2+ years of positive revolving tradelines.

 

Does this seem like a good plan going forward to ensure better scores now as well as in the future when my judgements fall off?

Epic Contributor
Posts: 20,165
Registered: ‎03-19-2007
0

Re: Plan for 2012... Does it sound okay?

Sounds good!

Since FICO places heavy emphasis in your showing of use of discretionary (revolving) credit, it is helpful to have at least two revolving accounts.

Make sure the new revolving reports to the CRAs.

You need that for credit rebuilding, but be aware that it might cause a short-term hit on your score.  A new account will most likely require an inquiry, which will have a small impact for a year.  It will also lower your average age of accounts, but it is best to take that hit as early as possible.  On the postive side, it will increase your overall credit limit, and thus, providing you keep its balance down, help your overall % util.  Additionally, FICO also scores the % of revolving reporting a balance each month.  With only one revolving, that is always either 100% or 0%.  Addition of another revolving will also give you the middle ground of 50%.

 

I also would not just wait for the paid judgments to drop due to old age.  Have you investigated motioning the court to vacate the judgment on the basis of payment?

Some courts will grant such motions.  Not all.  I suggest you place a call to the office of the clerk of the judgment court, and have a chat with them about their individual past practice with regard to vacating judgments on the basis of payment.  If vacated by the court, CR deletion can be obtained.

Established Member
Posts: 40
Registered: ‎06-24-2011
0

Re: Plan for 2012... Does it sound okay?

Thanks, RobertEG!  I've been reading these forums for awhile, and it's good to know I've finally kind of figured this stuff out and am on the right track.  I'll look into vacating the judgments as you suggested, as well.

Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Plan for 2012... Does it sound okay?

I would also consider adding a store card to improve the credit mix.  Many store cards have very nice benefits in quality coupons/discounts for card holders, financing specials(I use Amazons a lot), or if  none of those appeal to you get the Walmart card for the free FICO every month.

 

What do your scores look like now?  What kind of AAoA do you have now?

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.