Raising CL and lowering CC rates

[Anonymous]

OK...newbie here -- finally decided to get serious about understanding my credit...and need some advice -- I have a few minor delinquent items from valid disputes that I failed to resolve and let get posted on my credit report -- but worst items is a number of 30 day late pays -- have traveled extensively and moved several times so was less disciplined than should have been in getting bills paid -- not a lack of fund problems -- just not very smart. Finally -- while I have extensive revolving credit and usually pay it off every month or two -- they still report high balances -- (tend to try to rack up as many frequent flyer points as possible so was using those cards extensively but paying them off). Anyway -- this has resulted in a very marginal score which I want to raise and as well has some of the cards jacking their rate up to usury levels --32%. Based on what I read in the FICO 101 -- I am working on clearly up the disputed amounts -- but need some help to see if I can clean up some of the late pays that are hurting me. I have read that you can sometimes get current vendors to remove these old marks once you make 12 months of on-time-payment, etc. I understand that they will also raise existing CL to help the revolving margin. My question is how will this affect my FICO. I get loads of new adds every day offering new CC but know a little that new apps are a negative to your FICO ...so open to any advice you have about getting back on track and boosting FICO quick. Thanks.

[haulingthescoreup]

Hi, welcome to the forums! Yes, when you have valid lates (and other derogatories) on your files, you can GW (goodwill) them, asking the lender to remove them in consideration of your otherwise great record as a customer. Check out "Frequently Requested Threads" at the top of this board. There are two separate threads about GW'ing, one near the top and one near the very bottom.

Your best bet for score improvement is to pay your cards off earlier than you currently do. If you wait until the statement posts and then pay, that amount has already reported to the credit bureaus, and so it looks like you're carrying a lot of debt. Pay your balances down or off about 5 days before they are due to report, and that low figure will be used in calculating your scores, and your util will look a lot better. Don't use them again until the statement drops. After they report, be sure to pay off any remaining balance so that you don't have to pay finance charges. With this system, you can use your card as much as you want without score penalties, because you are controlling what is reported.

If you have a card where you have parked some debt for a 0% balance transfer, I don't think it makes financial sense to pay it off early, unless you are getting ready to apply for credit again. As long as you let fewer than half of your cards report a balance with the others showing a $0 balance, you'll get score improvement even with that one with a high balance. Hope that helps!

Most cards do update to the bureaus on their statement dates (NOT the due dates), and they report the balance that is on that statement. Most statement dates wander around a bit (one month on the 25th, the next on the 23rd, then the 26th, etc.), so that's why it's a good idea to pay them 4 or 5 days before you think they will post. HSBC cards report at the end of the month, and AmEx reports the previous month's balance. Some store cards report whenever they feel like it, so I always PIF mine as soon as they post online, before there is a statement.

[Anonymous]

make your payments to cc before the closing date. or pay them off before the closing date. some cc will tell you when your closing date is. i know boa does.

[Anonymous]

(Remember, even if you pay your credit cards in full each month, the balance shown on your credit report may not be $0. Instead, it will reflect your account balance at the time your lender supplied the update to the credit reporting agency.)

[jackg]

garret,

Statement closing dates are posted on your monthly CC statement.

[Anonymous]

Hey guys -- thanks for all your help got a really nice 50 point improvement in the last 3 weeks thanks to raising my CL and making sure I paid them off ahead of the statement date. Still have one sticky item -- have a 3 yr lease and it lists in the revolving account area of the statement and posts as balance due the full amount of the lease (not the monthly payment) -- FICO seems to take this info and treats it as an outstanding balance on a CC. Is that the correct treatment -- seems kind of screwy to me. Any thoughts?

[Anonymous]

This sounds messed up to me-

I would call the OC and ask them first-

---

money4nothing wrote:
Hey guys -- thanks for all your help got a really nice 50 point improvement in the last 3 weeks thanks to raising my CL and making sure I paid them off ahead of the statement date. Still have one sticky item -- have a 3 yr lease and it lists in the revolving account area of the statement and posts as balance due the full amount of the lease (not the monthly payment) -- FICO seems to take this info and treats it as an outstanding balance on a CC. Is that the correct treatment -- seems kind of screwy to me. Any thoughts?

---