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Score not increasing - what to do?

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Anonymous
Not applicable

Re: Score not increasing - what to do?

Thanks everyone, I'm really appreciating the advice.
In response to CGID's 5 suggestions:

(1)  Add a Share Secure Loan using the full technique as described in the link you were given.
- I read through the technique and will likely do so next week.

 

(2)  Implement AZEO for your two existing credit cards.
Will do.

 

(3)  Start looking around for credit cards that you might like -- don't apply yet, just do your research to find the ones you might like and are realistic given what your scores are.
I mis-stated that I only have two credit cards.  I have two major credit cards that I currently use (Chade Freedom and Discover It).  Both were opened in August 2014.  I honestly wasn't even sure which store credit cards were still open (I've had plenty in the past) but upon running my full credit report, can tell you I have three department store credit cards still open.  All have zero balances and have not been used at all in the last two years.

 

(4)  Continue to learn about credit scoring and follow up further with BBS to learn what would be involved in removing lates -- but don't feel like you have got to get them removed right away,  Just develop a plan for what you might want to do.
More info regarding the lates below.

 

(5)  Implement "auto-pay" on your cards so that you will never ever be late again on any CC payments.
Did this as soon as I received my new Chase and Discover cards a couple years ago - it has made a huge difference for sure!  

In response to BBS re: late payment details:
1) Overdraft line of credit with my prior local credit union, associated with my checking account. 1 late payment - 30 days late in May 2010. Account was closed in Sept 2011 when I closed checking account because I moved out of state.
2) Visa card through credit union mentioned in #1.  This one's the doozy.  5 late payments.  30 days late 4 times between 2011 and 2013. 60 day late January 2014. Account was closed by creditor in February 2014 due to the poor history.
3) Macy's store credit card.  1 late payment.  30 days late November 2013.  Account originally opened in 2001 and still open, although no longer used.

 

I currently have 6 open accounts on my report, details below.
5 credit cards:
Chase Freedom, opened August 2014.  Paid in full monthly, never late.
Discover It, opened August 2014.  Paid in full monthly, never late.
Macy's, Belk, JcPenny's cards.  All zero balances and no longer used.

1 overdraft line of credit:
Through my current credit union, associated with my checking account.  No late payments ever.

I do have a closed installment loan on my report for my car loan which was paid off and closed in March 2011.  No late payments ever.

Message 11 of 19
Anonymous
Not applicable

Re: Score not increasing - what to do?


@Anonymous wrote:


In response to BBS re: late payment details:
1) Overdraft line of credit with my prior local credit union, associated with my checking account. 1 late payment - 30 days late in May 2010. Account was closed in Sept 2011 when I closed checking account because I moved out of state.
2) Visa card through credit union mentioned in #1.  This one's the doozy.  5 late payments.  30 days late 4 times between 2011 and 2013. 60 day late January 2014. Account was closed by creditor in February 2014 due to the poor history.
3) Macy's store credit card.  1 late payment.  30 days late November 2013.  Account originally opened in 2001 and still open, although no longer used.


 


Here's what I'd suggest with respect to GW letters.  I wouldn't even worry about the first one as in May of next year it's going to come off.  30 day lates typically only impact score for 2 years.  While it may be a bit of an eyesore, it isn't going to hurt your score.  In 7 months it will be gone. 

 

The Macy's one I would think you'd have a very good chance of getting removed since you've had the account for 15 years.  Maybe even make a small purchase on the account to show usage, then use that as part of your GW letter.  Something to the tune of "I've recently found use for the card again and am considering using the card to furnish my home.  You know, something to give them an idea that they may make some money off of you.  Again, this is only a 30 day late payment that likely stopped impacting your score about a year ago once it crossed 2 years, but you would still take a negative account and turn it positive if you get this late payment removed.  A single 30 day late in 15 years is something I personally feel they'd be very willing to delete.

 

The Credit Union one could be hit or miss.  I think results would vary greatly depending on the CU.  The severity of all of your late payments isn't so great (90+ days) so scoring impact wise they probably aren't holding you back much if at all, but they certainly don't look good.  You could take the angle with the CU that you'd like to re-establish a new, positive relationship with them as you would like to use them for X loan in the upcoming months. 

 

I say go after that Macy's one first.  If you're successful, come May of next year you'll only have 1 negative account instead of 3.  Having 1 negative account is a much better "look" than multiple (2+) simply because it appears to be more of an isolated occurance, not a pattern of poor credit behavior.  In fact, IMO the more GW adjustments you get the easier it is to get more in the future as your profile is getting cleaner.  If you targeted the CU next May after the first 30 day falls off at 7 years and assuming you can get the Macy's one removed, if they look at your credit report they'll only see positive accounts outside of the one you're targeting for GW which could help yield a more favorable result.

Message 12 of 19
Anonymous
Not applicable

Re: Score not increasing - what to do?

Thanks BBS - that's a great plan of action! I'll work on getting the Macy's removed and wait until the other one drops off before targeting the credit union. As you said, even if the CU won't remove them, at least I can likely get it down to only one account reporting a late payment. Thank you again.
Message 13 of 19
Anonymous
Not applicable

Re: Score not increasing - what to do?

Good to hear that you have three other credit cards.  Because all three have not been used in a long time, each is at high risk of being cancelled by the issuer.  Furthermore, it's quite possible that one or more of these is your oldest account -- possibly by many years.  It is important to make sure your old revolving accounts do not get cancelled.

 

The only real way to do that is to use each card a little bit.  Because they are store cards, this can be less practical than if the card in question was a major card that you could use anywhere, e.g. to buy $4 of gas or some groceries or whatever.  I am (in most cases) strongly opposed to anyone spending money for anything except for things they truly want/need.  (Advertising is a science devoted to inducing in us perecived "needs" that have no real basis.)  But you are going to need to balance that against the fact that you don't want to lose a no annual fee credit card, especially if it is an older line.

 

Therefore I would first see if you can physically locate the cards in question.  If you cannot locate any particular card, contact the store or issuer and explain that you really love this card and want to be able to use it, but you cannot find it.  They will send you a new one.  You need to then find a use for it.  A simple approach might be to go to the mall one day (that has all three stores) and find something you do in fact need at each store.

 

Each card will generate a statement once a month  Wait until you actually see the monthly statement, and then after that pay the amount on the statement in full.  BTW, you can and should set up autopay on all three store cards.  If you choose the option to Pay Statement In Full then you won't have to think about that part of it.  If a "mall trip" like I describe above would be easy to do once every six months, then do it.  Since you are preparing for a home purchase in two years, I would do this every six months for sure, since you will be establishing yourself on all your cards as what is called a "transactor" (you use the card periodically and then pay the statement in full).  In a couple years, your mortgage lender will be looking to see whether you are a Transactor and will love it if they see you are.

 

There is nothing set in stone about doing the mall trip every six months.  It could be every four months.  It's just that while you are preparing for your home purchase I would not do it less often than every six. 

 

The advice I am giving you works in concert with the advice you are getting from BBS.  I think he points out that he think it is smarter to delay sending a Goodwill Letter on a store card until after you have started using the store card in question.  To me that makes sense.  You want to make them feel like they don't want to lose you.  If you start writing letters asking for late removals when they can see you don't even use your card, that might prompt them to cancel it.

Message 14 of 19
Anonymous
Not applicable

Re: Score not increasing - what to do?

Very good advice from CGID above.

 

 

Message 15 of 19
SouthJamaica
Mega Contributor

Re: Score not increasing - what to do?


@Anonymous wrote:

Hi, I'm looking for help on why my FICO score is going up so slowly and what I can do to raise it more quickly.  5 years ago my score was in the low 600s due to maxed out cards and late payments.  Two years ago I managed to pay off my cards in full and really turn things around.  I have zero debt, have two major credit cards which I use regularly and pay off in full every month, and throughout the month my balance on those cards never exceeds 25% of my credit limit.

My score went up about 90 points in the first year since I turned things around, but in the second year it's gone up less than ten points.  To be specific, in October 2014 my score was 620, by October 2015 it was 709.  In Janauary 2016 it went up eight points to 717 where it remained for seven months.  In September it actually dropped six points to 711.

There are two "key factors" listed on my report as affecting my score:
1) Collection filed.  This collection was only for $100 due to a misunderstanding between myself and my former landlord at the time I moved out.  I paid the $100 as soon as I found out it was sent to collection.  This was 5 years ago.
2) Lack of recent installment loan.  I have no students loans and finished payments on my car loan 5 years ago.

I would like to buy a new car and a house within the next couple of years.  I realize a car loan will help (based on #2 above), but I'm not going to buy a new car before I need to simply to increase my credit.  Also, when I do buy a new car, I'm hoping to take advantage of good interest rates due to a high credit score, so I'd like to raise my credit score first.  Is there anything more I can do to raise my score?  My goal is 740 which is only another 29 points, but seeing as how it went up only eight points almost a year ago and has not gone up since (in fact went down six points last month), I feel like it might take another three+ years to get where I want to be.


My suggestions would be:

 

1. On the collection keep sending verification letters to the bureaus until it drops off.

 

2. Take out a $500+ savings account with a credit union such as Alliant Credit Union, take out a share secured loan against the savings account (no HP, negligible interest) with 48 or 60 month length and no autopay, pay the loan down to around 9% or $45; that will get you some points.

 

3. Make sure you let one credit card report at zero, and the other at around 5%.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 16 of 19
SouthJamaica
Mega Contributor

Re: Score not increasing - what to do?


@Anonymous wrote:
Thanks BBS - that's a great plan of action! I'll work on getting the Macy's removed and wait until the other one drops off before targeting the credit union. As you said, even if the CU won't remove them, at least I can likely get it down to only one account reporting a late payment. Thank you again.

When you send a letter to the credit bureau requesting verification, they write to the creditor asking it to verify. If creditor doesn't get back to them in 30 days it comes off the report automatically.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 17 of 19
Anonymous
Not applicable

Re: Score not increasing - what to do?

Hi again - as I mentioned in an earlier post I did manage to get Experian to remove the $100 collection a couple of weeks ago.  They were the quickest to reply to my dispute.  I am still waiting for TransUnion to complete their analysis of my dispute, but I did just hear back from Equifax and they would not be removing the collection.  They simply replied that they reached out to the creditor and indeed confirmed the collection belonged to me (my reason for the dispute was that the charge itself was in question and never should have been sent to collections in the first place - I was going back and forth with my former landlord/property management company stating that I left the fridge and dishwasher spotless, and I wanted photo-proof that it required $100 worth of "professional cleaning").

The dispute analysis from Equifax does say "If the reinvestigation does not resolve your dispute, you have the right to add a statement to your credit file disputing the accuracy or completeness of the information; the statement should be brief and may be limited to not more than one hundred words (two hundred words for Maine residents) explaining the nature of your dispute."

How do I add this statement referenced above?  I would like to try again to get this removed, especially since Experian was willing to remove it.  I don't see where I would do this.

Message 18 of 19
iv
Valued Contributor

Re: Score not increasing - what to do?


@Anonymous wrote:


The dispute analysis from Equifax does say "If the reinvestigation does not resolve your dispute, you have the right to add a statement to your credit file disputing the accuracy or completeness of the information; the statement should be brief and may be limited to not more than one hundred words (two hundred words for Maine residents) explaining the nature of your dispute."

How do I add this statement referenced above?  I would like to try again to get this removed, especially since Experian was willing to remove it.  I don't see where I would do this.


You can add a personal statement to your report...

 

But you really don't want to. (And adding the statement doesn't do anything to get the negative removed.)

 

It doesn't actually change anything positively (it's just your comments, doesn't change scores or suppress the negative reporting), and it's (slightly) possible that the mere existence of a personal statement on your report could be a red-flag to an automated system.  If you get to the point where a real human could be reading the statement, you'd likely be in a position to have explained the issue directly, anyway.  No reward, slight risk.

 

TL;DR version: By law, you are allowed to add a personal statement to your report. Don't.

 

EQ8:850 TU8:850 EX8:850
EQ9:847 TU9:847 EX9:839
EQ5:797 TU4:807 EX2:813 - 2021-06-06
Message 19 of 19
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