Understanding Credit Scoring

Anonymous · ‎08-19-2011

Hi Team,

Forum was very informative. However, I have several doubts I want to clarify.

My scenario:

Part 1:

Recently moved to the US - Around Dec 2010.

I had some health issue and I got admitted to ER (I do not have SSN - Just my name and DOB was given). I was given a bill of around 8k. My insurance did not cover them so I had to pay them out of my own pocket! I could not pay the amount immediately. I waited for 3 months and started paying (from may) the money in 6 equated installments.

I got my new SSN in Jan 2011. I had to visit the ER again. Even now I did not provide my SSN details to the hospital. For this visit I had a valid insurance and everything is taken care off.

Part 2:

I took a secure credit card from my banker. The credit limit was $300. I've used upto $210 (but never carried any due. I always paid the total amount before the due date - Infact immediately).

Part 3:

Recently I've purchased a used car by putting 30% down payment. I had to give my SSN to get competitive rates from different banks etc (6 credit checks). I got the loan approved and am paying the debt in 4 years. I was told that I have a score of 690 which is kinda shocker to me. From the internet, I found out that this score is an average score.

Is the score dependent on the length of my credit history ?? (In my case - 5 months)

Is there a possibility to increase my score from 690 to 750+ ???

Is the due from part 1 affecting my credit score ? (They don't have my SSN)

if I use more than 70% on my secure card (and closing the balance before the due date) effect my credit score ?

Also, please provide me with any good references on how to increase my credit score.

Thanks a lot!

Anonymous · ‎08-19-2011

@Anonymous wrote:
Hi Team,

Forum was very informative. However, I have several doubts I want to clarify.

My scenario:

Part 1:
Recently moved to the US - Around Dec 2010.
I had some health issue and I got admitted to ER (I do not have SSN - Just my name and DOB was given). I was given a bill of around 8k. My insurance did not cover them so I had to pay them out of my own pocket! I could not pay the amount immediately. I waited for 3 months and started paying (from may) the money in 6 equated installments.
I got my new SSN in Jan 2011. I had to visit the ER again. Even now I did not provide my SSN details to the hospital. For this visit I had a valid insurance and everything is taken care off.

Part 2:
I took a secure credit card from my banker. The credit limit was $300. I've used upto $210 (but never carried any due. I always paid the total amount before the due date - Infact immediately).

Part 3:
Recently I've purchased a used car by putting 30% down payment. I had to give my SSN to get competitive rates from different banks etc (6 credit checks). I got the loan approved and am paying the debt in 4 years. I was told that I have a score of 690 which is kinda shocker to me. From the internet, I found out that this score is an average score.

Is the score dependent on the length of my credit history ?? (In my case - 5 months) Yes, everything on your report affects your score to some extent.
Is there a possibility to increase my score from 690 to 750+ ??? Definitely. There are a lot of threads on the forum related to increasing scores.
Is the due from part 1 affecting my credit score ? (They don't have my SSN) Most likely. If it's on your report, it's affecting your score.
if I use more than 70% on my secure card (and closing the balance before the due date) effect my credit score ? Balances are typically reported before the due date, and if a high utilization gets reported it could hurt your score. Try to find out what date your balance gets reported and pay before then. And of course pif by the due date to avoid late payment.

Also, please provide me with any good references on how to increase my credit score. Check out the Rebuilding Credit sub-forum. There are dozens of threads there that can help you.

Thanks a lot!

Anonymous · ‎08-19-2011

Thank you for your reply!

Is there any way I can check if there are any late payments reported on my credit report ??

Currently, i am using McAfee identity protection and i do not see any outstanding / negetive report expect for the revolving credit.

Credit line: $300

Maximum used: $210

-Thanks a lot!

MarineVietVet · ‎08-19-2011

@Anonymous wrote:
Thank you for your reply!

Is there any way I can check if there are any late payments reported on my credit report ??
Currently, i am using McAfee identity protection and i do not see any outstanding / negetive report expect for the revolving credit.
Credit line: $300
Maximum used: $210

-Thanks a lot!

You can get a free, full credit report once a year from all 3 credit agencies at annualcreditreport.com.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Anonymous · ‎08-19-2011

I just got my free credit reports from www.annualcreditreport.com and it was easy to see any and all negatives.

Anonymous · ‎08-20-2011

Hi mailrup,

Welcome!

mailrup wrote:
Thank you for your reply!

Is there any way I can check if there are any late payments reported on my credit report ??
Currently, i am using McAfee identity protection and i do not see any outstanding / negetive report expect for the revolving credit.
Credit line: $300
Maximum used: $210

-Thanks a lot!

You can also sign up for the 10 day free trial of ScoreWatch. This will pull your Equifax credit report and give you your Equifax FICO score. This is helpful because, along with the score and report, you will receive personalized feedback specific to your credit report. It will include info on "What's Helping Your FICO Score" and "What's Hurting Your FICO Score", will show you what interest rates you will likely be approved for on mortgages and auto loans, and also includes a FICO score simulator that helps you know which actions will help and hurt your FICO scores as you move forward. If you cancel within 10 days, you will not be subscribed beyond the ten day free trial period, IME and IMO, It's an uber helpful resource - the most educational thing I found when I was learning about my FICO scores and credit reports - really helped me build my score.

Hope that's helpful!