Understanding the score

[jaceja10]

After many years of being a not so smart person with my credit, I decided to take some action and began paying off debt that was sent to collections and/or was getting ready to be sent to collections. I decided not apply for credit until I knew that I could get something but after 5 years and after so many accounts falling off I am just not sure why my credit score is still low. According to my Experian credit report, I have 7 negative accounts and 21 positive accounts and yet my credit score is 616. 

Can anyone help me understand why that is. 

The help is appreciated.

[user5387]

I don't know where you got your EX score from.  If it's not a FICO score, then I'd suggest trying to get one.

Two of the biggest drivers of low scores are derogatories and high utilization.  These drive down scores because they're indicators of major risk to lenders who extend you credit.

For derogatories, it depends on how serious they are, the number, and the age.

It might be helpful to post more details of your report, either here or in the rebuilding forum.

[jaceja10]

Thank you for the information. Unfortunately the only credit card that I have is close to it's credit limit. I am working on getting the balance under control but I don't seem to be doing the right thing. I think for this credit card I am going to have to put it away and not use it. Would it make a difference if I just cancel it. It's a secured card that I have had for 2 years and although the money has been transferred to a regular savings account, I have not touched that money in over a year.

As for the credit score, I got it from Credit Karma and I will work on getting my FICO score. 

I did review my the negative accounts and noticed that there is a duplicate account on there and another one that I do not recognize. I will work on getting those disputed.

[user5387]

If you do not control the utilization on your CC, and you want to raise your scores, then one way of doing so is to pay it off, and then use it only to buy toothpaste every three months, and instead use debit and prepaid cards and cash and checks for your normal purchases.

[jaceja10]

That is a very good idea. if I do that, would you know how long it will take for my credit score to go up.

[Revelate]

---

@jaceja10 wrote:

That is a very good idea. if I do that, would you know how long it will take for my credit score to go up.

---

Generally as soon as the debt is paid down.

While personally I wouldn't stop using my credit cards, I would do the analysis of where the money is being spent and trying to pay more on the credit card than what is spent every month; if that isn't workable then something like user29843's suggestion can work.  Certainly if I had something saved up, I'd typically just write the check as the interest rate on a credit card typically is larger than what one can do otherwise with the money.

[jaceja10]

Thank you everyone for your help. Now I can set a plan and goal for myself and work towards it.