help me get my score up quickly, please!!

[larue]

Why do financial companies have a negative effect on your score? If you make payments on time, one would think this would improve your score.

I currenlty have a Capital One credit card. In light of the comments about not closing out credit cards - and then the next comment about not opening a credit card with Capital One - what should I do?

[Anonymous]

Hi,

In response to you comment, let me share my experience. In Nov '06 I pulled my credit report. I signed up for  Fico Deluxe and let me tell you. This site is amazing. I'm a loan officer and I have used information from this site to help and try to educate every client I talk to. I even recommend this site and do disclose to them that my company has no affiliation with www.myfico.com. I feel that a more educated borrower will make a better decision knowing more about the process. Anyway, when I pulled my tri-merged report in Nov my scores where as follows:

EQ-682

TU-720

EX-710

I have a Mortgage, car loan, Time share(installment loan, not revolving) and 1 credit card. My limit on the card is $700. When I pulled my credit in Nov my balance on the card was $685 (98% balance to limit ratio...NOT GOOD) I preach to everyone of my clients that creditors prefer you to have a "balance to limit ratio" of 30% (i.e. CC limit $1,000 30% balance= $300). In two months and 2 weeks I paid the balance down to $246 (35% balance to limit ratio. Actually when I had paid it down even further it was a month being reporting, happens from time to time. But at the ratio my scores where as follows:

EQ-706 (+24)

TU-743(+23)

EX-715(+5)

Now on the flip side I bought a new TV 1 month and 2 weeks later. I was approved for $7,500. The cost of the TV was$4,011 (53% balance to limit ratio) and my scores dropped as follows:

EQ-692(-14)

TU-720(-23)

EX-697(-18)

Now, do keep in mind the TV account is also a revolving debt. That's why my scores went down like a hot potato. Also, I have only 2 revolving accounts n my credit. The card and TV. The card is now paid off and I will pay the TV down to 30% next month.  I also had a BK (bank ruptcy 8 1/2 years ago and I cant wait for it to drop off.

In my line of work I tell my clients this as a hands on experience. Unfortunately my clients have allot more credit card and revolving debt than I do and their scores are not where they want to be.

720+ you are a Prime borrower and will have more programs available to you with more attractive interest rates. 620 and below you are in the sub-prime catagory and the availability of programs to you are reduced and interest rates are not a favorable. Again, educationg the borrower to me is very important.

So as you can see, paying off the revolving credit card debt is so very important.

I did pull my credit report 3 times to get this information and it was worth it. You should check yuor credit report evey 6 months so if there is a discrepancy you will catch it before it damages your score maikng the task of trying to get it corrected a pain in the butt.

Hope that helps!

Message Edited by BigED on 04-17-2007 08:51 PM

Message Edited by BigED on 04-17-2007 08:52 PM

[Anonymous]

I don't see how opting out of getting credit card offers has any effect at all on your credit score (unless you apply).  The offers often result from soft inquiries which do not count against you.

[Anonymous]

Hi,

You mentioned "You not only save yourself the headache of receiving a ton of junk mail but also will help your score up to 30 points."

However, optoutprescreen.com mentions this:

Does Opting-Out improve my credit score?
No, since inquiries for firm offers for credit or insurance are not used in calculating credit scores, Opting-Out does not improve your credit score. Similarly, inquiries for firm offers for credit or insurance do not reduce your credit score.

[taz3261]

Thanks that was very helpful.

[tooscope2]

Thanks for the info on the opt out and the credit scores.  I just had a lender tell me he would get me hooked up with that and that he can take my disputes from my credit report, write the letters to the bureaus and get responses in 3-5 days.  He says it is no charge to the client.  Sounds fishy and sounds like I would have to go with him if he does this for me.

[Anonymous]

Hi there,

I've personally been successful with getting capital one to remove a late from my credit report. I switched bank accounts and inadvertantly used the old account number to pay the card. Totally my fault, but they were very understanding. I just had to speak to a manager. Keep trying with different managers.

[taz3261]

Scores on Jan 19, 09

TU- 706---middle score great!

EX--728-high score

EQ-681--low :-)

I did Chap 7 6/2005.  Slowly getting there!

[CreditAble]

---

@Anonymous wrote:

Does Opting-Out improve my credit score?
No, since inquiries for firm offers for credit or insurance are not used in calculating credit scores, Opting-Out does not improve your credit score. Similarly, inquiries for firm offers for credit or insurance do not reduce your credit score.

---

You are 100% correct.

Credit repair people use opting out as tool to avoid collections, and other legitimate negatives being placed in one's credit files. That is the only way It  can directly help a credit score. In my opinion opting out is therefore not appropriate advice to be given in order to increase scores as per the rules against credit repair tricks of the MyFico Forums.

Then on the other hand people who have extremely common names might find it helpful to opt out if they consistently get credit file insertions for collection inquiries and tradelines belonging to other people. 

Of course illegitimate insertions can be disputed off, and there is no absolute need to opt out except to avoid the hassle of disputing other people's debt collection activity placed in one's own file.

 One might however want to avoid the potential of having mistaken insertions right before applying for a mortgage. The dispute process might take too long if another person's collection were to appear in file as a result of an applicant's mortgage inquiry hitting his reports. Opting out helps avoid that problem, and can conceivably keep scores from falling in those instances.

Opting out never increases score as you have observed. Opting out can help prevent scores from falling.

[llecs]

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