how mcuh could it increase

Anonymous · ‎07-24-2011

I know no one knows for sure. I have been working on my credit for about 6 months now..my TU is 583 Equifax is 576...not sure about Experian..

How long do you think it could take me to get to 620

Here is what I have on my report..

2 credit cards that i just got 5 months ago with 400-500 dollar limits..i dont charge no more than 30% and pay on time.

1 loan for 2500

1 loan for 6600

I have about 1200 in medical that will fall off in 1-2yrs...

I have some electric bills that were pd. up but are showing 30/90 days late..

Also, my loan i was 6 months late..

if i start working on one of my loans..how much do u think it could raise my score? My goal right now is 620..im wide open to any tips or suggestions.

llecs · ‎07-24-2011

Welcome to the forums!

It's impossible to accurately predict, but if you work hard via GW letters to these accounts asking them if they wouldn't mind removing lates, etc., and if successful, and you keep util low, I bet you'd hit 620+ in a few months tops.

I know you got your CCs a few months ago, but I bet you'd see a rise as they age within the next 7-8 months. If any of your other OC accounts are inside a year, then I'd expect a gain if everything is a year or older. If you add any new accounts, then you'd have to stretch that time out.

PIF for the CCs is good, but make sure they report $0 or very close to it. If they report 30%, then you are taking a ding for that. Ideally, try getting both to report $0 (FICO doesn't like to see too many accounts with balances...plus your loans report a balance too), and try to get one to report a balance and the other a small balance of under 9% of the CL (e.g. $36-$45 or less).

If any of the lates are recent (w/in the past year), then my answer would be that it would take longer, assuming they wren't open to a GW request.

IMO, PIF one of the loans. It isn't helping any...and I take it you want a 620 for a mortgage and PIF would help your DTI.

Anonymous · ‎07-25-2011

Thanks so much for responding..Im going to try what you are suggesting..my cc are not much so it will be easy to get them to a 0 balance..my student loans are a different story though..TU is not reporting the loan with 2500..it reads a $0 balance, but says transferred..my loan that is 6500 is being reported by all three..so I was thinking to maybe pay off as much of the 6500 that I can?..

The reason why I was asking is because I just finallly got my tax return..2500...and I didnt know if it would be a good idea to pay off my old medical bills which i owe 1200 on..or to just apply all of it to my 6500 student loan...im not sure how much of a impact the medical would have on my score and how much it would raise my credit score if i pd. off my medical...

Anyone have any tips on how to work or what to say in a GL letter? Ill do a search I had lost my job and some other things had happened..It was a time in my life that Im just really happy its over

Is it possible that negatives can be taken off of an account? or the lates? I have 6months of them...has it worked for anyone?

llecs · ‎07-25-2011

As long as that former $2500 loan reads $0, whereever it reports, then you are OK. Other than DTI in the eyes of any future lender, paying the $6500 probably won't improve your FICO any. FICO (and lenders) like to see $0 balances, but not every TL needs to report $0. It would be OK to pay the SL as scheduled. I was thinking the $2500 because I thought the balance might be low enough to pay off before you hit 620. But since it is paid, then you are good to go.

If I had $2500 in cash for debt paydown, and getting my scores up were a priority, then I'd save it for the medical. There are two steps you can take on that, though you can't do both. The first is to pay off the original creditor (e.g. the hospital, doc, etc.) and then follow the HIPAA process (google for more info...these forums don't support that info). The second (and what I'd personally do), would be to send a DV letter to the CA. If they verify and you agree, then mail a PFD letter to the CA. If they agree in writing, then pay it and they'll delete and that can cause your score to jump up. I'd then use the remaining for savings and CC paydown. If you paid the medical without getting an acceptance of the PFD, then your score will not change. A $0 balance CA is just as damaging as one with a $10,000 balance.

Example letters - PFDs, GWs, DVs, etc. There are plenty of success stories with getting lates to drop. If wanting more info, I recommend looking and posting in the Rebuilding Your Credit board within these forums.

Anonymous · ‎08-01-2011

Thank you so much for your reply..I started the steps that you suggested..I have three letters out to three different angencies..I havent heard back..TU is now reporting my 2500 loan..I had disputed this loan with Equifax because it was showing up that I owed 5000..I disputed it and was able to get the correct amt. on equifax..but when it changed on my report..TU had it so I owed a 0 balance..not sure why...

anyhow..Im still sitting on the money..wld u pay off the 2500 loan? or continue with the medical?

llecs · ‎08-01-2011

I'd probably hold off on the loan if balances are looking funny (e.g. $0 if not at $0 and $5000 if never at $5000). I'd communicate with the loan people first.

I'd do both, but of the two, getting the medical baddies off will result in a bigger bang for the buck than getting another TL to $0. There's a process to follow in getting those CAs off. Paying them off won't do it.

Getting the CC balances to report all at $0, except for one w/ a balance of 9% under the CL, will give a large boost too.

Anonymous · ‎08-01-2011

Thanks llecs for your responses.....I appeciate your time