topic Re: How to raise score? in Understanding FICO® Scoring

How to raise score?

Krazarr — Sat, 16 Jan 2021 15:28:38 GMT

Credit Snapshot

Help! I’ve been trying to fix my credit and increase my scores but they will not move. To be fair, I’ve always had bad credit. Credit cards stayed maxed out for the most part up until September 2020. Below is where I currently stand. I feel that I will always be around this mark due to the high balance on my student loans although I don’t have any late payments on my credit report outside of 1 old paid charge off on Equifax, Transunion, and Experian.

My student loan payments have been pretty small over the past 4 years due to IDR, and even though they are paid on time, the balances never decrease and I think that is hurting my score. I recently changed jobs and make between 90-120k a year. I have just started to get approved for loans/credit cards but limits are very low. I have an avg of 4 inquiries amongst all three bureaus. I’d like to obtain a credit card with a high limit 10k plus and reach 750+ among the three bureaus. Please any advice you could give would be greatly appreciated!!!!!

Credit Cards

Apple Card $1,500 limit - $0 balance

Barclays Apple Rewards $5,600 limit - $0 balance

Comenity Bank/Express (Store Card) $1,800 limit - $0 balance

Comenity Bank/Helzberg (Store Card) $1,300 limit -$0 balance

Comenity Bank/Gamestop (Store Card) $500 limit - $0 balance

FSB Blaze $2,250 limit - $0 balance

Synchrony Bank/ Care Credit $3,300 limit - $0 balance

Synchrony Bank/ Home (Store Card) $2,500 limit - $627 balance

TDRCS/Samsung $1,200 limit - $0 balance

Brand New Approvals

Capital One Venture - 3k limit no balance

Discover It - 3k limit no balance

Revolving Accounts

Dept of Education/Nelnet Student Loans - 21 individual accounts totaling $112k. All on time payments

American Airlines Credit Union - $9,000 loan, $8,100 balance

I also have a few closed revolving accounts that have been paid in full including auto loan and a few 2 year loans

Average Credit Age 7 years 2 months

Oldest account 14 years

Derogatory

JPMCB Auto Loan Paid Charge off less than full balance

Scheduled to fall off 08/2021 Experian 11/2021 Transunion 12/2021 Equifax

Fico 8 Scores

Equifax 693

Transunion 724

Experian 696

Frequent reasons for denial for credit limit increases

Lack of real estate secured loan information

Balances on accounts too high compared to credit limits and loan amounts

Too many revolving accounts with high balance compared to credit

Serious Delinquency

Too many accounts with balances

Credit history short

Re: How to raise score?

Jnbmom — Sat, 16 Jan 2021 15:32:23 GMT

@Krazarr

Please do not post the same question in 2 different forums.

Re: How to raise score?

Krazarr — Sat, 16 Jan 2021 15:34:12 GMT

Sorry. Is there a way to delete it?

Re: How to raise score?

Anonymous — Sat, 16 Jan 2021 15:54:04 GMT

@Krazarr wrote:
Credit Snapshot

Help! I’ve been trying to fix my credit and increase my scores but they will not move. To be fair, I’ve always had bad credit. Credit cards stayed maxed out for the most part up until September 2020. Below is where I currently stand. I feel that I will always be around this mark due to the high balance on my student loans although I don’t have any late payments on my credit report outside of 1 old paid charge off on Equifax, Transunion, and Experian.

My student loan payments have been pretty small over the past 4 years due to IDR, and even though they are paid on time, the balances never decrease and I think that is hurting my score. I recently changed jobs and make between 90-120k a year. I have just started to get approved for loans/credit cards but limits are very low. I have an avg of 4 inquiries amongst all three bureaus. I’d like to obtain a credit card with a high limit 10k plus and reach 750+ among the three bureaus. Please any advice you could give would be greatly appreciated!!!!!

Credit Cards

Apple Card $1,500 limit - $0 balance
Barclays Apple Rewards $5,600 limit - $0 balance
Comenity Bank/Express (Store Card) $1,800 limit - $0 balance
Comenity Bank/Helzberg (Store Card) $1,300 limit -$0 balance
Comenity Bank/Gamestop (Store Card) $500 limit - $0 balance
FSB Blaze $2,250 limit - $0 balance
Synchrony Bank/ Care Credit $3,300 limit - $0 balance
Synchrony Bank/ Home (Store Card) $2,500 limit - $627 balance
TDRCS/Samsung $1,200 limit - $0 balance

Brand New Approvals
Capital One Venture - 3k limit no balance
Discover It - 3k limit no balance

Revolving Accounts

Dept of Education/Nelnet Student Loans - 21 individual accounts totaling $112k. All on time payments
American Airlines Credit Union - $9,000 loan, $8,100 balance

I also have a few closed revolving accounts that have been paid in full including auto loan and a few 2 year loans

Average Credit Age 7 years 2 months
Oldest account 14 years

Derogatory
JPMCB Auto Loan Paid Charge off less than full balance
Scheduled to fall off 08/2021 Experian 11/2021 Transunion 12/2021 Equifax

Fico 8 Scores
Equifax 693
Transunion 724
Experian 696

Frequent reasons for denial for credit limit increases

Lack of real estate secured loan information
Balances on accounts too high compared to credit limits and loan amounts
Too many revolving accounts with high balance compared to credit
Serious Delinquency
Too many accounts with balances
Credit history short

Well look at the denial codes.

You said you paid your cards off and it looks like it.

Did you get these denial reasons before or after you paid down your cards and they reported to the bureaus?

The SLs are not are what are holding you down. What is holding you down most is the paid charge off. I can almost bet you will see your scores shoot up after that.

Also, if you acquired most of these cards recently, it is time to slow your roll. 4 pulls/bureau is up to 12 requests for credit in the last 2 years. In the denial reasons it lists short credit history. While your student loans boost the age of accounts, I often found they are referring to revolving credit (credit cards). I bet if you stop apping and let your accounts age, get that one credit card under 30%, and let that charge off age off, you would be not only surprised to see your scores pop up, but your chances of apprival for a better card with a better limit!

Too many apps and new accounts make creditors nervous, especially in the times we are in now. You may not have a lot of denials, but you are stuck in low limit purgatory. Just a sign to be patient. You even just got 2 new approvals. You need to stop and wait. Every new account will lower you age of accounts and in turn your scores. You have lots of credit products and more credit does not necessarily equal better credit.

To be honest your scores are not horrible. Hang in there and if you are on track with IBR on your SLs to get the remaining balance forgiven or PSLF, then do not go crazy trying to pay them down. Installment loans will not give you the boosts you seek. A clean credit report (no derogatory accounts) with low utilization of your revolving credit (individual and combined) and time/patience (the most difficult part) is what will get you where you want to go.

Also, credit cards are revolving accounts. Installment loans are any type of loan - student loans, personal, auto, etc.

Good luck!

Re: How to raise score?

Krazarr — Sat, 16 Jan 2021 16:30:38 GMT

Thank you for the kind words. You are right, I believe I have entered the waiting period now. My Barclays card is 4 years old, Blaze card 5 years.

In the last two years, I applied for the Apple Card in 2019 and 1 personal loan in 2020. The other inquries came from Early 2019 a few of which have fallen off or scheduled to fall off soon. The Capital One Venture and Discover It was done yesterday as I want to use credit cards for rewards.

The paid charge off is 6 years old and Im hoping that when it falls off towards the end of the year, that things will be better for me moving forward. I'm not certain though because everything that I've read thus far suggests that charge off's don't really affect your score much after two years and its in year 6 so I'd assume it will have little effect.

Re: How to raise score?

Anonymous — Sun, 17 Jan 2021 01:47:04 GMT

@Krazarr wrote:
Thank you for the kind words. You are right, I believe I have entered the waiting period now. My Barclays card is 4 years old, Blaze card 5 years.

In the last two years, I applied for the Apple Card in 2019 and 1 personal loan in 2020. The other inquries came from Early 2019 a few of which have fallen off or scheduled to fall off soon. The Capital One Venture and Discover It was done yesterday as I want to use credit cards for rewards.

The paid charge off is 6 years old and Im hoping that when it falls off towards the end of the year, that things will be better for me moving forward. I'm not certain though because everything that I've read thus far suggests that charge off's don't really affect your score much after two years and its in year 6 so I'd assume it will have little effect.

That is completely untrue regarding chargeoffs. Major delinquencies hurt the entire 7 years they are on your reports. A 30d late or maybe even a 60d late lessens it sting when it hits 2 years old, definitely not a charge off.

Re: How to raise score?

Anonymous — Sun, 17 Jan 2021 01:51:05 GMT

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Question-about-negative-tradeline-OC-behavior/m-p/6229459#M636284

Thus post shows a nearly 7 year old charge off that the creditor pulls off the poster's credit report and places it back on. Their scores are generally in the 650s because of this charge off and when it is removed, that cause their score to go into the *800s*.

Again, chargeoffs are no joke and dont fade away after 2 years, I still place my bet on you will see a good jump when it comes off.

Re: How to raise score?

Krazarr — Sun, 17 Jan 2021 12:59:54 GMT

I'd never be more happy to be wrong! Lol