topic Re: Whats better/worse for Credit Improvement... in Understanding FICO® Scoring

Whats better/worse for Credit Improvement...

Anonymous — Mon, 24 Jan 2011 23:53:52 GMT

Use a Credit Card to make a limited time offer Pay for Delete for a collection from Feb of 2010. (newer collection for 1325$ on my report) and go up to 31% utliz on Credit (with a budget to have it back under 20% util. in 3 months),

Or keep that Collection Account on my report and keep that Credit Util. under 20%???

Please advise......

Re: Whats better/worse for Credit Improvement...

Anonymous — Mon, 24 Jan 2011 23:58:56 GMT

While it's not an ideal way to handle a PFD, I would definitely look at the option of PFD'ing that baby goodbye.

Then I would work my patootie off to get my utilization down - and fast.

For me, it's a no brainer. PFD lasts forever, and your utilization is high for 3 months.

Can you make the first payment on that card before it reports utilization at 31% Even getting it below 29% has been a plus for some folks.

Let us know what you decide to do - we'll be rooting for you!

Re: Whats better/worse for Credit Improvement...

Anonymous — Tue, 25 Jan 2011 00:08:48 GMT

Thanks for the insight BeamMEup....As of now I am thinking of taking the PFD. I am hoping that despite having the 33% Util, that the removal of the really recent Collection might really help.....I am 12 points from being able to buy a home, I am also thinking that removing this collection is one less issue for my home purchase at the Underwriting process.. Does anyone have any other input?

Re: Whats better/worse for Credit Improvement...

Anonymous — Tue, 25 Jan 2011 00:13:25 GMT

In regards to making a payment before the end of the statement.... I think I can pull that off. I can make a 500$ payment on the 28th and that will keep my Util. at 25.7%. The Statement ends on the 3rd of Feb.

Re: Whats better/worse for Credit Improvement...

Anonymous — Tue, 25 Jan 2011 14:06:43 GMT

take the opportunity to get a PFD done. that's a rare one. search the boards and you'll find hundreds if not thousands of failed PFD attempts. very few success stories.

collections last 7 years, util only lasts as long as you have a balance.

no brainer in my opinion.

YMMV

Re: Whats better/worse for Credit Improvement...

Anonymous — Tue, 25 Jan 2011 16:41:51 GMT

beamMEup & MDfive21,

THANK YOU for your input & wisdom. It means the world to me that I can seek advice and get helpful feedback to make my decision in confidence. You will be glad to know that I took the PFD. Got the agreement letter in hand and the payment confimation number. You guys really made a world of difference in being able to make a confident decision! Thank you!!!

Re: Whats better/worse for Credit Improvement...

Anonymous — Tue, 25 Jan 2011 19:43:05 GMT

ask anytime! i'm sure the extra interest you'll pay, if any, is $$ well spent to get this off your reports.

Re: Whats better/worse for Credit Improvement...

Anonymous — Wed, 26 Jan 2011 05:25:09 GMT

Congrats on taking the PFD! That's got to feel great!

Now that we know you're in the market for a home, that utilization is really key.

It's hard to predict exactly where utilization will hit you hard, but some folks see it hit fairly hard when you get into the 30's. So your post on paying that down to the high 20's is really key when you're looking at FICO points.

Keep us posted - I wish you the very best with the PFD, that utilization, and of course H O M E shopping. Woot-woot!

Re: Whats better/worse for Credit Improvement...

Anonymous — Thu, 27 Jan 2011 00:10:40 GMT

Ok...so my statement ends on the 3rd. I will make a Payment to keep my Util around 25-26%. Now that I have the PFD letter and the reciept of payment in my hands whats the quickest way to get this bad boy removed? Wait for the CA to report it to the Credit Agencies? OR to file a dispute, send in my proof and let it drop then? Would that dispute process last 30-45 days if the CA doesn't reply (they have no need to now). I wish this was like Burger King....my way right away. Its amazing how impatient I am being right now.

Re: Whats better/worse for Credit Improvement...

Anonymous — Thu, 27 Jan 2011 14:06:31 GMT

i would wait 30-45 days without filing a dispute, maybe even longer. it takes time for these things to go through on their own.

beammeup, please correct or add to this if i'm not fully correct. ty.

couple ways this thing goes off your CR...

1 the CA takes the initiative to inform the CRAs that this account is to be deleted.

2 the CA stops reporting the debt monthly, and will not respond if the account is disputed.

1 makes things easy for you because it will just disappear from your CR with no action required on your part.

2 makes you work for it because you have to dispute the tradeline before it will fall off.

either way, you want to wait some time so that the CA has time to do what they promised and either delete or stop reporting.

IF you do get antsy and dispute, handwrite the letter on yellow legal paper with a non-blue/black pen. this is so their scanners cannot read the letter and a human will have to manually investigate the dispute. the online process will not work very well for most disputes, especially disputes that involve special circumstances like this.

Re: Whats better/worse for Credit Improvement...

Anonymous — Thu, 27 Jan 2011 17:28:45 GMT

Yahoo!!! My State Refund just came via Direct Deposit so I used that today to make my 500$ payment. Now that CC is officially at 26.4% Utilization!!!! Well before the cards months statement end. Whew. Now just to wait and watch the bad boy fall off my report, and see my score rise!!!

Re: Whats better/worse for Credit Improvement...

Anonymous — Thu, 27 Jan 2011 17:39:38 GMT

Beautiful! Congrats on using that tax refund to build your FICO and land yourself a great mortgage!

As you continue to paydown your utilization, you're likely to see increased FICO points. Lots of folks point to <19% as something of a cutoff - so that might be your next utilization goal.

Best wishes!

Re: Whats better/worse for Credit Improvement...

Anonymous — Thu, 27 Jan 2011 17:43:46 GMT

My next month's payment of $500 will put my Utilization at 18.7%. Super stoked!

Re: Whats better/worse for Credit Improvement...

Anonymous — Thu, 27 Jan 2011 18:05:07 GMT

Nice!!!!