topic Re: My results with CC consolidation in Understanding FICO® Scoring

My results with CC consolidation

shasta — Wed, 13 Mar 2013 12:36:20 GMT

I just thought I would provide my example for the forum. This is a follow up to my other post, because now all credit cards have reported the new balance

I did a CC consolidation loan through prosper last month. I paid off all of my credit cards, about $4000. My utilization went from 70% to 9%. The prosper loan doesn't show up on the credit reports (at least, not yet). All CC's have reported 0 balance, except for the one with 9%.

The result: only a 15 point jump in both of my scores on myfico.

I don't know why, but I thought there would be a major score jump. I do know that I am totally frustrated now and my credit scores are out of my hand. I have paid off everything, including old baddies and my utilization is low. The only thing i can do is wait. What's weird is, I've read other posts where people are post BK and have scores in the 700's. My baddies are almost 5 years old and I can't seem to get out of the mid 600's.

What gives?

Re: My results with CC consolidation

Anonymous — Wed, 13 Mar 2013 13:17:44 GMT

This would depend on how many and how old your bad reporting items are. They may be constraining your scores significantly.

People post BK with 700 scores typically have no bad reporting items except the BK.

Re: My results with CC consolidation

Anonymous — Thu, 14 Mar 2013 00:21:45 GMT

Negatives can hold you back. I never get a big increase when my utilization changes a lot either.

Re: My results with CC consolidation

HiLine — Thu, 14 Mar 2013 00:36:12 GMT

@shasta wrote:
I just thought I would provide my example for the forum. This is a follow up to my other post, because now all credit cards have reported the new balance

I did a CC consolidation loan through prosper last month. I paid off all of my credit cards, about $4000. My utilization went from 70% to 9%. The prosper loan doesn't show up on the credit reports (at least, not yet). All CC's have reported 0 balance, except for the one with 9%.

The result: only a 15 point jump in both of my scores on myfico.

I don't know why, but I thought there would be a major score jump. I do know that I am totally frustrated now and my credit scores are out of my hand. I have paid off everything, including old baddies and my utilization is low. The only thing i can do is wait. What's weird is, I've read other posts where people are post BK and have scores in the 700's. My baddies are almost 5 years old and I can't seem to get out of the mid 600's.

What gives?

Your baddies put you in a risk bucket that limits the range of your credit score. The score you currently have is close to the maximum you can achieve while those baddies still stay on your report. Post-BK high achievers generally have had the BK record dropped from their report either by waiting or by writing goodwill letters. Do you know of an exception?

Re: My results with CC consolidation

bettercreditguy1 — Thu, 14 Mar 2013 11:04:17 GMT

What additional trade lines or information are contained in your report? Yes, charge off's and collections will hurt for the full seven years if you have any of them. Do you have any judgements? More information is needed for us to accurately explain or assist.