topic Re: INCREASING MY FICO SCORE in General Credit Topics

INCREASING MY FICO SCORE

Anonymous — Thu, 12 Apr 2007 22:27:02 GMT

MY SCORE IS VERY LOW RIGHT NOW AND I'M TRYING TO GET A GRIP ON ALL MY CREDIT CARD BILLS. I HAVE TO LEASE A CAR IN JULY AND I'M AFRAID WITH SUCH A LOW SCORE I WONT BE ABLE TO GET A CAR. HOW CAN I IMPROVE MY SCORE FROM NOW UNTIL JULY?

Re: INCREASING MY FICO SCORE

Anonymous — Thu, 12 Apr 2007 23:23:40 GMT

ccgiles24 wrote:
MY SCORE IS VERY LOW RIGHT NOW AND I'M TRYING TO GET A GRIP ON ALL MY CREDIT CARD BILLS. I HAVE TO LEASE A CAR IN JULY AND I'M AFRAID WITH SUCH A LOW SCORE I WONT BE ABLE TO GET A CAR. HOW CAN I IMPROVE MY SCORE FROM NOW UNTIL JULY?

The quickest short term gain I have found is to get your utilization down below 10% if doable. Decreasing utilization seems to be the fastest way to a higher score. Some acheive this by opening new credit card account but if you're in the process of trying to make a bi financial move, that's not really a good idea.

How is your utillization?

Re: INCREASING MY FICO SCORE

Anonymous — Thu, 12 Apr 2007 23:36:51 GMT

Any specifics you can provide would be most helpful in advising you.

Re: INCREASING MY FICO SCORE

Anonymous — Thu, 12 Apr 2007 23:46:33 GMT

Brammy is right, and dont be late with any payments, I have learned thats another huge factor in scoring. Good Luck.

Re: INCREASING MY FICO SCORE

Anonymous — Fri, 13 Apr 2007 00:01:32 GMT

Brammy is correct...in such a short span of time, reducing utilization is the only lever you have to pull to improve your credit score. And keep paying all bills on time.

Utilization is the percentage of your credit limit that you are using. For example, if you have a balance of $1000 on a card with a $2000 limit, your utilization is 50%.

Focus on paying down the card with the highest utilization. If you have a $1000 card with $921 charged on it, that is hurting you far more than having $2,120 charged on a $5000 card. Why? Because your utilization on the first card is 92%, whereas on the second is only 42%.

Re: INCREASING MY FICO SCORE

Anonymous — Fri, 13 Apr 2007 02:16:31 GMT

There are some other options as well.

Late payments can be goodwilled away. Not a sure thing, but worth a try. Settled accounts perhaps. I was able to get one deleted.

Unpaid collections and chargeoffs can be negotiated and settled, in exchange for a written agreement to delete the tradeline.

If you we're only an AU on an adverse account, you can dispute that and get rid of it.

Re: INCREASING MY FICO SCORE

Anonymous — Fri, 13 Apr 2007 08:50:40 GMT

What are the different levels your fico gets a boost based on util? Am I hurting myself by going from 90 down to less than 25% as opposed to going to 50 get a boost than got to 30 and then to 10? Hope this makes sense>

Re: INCREASING MY FICO SCORE

Anonymous — Fri, 13 Apr 2007 22:43:28 GMT

LadyFICO,

Less util is always better than more. If you get lesser, then that's betterer.

Re: INCREASING MY FICO SCORE

Anonymous — Sat, 14 Apr 2007 22:04:43 GMT

How do you go about goodwilling a late away? Is there a letter I can be referred to or do I call with a sob story say I am bad and pray that they will do it? Is there a criteria? Just don't say there is a model like fico

Re: INCREASING MY FICO SCORE

Anonymous — Sun, 15 Apr 2007 04:36:03 GMT

Goodwilling is a combination of luck & skill while showing contrition. Sorta the equivalent of panhandling for a better credit score.

Here's one my wife and I used that worked with Chase bank. IIRC, one went to 120 days late, second went to 90 days late, and the third went to 90 days late and was settled for less than the full amount. Got all three accounts deleted from our reports, and they even sent a letter saying they would do it.

We are writing to see whether Chase Bank would consider making a goodwill adjustment to the credit reporting bureaus on our closed accounts. We are asking whether Chase Bank would remove the adverse late payment and settlement reporting from these accounts in reporting to the credit bureaus. We understand this is a rather unusual request—particularly as our accounts fell behind upwards of 120 days and one account was settled for less than the full amount.

Chase Bank was extremely helpful in working with us at a time of job layoffs and missed payments. The ease with which we were able to resolve these accounts gave us something to pay off and helped us to move forward.

If what we ask is too much, then any goodwill adjustment to the reporting bureaus would be most appreciated.

Regardless of your decision, please know that we thank you for helping us at a time when it was needed, and we hope to do business with Chase again one day.

Message Edited by Noah_Bodie on 04-14-2007 09:36 PM

Re: INCREASING MY FICO SCORE

Anonymous — Thu, 03 May 2007 00:03:37 GMT

Wow that was good. I have an issue with chase that shows a paid charge off of $27 back in 12/05 I know I still feel the effects of this a little and want it removed they keep saying they don't handle this type of account it was a club account I had in Germany which charged it's yearly dues to it. I never even used it. I moved in 2005 didn't get any letters of collection and they charged it off in less than 60 days. I have tried to talk to them no progress. I think the letter you and your wife used almost made me write you a check!

Thanks!

Re: INCREASING MY FICO SCORE

girlie — Mon, 07 May 2007 02:46:37 GMT

bravo!

i am inspired to try the same thing. i had two charge offs with chase almost 2 years ago. I was offered a settlement amount through the collection agency, but chose to pay the full amount.

i hope it works

Re: INCREASING MY FICO SCORE

Anonymous — Mon, 07 May 2007 16:46:04 GMT

I think Noah illustrates a significant point by showing us his goodwill letter. At the end of the day, an actual human being is at the other end of your correspondence. And just like in real life, how you approach someone is key. If I walk into my bank kicking and screaming because they put a hold on my deposit, the likelihood of being helped is slim to none because I've already put the person behind the counter on the defensive. However if I politely explain to them "I realize there's a 5 day hold on large deposits and I understand why the bank has this policy, but I have checks coming through and I really need access to these funds. Is there any way you can do a manual verification for me?" True story, by the way. If you come across genuine you might luck out and catch someone on a good day, or someone who has been in your shoes and can relate. They may cut you some slack and bend the rules a little. As a side note, this only applies to a goodwill letter. When it comes to disputes, you may have to resort to kicking and screaming.

Re: INCREASING MY FICO SCORE

Anonymous — Tue, 08 May 2007 06:04:42 GMT

Yes, I now believe I actually have a chance. Anything is possible when you add the human element. I'll let you guys know how it turns out.

Re: INCREASING MY FICO SCORE

Anonymous — Tue, 08 May 2007 16:44:52 GMT

Noah,

Did you send this letter to the Original Creditor or the Collection Agency?? I would love to give this a try and see if i have any luck as I settled a few cards (that were in collections) for less in 2006.

Re: INCREASING MY FICO SCORE

Anonymous — Tue, 08 May 2007 22:10:18 GMT

Irvin,

GW the OC, not the CA. Always GW the OC, not the CA. CAs have no scruples, no morals and no reflection.

If the account is a Paid Collection, GW is worth a shot but know that the odds ain't good. Only 39 cents to try. Not much to lose and plenty to gain.

Be sure NOT to copy a GW letter verbatim. Read every GW letter you can find. Study them, get a feel for it. There's both an art and a science to it.

And, don't send a GW letter CMRRR.

Re: INCREASING MY FICO SCORE

Anonymous — Wed, 09 May 2007 06:56:33 GMT

So the GW letter is more or less sent on faith since you aren't tracking it? How do you know if you have the right address? Do you call ahead and ask where such correspondence be sent?

Re: INCREASING MY FICO SCORE

Anonymous — Thu, 10 May 2007 01:36:53 GMT

Exactly correct. GW letters are a leap of faith that a human being on the receiving end will take pity on you. I used the address listed on my CRs. Began the letter Dear Madam or Sir.

However, there is growing opinion over on CIC that GW letters work better when sent to executives, and even Email. I tried it with Target after two GW letters yielded not a word in response. No luck yet. And no luck with GW from AMEX either, but that TL went to collection.

But the risk is nil, rewards are high, and the odds are better than Vega$.

GW is best for lates, particularly old lates, but use it for any lates--whether the account is open or closed.

I have yet to hear of anyone getting a paid collection or paid chargeoff deleted via GW, but it's probably happened.

If you still owe the OC money, GW may or may not work. One of my Chase GW deletes was on an account that was settled for less than the full amount. I guess my advice would be if you've paid the OC most of what you owed, then give GW a try. IIRC, the Chase account was for about $1700 and was settled for around $1200.