topic Re: New User seeking advice. in Rebuilding Your Credit

New User seeking advice.

OpIvy03 — Wed, 22 Feb 2012 19:51:13 GMT

Hello,

I am new to this site. I am very interested in rebuilding my credit profile. Now unfortunately I had a bad divorce so I have most of the accounts which I did default on. Tons of baddies on the history. Somewhere in the next year or two $25,000 of bad debt will fall off. It was a consumer loan. Once that is off my report there is really nothing that exceeds $1000. I would say 90% of the debt was from the years 2005-2007. After that I haven't really done much because I was uneducated in the rebuilding steps. With that being said would it make a significant difference when that large amount is removed? Also, I utilize the USAA Credit Check monitoring service. I've read in different posts that they are considered FAKO score. Could someone explain how these scores differ from the FICO scores? I have listed them below. I've also started working on the rebuilding process. I have listed those accounts below. I am working hard to pay more than the minimum balance each month. This will ensure that one the balance is more than coverd. And two that the accounts are maintained without any late fees. Would these accounts help raise my FICO scores as I am properly maintaining them? Also how long would it take to see some changes on the scores? Alone when I opened the Fingerhut and USAA card my score went up about 40 points but that is through the monitoring service. Sorry for all the questions I am just trying to make sure I take the right steps in getting out of this rut I've been in.

Fingerhut Fresh Start Credit. Opened Nov 11. Approved for $179 installment loan. I used $139. It was PIF in Jan 12. (I believe this is reported for a total of 6 months)

Fingerhut Revolving Credit Account. Opened Jan 12. CL $200. Balance $68. Min Pay $7.99 but I usually pay $30 a month.

USAA Secured Credit Card. Opened Feb 12. CL $500 Balance $75 Pay $30 a month.

Capital One Secured Card. Opened Feb 12. CL $200. Balance $0

USAA FICO Scores 2/18/12 Experian 543 Equifax 530 TransUnion 544

Re: New User seeking advice.

OpIvy03 — Wed, 22 Feb 2012 20:31:19 GMT

If I posted this in the wrong section I apologize.

Re: New User seeking advice.

Guava — Wed, 22 Feb 2012 20:40:42 GMT

Hai! Basically, FICO scores are scores developed by Fair, Isaac, and Company; pretty much all banks/lenders use FICO scores to determine your crediblility with your credit. FAKOs are scores developed by banks/lenders/services to their own in-house analysis. You should only pay attention to FICO scores.

For a better grasp of scoring, this thread has what you need: Credit Scoring 101

For the cards you listed, you should use them and pay in full every month if you can; paying minimum or some other amount less than full will not help your scores and cost you interest money.

Have you looked at your reports and determined what exactly are hurting you (collection accounts/charge-offs?). Goodwill letters and/or Pay-for-Deletion may help too!

Re: New User seeking advice.

LIGHTNIN — Wed, 22 Feb 2012 20:44:54 GMT

@OpIvy03 wrote:
Hello,

I am new to this site. I am very interested in rebuilding my credit profile. Now unfortunately I had a bad divorce so I have most of the accounts which I did default on. Tons of baddies on the history. Somewhere in the next year or two $25,000 of bad debt will fall off. It was a consumer loan. Once that is off my report there is really nothing that exceeds $1000. I would say 90% of the debt was from the years 2005-2007. After that I haven't really done much because I was uneducated in the rebuilding steps.

With that being said would it make a significant difference when that large amount is removed? Also, I utilize the USAA Credit Check monitoring service. I've read in different posts that they are considered FAKO score. Could someone explain how these scores differ from the FICO scores? I have listed them below. I've also started working on the rebuilding process. I have listed those accounts below. I am working hard to pay more than the minimum balance each month. This will ensure that one the balance is more than coverd. And two that the accounts are maintained without any late fees.

Would these accounts help raise my FICO scores as I am properly maintaining them? Also how long would it take to see some changes on the scores? Alone when I opened the Fingerhut and USAA card my score went up about 40 points but that is through the monitoring service. Sorry for all the questions I am just trying to make sure I take the right steps in getting out of this rut I've been in.

Fingerhut Fresh Start Credit. Opened Nov 11. Approved for $179 installment loan. I used $139. It was PIF in Jan 12. (I believe this is reported for a total of 6 months)
Fingerhut Revolving Credit Account. Opened Jan 12. CL $200. Balance $68. Min Pay $7.99 but I usually pay $30 a month.
USAA Secured Credit Card. Opened Feb 12. CL $500 Balance $75 Pay $30 a month.
Capital One Secured Card. Opened Feb 12. CL $200. Balance $0

USAA FICO Scores 2/18/12 Experian 543 Equifax 530 TransUnion 544

Hi and Welcome to the forums,

There are only a few place to buy FICO scores, one of them is here you can get EQ FICO and the TU FICO scores.

Consumers can not pull their EX FICO score, but a bank or a mortgage lender can.

For more info about scores, you can read The Son Of Credit Scoring 101.

Yes you can increase your CS by paying your bills on time, 35%of the FICO is payment history.

To know how FICO Scores are calculated, suggest reading Whats In Your Score.

I'll let others, chime in too.

Re: New User seeking advice.

OpIvy03 — Wed, 22 Feb 2012 20:55:28 GMT

Excellent information. I appreciate the responses. I will continue to rebuild my credit. I've had some bad downfalls. I went through a rough divorce in 07. So all of the debt was appointed to me. Bummer there. Then I finally needed a car. I had gotten one in 09 from Santander Consumer loans. Horrible APR. But then I was unemployed for about almost 8 months due to the job market. So that was repoed =/. Other than that there hasn't been anything new on my account. Everything that is one there is old stuff from the divorce. But like I said the largest account is that $25,000 consumer loan. Which was from NFCU another bummer =/. That comes off sometime in the next year or two. Will that help in some way as that is the largest account I have that was written off as a profit loss by them.

Re: New User seeking advice.

Guava — Wed, 22 Feb 2012 21:05:00 GMT

Sorry to hear oplvy! I hope it'll get better for you.