topic Re: How Many Points For... in Rebuilding Your Credit

How Many Points For...

JamesKnox — Wed, 04 Sep 2013 05:45:59 GMT

Hey Family!

As you all may know, I am fairly new to the forums but have already learned so much and SOOOO eager to continue to build my credit. I get so inspired when I head over to the CC Forum and see people talking about "requesting a 10k limit and the bank countered with 7.5k)!!! I WISH!! I would be lucky if I requested a $200 limit and they countered with $25. HAHA.

Anywho I have a couple of questions...

Currently my EXP FICO is 568.

I have...

Capital One Charge Off - $200 CL --- Balance is $355 (Charged off this year)

Bank of America Secured - Just got this card last week. $300 CL - Plan to have report LESS than 10% bal and pay in full monthly.

6 Collection Accounts (2 Medical, 4 Misc) The 4 random collections total to UNDER $700

Judgement Capital One - PAID - $1550 back in 2009

4 Inquires.

So my exact questions are...

1. If I were to pay the Cap One charge off in full and pay the 4 collection accounts (which total under $700 -- can't pay Med right now; but soon) -- How much should I expect FICO score to move? (2 of the 4 collections agreed to PFD)

2. If I become AU on moms credit card (Limit $5k, Balance $0) and do all of the above -- How much should i expect FICO score to move?

Re: How Many Points For...

SunriseEarth — Wed, 04 Sep 2013 19:01:23 GMT

Hello...

Congrats on taking some steps to improve your credit. You definitely have some obstacles to overcome, but many of us have been there. My EX FICO was a 590 about a year ago. I've only very recently became aware of these forums and what I can do to raise my scores. I'm expecting to see some progress in September scores!

As for the PR, time will negate the effects of a judgment, but other posters in the thread have offered great advice. My Ch 7 BK was discharged in October 2005 and it will be on my CRs until 2015. And it's definitely the big item holding me back. Correcting that is a great priority

As for the collections, I think it's great that two have agreed to PFD. As for the others, you can settle and try to get a GW deletion later, if they won't do PFD.

AU on Mom's card is a great idea. You'd really have to let it report for about 6 months to see the difference. I also think keeping a low UTIL on the BofA secured is a great idea, too. Once you get back into the low 600s, there's a few store cards you might be able to obtain or you might want to try for another rebuilder card to add some positive credit to your CRs.

Anyway, just keep at it. It may take some time to really see the results on your scores, but they'll be dramatically better.

(Content edited to be more in line with excellent suggestions in thread!)

Re: How Many Points For...

madmann26 — Wed, 04 Sep 2013 11:03:03 GMT

James,

The Cap1 CO is being factored into your utilization right now. Pay it, whether it's settled or PIF it's not going to matter unless a manual review is done. It's CO'd and it is what it is.

Once that is paid, Cap1 will probably due 2 updates to your credit files. Once for the settlement and another to 0 the account out. This will net the largest score boost. After paying them, start the GW process to see if you can get the payment history removed. Cap1 will more then likely not PFD.

Start working on the paid judgement. This is also causing great harm to your score currently. If you still have the paperwork from court, contact the attorney that Cap1 used and ask if they will file a 'motion to vacate'. If they do (and most likely they will), once the judge signs it, it will be removed from your credit file. This usually takes some time so please be patient with the process.

Being an AU is a great start. However, I would caution you. Some people get burned by this simply because the account holder decides to go run up the card and not pay it before it reports. If you are certain this will not happen, then go for it. It WILL help.

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 15:18:56 GMT

bump

Re: How Many Points For...

Anonymous — Wed, 04 Sep 2013 15:22:40 GMT

The newer the collections the more impact on your score. For those it is really hard to even guess at how much a boost would be.

For the utilization, and YMMV, I always say between 5 and 10 points for every 10% paid down.

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 15:54:45 GMT

guiness56

So let me get this right...I am like 175% UTIL right now because of that 200 limit with balance of 355.

So are you saying that on the high end... going down to a 0 util could add 175 points?????? and on the low end...87 points??

Re: How Many Points For...

madmann26 — Wed, 04 Sep 2013 16:00:52 GMT

It's a YMMV type of thing.

But yes, dropping the util from 175% to 0% or a better case, 10% would net significant gains.

Re: How Many Points For...

rainobot — Wed, 04 Sep 2013 16:09:10 GMT

I paid a charge-off in full a week ago. My Equifax Fico increased 126 points, TU increased 50 points. You might get some otherwise advice from gurus in the forum, but it eventually boost your score.

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 16:08:43 GMT

But it's a chargeoff madmann. I can't get it to 10% can I.

It's better to just pay in full to $0 balance right?

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 16:11:42 GMT

raino..

How did your score change so fast?

You paid a week ago and your CR already updated??

Re: How Many Points For...

Anonymous — Wed, 04 Sep 2013 16:15:49 GMT

@JamesKnox wrote:
But it's a chargeoff madmann. I can't get it to 10% can I.
It's better to just pay in full to $0 balance right?

Yes, pay the CO off. Once it is to a 0 balance the CL will be removed and that TL will never factor into your score again.

And if your utilization is at 175%, yes, you could very possibly see a 3 number boost in score. Again, YMMV.

Re: How Many Points For...

madmann26 — Wed, 04 Sep 2013 16:17:45 GMT

I was referring to utilization across the board. My apologies for not making that clear.

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 16:41:17 GMT

I JUST PAID THE CAPITAL ONE CHARGE OFF!!!

SO EXCITED TO SEE HOW MY SCORE WILL MOVE.

Question... The CA (Nelson, Watson) is sending me later stating that debt is satisfied, is it better to just reach out to the three agencies with this letter and have them update OR does it have to come from Capital One? Should I now DISPUTE the Capital One through the CRA's since the information is technically incorrect?

Re: How Many Points For...

Anonymous — Wed, 04 Sep 2013 16:47:11 GMT

The CA needs to let Cap 1 know the account is PIF. Ask them when they intend to do that.

And no, you cannot dispute the balance. Until they are notified by the CA it is reporting correctly.

Let the way it is supposed to work, work for now.

Congrats on paying that off. Let us know of the score change.

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 16:52:05 GMT

Okay great.

Guiness,

I applied for Crown Jewelers card just now. Approved for $2500. Made a small purchase.

When should I expect them to report and will the report say that my CL is $2500 and my balance is $24?

Also, if I pay the balance in full right now...will they even report? or will it report $0 balance. Which should I do?

Re: How Many Points For...

Anonymous — Wed, 04 Sep 2013 16:57:12 GMT

I may be mistaken but I remember from past posts that they no longer report to the CRAs.

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 17:00:16 GMT

WHATTTTT!!!!??

So I just wasted my hard earned 16 dollars?!

I'm cancelling account immediately!!! I can't believe it!

Re: How Many Points For...

Anonymous — Wed, 04 Sep 2013 17:05:36 GMT

Give me some time, I am looking into it. I did find a thread that all of the accounts were deleted.

Here is this thread: http://ficoforums.myfico.com/t5/forums/forumtopicprintpage/board-id/creditcard/message-id/173696/print-single-message/false/page/1

Re: How Many Points For...

JamesKnox — Wed, 04 Sep 2013 17:06:26 GMT

You are correct. I just called and spoke with them. They do not report to CRA's anymore. They stopped September 2009.

I cancelled order and closed account immediately.

Re: How Many Points For...

Anonymous — Wed, 04 Sep 2013 17:08:20 GMT

Sorry for all your trouble.

What about Fingerhut?