topic Re: First timer trying to get his FICO scores up... in Rebuilding Your Credit

First timer trying to get his FICO scores up...

Anonymous — Tue, 03 Dec 2013 20:10:38 GMT

This is my first posting on this forum as I’ve been reading MyFico for about 2 weeks now and have learned a ton of information but would also like some advice to go along with what I’ve learned and read. This is my current credit profile below and includes everything that is currently on my report.

Equifax & Transunion– Enhanced Recovery – Closed (Account Status) – 6/1/08 (Opened) - $252 unpaid

Experian, Equifax & Transunion – Aarons – Closed (Account Status) – 5/1/10 - $435 unpaid

Equifax – Aarons – Open (Account Status) – 3/1/10 - $0 Balance

Equifax – BB&T Car Loan - Open (Account Status) – 1/1/06 - $0 Balance - $9,489 High Balance

Transunion – BB&T Car Loan – Closed (Account Status) – 1/1/06 - $977 Balance - $9,489 High Balance

Experian – Brown & Joseph LTD – Closed (Account Status) – 7/1/11 - $118 Balance

I basically have only $805 to pay off between all of those accounts and I will officially have zero debt hanging over me. I could actually pay that right after the holidays are over, basically January 3rd. The $9,489 balance that I had thru BB&T bank for my car loan was paid off in 2009. As you can tell from the above, EQ is showing I have a zero balance, TU is showing that I have a $977 balance and EQ is showing I have a zero balance. I just received a letter from BB&T giving me proof that the balance is in fact zero and has been since 2009. Yesterday, I sent an online dispute to TU to get that sorted out. The high balance of $9489, is that what’s completely destroying my score?

Experian – 599

Equifax – 615

TransUnion – 599

I was just denied a capital one secured credit card a few days back which took me by surprise honestly. I think I actually applied and was approved earlier this year, decided to not go with the card at the time because I wanted to wait a bit and get a nice chunk of $$$ saved up after moving out of my old leased condo. My question to you guys is this. With getting the BB&T dispute sorted out along with going on and paying the $805 between the 3 collection accounts, should my credit score jump significantly very quickly? I ask this because I’m in the process of buying a home soon and want to make sure everything is clean as I can get it. Any advice you can give me would be greatly appreciated it. My goal is to have as perfect credit as possible, and I’m talking about in the 800’s. I’m currently under the Wells Fargo Credit Report program and can get alerts and such, which I’m hoping helps along the way. Thanks.

Re: First timer trying to get his FICO scores up...

myjourney — Wed, 04 Dec 2013 17:39:05 GMT

Bump for help Pls

Re: First timer trying to get his FICO scores up...

titanofold — Wed, 04 Dec 2013 18:01:07 GMT

Don't apply for anything else from here on out. Ideally you want to have 0 inquiries on your CRs, but you really don't want to have any within 6 months of applying for a mortgage.

With the collections, write PFDs. Paying off a collection will do absolutely nothing for your score. As far as FICO is concerned: A collection is a collection is a collection. During a manual review by an UW, though, paid looks better than unpaid. So, even if you can't get a PFD agreement, pay the CA anyway.

If you have any late payments on any account, open or closed, write a GW letter asking for an adjustment.

Re: First timer trying to get his FICO scores up...

Anonymous — Wed, 04 Dec 2013 20:34:29 GMT

Thanks for your help. I plan to for sure do PFD’s for all of the past due balances here soon. I’m hoping TU deletes that BB&T mark off of my report and hopefully my score goes up very quickly. Over the last year and a half I became very serious about paying my bills on time and actually all are now automatically drafted via my checking so that I don’t even have to worry about it and that it’s always on time. Sitting here in 4th quarter 2013, I wish I would have done things differently and sooner, but we all live and we learn. I’m grateful that I only have $805 to essentially pay off and I’m good and have zero debt elsewhere.

Not knowing for the better, I was kind of shocked my scores were that low to be honest with you. My issue now is the whole secured credit card thing, especially with Captial one. As I’ve read on here to have 2 or 3 open tradelines to start the rebuild. Not to sound arrogant, but I have plenty of $$$ in both checking and savings because of not having any debt, so I’m just anxious to get this started. So basically I shouldn't worry about a credit card?

Re: First timer trying to get his FICO scores up...

Anonymous — Thu, 05 Dec 2013 18:10:07 GMT

Slight update that just happened. I was approved for both a Wells Fargo & Bank of America secured card. Funds of $300 a piece have been taken out of my checking account and I should receive them here shortly. Honestly, I was a little worried about both applications as they were both not instant approvals and had gotten that denial from CP1. I had to call WF to confirm my address. Sounds corny, but this is an early Christmas present to myself because I'm eager to get started with vastly improving my credit scores for the near/distant future.

I also sent off 3 PFD letters yesterday to all 3 of my old (remaning balance) accounts. Hoping I get an answer here quickly about all 3 because I can easily pay those come January 3rd all at once and then I'll have zero debt. I just want to make sure things are in writing on their end to get the marks removed from my CR.

Seeking advice on the new plastic use. After reading countless threads on credit cards on this forum, i'm hearing that it's wise to keep the UTI under 9%, is this correct? I've heard of some people paying off majority of the balance multiple times a month vs just once. Any advice on how to use the plastic from this point forward would be greatly apprecaited. Thanks guys.

Re: First timer trying to get his FICO scores up...

titanofold — Fri, 06 Dec 2013 01:03:48 GMT

When you're aiming to get the best score possible, yes, all but one at $0, the other at less than 9%.

The really important bit, though, is to pay on time.

Re: First timer trying to get his FICO scores up...

coldnmn — Fri, 06 Dec 2013 11:59:34 GMT

When the time comes to apply for unsecured cards adding to your deposit makes for the likelihood your secured cards if they unsecure or any new cards have a bigger CL. As previously posted one card with <9% utilization is ideal for your credit score. Good Luck with your credit journey.

Re: First timer trying to get his FICO scores up...

Anonymous — Fri, 06 Dec 2013 19:54:23 GMT

Thanks guys. Much appreicated on the help and stoked to get started here soon. Hoping to actively use the card for upcoming Christmas presents.

Re: First timer trying to get his FICO scores up...

Anonymous — Wed, 11 Dec 2013 17:20:57 GMT

I sent in a PFD letter to the below company for a Sprint bill that went unpaid in 2008. Here is their response...

Thank you for your inquiry. Unfortunately, our agency would not be able to delete the account from the credit bureaus entirely as we are required to report the accurate standing of the account per FCRA guidelines. If an account is paid-in-full, it would reflect as such with a zero balance remaining. You can make a one-time payment or schedule multiple payments by creating an account on www.payerc.com and then by viewing the attached tutorial. Additionally, you can make a payment by sending a check or money order by mail to:

Enhanced Recovery Company, LLC

8014 Bayberry Rd.

Jacksonville, FL 32256-7412

**Please understand that our website is always being updated in order to better serve our customers. If you experience any technical difficulties please reply to this email.**

** This communication is from a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose.**

**See attachment for important notices and consumer rights.**

I hope that I have provided a solution to your inquiry. Please feel free to contact me with any additional questions.

• You can reply to this email (customercare@erccollections.com)

• Contact a General Representative: (800) 617-0049.

----

Any advice on how to handle this? Again, it's an unpaid "I broke my contract with Sprint" bill that is showing up on my CR. Again, I can easily pay this come the first of January (wanting to get thru Christmas 1st while still putting back a nice chunk of salary into savings). Should I send in a few GW's? Should I dispute that they wont delete it off of my CR? Thanks in advance guys.

Re: First timer trying to get his FICO scores up...

titanofold — Wed, 11 Dec 2013 17:53:06 GMT

Do not dispute accurate information.

I would call them and let them know that you'll have money to pay them off January, and then, you know, pay them off. After GW them.

Re: First timer trying to get his FICO scores up...

Anonymous — Wed, 11 Dec 2013 18:39:34 GMT

What does "GW" and "PFD" mean?

Re: First timer trying to get his FICO scores up...

Anonymous — Wed, 11 Dec 2013 18:41:37 GMT

GW - Good Will

PFD - Pay for Delete

Look in my signature for Common abbreviations.

Re: First timer trying to get his FICO scores up...

Anonymous — Wed, 11 Dec 2013 19:00:04 GMT

thank you!

Re: First timer trying to get his FICO scores up...

Anonymous — Wed, 11 Dec 2013 19:05:06 GMT

Thanks Titan, I'll call these guys tomorrow and let them know. I'm hoping that I can ultimately get this deleted since I will PIF. I'm simply trying to build my scores back up as efficient and quickly as possible.

Re: First timer trying to get his FICO scores up...

Anonymous — Mon, 16 Dec 2013 21:49:59 GMT

I have a question for you guys. I just literally got off the phone with Aaron's about that 1 chargeoff on my CR. The rep was insisted on that Aarons has never every deleted an account that was eventually paid off. Obviously I'm prepared to pay off the remaining balance of $435 come the first of January but I got no where with this guy about a PFD. Very frustrating.

I'm wondering how my credit score will be affected positively if I just pay off the balance and it shows paid in full on report vs. just letting it sit there as a 100% derog. Just speaking in theory terms with the following scenario. Would I see a 20+ increase if I pay it off but it still remains on my report as a PIF charge off?

Any advice would be greatly appreciated. Thanks guys.

One in Question below...

Experian, Equifax & Transunion – Aarons – Closed (Account Status) – 5/1/10 - $435 unpaid

Re: First timer trying to get his FICO scores up...

Anonymous — Tue, 17 Dec 2013 00:33:47 GMT

Once a charge off, always a charge off.

These are installment type accounts so it should not be included in your revolving utilization.

You could see some points it is really hard to say.

Re: First timer trying to get his FICO scores up...

Anonymous — Tue, 17 Dec 2013 20:31:14 GMT

Yea, I'm thinking about eventually paying it but obviously the PFD would be a much better option as I'm trying to strive for perfect credit and get rid of all of the derog's on my CR. I did a search for aaron's here on the site and didn't really come across anyone else's experience.

Re: First timer trying to get his FICO scores up...

Anonymous — Tue, 07 Jan 2014 21:56:01 GMT

Wanted to update my rebuild thread. For whatever reason, IQ Data wasn't showing up on my original Wells Fargo pulled report from November. But that derog is now showing, unfortunately. Changes/Updates are in red.

Equifax & Transunion– Enhanced Recovery – Closed – 6/1/08 - $252 balance

Experian, Equifax & Transunion – Aarons – Closed – 5/1/10 - $435 unpaid

Equifax – Aarons – Closed – 3/1/10 - $0 Balance

Equifax – BB&T Car Loan - Open – 1/1/06 - $0 Balance - $9,489 High Balance - Redeemed Reposession

Transunion – BB&T Car Loan – Closed – 1/1/06 - $0 Balance - $9,489 High Balance - Redeemed Reposession

Experian – Brown & Joseph LTD – Closed – 7/1/11 - $118 Balance

EX|EQ|TU - IQ Data - Closed & Open - 3/1/11 - $1371 Balance

EX|EQ|TU - IQ Data - Closed & Open - 3/1/11 - $1822 Balance

Bank of America Secured Card - $300 - Now reporting

Wells Fargo Secured Card - $300 - Now reporting

I disputed the BB&T account as it was showing a balance of $977 and open via TU. Thru my Wells Fargo online credit account, I re-ran my credit report (allowed on the 25th of every month).

My scores are now as follows...

596 - EX - (initial November score - 596)

612 - EQ - (initial November score - 615)

639 - TU - (initial November score - 599)

So, i'm assuming that TU jumped because my balance with BB&T fell from $977 to zero. TU also made all of my late payments go to green OK's as well. I'm looking to start paying off all of the baddies within the next two months. I want to get to a savings goal first.

Re: First timer trying to get his FICO scores up...

Anonymous — Tue, 14 Jan 2014 15:20:24 GMT

Update on my credit rebuilding journal as I’ve gotten steady increases since I truly started getting serious about my credit profile at the first of December of 2013.

My FICO initial scores on 12/3/13 were as follows…

EX – 599

EQ – 615

TU – 599

My FICO scores as of 1/13/14 are as follows…

EX – 609

EQ – 614

TU – 647

With the capital one, wells fargo & bofa inquiry hit, my scores still made an increase and I’m pretty happy. I have just the Wells & Bofa card right now and they are now reporting. Keeping my overall uti under 10% and using them both as a charge card. A long way to go obviously to reach my mid 700 goal across the board come Holiday 2014. I feel like that I can for sure achieve it. I’m working closely with a mortgage broker and we’ve run the numbers here this week for me; either qualifying for a USDA or FHA home loan come spring time of ‘14. Best case scenario for me, I would like to close on a home by spring or the latest mid summer. The sooner the better. I’ve read a ton on these boards these last couple of weeks and continue to be thankful for the advice that I’ve been given along with what I found via the search links.

The good thing about my situation is that my scores have increased since December and I have yet to PFD anything. All of my collections are still present. After speaking with my incredible mortgage broker on the accounts that need to be paid off, I feel great about my credit situation here the next 60 days and look forward to the score increases once they are deleted within the next 60 days. Also, after speaking with every collection agency about PFD, all but one are willing to go ahead with that. The lone one that isn’t willing to do a PFD is Aarons showing a $435 balance. The goal for me now is to save up $2300 (on top of the $$$ that I’ve already saved for the new home) in the next three weeks, then come January 31st, send off/pay one baddie per week til they are all paid off via my salary.

Re: First timer trying to get his FICO scores up...

Anonymous — Sat, 25 Jan 2014 05:59:01 GMT

Update, just pulled my credit scores and they are the following.

616 EX
627 EQ
654 TU

Finally achieved a median score of 620, first "Perfect Credit" goal solidified. Tons more goals to go. Having these two secured CC's is truly paying off; all the while keeping my overall uti under 10%.

Still have yet to pay off any debt from my first post in this thread. Plan is still to start paying it off come within the next two weeks. And again, im looking forward to seeing a hefty increase in my scores.