topic Re: Everything Paid, New Accounts opened, What is my Credit Destiny now? in Rebuilding Your Credit

Everything Paid, New Accounts opened, What is my Credit Destiny now?

TitanX2784 — Thu, 27 Mar 2014 15:17:37 GMT

Good Morning Everyone,

I began with a credit score of 540 about 8 months ago with a tax lein and a bunch of collections. With a lot of funds & patience i was able to pay off everything. Had the Tax lein released in January with only 2 credit cards with $500, $400 limits. Now i have opened up 2 more accounts and the limits on one of my older cards has increased to $2000. Obviously my age of credit has dropped but i'm hoping with on time payments and good management of my balances my score will start to improve. Currently my Credit karma score is at 629, My experian score is at 631 Transunion at 643 and equifax i dont remember. My question is, How long till i can be in the 700s? All my payments will be on time and my credit card utilization is way under 30%, I'm probably around 15-16% currently. I won't be opening any more accounts untill my score gets higher. I was told by a friend who works with a credit repair company that i can easily be in the 700s in the next 4-5 months if i keep tabs on payments and use the cards wisely. Any truth to that? Trying to figure out how long because i'm looking to purchase a home by summer 2015 and a new vehicle by this june.

Thanks in advance for your input & advice.

Re: Everything Paid, New Accounts opened, What is my Credit Destiny now?

DVH1980 — Thu, 27 Mar 2014 15:28:40 GMT

I was in a similar situation to you in '12. As of today followign a path similar to your my TU is over 700 and EQ and EX almost there. Getting a car loan now should be no problem and having an installment loan reporting will look good down the road. I could have been very close to the 800 mark by now if I hadnt opened a significant number of new account along the way.

However, its a small price to pay today to have gotten rid of Cap1,First Premier,Bank One and replaced them with Amex,USAA, Discover etc. I figured the short term hit was worth it to have cards I would eventually keep forever. So while I took a small hit to my credit score for openeing the new accounts an decreasing my AAoA, I know have a better "portfolio" to grow with.

Re: Everything Paid, New Accounts opened, What is my Credit Destiny now?

TitanX2784 — Thu, 27 Mar 2014 15:40:02 GMT

That exactly where i'm at. I have a quicksilver card $2000 CL with Capitol one, $400 limit with Credit one, Amazon card ( shop there alot) $800 limit, Just got approved for Barclays for $500. I will replace the credit one down the road, but atm it's one of my older accounts. So me being in the 700s this year isn't realistic? seems like it took you 2 years or did i read it wrong?

Re: Everything Paid, New Accounts opened, What is my Credit Destiny now?

DVH1980 — Thu, 27 Mar 2014 15:59:45 GMT

Id drop your Credit One card now. It will still show up on your credit and help your AAoA for 10 years. All of my subprime cards are still showing. When they eventually fall off in 10 years, I'll have 10 years of age on the cards that replaced them.

Mine did take a while but my exact credit profile is different than yours. I still have a few negatives reprting that are getting older andone that was reported a year into my rebuild that came way out of left field. Its hard to say where I would be if that didnt happen. I dont think your goals are unrealistic at all.

Re: Everything Paid, New Accounts opened, What is my Credit Destiny now?

DVH1980 — Thu, 27 Mar 2014 16:01:38 GMT

A lot of it has to do with the negatives still showing on your report, how long its been there and when it will fall off.

Re: Everything Paid, New Accounts opened, What is my Credit Destiny now?

TitanX2784 — Thu, 27 Mar 2014 16:05:21 GMT

I see okay, thank you for the tips. Once i get my Barclays card, i'll drop the credit one.

and no longer have anything negative really showing. Obviously it has collections and tax lein, but they show paid & released. I know it will take time for them to be off my report completely.

Re: Everything Paid, New Accounts opened, What is my Credit Destiny now?

DVH1980 — Thu, 27 Mar 2014 16:21:11 GMT

Paid collections/leins still impact your score, just takes time for how much they affect it to drop. But having them paid will look great when you go for the auto loan though.