topic Re: FICO NEWBIE in Rebuilding Your Credit

FICO NEWBIE

Anonymous — Sat, 03 Jan 2015 20:34:45 GMT

Hello everyone! I'm a 24 year old college student thats fairly new to the whole credit scene. I recently started getting into building my credit score back up after a grueling 3 weeks of trying to get a auto loan with the credit score I have. The only line of credit I have is a Cap. One credit card I got when I was 18 which I maxed out at $2,000. I always made the minimal payment for like 4 years and then lost my job and couldnt make the payments which ended up being charged off. I got a new job and started making payment off the charge off. I was applying for auto loans between the 14 days which is called rate shopping If im correct, and my credit score dropped down to 475?!?!?! I thought FICO recognizes when you are rate shopping for auto loans?? I applyed for alot of auto loans but it was in a short amount of time!

Re: FICO NEWBIE

gdale6 — Sat, 03 Jan 2015 20:46:08 GMT

@Anonymous wrote:
Hello everyone! I'm a 24 year old college student thats fairly new to the whole credit scene. I recently started getting into building my credit score back up after a grueling 3 weeks of trying to get a auto loan with the credit score I have. The only line of credit I have is a Cap. One credit card I got when I was 18 which I maxed out at $2,000. I always made the minimal payment for like 4 years and then lost my job and couldnt make the payments which ended up being charged off. I got a new job and started making payment off the charge off. I was applying for auto loans between the 14 days which is called rate shopping If im correct, and my credit score dropped down to 475?!?!?! I thought FICO recognizes when you are rate shopping for auto loans?? I applyed for alot of auto loans but it was in a short amount of time!

Fico will recognize auto shopping thats done within a 2 week period as long as they are coded properly, if you are denied credit for inquiries you can info the credit analyst you speak to when you are reconning the app. If you have no current open revolving credit cards that is where you need to devote your time, you need at minimum to start raising your Fico 3 bankcards and 1 store card. I would be opening a few secured CCs, SDFCU is a good place to start, you can also check with your local CUs to see if they have a secured card program. Do not get a credit builder instalment loan these do very little to help you in the way of Fico score. As far as the CO to Cap-1, once its paid off you would want to start a campaign of GW letters asking for forgiveness. Welcome to MyFico and good luck in your credit journey

Re: FICO NEWBIE

Anonymous — Sat, 03 Jan 2015 22:14:49 GMT

Thanks for the reply!!! I just got a secured credit card and a unsecured credit card with only a $300 limit on it but it's a start. I also was able to get financed for a car so hopefully that will help me as well. What do you mean by "reconning apps"? Another question, will my credit score go up faster since I don't really have any credit history?

Re: FICO NEWBIE

gdale6 — Sat, 03 Jan 2015 22:22:51 GMT

@Anonymous wrote:
Thanks for the reply!!! I just got a secured credit card and a unsecured credit card with only a $300 limit on it but it's a start. I also was able to get financed for a car so hopefully that will help me as well. What do you mean by "reconning apps"? Another question, will my credit score go up faster since I don't really have any credit history?

A recon of an app is "reconsideration", its done when you are denied a credit card by calling backdoor underwriters there is a thread on this board in the credit card application forum that gives you the backdoor numbers (its in the top stickies). As far as your score you will most likely see a rise as you add revolving cards and that CO gets older but they will be held back because of that CO and the fact that it still has a balance. Utilization of revolving credit lines is 30% of your Fico so you want to keep balances down to a minimum less than 10% of total CL is the target area and have that balance only on 1 card. Preferrable is 1-9% of a single cards CL reporting to the CRAs every month.

Re: FICO NEWBIE

Anonymous — Sun, 04 Jan 2015 18:03:59 GMT

So how much will that charge-off hold my credit score from getting to a decent score? And I plan on paying the CO in full with my tax refund but some people told me that paying the CO will not help my score go up but would actually lower my score and I would be better off not paying it. Sorry for all the questions haha! Like I said, I'm new to this and hey, you could be that total stranger that helps me get a house one day because I listened to your helpful advice!!!

Re: FICO NEWBIE

gdale6 — Sun, 04 Jan 2015 21:21:36 GMT

@Anonymous wrote:
So how much will that charge-off hold my credit score from getting to a decent score? And I plan on paying the CO in full with my tax refund but some people told me that paying the CO will not help my score go up but would actually lower my score and I would be better off not paying it. Sorry for all the questions haha! Like I said, I'm new to this and hey, you could be that total stranger that helps me get a house one day because I listened to your helpful advice!!!

The exact number of points no one knows, in some cases once a CO drops off after the max CRTP (7.5 yrs) there has been a boost of 20+ points, it is different for everyone and depends on what is in your reports. Now as far as paying that CO yes it can drop your Fico if it is not updating already on a monthly basis when you PIF as it would look new in Ficos eyes updating to a paid CO and a paid CO is no better than an unpaid one (in Ficos eyes, but is great on a manual review) if its updating monthly now then there is no socre drop when you pay it.

Re: FICO NEWBIE

cartwrna — Sun, 04 Jan 2015 21:23:25 GMT

I just had a charge off from 2013 removed and went from 578 to 646

Re: FICO NEWBIE

Anonymous — Mon, 05 Jan 2015 14:07:59 GMT

How did you get it removed? Did you wait the 7 years or did you do something else to get it removed? Is it possible to get my CO removed if I pay it off in full?

Re: FICO NEWBIE

cartwrna — Mon, 05 Jan 2015 15:29:46 GMT

I did a direct dispute with them based on different reporting across all bureaus and asked for all information pertaining to the account including statements, contracts, payment history/method of payment etc. They just sent a letter saying they would remove it from all bureaus.

Re: FICO NEWBIE

Anonymous — Mon, 05 Jan 2015 16:07:36 GMT

"you need at minimum to start raising your Fico 3 bankcards and 1 store card."

I disagree - while three bank cards and a store card are generally considered to be 'ideal', its by no means a 'minimum'. There are plenty of folks on here that have built their scores to 800 plus using a single card. Opening three to four CC accounts when initially building merely helps maintain a higher AAoA when adding accounts later on.

Re: FICO NEWBIE

Anonymous — Mon, 05 Jan 2015 21:22:10 GMT

@Anonymous wrote:
"you need at minimum to start raising your Fico 3 bankcards and 1 store card."

I disagree - while three bank cards and a store card are generally considered to be 'ideal', its by no means a 'minimum'. There are plenty of folks on here that have built their scores to 800 plus using a single card. Opening three to four CC accounts when initially building merely helps maintain a higher AAoA when adding accounts later on.

Would you happen to know anyone that would approve me for a secured credit card with a score of 489?

Re: FICO NEWBIE

Anonymous — Mon, 05 Jan 2015 21:39:56 GMT

I would look into SDFCU. They are really easy to work with. You would qualify to join by becoming a member of American Consumer Council, which only costs 5 bucks. As long as you aren't in chexsystem for a bad checking account you should be able to get in, no problem.