topic Re: Credit score decrease in Rebuilding Your Credit

Credit score decrease

Anonymous — Tue, 17 Feb 2009 15:05:38 GMT

Good morning!

I have been reading the posts on the forum for a few months now. Trying to increase my credit score, and have done so with so much wonderful advice. But, now I have an issue, and was hoping someone could help me with it.

Originally I pulled my credit and saw quite a few things I was not happy with. Firstly, I have a garnishment for a debt with an ex, that was originally 1068.00 but now after 10 years is almost 6000.00... OUCH!

Second, I had a few collections, all for medical bills. I had insurance, so I didn't understand why I would have these collections. In speaking with the agencies, and my insurance, I was able to have one deleted (which still is reporting, I hope it falls off after this month) by the doctors office, due to their mistake. Another, I began a payment arrangement with them.

The last, they refuse to take off, but it isn't my fault. Actually my insurance company said they were breaking the law by reporting, and trying to collect from me. The reasoning is, they waited too long to submit for payment, and got denied by my insurance, now they are trying to collect from me. Not sure what to do about this... Any advice?

Lastly, in reading my credit report, it said "not very good" next to the amount of revolving credit. But everything else said good (ie. Length of credit history, payment history, etc.). So I started shopping around for some credit. I applied and got approved for 2 cc for people with bad credit. I then tried for 2 cc for people with fair credit, I got denied. Due to these inquiries, my score dropped 7 points...

I thought the new credit was going to increase my score, not make it worse.... Granted I haven't even received the cards yet, maybe I have to wait until I have 10% utilization for a period of time?

I plan on being VERY responsible with these cards, because I see it as a second chance, and I WILL NOT mess this up again.

Anybody have any advice for me? Will my credit go up with low utilization, and prompt payments?

12/08 TU 0 EQ 628 EX 0

01/09 TU 0 EQ 635 EX 0

02/09 TU 0 EQ 646 EX 0

now TU 0 EQ 639 EX 0

Message Edited by treefaerie on 02-17-2009 07:05 AM

Re: Credit score decrease

PayingTheBills — Tue, 17 Feb 2009 15:12:58 GMT

"New Credit" is 10% of your score, so applying for 4 cards in a short period of time will ding your score. Just keep going with your plan. Be responsible with the new cards (as well as your old ones), and in 6 months time you will gain those 7 points back and then some.

That's really the only area where I'm sure I have decent advice, but I know that for the "guru's" here to help you, they'll need more info on the other accounts - the DOLA, DOFD, and the SOL for starters. Just post all the info you.

Re: Credit score decrease

Anonymous — Tue, 17 Feb 2009 15:26:21 GMT

Thank you so much for you reply.

As for current revolving credit, I have none.I have no cc or Loans... I have history of loans, all PIF with no lates reporting. I have 13+ yr history, and no open credit lines, besides the new ones. Hope this info helps...

Re: Credit score decrease

PayingTheBills — Wed, 18 Feb 2009 01:51:03 GMT

wow. I didn't know you could even get a fico score if you didn't have some revolving accounts.

My girlfried only had an auto loan up until a couple months ago when I talked her into a couple CC's, and no FICO score.

Re: Credit score decrease

WannaHouse — Wed, 18 Feb 2009 08:01:19 GMT

@Anonymous wrote:
Good morning!

I have been reading the posts on the forum for a few months now. Trying to increase my credit score, and have done so with so much wonderful advice. But, now I have an issue, and was hoping someone could help me with it.

Originally I pulled my credit and saw quite a few things I was not happy with. Firstly, I have a garnishment for a debt with an ex, that was originally 1068.00 but now after 10 years is almost 6000.00... OUCH!

Second, I had a few collections, all for medical bills. I had insurance, so I didn't understand why I would have these collections. In speaking with the agencies, and my insurance, I was able to have one deleted (which still is reporting, I hope it falls off after this month) by the doctors office, due to their mistake. Another, I began a payment arrangement with them.

The last, they refuse to take off, but it isn't my fault. Actually my insurance company said they were breaking the law by reporting, and trying to collect from me. The reasoning is, they waited too long to submit for payment, and got denied by my insurance, now they are trying to collect from me. Not sure what to do about this... Any advice?

You need to talk to your insurance company. If the clinic filed too late, they are screwed! They CAN NOT come after you.All insurance companies have a deadline to file. If they miss that deadline, they have to file an appeal to get it paid.

Lastly, in reading my credit report, it said "not very good" next to the amount of revolving credit. But everything else said good (ie. Length of credit history, payment history, etc.). So I started shopping around for some credit. I applied and got approved for 2 cc for people with bad credit. I then tried for 2 cc for people with fair credit, I got denied. Due to these inquiries, my score dropped 7 points...

I thought the new credit was going to increase my score, not make it worse....   Granted I haven't even received the cards yet, maybe I have to wait until I have 10% utilization for a period of time?

I plan on being VERY responsible with these cards, because I see it as a second chance, and I WILL NOT mess this up again.

Anybody have any advice for me? Will my credit go up with low utilization, and prompt payments?

12/08 TU 0 EQ 628 EX 0
01/09 TU 0 EQ 635    EX 0
02/09 TU 0 EQ 646    EX 0
now    TU 0 EQ 639    EX 0
Message Edited by treefaerie on 02-17-2009 07:05 AM

Re: Credit score decrease

marty56 — Wed, 18 Feb 2009 10:30:40 GMT

@Anonymous wrote:
Lastly, in reading my credit report, it said "not very good" next to the amount of revolving credit.

This comment means you have credit card or some other type of debt being reported as revolving. What are the revolving accounts you have and what is the util and credit limits.

You would get the best reult in having 1 CC report a balance of 9% or less.

Re: Credit score decrease

Anonymous — Fri, 20 Feb 2009 01:24:58 GMT

As for revolving credit, I have none. I just got approved for 2 cards, but have not received them yet. I had a couple charge cards from 95-99, all PIF.