topic Can't come from behind in Rebuilding Your Credit

Can't come from behind

Anonymous — Tue, 28 May 2019 19:26:47 GMT

I am trying to work hard towards buying a house. I have been on a credit rebuilding journey for a little while but I can't seem to get my scores to bounce back. A little over two years ago my scores tanked, due to being 90 days late on a car loan and credit card while unemployed.

Right now I have student loan debt, in good standing (never late)

3 credit cards with zero balance - no late payment reported in the last 2 years.
1 credit card 200/2000 - 3 late payments 2 years ago over 90 days late, current ever since.

I still have my car loan that I owe about 9k on in good standing, never late since the 90 day late I spoke on above.

I cannot get my scores above 590. I'm trying to figure out what more I can do besides wait.

Re: Can't come from behind

simplegirl — Tue, 28 May 2019 20:28:16 GMT

You can try to get a goodwill adjustment to those Lates and never let all your cards report zero. One card should report 8.9% of the credit limit.

Re: Can't come from behind

coreysw12 — Tue, 28 May 2019 21:31:10 GMT

It seems like something is missing from your credit picture here. Considering that everything is current now and low utilization %, good credit mix, and that it's been 2 years since any late payments (and the late payments weren't even THAT bad really, they apparently didn't result in chargeoffs or go to collections), your scores should be MUCH higher than that, like easily in the 700's.

Are you sure there aren't any collections on your report? public records? Anything that's reporting something derogatory every month? There must be something missing from this picture, because the way you describe your credit profile, it should definitely not be stuck at 590.

Are these FICO scores? or is it something like a vantagescore?

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 22:04:11 GMT

2 paid collections accounts. One was $607 and one was $112.

Other than that I have old accounts that have been closed for years from back when I knew nothing about credit but those have been marked as charged off and paid.

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 22:05:46 GMT

I tried the good will route and was denied several times. Also one card reports $200/2000 I pay my car insurance with that card and then pay off monthly to keep my utilization in an optimal range.

Re: Can't come from behind

BallBounces — Tue, 28 May 2019 22:14:15 GMT

@Anonymous wrote:
2 paid collections accounts. One was $607 and one was $112.

Other than that I have old accounts that have been closed for years from back when I knew nothing about credit but those have been marked as charged off and paid.

A couple thoughts:

1) "Charged off and paid". This isn't a good thing. Those are negative items which will continue to depress your scores. As you said, time will heal those wounds. How old are they?

2) With whom are the old charge offs and colleections? some folsk here can offer specific GW advice perhaps. Yopu said you've tried ... may need to try again.

3) That single card reporting 10% each month? That's really good. But how bout letting it report 8% instead? Might be worth a try.

Fundamentally, you have said: "My reports look good ... except all these things." Well, time needs to heal all those things. Believe me, I have been there more than once.

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 22:23:04 GMT

Its at 10% of that card but I have 3 others cards with a total available credit of 10K across the 4. I just only use that one as its my only rewards card.

The collection account was with Progressive Auto Insurance.... I'm not even sure how that happened because I was never behind and switched to a different provider. When I checked my report 2 years later I saw the account and corrected it. I've tried for years to get it removed and they won't budge.

The goodwill letters would be going to Capital 1 and Honda Financial Services everything I read here says they barely budge with deleting the late payments.

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 22:26:19 GMT

Sorry I realized I didn't answer your questions fully. One collection account was paid 1 year ago that was Progressive. The other was Syncrony that was paid 2 years ago.

Re: Can't come from behind

BallBounces — Tue, 28 May 2019 22:30:12 GMT

I understand the 10% is on one card. Try making it look like 8% .... not 10% reporting. Nothing to lose, something small to gain. (It IS reporting right? You aren't PIF before it reports.)

HFS and C1 are tough. I'd still make the good effort.

Are the scores you reported FICO 08s?

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 22:33:35 GMT

Yes I wait for it to report. I can change the utilization I just thought it was across all your accounts overall not just one card. I use the score from Experian's website and my Capital One app. I'm planning to meet with the bank about a mortgage in a month and see what they say regarding my situation as well.

Re: Can't come from behind

coreysw12 — Tue, 28 May 2019 22:45:22 GMT

I've got 8 chargeoff accounts on my reports, and they aren't even 6 months old yet, but they're not really holding my scores down that much. They're affecting mny scores some, I'm sure, but it's not that severe. Even with that many recent chargeoffs, and my only reporting credit card still showing 96% utilization (paid off 50% after the statement cut date, and my other 3 cards not yet reporting because they're brand new). That's why I was thinking something else is "wrong" with your reports, besides just the 2-year-old late payments.

Anyways, I'd keep trying with the Good Will letters. It often takes lots of them, addressed to different places and people, before you see results. There's a good thread here about the "Good Will letter saturation method".

I wouldn't count on reducing your card from 10% to 8% utilization making much of a difference - you might get 3 or 4 points from that, but that's about it. You'll have to fix the underlying problem(s) before you'll see any drastic changes.

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 22:52:43 GMT

This is exactly what I have been trying to figure out. Why I can't seem to bounce back. It seems like ever since my mishap with HFS when I was unemployed for medical reasons I really haven't been able to bounce back. Other than that I'm in a great position to get a house, I've cut my spending and live well below my means to save. I will have to see if I'm missing something when I go to the bank because I don't get why my scores are so bad.

Re: Can't come from behind

Anonymous — Tue, 28 May 2019 23:19:13 GMT

@Anonymous wrote:
This is exactly what I have been trying to figure out. Why I can't seem to bounce back. It seems like ever since my mishap with HFS when I was unemployed for medical reasons I really haven't been able to bounce back. Other than that I'm in a great position to get a house, I've cut my spending and live well below my means to save. I will have to see if I'm missing something when I go to the bank because I don't get why my scores are so bad.

Have you received your free credit report yet? That will tell you what negatives are holding you back. I wouldn’t meet with the bank first to find out, because they will do a HP which will knock your score down even more.

Credit Karma is good for seeing what is on your TU & EQ reports, just don’t pay too much attention to the scores they provide, since those are Vantage scores & not FICO.