topic Re: Credit Score just hovering!!! in Rebuilding Your Credit

Credit Score just hovering!!!

Amiashu12 — Fri, 20 Jan 2023 19:57:16 GMT

Hello Myfico family! I would like some insight as to what can be done to raise my credit score. Chap 7 was discharged on 03/21/20. Since then, I was able to get back with Capital One which was IIB and also have some decent CL cards. Penfed $10000, Penfed $1500, Capital One $7000, Venmo $8000 and PayPal Mastercard $7000. I only use Capital one and Venmo and rest are just locked away. I do not have any loans. That being said, what can I do to raise my Credit Score? Thanks

Re: Credit Score just hovering!!!

FireMedic1 — Fri, 20 Jan 2023 20:44:22 GMT

If you can get into NFCU or PENFED and apply for a SSL. That would help your credit mix. That will help.

https://ficoforums.myfico.com/t5/Personal-Finance/SSL-Share-Secured-Loan-Technique/td-p/6371294

Re: Credit Score just hovering!!!

Amiashu12 — Fri, 20 Jan 2023 21:24:32 GMT

Thanks Firemedic for your quick response. Would you recommend Self credit builder? Also, just got done with Penfed and they said there is no penalty for paying early but the monthly payment has to be more than $25. I was thinking about $1000 ssl.

Re: Credit Score just hovering!!!

FireMedic1 — Sat, 21 Jan 2023 14:26:24 GMT

Im not rehearsed on how PENFED handles their SSL's.I did have NFCU's. Is there anyway for you to get in NFCU?

Re: Credit Score just hovering!!!

Horseshoez — Sat, 21 Jan 2023 14:31:22 GMT

I had a PenFed SSL until a few months ago and it was easy to use, easy to pay down to under 9% (which pushes your next due date out months or years), and it served its purpose for me very well. I went ahead and paid the SSL off when I got my first car loan in a very long time back in October.

Re: Credit Score just hovering!!!

Anonymous — Sat, 21 Jan 2023 14:31:41 GMT

@FireMedic1 wrote:
If you can get into NFCU or PENFED and apply for a SSL. That would help your credit mix. That will help.
https://ficoforums.myfico.com/t5/Personal-Finance/SSL-Share-Secured-Loan-Technique/td-p/6371294

Why a Secured Loan @FireMedic1 ...? The poster may qualify otherwise? Looking for the reason

Re: Credit Score just hovering!!!

Horseshoez — Sat, 21 Jan 2023 14:36:41 GMT

@Anonymous wrote:
@FireMedic1 wrote:
If you can get into NFCU or PENFED and apply for a SSL. That would help your credit mix. That will help.
https://ficoforums.myfico.com/t5/Personal-Finance/SSL-Share-Secured-Loan-Technique/td-p/6371294
Why a Secured Loan @FireMedic1 ...? The poster may qualify otherwise? Looking for the reason

I would argue if one doesn't actually need a loan and simply wants a single installment loan for FICO scoring purposes, then the best bang for the buck is an SSL; it will cost far less over the life of the loan than a typical signature loan.

Re: Credit Score just hovering!!!

FireMedic1 — Sat, 21 Jan 2023 14:36:29 GMT

No HP and just borrow from your savings and still get interest on what sitting there. Until a auto loan or some other type of other loan comes in. Temp credit mix fix.

Re: Credit Score just hovering!!!

Anonymous — Sat, 21 Jan 2023 14:43:12 GMT

@Horseshoez @FireMedic1

Totally zoned what you said out! Yeah, the rate difference is significant!

Appreciate settling back down to the ground

Re: Credit Score just hovering!!!

FireMedic1 — Sat, 21 Jan 2023 14:49:54 GMT

@Anonymous wrote:
@Horseshoez @FireMedic1

Totally zoned what you said out! Yeah, the rate difference is significant!

Appreciate settling back down to the ground

@AnonymousIts all good. Go take your Geritol Pops!

Re: Credit Score just hovering!!!

Amiashu12 — Sat, 21 Jan 2023 14:58:04 GMT

I really appreciate the help here. What I would like to understand is, let's say I get an ssl through Penfed for $2500 for 60 months. Why do I pay down <9% and make monthly $25 payment VS. just pay about $70 a month for 36 months? Thanks

Re: Credit Score just hovering!!!

Horseshoez — Sat, 21 Jan 2023 15:47:08 GMT

@Amiashu12 wrote:
I really appreciate the help here. What I would like to understand is, let's say I get an ssl through Penfed for $2500 for 60 months. Why do I pay down <9% and make monthly $25 payment VS. just pay about $70 a month for 36 months? Thanks

A few points:

The $25 minimum is the calculated payment based upon SSL amount and loan term; it does not mean you need to pay at least $25 per month.
If you prepay the loan down under 9%, then your next payment is pushed forward months, or even years (depending upon what you paid). Said another way, there will be no $25 per month payment due.
If you pay it down to under 9% you get the maximum FICO boost in your scores.

Re: Credit Score just hovering!!!

Amiashu12 — Mon, 23 Jan 2023 20:31:46 GMT

Thanks for your help again. I talked to couple of CU and they all told me that if I pay my loan down under 9% then my duration of the loan will be shorten. Would that be ok? Which questions should I be asking when I call them back? Thanks.

Re: Credit Score just hovering!!!

Horseshoez — Mon, 23 Jan 2023 22:26:27 GMT

@Amiashu12 wrote:
Thanks for your help again. I talked to couple of CU and they all told me that if I pay my loan down under 9% then my duration of the loan will be shorten. Would that be ok? Which questions should I be asking when I call them back? Thanks.

PenFed doesn't work that way, the duration of the loan remains unchanged and the next payment gets pushed way out.

Re: Credit Score just hovering!!!

Amiashu12 — Thu, 26 Jan 2023 22:31:13 GMT

Thanks again. Here's another question. I called my credit union and they do offer ssl. However, they only report to Equifax. Would this help at all? And, let's say if I do $1000 ssl for 2 years and make payments on time, will this boost credit score? Thanks.

Re: Credit Score just hovering!!!

Horseshoez — Thu, 26 Jan 2023 23:01:45 GMT

@Amiashu12 wrote:
Thanks again. Here's another question. I called my credit union and they do offer ssl. However, they only report to Equifax. Would this help at all? And, let's say if I do $1000 ssl for 2 years and make payments on time, will this boost credit score? Thanks.

It will help your Equifax scores, it won't do diddly for your Experian or your TransUnion scores.

Re: Credit Score just hovering!!!

Amiashu12 — Thu, 26 Jan 2023 23:06:56 GMT

Thanks. What if I go with Self Lender? Will that help? Also, Is there anyway to remove late payments prior to filing chap 7? My lawyer told me to stop making payments 1 month prior to filing and now they are the only beddies besides chap 7. Thanks