Can someone help us ?

Anonymous · ‎01-01-2009

Credit score is low, 584 low.No collections, never declared bankruptcy,or had anything repossessed, nor missed a payment in 3 plus years. I have 2 houses, 2 mortgages, one equity line, and a truck payment, all at higher interest. My employment is stable, I have been with the same company for 13 yrs, same industry for 25 yrs, same house for 14 yrs, and same town and wife for 25 yrs. I don't have credit cards, we have 5 kids, 2 in college, big gas,(5 cars), food, tuition, doctor, car insurance, electricity, h2o bills, and we help my folks.We simply don't want or need, (nor could we probably get), a credit card. We have the income to support ourselves and our children, and we simply do not feel we should have to pay 20% interest on things we can afford to pay cash for to get a credit score to be able to access credit for larger things. Any thoughts? Thanks, D

Anonymous · ‎01-01-2009

The only reason I can see for your score being so low is a spread of different types of credit.

The fact that you have no negatives for over 3 years is a big plus.

Your scores are higher than mine and I have 4 credit cards. They are subprime, but they do help in the overall scores. Since I have got them, my scores have gone up 172 points.

I would try to get one or two. Orchard and Cap One would more than likely give you one. They have less fees than some of the other subprime cards.

The key to the credit cards is to keep utilization around 10% or less.

Get one and PIF each month before the next statement comes out.

SCF · ‎01-01-2009

Hey Frustrated, and welcome to the forums!

I agree with guiness,part of the reason for your low score is not having any revolving credit (credit mix, installment, revolving, store, and mortgage, makes up about 10% of your score). Another issue might be any collection accounts, judgments, or liens listed on your reports. Have you checked all 3 reports for any errors?

It is important to note that you can build a positive history with CCs without ever paying a dime in interest (and while earning rewards points/dollars!). All you have to do is make sure you pay your CC each month before the due date and you will owe no interest. You could get a CC, use the company's bill pay to charge a regular bill, such as your water or car insurance, and then set up auto-pay to cover that amount each month. Doing that, you would never pay interest, and never be late. The CC forums here will have some good threads for you to read abotu what cards you might qualify for and might meet your needs.

To get you started, I would read these two resources: Credit Scoring 101 and Understanding Your FICO Score

Those will help you understand everything that goes into making up your score and get you on the right track to improve it. Good luck!

llecs · ‎01-01-2009

frustratedbeyondbelief wrote:
Credit score is low, 584 low.No collections, never declared bankruptcy,or had anything repossessed, nor missed a payment in 3 plus years. I have 2 houses, 2 mortgages, one equity line, and a truck payment, all at higher interest. My employment is stable, I have been with the same company for 13 yrs, same industry for 25 yrs, same house for 14 yrs, and same town and wife for 25 yrs. I don't have credit cards, we have 5 kids, 2 in college, big gas,(5 cars), food, tuition, doctor, car insurance, electricity, h2o bills, and we help my folks.We simply don't want or need, (nor could we probably get), a credit card. We have the income to support ourselves and our children, and we simply do not feel we should have to pay 20% interest on things we can afford to pay cash for to get a credit score to be able to access credit for larger things. Any thoughts? Thanks, D

Where did you pull your score from?

Anonymous · ‎01-02-2009

I'm wondering where you pulled your scores from too...? Was it from this website? If not, then it's a FAKO. And FAKOs are all over the map (higher, lower) than your real FICO score.

First, pull all three of your credit reports (if you've not done so already) from http://www.annualcreditreport.com. Make certain that there are no surprises reporting (you'd be surprised at how often there are surprises!). If everything appears the way you've expected it to, then pull your credit score from this website (Myfico.com). It's the only way to get your real FICO score, vs. all the random 'credit scores' that are out there, and absolutely worthless.

IF the 584 is actually one of your FICO scores, I agree that it's probably due to your mix of credit (or lackthereof). I don't agree, however, that you'll need resort to subprime cards, unless you've got serious derogs-- and then you'd need to visit the rebuilding forum before you started applying for credit. If it's just your credit mix keeping you down, I'd apply for two major bank cards (go secured if you have to), and one store card. It's a good thing that you have the cash to pay for what you need. Now, you can maximize your return by using your cash & credit to boost your scores. After obtaining the bank cards, use them to run your monthly recurring bills through, then pay in full before the next statement cuts. You might have to play around with letting a very small (less than 10% of your credit line) balance report to the bureaus each month, before you pay in full, to optimize your actual use of credit points reporting. Get a store card from some place that you actually shop, and will find a lot of use for. The interest rates are terribly high on the store cards, but if you pay in full, that won't even be a concern.

Now, if it should turn out that your real FICO score is around or above 700, and you don't want to bother with credit cards, then don't, unless you still need to raise your score higher.

Anonymous · ‎01-02-2009

is like, is almost immposible to get a good credit score without a credit card.u need to get at least one credit card.that will help your score

fishbjc · ‎01-02-2009

You may be the perfect candidate for a Credit Union product. Don't ever be concerned with interest unless you plan on revolving, then you worry.

You need a cc to get that mix. Try for one with a small line perhaps, use it sparingly and pay-in-full.

Anonymous · ‎01-04-2009

Hey illec,

It is definately a Fico score, and the underlying credit at Equifax appears to be fairly free from errors. Vantage Score 707 or average risk, but fico, 584, high risk. Your thoughts, suggestions. D

llecs · ‎01-04-2009

frustratedbeyondbelief wrote:
Hey illec,
It is definately a Fico score, and the underlying credit at Equifax appears to be fairly free from errors. Vantage Score 707 or average risk, but fico, 584, high risk. Your thoughts, suggestions. D

There's something else going on your reports. Even if you add a revolving account, I don't see your score hitting beyond 620 at best. And it is very easy to hit mid-700s with only one CC (a mod here did that in the beginning). I'd follow others' advice and get a CC, even from a CU or a secured CC if you had to. You don't have to carry a debt on it, just use it for a stick of gum every quarter or so and PIF.

Ignore the Vantage score. Lenders don't use them and the score range tops at 990 I believe, whereas FICO's is at 850. Comparing your FICO to a Vantage score will drive you nuts.

Look on page 2 or 3 of your FICO report. What are some of the factors hurting your score? How bad are the lates? How many? Are there any CO'd accounts playing into this or other collections?

Message Edited by llecs on 01-05-2009 12:08 AM

Anonymous · ‎01-05-2009

I can understand your frustration! I hate credit myself and would rather pay cash. However, if you ever then need a loan, you look like you don't pay your bills. It's a stupid system, but it's the one that everyone uses.

The Vantage score might make you happier, but what good is it? All lenders check FICOs. That doesn't matter, and neither do your FICOS, actually, if you don't want credit - but if you do, then you have to play the game.If you need to borrow for college, or even if your kids need a co-signor for something important, it's useful, and relatively painless. Why were you looking for credit, if I may ask?

Wherever you bank, you can ask them if they would do a secured credit card for say $100 or $200. Then use it and pay it immediately once a month, online. Setting up utility or insurance payments automatically is a great idea too, and making the payments automatic. That's really only helpful if you keep a balance in your checking account so you don't have to worry about when the payment hits your account, but if you do, you can put the credit card in your sock drawer and your credit will improve on its own. You will never pay interest that way, either.

Good luck!