Credit Repair

[Anonymous]

I have been Paying off Long term debt. Also I have completely paid off 2 debts that were liens on my home.  How long does it take before I see these changes on my credit score. I started this process 5-6 months ago and to date I have seen no increase in my credit score. Maybe I need some advice on how to improve my credit score because I am not getting the results I expected.

Thanks

[Barry]

Hi Terry,

It sounds like you're on the right track toward reestablishing your credit, but if there are multiple negative items on your credit report it can easily take longer than 5-6 months before you start seeing a major improvement in your score.  How long this improvement will take will depend on how recently your most-recent late payment occurred, with the the more recent the late payment the more time it will take.

Going forward it's going to be important to: 1)  stay completely up-to-date on all of your payments, 2) keep your credit card balances as low as possible, and 3) refrain from opening new accounts if you can possibly help it.

Good luck!

Barry

[Anonymous]

I agree, you must stay current.

However there are several things you can do to improve the score. Do not seek any new credit now. Make sure all of your credit card balances are below 50% of your limit. Then start disputing any negative items on your report that you feel may not be 100% accurate. Do not close any credit accounts. Then after the disputes you can go directly to the credit card companies and ask if they would consider making a good will adjustment to your credit file, maybe about 25% will.

[Anonymous]

I am new to this BB. Trying to improve my 705 score...790 is my goal 12 months from now. I will also be credit card debt-free in that time. I have been playing the game of switching from one card to a new 0 interest for 12 months.
My balances are now finally below the 50 percent mark. I am NEVER late. I have seen my credit report, and it's mind-boggling how much credit I've had in the last 20 years! Shouldn't I really close the accounts I NEVER use and will never use again? When do items not count anymore...7 years back? Is this what SOL is?
Thanks!

[Anonymous]

if it's good and it sounds like it is leave it alone. you could reage you history and drop your scores. the history will age off at 10 years.

[haulingthescoreup]

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@Anonymous wrote:

I am new to this BB. Trying to improve my 705 score...790 is my goal 12 months from now. I will also be credit card debt-free in that time. I have been playing the game of switching from one card to a new 0 interest for 12 months.

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Is your 705 a FICO score? I asked because 790 is an unusual goal--I've never seen that one before, and I wondered if it might be from a non-FICO score. A 760 FICO score will get you anything you want in credit land, as long as income and DTI, etc are all OK.

Any score higher than that is pretty much for fun, and if even the tiniest thing goes wrong, your scores get thumped something fierce. Much more of a drop than for someone with scores 100 points lower. Although I'd love to have that problem!

[haulingthescoreup]

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@Anonymous wrote:
I have been playing the game of switching from one card to a new 0 interest for 12 months.

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The BT dance works for a while, and I completely support the idea of keeping some debt at 0%, as long as you are socking away the money you would otherwise be paying in an account earning you interest. At some point, it has to be paid off. (Sorry, couldn't tell if you're paying it down, or just moving the same balance around.)

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My balances are now finally below the 50 percent mark. I am NEVER late.

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Once the balances are under 10% or 5%, THAT will be your score jump. Good job on the no-lates; keep it up.

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I have seen my credit report, and it's mind-boggling how much credit I've had in the last 20 years! Shouldn't I really close the accounts I NEVER use and will never use again?

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As long as the old accounts are at $0 balance, they're not hurting your FICO score. If you go for a mortgage, the lender might ask you to close them, so as to reduce what might look like too much credit. But for now, if they're open and in good standing, they're helping your overall util, which might pop back up if you lose the CL's on the old cards.

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When do items not count anymore...7 years back? Is this what SOL is? Thanks!

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SOL refers to the length of time after you stop paying or get behind on an account that you can be sued. The 7 and 10 year thing refers to how long a closed account hangs around on your report and helps your average and longest history figures. If there is anything negative on a closed report, it shows for 7 years after it happened *edit: the same as on an open account*, and then it stops showing. The closed account itself will stay on your history a total of 10 years after it is closed.

Message Edited by haulingthescoreup on 11-17-2007 11:29 AM