Effectively Raising My Score

Anonymous · ‎10-23-2009

Hello All,

I have been reading the forums and you guys are a very knowledgeable body of inidviduals. My wife and I filed bankruptcy in 2000. Since then we had some poor payments on auto loans and other outstanding debts. We worked diligently at removing incorrect information off our reports and improving our scores. I was able to buy a new car in 2008 with a interest rate of 13%. My scores were then 579 TU, 617 EX, and 620EQ. I have paid my car payment ontime every month and was also able to help my wife buy a car, but with 18% interest because of the declining availability of credit. Currently I am working on finishing my masters degree and have taken a job that will pay very well when I graduate. We are currently renting but would like to be able to buy a house when I finish. I pulled my fico's and I have a 579 TU and a 617 EQ. I have credit card debt of

Card#1 Limit 350.00, Balance 225.00

Card#2 Limit 300.00, Balance 92.00

Card#3 Limit 300.00, Balance 200.00

All of these cards have been paid on time for the last four years and I have had no bad debt of any kind for 3 yrs. I have three old collections still on my accounts that I cannot get removed. These are from 2003, 2004. How can I best improve my score. I figure I will need a median score of 660 or greater to get a home loan, but I am unsure how to get their from here. Thanks

MarineVietVet · ‎10-23-2009

@Anonymous wrote:
Hello All,

I have been reading the forums and you guys are a very knowledgeable body of inidviduals. My wife and I filed bankruptcy in 2000. Since then we had some poor payments on auto loans and other outstanding debts. We worked diligently at removing incorrect information off our reports and improving our scores. I was able to buy a new car in 2008 with a interest rate of 13%. My scores were then 579 TU, 617 EX, and 620EQ. I have paid my car payment ontime every month and was also able to help my wife buy a car, but with 18% interest because of the declining availability of credit. Currently I am working on finishing my masters degree and have taken a job that will pay very well when I graduate. We are currently renting but would like to be able to buy a house when I finish. I pulled my fico's and I have a 579 TU and a 617 EQ. I have credit card debt of
Card#1 Limit 350.00, Balance 225.00
Card#2 Limit 300.00, Balance 92.00
Card#3 Limit 300.00, Balance 200.00
All of these cards have been paid on time for the last four years and I have had no bad debt of any kind for 3 yrs. I have three old collections still on my accounts that I cannot get removed. These are from 2003, 2004. How can I best improve my score. I figure I will need a median score of 660 or greater to get a home loan, but I am unsure how to get their from here. Thanks

Welcome to the forums.

I will just make some general observations. The real experts will be along with more details.

How long has it been since you checked all three of your credit reports side by side? You can get all three for free one time a year at www.annualcreditreport.com. Compare all of them carefully for any errors that perhaps you can get removed.

My wife and I filed bankruptcy in 2000.

Was it Chapter 7 or 13? What is the date of discharge? If Chapter 7 it should have dropped off in 2007. If Chapter 13 and depending on the date it will drop off sometime next year. Having that off your reports will help.

Since then we had some poor payments on auto loans and other outstanding debts.

How long ago and how many? Are there just 30 day lates listed? 60? 90? That can make a big difference in determining the effect on your score.

Card#1 Limit 350.00, Balance 225.00

Card#2 Limit 300.00, Balance 92.00

Card#3 Limit 300.00, Balance 200.00

You need to get these balances down as quickly as possible. The utilization of revolving credit is 30% of your total score. FICO looks at overall utilization and utilization on each account. Right now your overall util is 54% (517/950). That's pretty high. The individual util breaks down this way:

Card#1 is 64% (225/350)

Card#2 is 31% (92/300)

Card#3 is 67% (200/300)

Optimal credit utilization for FICO scoring purposes seems to be:
Total revolving utilization >0 and < 9%, the lower the better, and
Reporting a balance on less than half of your revolving TL's, and
Reporting a balance on half or less of all TL's.

Get those ratios down and keep them down and that should help your score.

I have three old collections still on my accounts that I cannot get removed. These are from 2003, 2004.

On your Transunion and Experian reports it should tell you when these items are scheduled to drop off. The DOFD (Date of First Delinquency) will determine that exact date. Others can explain how that works. I'm still confused by it.

If you work hard and study and read and search this site and ask questions of the knowledge on these forums you can get your scores up.

Good luck to you.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

RobertEG · ‎10-24-2009

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. FCRA 605(a)(5). The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for 7 1/2 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That is one single date-certain, and cannot be reset. FCRA 605(c).

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is 7 1/2 years from the same DOFD on the OC account, and the CA cannot reset this date. Again, FCRA 605(c).

Message Edited by RobertEG on 10-24-2009 02:21 AM

MarineVietVet · ‎10-27-2009

No one caught this mistake I made. (Shows how many people pay attention to what I say. LOL) I can see now why they don't!!!

I posted:

My wife and I filed bankruptcy in 2000.

Was it Chapter 7 or 13? What is the date of discharge? If Chapter 7 it should have dropped off in 2007. If Chapter 13 and depending on the date it will drop off sometime next year. Having that off your reports will help.

Of course that "information"is #ss backwards!!!! That's the last time I try to give BK advice!!!!