Improve my credit score - HELP

[Anonymous]

I recently bought myFICO's Standard.  I brought my credit report and score from TU and EX.  Thansk to the free trial of ScoreWatch, I was able to get EQ and printed it's report out before canceling.  From what I can see, my EQ score is 643, TU is 575 and EX is 543.  I agree this is bad.

Obviously, I have some work ahead of me.  I'm trying to get my score above 600.  My main source of income is SSDI & Survivor's benefit = $950.  Yes, I have multiple disabilities that makes it difficult to find work in NJ.

The biggest reason my credit is so bad is due to a charged off student loan.  It was agreed that I could pay $75/mo and the total is over $5000.  I've checked the Score simulator and was amazed to see that my credit score would improve about 20pts with a monthly payment and another 20pts if it totally paid. 

Is this simulator reliable?  I saw what looks like a positive increase with bill paying.  How can I best use this simulator?

Speaking of bills, my only bills are my Sprint PCS (consistant payment), newly started insurance premium (quarterly payment) and just did a $75 payment for student loan.  As for rent, this is just a room from a friend.  The premium is due July, as is the student loan.

I used to have a credit card but cancelled, as I did a poor job of managing it.  I'm not anxious to open another one.  What are my options for improving my score?  I'm already working on a reliable budget.  $745 is my non discretionary and $200 is my free money.  The non includes room & board, student loan, cell phone, ins. prem and cash giving.  I'm not counting money for haircut, dining out and cash withdrawal.

So, what can I do to improve my financial picture? 

[Anonymous]

Despite the fact that you do not like credit cards, having one open and paid as agreed will increase your score.  You need to establish positive TL's.   You could probably use yours to pay your Sprint PCS bill and then pay through that every month.  That won't involve using the card for anything outside of what you are currently paying.

[Anonymous]

Hmm, what credit card should I use? 

I did call Discover and was told about their Motiva card.  Like the incentive program to encourage on time payment. 

How much improvement can I expect?  Is the myFICO simulator right in expecting a 20+ increase in FICO score?  This was a part of my earlier question.

[Anonymous]

I'm not sure how accurate the simulator is.  Others may have some input.   As far as the credit card, I've been told the discover is a tough card to get.  What card did you have and close?   You may be able to call them and ask them to reopen the card. 

[Anonymous]

I had a Discover Card.  It was a regular one.  Don't recall the credit limit.

I talked to a sales rep and was told about the Motiva card.

[chartley3]

Barry I would suggest the BoA 95/500 secured card or an orchard bank card to get reestablished. Also I would research and see if there are companies that have special programs for people with disabilities that can help you rebuild your tradelines.

[Anonymous]

BoA??  Do you mean "Bank of America"?  I do have an active checking account with Wachovia.

I am unclear about this tradeline that you two mention.  What is a tradeline?

[Tuscani]

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BarryB wrote:

BoA??  Do you mean "Bank of America"?  I do have an active checking account with Wachovia.

I am unclear about this tradeline that you two mention.  What is a tradeline?

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Yes, BoA is Bank of America.

Check out: http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

[Anonymous]

Hmm, I took a look at the cards offered by Orchard Bank.  However, I have one major problem.  My only source of income is SSDI (Social Security Disability Income).  This means I get $950 per month.

I've mentioned in my first post that I only have about $202 after a few "must pay" items get taken care of.  My only real bill that I see helping my FICO score is my Sprint PCS.  I've only made one payment on the charged off Student Loan and the medicare premium from Blue Cross. 

One main reason for my leeriness about renewing my Discover Card is a past history of late payments.  Perhaps, it was missed but the sales rep from Discover did see my records and offered the Motiva card. 

My other concern is due to being on a fixed income. 

Right now, my current budget looks as follow:

$500 - Renting a room from a friend.  This likely does not get reported to the CRAs

$ 75 - Paying down my student loan.  NCO Finance was a surprise help, here.

$ 50 - Sprint PCS (average bill)

$ 21 - Monthly premium paid to Blue Cross Medicare Advantage. (it is a quarterly bill.

$100 - Okay, I try to give to my church and the stuff we try to support.

What is left over is $202 and you'll notice I said nothing of barber, Cash Withdrawal and dining out. 

[Anonymous]

Any chance of SL forgiveness given your disability?