New Here...Need Help Understanding Scores...

[Anonymous]

Hi All,

I’m happy to have found this forum!

I've order FICO scores from this website and it shows the following:

TransUnion - 725

Equifax - 713

What's Hurting my FICO Score:

1. The balances on your non-mortgage credit accounts are too high.

2. You've made heavy use of your available revolving credit.

3. You recently missed a payment or had a derogatory indicator reported on your credit report.

Goals:

1. I'm in a 30 year fixed interest only mortgage loan (6% first loan 270,000, 4.25% second loan 50K).  As a first time home buyer..I was a bit green...didn't know what I was doing.  Now I want to try and refinance for a 30 year fixed..not sure if this is even possible, as my house value is down in this market.  I should have used NACA when I decided to purchase...but again I was very hard headed.   I really feel like I got screwed as a first time home buyer..I got this home newly built, every problem came up...took the builder three years to finish these townhomes..they ran into money issues..all kinds of problems.  Now these homes are having serious structural problems...I feel like short selling and being done with it.

2. Student Loan..pay it off (think interest rate is 6..might be lower).  I've had these loans since 1998 now..still not paid off and remains at 20K.  I need to seriously make a dent and this and just pay it off.

3. Need a new car badly...(incase my 97 Corolla decides to stop working).  I would like to be at least prepared, so I plan to sign up today at Navy Federal Credit Union to take advantage of decent interest rates.  I want to figure out this house stuff first before

My Questions:

1. Since I pulled my credit report and scores, will this count as an inquiry?

2. I paid off my Citicard...a year ago, credit line is 6900.  I didn't close the account, but now they are charging 60 annual fee a year if I don't charge more than $2,400.  I don't use it...I've just opted to pay the 60 a year.  Wish I could close this account..but I don't want my credit score to go down.  Any recommendations?

3. Late payments on home mortgage (1st and 2nd), back in 2005.  When will this disappear??

4. Student Loan debt...I have to get rid of this, about 20K worth.

I'm trying to figure out a plan of attack.  Anyway I can make my scores better? 

Thanks...

[Anonymous]

Hi and welcome to the forums.

It seems that utilization and a late payment are the main factors in a lower score.

1.  No, it will not hurt your score.

2.  It depends on what you want.  The card has a fairly good limit on it but charges a $60 annual fee.  How old is the card?  Is it the only CC you have?

3.  Late payments come off 7 years from their date of occurence.  These should come off sometime in 2012.  You can also send them a goodwill letter asking if they will remove them.  They do not have to but it never hurts to ask?

4.  Student loans and mortgages count toward installment utilization which is only 10%.  Still paying it down will help some.

What other revolving credit do you have?  Revolving utilization counts a lot more toward your FICO. 

I can't give advice on the house as I do not own one.

[Anonymous]

Hi...

Thanks for responding.

 Citicard is my only credit card.  Well, I have a company corporte card, AMEX, but I don't see it on the credit report.

:::: Revolving Accounts::::

CitiCard CC - Opened 2001, and still opened currently with no balance..the limit is 6900.

First Union  CC - Opened in 2001..I asked for this to be closed in 2008, but its not reporting a closed date. There is a note stating closed by consumer...but I have no idea why they didn't report the actual date.  The limit on this one was 6500.

NTB CC - Opened in year 1999, Closed in year 2000. Limit was 1300.

Discover Financial Serv. - Opened and Closed in year of 2001...I don't remember this one for some reason. Limit was 1000.

Capital One - Opened in 1999, Closed in 2001. Limit was 950.

Also I have a Public Records report on Equifax, but not TR.  The public records noticed is not saying much..has "No Reported"..however it was filed. The only thing I can think of is when I owed IRS, but still that doesn't match up.  I need to check on this! The good thing it says not reported..but the bad thing I have no idea what this is.

Thank you…