New to credit scoring, questions about util, derogs, etc.

[Anonymous]

Hello,

I am also trying to rebuild my credit history. My credit report inclused some negative items and public records as well as very new accounts. I'm looking for advise on how to improve on my credit scores:

TU - 604, EQ - 603, EX - 627 (scores were pull on 6/2/2008).

The following items are listed in my credit report:

1) Judgement - CC (10/2003) - $5000 This account was discharged in BK as of 05/2005.

2) BK - 04/2004 (discharge 05/2005)

3) Tax Lien - (11/2005) It was paid in full in 08/2007, but it still lists in my credit report as balance due $1500. Is there anything that I can do? Have it updated as paid in full?

Negative items / discharged accounts:

1) CC (opened 1999) balance - $4700 (CL $4000) - discharged 05/2005

2) CC (opened 1997) balance - $900 (CL $300) - discharged 05/2005* this is/was my oldest account

3) CC (opened 1998) balance - $3000 (CL $2000) - discharged 05/2005

Positive items:

1) CC (opened Aug 2007) - $300 secured/Authorized user

2) CC (opened Jan 2008) - $1000

3) Overdraft (opened Feb 2008) - $600

4) CC (opened Jun 2008) - $300

I was reading other posts and I noticed that it's highly recommended to only use 50% of CL but <9% CC reporting balance. Am I correct on this.

Since I'm trying to rebuild my credit history, I have been using my credit cards and paying the balance in full at the end of every month. I don't carry a balance and if I charge more then 1x during the month I make sure I pay what I charged off few days after therefore there is never any balance due. I also noticed that even though I have been paying off the balance at the end of the month, on a CC with $1000 CL at the end of the month total charges are $800, and total payments made is $850. So am I correct to assume that I'm charging too much and that I should only charge max of $500 on $1000 CC??

Thank you.

Tuxlam

edit: split off from a separate thread to begin its own

Message Edited by haulingthescoreup on 06-07-2008 02:38 PM

[Anonymous]

Who'd you get a CC with with a tax lien on your reports??

In same boat (except it's a state lien -- assuming yours is an IRS? -- and we've been promised that it would delete, but am still waiting for it to update!) ... and we'd like to start rebuilding our credit!!

Good luck!!

[Anonymous]

To address YOUR issues (got a little excited there ... didn't think anyone could get a CC with a tax lien on the CRs):

Keyword here is Goodwill. Send the BK charge-offs a goodwill letter asking them to please remove the TL from your reports. You may have to send'em oodles of times, but it won't hurt -- and might work. A lot of depends on your history with them and WHO it is (Cap One is notorious for NOT Gwing).

As for the tax lien, dispute it as "paid." Also make sure that you weren't supposed to go an extra mile and ask that the IRS (assuming) file a "Release."

Was the tax lien state or IRS? I've heard that STATE liens are easier to deal with ... if it is a state lien, what state? Some states are easier to deal with than others ... and each state has its own rules for releasing and credit reporting.

[Anonymous]

I paid off the tax lien (IRS) in Aug 2007 and then went ahead and became an authorized user on my husband's secured credit card from BoA.  From what I heard being an authorized user does not help you anymore.  I already noticed that in March one of the credit bureaus deleted the BoA account from my record.  This was the main reason why I tried to get credit on my own.  So, in Jan 2008 I got an offer in the mail for a pre-approved CC from WAMU, I didn't think that they'll approve me but they did, it's an unsecured Platinum Visa.  My last approval was by HSBC (not Orchard by HSBC) just few weeks ago for HSBC Platinum Master Card.  I read that one needs 3 good lines of credit reporting to credit bureaus and now I have 3 + I have been a long time PayPal user and they gave me an Overdraft protection that also reports to all 3 credit bureaus.

Hope this helps.

Helen

[Anonymous]

I currently have 3 CC all less then 1 year old + 1 Overdraft protection also less then 1 year old.

edited: whoops, forgot to change title when I moved this second post over.

Message Edited by haulingthescoreup on 06-08-2008 07:35 AM

[Anonymous]

In regards to your subject line: Even with an IRS lien on your CRs, you're doing pretty damned good!! Personally, I think you deserve a healthy pat on the back!!!

As to your other questions: YES!! You want to get below 10% UTIL. Below that, even, if you can. Personally, I'd use the CCs for SMALL purchases and pay them off at the end of each month. Unless someone else corrects me, I've heard of CCCs giving CLIs for that -- and a CLI will decrease your UTIL!!!

If you have more than 6 months good history with any of them (no lates, no over limits), again, unless someone else corrects me, I'd ask about getting a CLI (if they've not already done so automatically).

As for your baddies ... I reiterate: Goodwill'em. Let them know the personal situation you had going on (have to assume you had one, since you went through BK), let them know how sorry you are, and ask for the COs to be removed from your CRs. The first three GWs will most likely come back with a "So sorry," but keep plugging!!

Otherwise, I would say that you're doing an awesome job!! Aside from what I've mentioned, I don't think there's anything else you could -- you're already doing a GREAT job!!

And before I forget: Yep, FICO will soon stop counting AUs in their scoring. But it really doesn't even sound as though you need it at this point. Like I said, you're doing AWESOME!!! YAY!!!

- - - - - - - - - - -

edit: sorry, I moved a second post by OP from the original thread, and I forgot to change the title, which referred to a tax lien. Sorry for any confusion!

Message Edited by haulingthescoreup on 06-08-2008 07:36 AM

[Anonymous]

Thank you so much - this means a lot to me!

[Anonymous]

Oh, and don't forget to dispute the tax lien as PAID. It probably won't help your scores -- since FICO sees ANY judgment, collection, tax lien, paid or unpaid, as the same ...

But * EDIT * ...you do NEED to make sure that it reports as paid.



edit: yep, it did break a rule! Disputing valid accounts is a no-no here. That being said, everyone has the right to have their credit reporting accurately, good, bad, or indifferent. --hauling

Credit Repair Discussion Guidelines

Message Edited by haulingthescoreup on 06-08-2008 11:09 AM

[Anonymous]

Wonderin, Hi !!

Could you tell me how you go about trying to get state tax lien deleted?

[Anonymous]

---

@Anonymous wrote:
Oh, and don't forget to dispute the tax lien as PAID. It probably won't help your scores -- since FICO sees ANY judgment, collection, tax lien, paid or unpaid, as the same ...

But * EDIT * ...you do NEED to make sure that it reports as paid.



edit: yep, it did break a rule! Disputing valid accounts is a no-no here. That being said, everyone has the right to have their credit reporting accurately, good, bad, or indifferent. --hauling

Credit Repair Discussion Guidelines

Message Edited by haulingthescoreup on 06-08-2008 11:09 AM

---

Dammit, I wasn't trying to break the rules!!! (cursing at ME, not YOU!!!)

To clarify (and please feel more than free to edit if I'm breaking them again -- I'm REALLY not trying to!!!) I was trying to say that as I have a "deal" with my state tax agent to dispute as "paid" and they'll just take it off completely, I meant that might happen for the OP as well.

I do NOT condone disputing accurate info!!!

*sucking up over*