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Not sure where to go from here

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derboesekoenig
New Contributor

Not sure where to go from here

Ok background time. Here's what I'm working with:

 

NFCU- started initial accts (DD,chk,sav) in 2015

-------------

Visa Signature CashRewards- $7,900 limit, opened Dec 1, 2016 

More Rewards Amex- $20k limit, opened Oct 22, 2017

Visa Platinum- $6,400 limit, opened Feb 11, 2018

 

USAA

---------------

$550 secured card- opened Nov 6, 2017

 

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Delta Gold Amex card- $1000 limit, opened Nov 28, 2017

 

My last credit report (for July), I had at or near 100% util. for all cards except $0 on the Delta Amex, and $323 balance on the USAA card.

 

Current situation is that everything is at $0 balance--all paid in full.

 

When should I go for a CLI and for which cards? Other advice?

 

 

Also reported last month-

 

Lending Point unsecured loan, opened Jan 23, 2018, for $23,738

Balance was $21,848

*This was a 36 month loan that I paid off in full about a week ago*

 

State subsidized loans

-------------------------------

2 that I paid in full this month; previously read as *120-149 days late*

Each were between $7k-$8k when opened, and opened in 2011. Total payoff amount for both was around $1700

 

Fedloan student loans - broken up into 4 separate loans

--------------------------------

Carry a $10k balance, but paid on time every month since May 2014 (except one late payment)

Should I just payoff ASAP or keep active? Other advice?

 

 

So as you can see, I had some personal things going on and I assume everyone is going to say, just be patient. I also want to be proactive and do what I can, so really any help would be appreciated.

 

Thank you!

Message 1 of 37
36 REPLIES 36
derboesekoenig
New Contributor

Re: Not sure where to go from here

I also have a total of 4 hard inquiries reading on my report:

Dec 16

Oct 17

Feb 18

Jan 18

 

Not sure how that is going to affect my score, ability for CLI, etc.

Message 2 of 37
Anonymous
Not applicable

Re: Not sure where to go from here

Where do your FICO scores stand now? I think i would probably try to reestablish a payment history by using each card each month for the next 3 months, and PIF all but one. Let that one report a small balance ($20-30) each month. This is known as AZEO (all zero except one) and has shown to maximize FICO scores. Do that and show all your lenders that the bad times are gone and you’re using and paying right, then go for the CLI you want. I’d also contact the creditor with whom you were late and ask for a goodwill deletion of that late payment record to restore your history on that account.
Message 3 of 37
derboesekoenig
New Contributor

Re: Not sure where to go from here

My FICO scores are very low. I believe around 500. I will update this thread as soon as they are updated, which should be sometime in the next week. 

I will use each card and do the AZEO strategy you suggest, and we shall see what happens

Since the only ones I've been late on are state subsidized loans, do they allow goodwill deletions?

 

Message 4 of 37
derboesekoenig
New Contributor

Re: Not sure where to go from here

I know credit karma isn't transunion/experian, but I used their score simulator, and current score (504) to a 0% utilization shows a jump to 628. So essentially if I did that plus the 2 (well, 3 technically) loan payoffs, it should be 628+ correct?

Message 5 of 37
Anonymous
Not applicable

Re: Not sure where to go from here

Very hard to say since there is no way to directly translate the VS scores to FICO. Once everything updates, get a free pull from www.annualcreditreport.com and get your FICOs currently.
Message 6 of 37
Anonymous
Not applicable

Re: Not sure where to go from here


@Anonymous wrote:
Very hard to say since there is no way to directly translate the VS scores to FICO. Once everything updates, get a free pull from www.annualcreditreport.com and get your FICOs currently.

Your annual reports are free but I believe you have to pay for the score.

Message 7 of 37
Anonymous
Not applicable

Re: Not sure where to go from here

You believed correctly, report only.
Message 8 of 37
Anonymous
Not applicable

Re: Not sure where to go from here


@derboesekoenig wrote:

 

State subsidized loans

-------------------------------

2 that I paid in full this month; previously read as *120-149 days late*


It sounds like you might be under the impression that having paid off the two state loans will cause the 120 Day lates to go away.  If so, this is a mistake.  The two loans will be marked as paid in full but the two severe lates will not go away.  They will remain there for approx 7 years after the date  of delinquency.

 

 

Message 9 of 37
Anonymous
Not applicable

Re: Not sure where to go from here

It looks like you have paid off three loans and may be considering paying off more, under the impression that the payoffs will improve your FICO 8 score.  This is not true.  The payoffs are much more likely to hurt your score than to help it.  Far better is to pay loan balances down but not pay them off completely.

 

If you tell us the following things we may be able to make some informed guesses as to the effect that the payoffs may have:

 

For the loans that you recently paid off, what was the balance just before payoff and the original loan amount?  List them as:

 

Loan 1.  Balance before payoff = ____    Original loan amount = ____

Loan 2.  Balance before payoff = ____    Original loan amount = ____

Loan 3.  Balance before payoff = ____    Original loan amount = ____

 

For the loans that are still open, list them with current balance:

 

Loan 1.  Balance = ____   Original loan amount = ____

Loan 2.  Balance = ____    Original loan amount = ____

Loan 3.  Balance = ____    Original loan amount = ____

etc.

Message 10 of 37
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