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Question for Rebuilding Credit.

New Visitor

Question for Rebuilding Credit.

Hi all! This is my first time using the forum. I am trying to rebuild my credit after taking a 100 point hit with two judgments being added to my report within a year (back in 2015).

 

Here's what I'm working with:

571 Equifax 611 Transunion 596 Experian 
 
Here's why:
 -You have a public record and/or collection on your credit report (2) public records, one collection (all paid)

-You have a short credit history

-You recently missed a payment or had a derogatory indicator reported on your credit report (60 days on a fraudulently obtained credit card by my mother, that I paid off once I found out about it)

-You have few accounts that are in good standing (3 open accounts, 1 credit card, 2 student loans, all in good standing).

-The remaining balance on your mortgage or non-mortgage installment loans is too high (Deferred government student loan). 


I wanted to know if i obtain more accounts and keep them in good standing with on-time payments, will that positively impact my score and outweigh the negatives on my credit report? My student loan I plan to pay down $7,500 within the next year but the payments aren't due for another year. Or am I just screwed for the next couple years until my judgment comes off, i age my credit history, and pay down my student loan?
 

Message 1 of 5
4 REPLIES 4
Frequent Contributor

Re: Question for Rebuilding Credit.

Welcome! Smiley Happy

 

On the bright side, the judgements are supposed to be removed from all CRAs starting July 1st

 

and I would dispute to every CRA the account that was opened because of fraud..you can do that online with all 3 and request that it be removed because of that

 

once those things happen you should be in better shape

 

Best wishes!

"Your past is the doorway to your future"

Dad's words of wisdom

Message 2 of 5
Super Contributor

Re: Question for Rebuilding Credit.


@savannah123 wrote:

Hi all! This is my first time using the forum. I am trying to rebuild my credit after taking a 100 point hit with two judgments being added to my report within a year (back in 2015).

 

Here's what I'm working with:

571 Equifax 611 Transunion 596 Experian 
 
Here's why:
 -You have a public record and/or collection on your credit report (2) public records, one collection (all paid)

-You have a short credit history

-You recently missed a payment or had a derogatory indicator reported on your credit report (60 days on a fraudulently obtained credit card by my mother, that I paid off once I found out about it)

-You have few accounts that are in good standing (3 open accounts, 1 credit card, 2 student loans, all in good standing).

-The remaining balance on your mortgage or non-mortgage installment loans is too high (Deferred government student loan). 

I wanted to know if i obtain more accounts and keep them in good standing with on-time payments, will that positively impact my score and outweigh the negatives on my credit report? My student loan I plan to pay down $7,500 within the next year but the payments aren't due for another year. Or am I just screwed for the next couple years until my judgment comes off, i age my credit history, and pay down my student loan?
 


 

You will benefit from having two more credit cards, since you only have one.  Three or more credit cards are recommended for best scoring.

 

It sounds like you may be able to get some huge derogs removed fairly soon (mid-August?).  I am thinking here of the public record and the Day 60 late.  If so, I would wait till you get that cleaned up and your score goes way up.  At that point you can apply for two more cards.

 

In the meantime you should use your card each month but keep the balance that reports very small.

 

We don't know whether the $7500 paydown on your SL would be helpful, since we don't know the original amount of the loan.  Regardless paying it down won't help a lot.  If the deferrment involves the govt paying the interest on your loan, then paying it down now sounds like a losing decision from a financial end.  It may make more sense to pay it down shortly before interest begins to accrue.

 

I would do some work on documenting exactly how the CC was fraudulently opened in your name, just in case you need to explain what happened.  The fact that you paid the balance does not in itself make a convincing case for fraud, since a person who is a victim of fraud rarely agrees that the debt is his and pays it.

Message 3 of 5
Legendary Contributor

Re: Question for Rebuilding Credit.

Assertions of fraud or identity theft are basis for blocking of the information from your credit report provided you make the assertion in the form of a sworn statement before a law enforcement agency.  If you back your assertion with a police report, the FCRA identity theft process accepts that as basis for blocking, regardless of any issues with or involvement of the asserted creditor.  See FCRA 605B.   Thus, paid or unpaid is not relevant.

 

The issue is whether or not you are willing to file a police report, for which you wll be criminally liable for any false or misleading statements.

The officer will ask for details, including any facts relating to any suspects.  You wll thus be in a posiition of implicating a family member.

Are you willing to take that step?  If so, you can simply file the police report with the CRA and get the reporting blocked.

Message 4 of 5
Super Contributor

Re: Question for Rebuilding Credit.

Very helpful, thanks Robert.

Message 5 of 5
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