do not know what my biggest credit problems are

Anonymous · ‎12-13-2007

I am over 50 , I have had credit cards and installment accounts for years. About 10 years ago, I had severe credit problems and it seems these problems have traveled with me, even though the old collections have been settled.

Now to the current situation. I have 2 credit card with low limits ( because of the aforementioned) I also have a credit line with a bank. This credit line was

used to help pay for a new business. I used the entire credit line and currently make monthly payments as I have been doing for 3 years now. I have been unable to lower the principle any in that amount of time.

My credit # is around 650. It had been close to 700 last year, but, an old sales tax collection from a different business, in a different town, ( One that I wasn't aware of & paid off when I became aware of) caught up with me. That lowered my score to the 650's. AFter which I maxed out my 2 credit cards (limits of 500 & 2700 dollars). The credit score dropped only a little (down to 643)

I am trying to get my score over 700 again.

I have paid off the $500 card and paid the $2700 limit card down to $1250 in the last week.

I have no other negatives on my account. All bank accounts have been paid regularly and I have no other collections.

Does anyone have any idea how much this should improve my score and how long it takes to have an affect?

MidnightVoice · ‎12-13-2007

Paying down the cards will have an effect as soon as the new, low balance is reported to the CRA.

I know you have paid everything of (and congrats, I approve!!), but some of that derogatory information might still be on your reports. Have you looked at all three of your reports recently to see what is there?

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

fused · ‎12-13-2007

Since your two cards were maxed-out and you have no derogatory TLs, you should see a significant rise in your scores. I wouldn't be surprised if your scores go over 700 once your credit reports update the new $0 balances.

llecs · ‎12-13-2007

The line of credit may have a negative impact on your scores. It can count towards utilization. I am in no position to offer advice, but if your business is doing well, try taking out a LOC or loan in your biz name and transfer that debt from your personal LOC to your biz. You'd be paying the same debt and maybe even have a lowered rate. This is all assuming you used most of your LOC to begin with.

fused · ‎12-13-2007

Richard9091:

What is the limit on your line of credit and it's balance? I forgot to address this in my previous post. Sorry!

Anonymous · ‎12-13-2007

On obtaining a new line of credit in my business name. My business is a sole proprietership. Would that not show up on my personal data?

Anonymous · ‎12-13-2007

MY line of credit was $38000. I still owe that balance. ( or close) I make payments monthly. I did miss a payment 3 years ago. and the bank dosn't show any credit available. Of course there would be no credit available anyway since I still all the entire principle. This line of credit was given on a second mortgage on my home. The equity is in the home, which I hope to sell. If I sell it then I would of course pay off this line of credit in full. I just wasn't sure if this was effecting my credit score much since I have made payments regularly for 4 years. and only was 30 days late the one time. My score was as high as 700 last year. this was after the 30 day late payment.

llecs · ‎12-13-2007

Richard9091 wrote:
On obtaining a new line of credit in my business name. My business is a sole proprietership. Would that not show up on my personal data?

You can get credit in your biz name as a sole-prop. I did by getting a FEIN from the IRS and using that number to apply for credit. Getting a loan or LOC from the bank would likely result in a personal guarantee, but it wouldn't show up on your report (except for an inquiry and unless you default). Your bank would have a clear answer.

Anonymous · ‎12-13-2007

The main reason for this current concern is that I am trying to obtain a mortgage on my current home. It has been short termed and I am trying to get a longterm mortgage. The 650 credit score is bogging everything down. I was also wondering if there is a limit on how much your score can raise in a certain period. How long does it take for the sales tax collection ( paid off) to lower it's effect on the score. It was reported about July of last year.

fused · ‎12-13-2007

Do you have your reports on hand? I want you to look at this line of credit account and tell us what Account Type and Credit Type is reporting on all three reports.