Bad Credit help

[GiBella]

Hello,

It took me a long time to learn the value of good credit.  I've now been working on it but I have a lot to learn still. 

Score was in the 400's and now with TU I'm over 600 - thought it would never happen.

Here's what it looks like:

• Fingerhut/Webbank: $700CL, opened 4/2019
• Credit One Bank: $450CL, opened 6/2019 - I use it but pay it off in full every month
• Citicards Cbna: $500CL, opened 5/2019 - I use it but pay it off etc... it's got a 0 balance right now
• Dept of ED/Navient: $1800, opened 6/2017 - I recently began having to pay it off

and now for the bad stuff

• Verizon: $1314, charge off, opened 5/2017 - sent PFD twice, they laughed at me
• Capital Bank: $181, charge off, opened 3/2018 - sent PFD, they never respond, would paying it increase my CS?
• Capital One Bank: $174, charge off, opened 3/2017 - sent PFD, they never respond, would paying it increase my CS?
• American Honda Finance: opened 5/2012, I cosigned an ex's car, so stupid of me. due to come off 7/2020
• Capital One Bank: $0 balance, a paid chargeoff, opened 1/2012, lates, supposed to come off 7/2019
• Municipal Credit Union: Paid account, opened 4/2014, lots of lates
• Capital One Bank: Paid charge off, opened 9/2009, lates, supposed to come off 7/2019

My scores are:

• FICO Score 8
• Equifax: 585
• TransUnion: 616
• Experien: 590

I've been seeing fluctuations every month of an added 7pts here and there but that's about it. When I use my cards and the balance of one of my accounts increase I see a drop - this confuses me because I thought I was supposed to use my cards? My total revolving credit utilization is at 90%

Is there anything I can do that would provide me with a consistent boost every month? I've been trying to find what works but it fluctuates every month and sometimes not at all. Am I doing something wrong?

[dynamicvb]

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@GiBella wrote:

Hello,

It took me a long time to learn the value of good credit.  I've now been working on it but I have a lot to learn still. 

Score was in the 400's and now with TU I'm over 600 - thought it would never happen.

Here's what it looks like:

• Fingerhut/Webbank: $700CL, opened 4/2019
• Credit One Bank: $450CL, opened 6/2019 - I use it but pay it off in full every month
• Citicards Cbna: $500CL, opened 5/2019 - I use it but pay it off etc... it's got a 0 balance right now
• Dept of ED/Navient: $1800, opened 6/2017 - I recently began having to pay it off

and now for the bad stuff

• Verizon: $1314, charge off, opened 5/2017 - sent PFD twice, they laughed at me
• Capital Bank: $181, charge off, opened 3/2018 - sent PFD, they never respond, would paying it increase my CS?
• Capital One Bank: $174, charge off, opened 3/2017 - sent PFD, they never respond, would paying it increase my CS?
• American Honda Finance: opened 5/2012, I cosigned an ex's car, so stupid of me. due to come off 7/2020
• Capital One Bank: $0 balance, a paid chargeoff, opened 1/2012, lates, supposed to come off 7/2019
• Municipal Credit Union: Paid account, opened 4/2014, lots of lates
• Capital One Bank: Paid charge off, opened 9/2009, lates, supposed to come off 7/2019

My scores are:

• FICO Score 8
• Equifax: 585
• TransUnion: 616
• Experien: 590

I've been seeing fluctuations every month of an added 7pts here and there but that's about it. When I use my cards and the balance of one of my accounts increase I see a drop - this confuses me because I thought I was supposed to use my cards? My total revolving credit utilization is at 90% and that's a good thing because it pushed me up 10pts with Ex this month.

Is there anything I can do that would provide me with a consistent boost every month? I've been trying to find what works but it fluctuates every month and sometimes not at all. Am I doing something wrong?

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90 % utilization is not a good thing at all. You need to keep reported utilization below 8.9% for the best scoring factor. Having the lates fall will help and it would help to get the charge offs paid so they will age. I have not heard of anyone being able to get Capital One to budge with any good will letters or pay for deletes. Other than paying the charge offs you are probably in a holding pattern until you get some age on those new cards.

[FireMedic1]

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@GiBella wrote:

Hello,

It took me a long time to learn the value of good credit.  I've now been working on it but I have a lot to learn still. 

Score was in the 400's and now with TU I'm over 600 - thought it would never happen.

Here's what it looks like:

• Fingerhut/Webbank: $700CL, opened 4/2019
• Credit One Bank: $450CL, opened 6/2019 - I use it but pay it off in full every month
• Citicards Cbna: $500CL, opened 5/2019 - I use it but pay it off etc... it's got a 0 balance right now
• Dept of ED/Navient: $1800, opened 6/2017 - I recently began having to pay it off

and now for the bad stuff

• Verizon: $1314, charge off, opened 5/2017 - sent PFD twice, they laughed at me They arent known to PFD. Pay it off before it hits their collection agency. Looks like its still in their internal collection dept.
• Capital Bank: $181, charge off, opened 3/2018 - sent PFD, they never respond, would paying it increase my CS?
• Capital One Bank: $174, charge off, opened 3/2017 - sent PFD, they never respond, would paying it increase my CS?
• American Honda Finance: opened 5/2012, I cosigned an ex's car, so stupid of me. due to come off 7/2020
• Capital One Bank: $0 balance, a paid chargeoff, opened 1/2012, lates, supposed to come off 7/2019
• Municipal Credit Union: Paid account, opened 4/2014, lots of lates
• Capital One Bank: Paid charge off, opened 9/2009, lates, supposed to come off 7/2019
• Cap1 doesnt do PFD. Anything above that is CO'ed. Pay it off so the clock will run out on the negs. Paid CO's is a whole lot better than owed. Or anything owed is better paid.

My scores are:

• FICO Score 8
• Equifax: 585
• TransUnion: 616
• Experien: 590

I've been seeing fluctuations every month of an added 7pts here and there but that's about it. When I use my cards and the balance of one of my accounts increase I see a drop - this confuses me because I thought I was supposed to use my cards? My total revolving credit utilization is at 90% You want all your cards except 1 report a balnce. You are maxed out right now and its killing your score. Then add the baddies above. Pay them down.

Is there anything I can do that would provide me with a consistent boost every month? I've been trying to find what works but it fluctuates every month and sometimes not at all. Am I doing something wrong?

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Get those owed accounts paid off. None of them are known to PFD. So paying them off will do a lot for your scores and getting your CC util down below 8.99% will do wonders.

[Anonymous]

+1 to what FireMedic said.

You DO want to use your cards, but you want to be sure when the statement cuts that you are at $0 on all cards except one, which should cut with a balance that is < 8.9%. If you let the statement cut with anything over 88.9% util you are considered maxed out & will get penalized in your scores for it. The cutoff points for score bumps are 8.9%, 28.9%. 48.9%, 68.9% & lastly 88.9%.

[GiBella]

Thanks so much for the helpful feedback.  I paid the two small charge offs and should be able to pay off verizon in the next coming months.  Would you suggest I get more cards or just wait it out and stay below the 8.9? 

Thank again!

[calyx]

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@GiBella wrote:

Thanks so much for the helpful feedback.  I paid the two small charge offs and should be able to pay off verizon in the next coming months.  Would you suggest I get more cards or just wait it out and stay below the 8.9? 

Thank again!

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Wait it out and just get used to managing the cards you have.
You need age on your accounts and successful management to raise your scores.
If you really want more cards, I would suggest trying to go with Discover (secured).  Any cards you would be approved for at this point (if any) beyond secured would probably be subprime with your scores and history, and you don't need that.

[Anonymous]

In light of what calyx said above, don’t app for more cards. Concentrate on paying down your utilization. Being maxed out is murdering you, and having more cards sounds like an invite to add debt on those cards as well. Get them all below 68.9%, then 48.9%, then 28.9%, then pay them off in whatever manner is easiest for you. Continue to work your derogs as well. It will take time. It will take work. It will be worth it.

[GiBella]

I paid off the two charge-offs and my credit jumped 16 points with Exp reporting a status of "paid charge off" for one of the paid accounts. Equifax jumped 7 points and the status has not changed. I went in further to check my CR and noticed that all of the paid charge-offs with Equifax are listed as Bad Debt, Placed for collection, etc. Does not mention that it was paid. Are they known to do this? The changes haven't hit TU yet but my previous paid chargeoff status' with them are listed as paid.

[Anonymous]

It can take up to a full billing cycle for changes to update. You’ll see them soon.

[Anonymous]

I have a few low balance cards. I run them all the way up and pay them off through the month so they don't report a balance or at least a high one. I got the date of reporting wrong the first month so my $300 cl card reported a $106 bal🤪. Lesson learned.

In April when I started on the myfico forum my Experian was a 578. I've gotten it to 643 solely by lowering my utilization. Which was over 100%. So I think think that will help you a whole lot.

My husband has 2 charge offs that are killing his utilization. He was at 139% now it's down to 109% and his score is up 20pts. When the settled charge offs hit his account he should be down to 10% or less we are hoping he will get a nice boost from that