Getting Started

[Anonymous]

Hello all.

My fiancee and I just started looking at houses, I knew my credit wasn't great, so I signed up here to have a look, and ug! 580 from TransUnion and 540 with Equifax.

I have no outstanding delinquencies, $0 on two credit cards, will be finished paying my student loan off in a couple of months and have about $10k left on my car.

Financially speaking, I make more than enough to pay all of my bills.

Currently, my course of action is to dispute a couple of past delinquencies and start writing GW letters.

My question is, what else should I be doing? I feel like I don't have many options since I don't have anything to "fix" by paying delinquencies or debts off.

Thanks,

Charles

[quairosun]

If you can give more details about what is keeping your scores so low, then I am sure several people here will help you. This board has helped me in more ways than one. It opened my eyes so to speak. Just give us all more info as to why your scores are low and we will start from there. I am in the same boat, but just reading and learning from here has made my scores go way up. I started in January here. Just check out my scores and how this board has been an invaluable asset to continue raising them.

[llecs]

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@Anonymous wrote:

Currently, my course of action is to dispute a couple of past delinquencies and start writing GW letters.

My question is, what else should I be doing? I feel like I don't have many options since I don't have anything to "fix" by paying delinquencies or debts off.

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Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

First off, don't dispute and for a couple of reasons...1) You should never dispute accurate info, because it is reporting accurately. 2) Disputed TLs most often get verified and that could update resulting in a lowered score, if that TL hadn't updated in a while. 3) Depending on the OC/CA, disputed accounts are sometimes harder to get removed via legit means (e.g. a GW) after a dispute. 4) Lenders frown on the word "dispute" and some will even deny a loan if the word "dispute" appears in the comments section. YMMV based on lender. 5) Disputing can take up to 30-45 days. A GW can take a week or so. Less if you call them. And 6) if the baddie is unpaid and you dispute, aside from increasing the odds of being sued if inside SOL, you run the risk of a bigger and meaner CA reporting after the old one drops and you'll be worse of than where you were before score-wise.

Next step, OPT-OUT!!!! You can opt-out with each CRA and that will prevent CAs from subscribing to your CRs. Quite often, a new CA won't report, but will pay a nominal fee to each CRA for key infor on your reports. As a mortgage inquiry hits, the CA would see that and then have the option of reporting to your CRs if they wanted to. If this happens, you'd have a lower score and likely would have to pay it if you wanted the lender to close on the loan (assuming you still qualified by that point).  Opting-out doesn't prevent CAs from reporting if they wanted to, but at least they won't report because of a mortgage inquiry. Search around, there are links in here (optoutprescreen or something like that).

For any paid CAs you have, you want them off! Send a GW to whomever is reporting and ask them to delete.

For any paid OCs, be careful. Baddie OCs still factor into your length of history and your AAoA. You may not necessarily want them off. Depends on how they report. For any newer ones, send a GW asking them to delete (if reporting as a CO for example w/ lots of lates) or send a GW to remvoe specific references in the TL like a comment or a specific late(s). If the account is really old (years older than your avg. age), for example, you may better off just waiting. Finally, bad info drops at 7 yrs from DOFD or from that late. If approaching that period, you may want to wait too. If you list what you have, we can make a better judgment call on whether something should stay or go.

[Anonymous]

Thanks Quairo.

In general, I have a history of making payments late.

Some details according to MyFico:

• Delinquency+collections
      9 accounts 60 days late or worse
• Bad payment history
      11 accounts with a missed payment or a derogatory description
• Recent missed payment
      most recent late payment 4 months ago
• Recent collection
      most recent collection occurred 16 Months ago

Looking deeper, I'm see my student loan has some substantial negative activity from late last year/earlier this year (120 days late). This is likely exacerbated by the fact that, while I make my payments to one entity, there are 6 creditors involved and they each report individually. I otherwise have a good payment history with them and hope a GW letter might bear fruit.

I have 2 collections. Both from 2 years ago. One was paid before it went to collections and I'm disputing that, the other for $258 looks like it was written off as "Bad debt/collection".

Other than that, I have a handful of late payments spotting my history.

Thanks again,

Charles

[quairosun]

MY STORY - FROM JAN 2011 - today

I am by no means an expert, and the advice you received earlier is very good. I can only tell you my experiences since I share the same low scores with you. I had to do a complete look at my credit. Until I found this forum, I never cared too much about it. Before I even posted, I read and read and read. There are many people who are either in your position or were in it and came out on top.  The first thing I did was buy three notebooks for each CRA. I then  joined MY FICO and found out what my credit scores were. As for Experian, I wanted to wait until I joined the PSECU where they will give you your Experian FICO and not the FAKKO they charge for.  I then went to work and simply listed all of the negatives, mistakes, etc from all three reports. I cross referenced and realized  that one thing I did have in my favor was that all of the baddies were equal on all reports. Not one CRA had something the other two did not. My two positives ( a car loan and a credit card) were showing great.

So I then decided to see what was indisputable. I did not dispute items I knew I was responsible for.  Then I waited. While I waited I applied for the Capital One Secured Platinum Master Card and was approved. I even set up my daughter's image on the card for motivation. I did not have many inquiries at the time and decided to go for it. My starting scores were the ones you see below. Instead of being sad, I was emboldened by the advice and reading I had done here.   As I waited for my disputes to finalize and my card to come from Capital One; I went to work on PFD letters on collections I had ignored, and wrote GW letters on balances that I had paid stupidly by calling the collection agencies.  NEVER EVER CALL A COLLECTION AGENCY. At the time I had five accounts either in bad shape or collections all the same and all on the three reports.

After 30 days, the disputes were done and two of them just fell off one by one on each report. I even received a response from one of my PFD and they just said they would remove me from their books no need to send money in. The other sent me a letter saying they would delete if I paid, which I did and they kept their word.  That left me with one baddie. My scores went up to what you see now. Not large increases but at least a start. It is not all about getting the baddies off, its also about paying on time, aging your trade lines and more.

I also joined PSECU just to get my Experian score which I am waiting for and may come around April 15. I had received my Master Card from Capital One and made a small purchase although my CL was very low.  I have paid it on time for three months now.

The only negative on all three CRA is the Continental Finance/ First Bank Of Delaware charge off, and it has been a problem to get off. It shows a 0 balance.

So as you can see I am on the attack. Patience, Patience, Patience. Read and get educated. Take the time to organize your bad items. It helped me. Attack and attack.

There are way better people on here to tell you what to do, but im going from the fact that our situation is similar.  I am really looking forward to making 600 soon.  

I have a great job with an airline for over 25 years and I should have better credit. I did not care about it ever, but now I do now.

Good Luck!!!