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Having a Hard Time Improving Scores and Credit Limits

OmarGB9
Community Leader
Super Contributor

Re: Having a Hard Time Improving Scores and Credit Limits


@Mprod123 wrote:

One thing you will need is patience.  I had a bad time back in 09, where I had multiple accounts in collections, with credit scores in the 500's and 600's.  I paid everything off, but it hurt my scores for years afterwards.  Of course, my scores jumped by over 100 overnight once the magic 7 year window passed; judging by your collections dates, that will be sometime next year for yourself.  Now, one red flag I saw in your description of your situation is being eager to try to get a large amount more of credit than you currently have.  The only reason you should be doing this is to be able to use a little more credit without going above a certain amount of your available credit limit (say, 7% to 30%).  and not to just have more to max out.  I got one of my FICO scores to 800 even when I wasn't making that much ($35,000) because I became a responsible user of credit.  Currently, my FICO 8 scores across the three bureaus are 825, 828, and 850.  I have 3 open credit accounts, which consist of two credit cards (Chase: 10k limit, and Discover: 4k limit) and one auto loan.  I have aggressively paid the auto loan principle where I will have a 5.5 year loan done in about 25 months.  If you are able, use a credit simulator tool.  I have one built in to my Chase Sapphire preferred account, which immensely helped me understand how credit works.  Your salary increases aren't nearly as meaningful as how you plan your credit usage, and about all that's good for is getting higher credit limits, which is good only for being able to spend more on credit without going above the sweet spot that starts hurting your credit.  People don't realize that missed payments give you a huge hit on your credit, so it is important not to miss payments AT ALL.  Automate what you can, and put several reminders on PC and/or digital assistants (google, alexa, etc) for the rest.  Do not think you can improve all of this overnight.  One misstep like a late payment will set you back quite a bit. 


Great advice here, the only caveat I would add is that simulators are far from perfect, so take what they say with a grain of salt. They can help give an idea of trends with regards to certain actions, but by no means should they be taken as gospel.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 21 of 24

Re: Having a Hard Time Improving Scores and Credit Limits

Good Morning All, 

 

I come bearing news. Experian updated my dispute that the Collection would be REMOVED! My EX score was 673 at last check, so i'm excited to see how high it can go. 

 

Sadly, there is some bad news. I went to request a new TD Bank card ($500 limit, 5.9 years of length) and found out that TD closed my account for inactivity. They never emailed me about my card usage, and they had an old address on hand for me when they sent me a disclosure regarding their move to close my account. 

 

Question 1: What kind of increase can I expect in my credit score from the removal of the collection? It was paid off in full in 03/2016.

Question 2: I know I messed up having one of my oldest account closed. What cards/companies should I be looking at for my next card/limit?

 

Thanks to everyone for their help and advice!

Message 22 of 24
Horseshoez
Established Contributor

Re: Having a Hard Time Improving Scores and Credit Limits


@FiscalMindedOB wrote:

Good Morning All, 

 

I come bearing news. Experian updated my dispute that the Collection would be REMOVED! My EX score was 673 at last check, so i'm excited to see how high it can go. 

 

Sadly, there is some bad news. I went to request a new TD Bank card ($500 limit, 5.9 years of length) and found out that TD closed my account for inactivity. They never emailed me about my card usage, and they had an old address on hand for me when they sent me a disclosure regarding their move to close my account. 

 

Question 1: What kind of increase can I expect in my credit score from the removal of the collection? It was paid off in full in 03/2016.

Question 2: I know I messed up having one of my oldest account closed. What cards/companies should I be looking at for my next card/limit?

 

Thanks to everyone for their help and advice!


What cards do you currently have in your portfolio?

I categorically refuse to do AZEO!

Message 23 of 24
AZnotorious
New Contributor

Re: Having a Hard Time Improving Scores and Credit Limits

Congrats on your dispute win!

 

As for TD Bank that card will remain on your reports for 10 more years so it's not the biggest deal. In general you should try to put a charge on each card every 3-4 months. This should prevent any inactivity closures going forward.

 

For new cards you probably have quite a few options. I'd try Discover's preapproval and see what Ms. Disco says. Also if your a member of a local CU you could consider their credit products. If your current CUs cards don't interest you and you have a way into NFCU then join them. Navy is bananas in a good way haha. If you can't get into Navy, do Penfed whose open to the public, all you need is $5 in a savings account to become a member. 

Message 24 of 24
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