How to increase Fico Score??

[Anonymous]

Hi Im new here and I was online last night reading the forum and Im so happy I found this!  long story short, in 2012 we paid about 90% of collections (settled) for about $15,000. I have 2 collection still open for about $4,000. I opened a small CC in oct 2012 to help my CS. We really want to buy a house ran our credit in Dec it was middle 607 and ran it again Feb 3 2012 and middle is still 607. Why didnt it go up?? thats the only thing holding us back from buying a home. Can you have Collections removed from your CR? if so i dont even know where to start.

[ando35]

First: Try to have the ideal mix of credit and the ideal utilization. That means 3-5 credit cards (ballpark), at least one installment loan (like a car loan) and I think a mortgage too-- but dont go buy a 500 000 dollar house for this! Also, you should only be using like 7-10% of all the credit that is avialable to you. The rest is time and making sure the baddies are reported correctly, which I think others can answerbetter. 

[ando35]

Another thing: When you settle a collection, you can get them to not report it on your credit report as part of the payment agreement. So, don't pay untill they agree to that.

[guiness56]

Paid and unpaid collections are scored the same by FICO.  Paying them does not help your score.  To have any chance at an increase you would need them removed.  Since they are paid and/or settled, you can start sending Good Will letters asking for the reporting enity to remove them.

Did you get your credit reports from annualcreditreport.com?  If not, that is where I would start.  You get one free from each CRA every 12 months.

How is your CC reporting?  Any lates?  How is the utilization?   There is no set in stone rule on how many CC you need, however, you could probably use one more.  Only because FICO does not like to see all CC reporting a 0 balance.  They like to see some usage.  With 2, you could have one report 0 balance and the other report at 9% or below.

When do you plan on trying for a mortgage?  Reason I ask is it is not a good idea to apply for any new credit within 6 months of applying.

What else is on your CR?  Do you have installment loans?

[Anonymous]

Hi we had a lenden run our credit in Dec and in FEb and it hasnt changed at all. We have a instaalment loan bal of $6,000 will be paid off in Sept. 1 CC its 6 months old with a limit of $300 and it shows from $12-40 a month bal on report. I think the GW letters is what I need to do, i have about 10 collection co. to send them too!

[guiness56]

I would start with the GW route first.  Getting those or some of them off, may give the boost you need.

Is the OC associated with the CAs reporting also?

Are there any lates on the installment?

[Anonymous]

Weve never been late on the car note or on the CC.  Midland shows CA as Paid Collection and original Creditor shows Acct transfered or sold

[guiness56]

Then you will need to send a GW to the OC and to the CA.