I don't understand why my score is so low compared to others

[Anonymous]

I'm new to these boards and while I've been poking around and reading other's signature lines, I've noticed something. There are members who have recently filed bankruptcy (ch. 7) who have higher scores than mine (660+)! What's up with that?! I have no CO, no CA, no FC, BK or PR. The majority of my late payments occurred back in 2005-2006, with the last one in 2008. The major BADDIE is the delinquency from my mtg company, which was resolved in July 2010 but I'm working with them to remove the excessive delinquencies. So, why is my score TU 625 and Ex 616? I don't get it. I thought filing BK was a bad thing?

Terri

[Anonymous]

I can't explain why (I will leave that to others) but I can tell you that I feel your pain.

I have no court judgements, no collections, etc... the ONLY bad items on my credit reports right now are 11 charged-off student loans (high balance accounts from law school) as a result of a 6-month bout with unemployment and I'm now paying on all of those loans. But my scores are in the low 500s!!

I have always been very financially responsible and outside of a 6-month period (that was over a year ago) there has never been a spot on my credit report. I make 6 figures but can't even qualify for a mortgage. Now I see people who spent a decade not paying accounts, declaring BK, etc with scores higher than mine and can buy a home with no issue. Very, very frustrating... but honestly, there's nothing we can do about it, it's just the FICO formula so I'm trying to ignore other people's situations and focus on my own.

This is not at all a knock on anyone with collections or BK, everyone's situation is different... I'm just frustrated by how FICO scores work!

[llecs]

You mentioned an "Ex" of 616. Where are you getting your scores from?

A new baddie, especially from a few months ago, is a major score downer. Do you know how many points you lost?

Do you have any other baddies or lates?

Do you have any open accounts? How is your CC utilization?

Those that file BK tend to recover a bit quicker if they have a long history and that tends to soften the blow. Of course with a BK, they wouldn't have any recent lates assuming they didn't default post-BK.

[Anonymous]

I've been a score watch user for just about a year and that's where I get the EQ score from.

I wish I would have known what my score was before, but about a year ago, it was 578.

I do not have any other baddies or lates since Oct. 2008.

I have an Ann Taylor account with a zero balance, a TArget account with a balance of $56 (credit limit $200), a Capital One CC with a $4,000 balance ($4,200 limit). Utilization is too high and my goal is get this down to less than 10%. I have an HSBC with a balance of $5000 (limit $5600), but I'm using our federal refund to pay over half that balance. I have a student loan of $4300.

[Anonymous]

I have noticed this as well about other people scores. I guess I will just have to wait all of this out and always pay everything on time and keep utilization down. It can get frustrating waiting on all of this to balance itself out. Hopefully in another year I can be in a better situation.

[Anonymous]

I hear you about waiting it out, but I'm beginning to question whether or not that's the answer either. I don't feel like I have time on my side. We need a new vehicle (like yesterday), kids close to driving age, college, etc., I need a good credit score noW.

[llecs]

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@Anonymous wrote:

I need a good credit score noW.

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I don't know if your Ann Taylor TL is opened or closed and don't know the limit, but I bet if you paid down your CCs down to $0 with the exception of one, and have that one report a balance of under 9% of the CL, then you probably see a gain of 70-100 points gained. Again, it depends on that TL and depends on the CRA.

[Anonymous]

Ann Taylor has a limit of $920 and no balance and is currently open. 70-100 points is a very significant jump which would put me in the 700 club, or very close to it! That is motivating.

Is it worth writing a GW letter to those CC that have lates back in 2005-2006 even if they are closed? Does there come a point in time when it's too late to ask for them to be removed?

[Anonymous]

Don't worry about the late's from 5-6 years ago, they aren't hurting much.  It's your revolving debt utilization.  Get your balances down, period.

[MarineVietVet]

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@Anonymous wrote:

Don't worry about the late's from 5-6 years ago, they aren't hurting much.  It's your revolving debt utilization.  Get your balances down, period.

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That depends on what kind of lates they are. 30 and 60 day lates that old are probably not hurting much but a 90 or 120 day late (or worse) is a major derogatory and IMO will hurt the entire time it reports.

I will agree that one of the fastest ways to raise a score is reducing utilization.

Edited for a typo.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".