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Need help with stagnant credit score

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Need help with stagnant credit score

I have been working on improving my credit score the past couple of years. I started with a score in the high 400's with 6 charge-offs reporting on my CR. During this time I managed to arrange PFDs for all of them. Unfortunately, 2 OC's from the charge offs are still currently reporting from 2014. They are reporting with a balance of $0 and missed payments.


I have sent 2 goodwill letters and proof of payment from debt collector on behalf of the OC to both remaining OC's with no response in the last 2 months from either. My FICO scores for TU/EQ now seem stagnant around the 665 mark.


I currently have my car loan with $1700 remaining. I opened 2 secured cards last year which are Capital One with a $700 limit and Discover which already returned my deposited and increased my credit line to $1500.


I am looking for any advice as to how I can increase my credit score from this point. Should I continue sending goodwill letters to the 2 remaining OCs? Should I open yet another secured card or apply for an unsecured?

Message 1 of 3
2 REPLIES 2
Moderator

Re: Need help with stagnant credit score

Dont pay off that car loan early if its your only open installment as it will cause an average Fico score drop of 13 points. You need 3 open revolvers to drive Fico and it looks like you have them. Apping for new credit will temporarily drop your Fico for the inquiry and new account hit. If you are in no hurry to get all unsecured cards I would just sit pat and only have one card report a small balance each month (less than 9% of its CL). Fico grows over time. You can continue with GW to see about removing those 2 COs best chances are in the final year of its reporting.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 2 of 3
Frequent Contributor

Re: Need help with stagnant credit score

It may be worth one last shot with the goodwill letter. If it doesn't work at least you know you tried.

As for the cards, I personally would just sit tight with what you have. Let your accounts age out a bit. Use the cards responsibly and keep utilization below 10% at statement time and your score will gradually improve.
Having debt sucks but don't go crazy trying to pay off the loan. You need that for your Fico score as that appears to be your only installment on there.
10/2019 Exp Fico 8 676, TU Fico 8 686, EQ Fico 8 692 . And climbing...

Cap 1 QS $600 Cap 1 QS1 $750 , Discover $10,500 PNC Cash Rewards Visa $12,500
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