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Next Steps?

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Next Steps?

I am trying to find some advise. I had bad credit but I currently have everything that was in collections paid and settled. I have consolidated my student loans and they are all paid on time currently. I have 2 credit cards that I buy 1 tank of gas with and then pay off every month. Currently I have a $1500 bank loan that has always been paid on time and I have a loan for an engagement ring that has been paid on time and no late payments. The only thing it shows me to do in the scenrio on the dashboard to do is ontime payments. I really need to purchase a home.

 

3 months ago I ran my credit to buy a home and had 4 collections at that time. I have since paid all those off. They are reporting as paid on my credit report. I get a subscription here and they are showing worse scores than they did 3 months ago. Does anyone know how to find your exact scores?

 

Any advice to help me get my credit built quicker would help. Thank You!

8 REPLIES 8
Established Contributor

Re: Next Steps?

The scores here are your actual scores and they show your mortgage scores. Who were the collections with? 






Starting Score: 494 503 521
Current Score: 503 507 507 2/19
Goal Score: 680


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Message 2 of 9
Community Leader
Mega Contributor

Re: Next Steps?


@tcampbell86 wrote:

I am trying to find some advise. I had bad credit but I currently have everything that was in collections paid and settled. I have consolidated my student loans and they are all paid on time currently. I have 2 credit cards that I buy 1 tank of gas with and then pay off every month. Currently I have a $1500 bank loan that has always been paid on time and I have a loan for an engagement ring that has been paid on time and no late payments. The only thing it shows me to do in the scenrio on the dashboard to do is ontime payments. I really need to purchase a home.

 

3 months ago I ran my credit to buy a home and had 4 collections at that time. I have since paid all those off. They are reporting as paid on my credit report. I get a subscription here and they are showing worse scores than they did 3 months ago. Does anyone know how to find your exact scores?

 

Any advice to help me get my credit built quicker would help. Thank You!


 

When you paid your collections, it caused them to update one final time. That's what brought your scores down a bit. 

It's not a credit monitoring problem. If this is where you get your scores from, they are accurate as of the pull day. 

 

Unfortunately, the whole "make payments on time" loosely translates to "wait for improvement". 

Your scores can and will start recovering, but it may take a while. 

EX 754 EQ 774 TU 752


Message 3 of 9
New Member

Re: Next Steps?

The update should've helped. The worst score on here for mortgage was my best score 3 months ago and I have only improved since then. This whole thing makes zero sense to me.

Message 4 of 9
Community Leader
Mega Contributor

Re: Next Steps?


@tcampbell86 wrote:

The update should've helped. The worst score on here for mortgage was my best score 3 months ago and I have only improved since then. This whole thing makes zero sense to me.


 

It did help, but more of a long term help. 

Look at it this way, those collections would of have to been paid anyway once you apply for mortgage. So, you've done that part.

The update itself, while your actions (payment) were positive, it's still updating a derog. So, some points lost. 

Now that collections are paid, your scores can start recovering, it's not an overnight process.

 

It would be for the best if you could hold off on mortgage app for a few months till you see some positive movement on your scores. Your utilization is already in check, make sure only one card is reporting a balance. Mortgage scores are sensitive to number of cards reporting a balance 

 

 

EX 754 EQ 774 TU 752


Message 5 of 9
New Member

Re: Next Steps?

I appreciate the advice. None of this make sense to me. I just don't uderstand how paying off 3-4 derogatories could cause your score to go from 600 even to 560. The other 2 both improved.

Message 6 of 9
Community Leader
Mega Contributor

Re: Next Steps?


@tcampbell86 wrote:

I appreciate the advice. None of this make sense to me. I just don't uderstand how paying off 3-4 derogatories could cause your score to go from 600 even to 560. The other 2 both improved.


Can you clarify on what you mean by "the other 2" 

Simple version 

 

What happens is whenever a derog updates, score goes down. Even if it's a positive thing, in your case the payment. What it does is it makes the derog look more recent. Dont worry, no dates were changed. 

That's the bad news.

Good news is, there will be no more updates and scores can start recovering. Without your payments, that would not happen. 

 

Those collections were the reason your score was held at 600.  Now that collections are paid, you can expect your scores to start recovering because there will be no more updates. 

Largest gain happens when they are completely gone, but you will get points between now and that time. 

 

In a few months you should be in a better place than where you started. Had you not paid, you'd be stuck in a relatively same place till they drop off. 

 

I know it's pleasant thing when scores drop, but if you have no more unpaid collections or charge offs, now you just need time. 

 

 

EX 754 EQ 774 TU 752


Message 7 of 9
New Member

Re: Next Steps?

Do you have any advise on how to get these removed from your credit report?

Message 8 of 9
Community Leader
Mega Contributor

Re: Next Steps?

You could try asking for GW deletion

 

It's little harder because you already paid, so payment cannot be used as an incentive for CA to delete, but it cant hurt to try 

 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-St...

EX 754 EQ 774 TU 752


Message 9 of 9
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