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Same Old Question

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New Visitor

Same Old Question

I have been using this forum to try to fix my credit on my own, and it has been a great help. Up until today, I was using Credit Karma to check my credit scores and I was happy to see some improvement. My Credit Karma scores improved to 660 for TransUnion and 650 for Equifax from the mid-400s within the past year or two. It wasn’t until today that I learned that these scores were pretty much useless, and I should be checking my FICO scores. I went ahead and checked them, and they ranged from 618-619 with the 3 credit bureaus. And now I am extremely frustrated. I thought I was doing a good job raising my credit but here I am with a low 600. I know this question is probably asked a million times, but I would really like some guidance about the best place for me to start raising this score. I recently got my only two collection accounts completely removed from my credit reports. The first one was a $200 collection and I saw a raise of 40 points on my Credit Karma score, the other collection removed was for $4,5000 and my score did not rise at all. I have an open auto loan opened a year ago, with 100% on time payments. I have a closed auto loan, with 5 late payments. I just recently got approved (last month) for a Care Credit card. I have a school loan for $15,000 with all on time payments. Now the problem (I think) is that I have 3 charged off credit cards. One has a $0.00 balance (this is the one that went to collections and I paid off the collections fully and got it removed), one with a $4,100 balance, and one with a $1,500 balance. I would really want to know what I should do next and I would appreciate any advice or help that you guys can offer

9 REPLIES
Regular Contributor

Re: Same Old Question


@buckoo wrote:

I have been using this forum to try to fix my credit on my own, and it has been a great help. Up until today, I was using Credit Karma to check my credit scores and I was happy to see some improvement. My Credit Karma scores improved to 660 for TransUnion and 650 for Equifax from the mid-400s within the past year or two. It wasn’t until today that I learned that these scores were pretty much useless, and I should be checking my FICO scores. I went ahead and checked them, and they ranged from 618-619 with the 3 credit bureaus. And now I am extremely frustrated. I thought I was doing a good job raising my credit but here I am with a low 600. I know this question is probably asked a million times, but I would really like some guidance about the best place for me to start raising this score. I recently got my only two collection accounts completely removed from my credit reports. The first one was a $200 collection and I saw a raise of 40 points on my Credit Karma score, the other collection removed was for $4,5000 and my score did not rise at all. I have an open auto loan opened a year ago, with 100% on time payments. I have a closed auto loan, with 5 late payments. I just recently got approved (last month) for a Care Credit card. I have a school loan for $15,000 with all on time payments. Now the problem (I think) is that I have 3 charged off credit cards. One has a $0.00 balance (this is the one that went to collections and I paid off the collections fully and got it removed), one with a $4,100 balance, and one with a $1,500 balance. I would really want to know what I should do next and I would appreciate any advice or help that you guys can offer


Looks to me you're still in good shape, you could've been in the higher 500s. Do you think you could settle those charge off's. You seem to know your problem, which is how I know it.

 

I wouldn't worry if you feel you've been taking proper actions in keeping those mid 600 scores up. Continue that behavior with your lower 600 scores. Theres plenty of room to grow


FICOs: EQ - 707 / TU - 721 / EX - 712
Garden: 11/1/18, ♠ 2/1/19
Goals: AZEO / 800+ / House
Wallet:
"An investment in knowledge pays the best interest." - BF
Message 2 of 10
New Visitor

Re: Same Old Question

Thank you, that definitely helps. I can get the charge offs paid within the next couple of months. Will setting them help my score at all?
Message 3 of 10
Regular Contributor

Re: Same Old Question


@buckoo wrote:
Thank you, that definitely helps. I can get the charge offs paid within the next couple of months. Will setting them help my score at all?

Yes, if you can accomplish a PFD (pay for deletion) for the removal of reported negatives, like the charge-off.

If you were to offer the full amount of the debt, that would give you the best chance of getting it. However, you can offer to settle for less, if you're looking to gamble.

 

You can also create a settlement agreement with them. Whereby you ask them not to report the debt as settled or paid for less than the amount, and still settle for less than the amount. It would show on your CR that you paid the full amount or as if.


FICOs: EQ - 707 / TU - 721 / EX - 712
Garden: 11/1/18, ♠ 2/1/19
Goals: AZEO / 800+ / House
Wallet:
"An investment in knowledge pays the best interest." - BF
Message 4 of 10
New Visitor

Re: Same Old Question

Awesome! I will try that. So any of those scenarios (obviously some more than others) would raise my score?

Also, do you think it is a good idea to open up a credit card right now? I don’t particularly need one but I was thinking of opening one up and purchasing small things just so I can make on time payments. Although I’m sure I would not be approved for anything other than a secured card.
Message 5 of 10
Regular Contributor

Re: Same Old Question


@buckoo wrote:
Awesome! I will try that. So any of those scenarios (obviously some more than others) would raise my score?

Also, do you think it is a good idea to open up a credit card right now? I don’t particularly need one but I was thinking of opening one up and purchasing small things just so I can make on time payments. Although I’m sure I would not be approved for anything other than a secured card.

Yes the removal of negatives usually increase scores, amounts may vary. For the optimal scoring on revolving credit (cards), you only need 3. If you have 3, i would work on settling those charge off's first. Then if you feel theres wiggle room in your score that you can deal with, app away.

 

If you do not have 3, we should let the experts chime in. However, I recommend working on the charge offs if your score is a concern, then you can continue the boost with your cards. I think you would have a better chance at approvals without the charge offs.


FICOs: EQ - 707 / TU - 721 / EX - 712
Garden: 11/1/18, ♠ 2/1/19
Goals: AZEO / 800+ / House
Wallet:
"An investment in knowledge pays the best interest." - BF
Message 6 of 10
Established Contributor

Re: Same Old Question


@buckoo wrote:
Awesome! I will try that. So any of those scenarios (obviously some more than others) would raise my score?

Also, do you think it is a good idea to open up a credit card right now? I don’t particularly need one but I was thinking of opening one up and purchasing small things just so I can make on time payments. Although I’m sure I would not be approved for anything other than a secured card.

Welcome to My Fico. 000welcome17.gif

 

You can always check the prequal pages without risking a HP.

Amex, Discover and Cap One would be good places to start checking.  Be advised; if you prequal on CapOne they do 3 HP when you app, one of each & that's a big ouch.

 

Also- try the prequal for Merrick Bank. It's a good rebuilder card. 

 

CHEERS

Message 7 of 10
New Visitor

Re: Same Old Question

I currently only have one, the care credit. Less than a month old. But you’re right, I probably should focus on the charge offs first.
Message 8 of 10
New Visitor

Re: Same Old Question

Thank you! I tried seeing if I prequalify with any, and I didn’t. Except for a secured card with Discover, obviously. I would like to try Capital One but they are the ones I have a charge off with so I don’t think they would let me open a new card in that case. Would you recommend the Merrick Bank over a secured card with Discover for example?
Message 9 of 10
Established Contributor

Re: Same Old Question


@buckoo wrote:
Thank you! I tried seeing if I prequalify with any, and I didn’t. Except for a secured card with Discover, obviously. I would like to try Capital One but they are the ones I have a charge off with so I don’t think they would let me open a new card in that case. Would you recommend the Merrick Bank over a secured card with Discover for example?

If you can get in at Merrick Bank, I do recommend them.

I used them personally when I did my rebuild several years ago.

There is a one time fee of like $75 for some but I didn't have any fees on mine. 

Often they start you out at $500-750 and give a 2x cli at 6 months..

 

Disco Secured is also quite good and will graduate eventually.. But of the cards in the rebuilder cat, Merrick is NOT predatory like say Credit One.

Don't work too hard at paying off your installment loan early,  unless you have more than one. Having a loan report is a PLUS on your score. Once it's paid off, you might need to seek out another, unless you already have one. 

Cheers.gif

Message 10 of 10