So when does my score go up?

[jay33]

First off I have to say this site is great.  Wish I got on here sooner!

So my 3 scores are between 575 and 615.  All my baddies are old and I have been current on my outstanding debt.  Student loans have been current for 3 years and car loan for a year and a half.  Currently in a debt consolidation plan (paying collection accounts).  One for an apt.  And two for credit cards.  I've been paying the collections through a debt consolidator for a year.  It doesn't really seem like my score is going up though.  I'm currently disputing two items on report.  Dropped EQ 18 points.

total debt with stu loan, car, and baddies approx.  23 K.  Salary is little over 60K.  What is the best way to raise my score given my current position?  Should I stay with the debt consolidator?  I'm getting a bonus this year, should I use that to pay off most of my collections?  I'm looking for the best way for my score to rise so I can get a decent IR on a house.  Looking to buy in a year or so.

Got any thoughts for a FICO Rookie?

Cheers

[Anonymous]

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jay33 wrote:

First off I have to say this site is great.  Wish I got on here sooner!

So my 3 scores are between 575 and 615.  All my baddies are old and I have been current on my outstanding debt.  Student loans have been current for 3 years and car loan for a year and a half.  Currently in a debt consolidation plan (paying collection accounts).  One for an apt.  And two for credit cards.  I've been paying the collections through a debt consolidator for a year.  It doesn't really seem like my score is going up though.  I'm currently disputing two items on report.  Dropped EQ 18 points.

Certain TLs are removed from the scoring model when they are in dispute. Depending on the outcome of the dispute, you could gain these points back.

total debt with stu loan, car, and baddies approx.  23 K.  Salary is little over 60K.  What is the best way to raise my score given my current position? 

Do you have any revolving credit? If not, I'd say add some. If you do, what is your current utilization?

Should I stay with the debt consolidator? 

I'm getting a bonus this year, should I use that to pay off most of my collections? 

Paying collections will NOT help your score. A collection is a collection, paid or unpaid. You want to negotiate a PFD with them. PFD= Pay for Delete. If you can get them removed, then they'll help your score.

I'm looking for the best way for my score to rise so I can get a decent IR on a house.  Looking to buy in a year or so.

Got any thoughts for a FICO Rookie?

Cheers

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Message Edited by sidewinder on 05-04-2008 09:14 PM

[jay33]

Thanks for the info.

Certain TLs are removed from the scoring model when they are in dispute. Depending on the outcome of the dispute, you could gain these points back.

I currently do not have any revolving credit.  I get card offers in the mail but they are for those pay a deposit for a credit card (usually $30 - $90) deals.  I've been weary of those becuase I've been told they do not look good when people pull your report (for mortgage or auto).  Am I wrong here?

Paying collections will NOT help your score. A collection is a collection, paid or unpaid. You want to negotiate a PFD with them. PFD= Pay for Delete. If you can get them removed, then they'll help your score.

I've thought about doing that too.  do they require the full amount for a PFD? Do I have some negotiating room here? 

[Anonymous]

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jay33 wrote:

Thanks for the info.

I currently do not have any revolving credit.  I get card offers in the mail but they are for those pay a deposit for a credit card (usually $30 - $90) deals.  I've been weary of those becuase I've been told they do not look good when people pull your report (for mortgage or auto).  Am I wrong here?

Secured cards are fine if they report to the CRA and don't have outrageous fees. BoA has a secured card which I just applied for, have to send in my deposit. BoA pulled EX on me. You can find others over on the CC Forum. Also Crown Jewelers will usually approve without a credit pull. CL is normally $1500. You have to make a downpayment with each purchase to begin with. They report to EX and TU. Have to buy something before they report.

I've thought about doing that too.  do they require the full amount for a PFD? Do I have some negotiating room here? 

Depends on how old the debts are and if they are in or out of SOL. If you've been making payments then they are within SOL, less of a chance. But some companies are hurting and be willing to accept say $100 today as opposed to $200 over the next 12 months.

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[jay33]

Secured cards are fine if they report to the CRA and don't have outrageous fees. BoA has a secured card which I just applied for, have to send in my deposit. BoA pulled EX on me. You can find others over on the CC Forum. Also Crown Jewelers will usually approve without a credit pull. CL is normally $1500. You have to make a downpayment with each purchase to begin with. They report to EX and TU. Have to buy something before they report.

My fiance has B of A cards.  Should I just get on her CCs?  How would this effect my/her FICO score?  How would it effect her interest rates?  Her score is in the upper 600s and she has pretty good rates.  Should I just get the cards myself?

Depends on how old the debts are and if they are in or out of SOL. If you've been making payments then they are within SOL, less of a chance. But some companies are hurting and be willing to accept say $100 today as opposed to $200 over the next 12 months.

I guess it can't hurt to try and negotiate with them.  Is sendign a letter the best way to contact them.  should I try and negotiate over the phone?

[Anonymous]

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jay33 wrote: My fiance has B of A cards. Should I just get on her CCs? How would this effect my/her FICO score? How would it effect her interest rates? Her score is in the upper 600s and she has pretty good rates. Should I just get the cards myself?

You made same mistake I did (and lot of people do). After bad credit people tend to stay away from credit hoping time will make things better. It doesn't you need good credit to compensate for bad credit.

So you should get 2-3 revolving accounts. You have couple options
1) get added as an AU (authorized user) NOT JOINT on your finances card. If it makes her feel better give her the card and have her cut it up. Her CL and util% will be included in your report. So if she has a $5K CL and 4% util you just improved both of your stats. Now if she late-pays it affects you too.

2) Get a secured card. They aren't the best cards but ANYTHING is better than nothing on your report. You score will never recover enough to a get a $20K CL from BofA unless you start small. The BofA prepaid is likely the very BEST prepaid. You can't apply for it. You need to apply for any of BofA cards and get denied. They then pay offer you the prepaid.

3) Try a store card. Jewelry stores are the easiest. If you are a home owner a card like Home Depot or Lowes is more useful. You can check whogavemecredit.com to see what scores others had when they were approved.

Message Edited by CreditMizer on 05-05-2008 10:36 AM

Message Edited by CreditMizer on 05-05-2008 10:36 AM