newbie :)

[Anonymous]

Hi all, Im currently sitting on the following:

equifax - 603

transunion - 599

experian - 570 

I had a rough year last year that lasted up until june of this year. I hit one 120+ past due on capitol one cc with a $1,300 bal, and 1 x 30+day late with navyfed on my $5k credit card. I was also late on two vehicle loans that i had with navy fed, one of which i paid off recently and the other im back and current on. 

my question is the following. I am currently blessed with very good income where i will see myself debt free within the next month, and i am wondering how to most effectively use my income to help me increase my credit scores faster. I have thought about not paying off my remaining vehicle loan because its "good debt", right? i have mostly been using my navy fed CC for all my purchases because i figured i might as well rack up points if i am able to pay off my balance every month. i am aware of the 10% utilization rule for credit cards, so i am going to try to keep them at that or less. 

is there anything you would do with those low scores that would raise them more agressively? 

also, how do you guys put the little FICO scores in your signature? are those considered tags? macros? 

[Anonymous]

First off, welcome to MyFico! You’ve found a great group of people with a wealth of knowledge.

As for your current situation, to maximize the scoring potential of your credit cards, use the AZEO method. Have all cc except one report a zero balance. The one that reports a balance should report 8.9% utilization or less. Then after it reports, but prior to due date, pay it in full. As for your remaining vehicle installment loan, it IS good to have an installment loan. Even better is when the remaining balance on the installment loan is 40% or less of the beginning loan amount.

As to your derogatory information, you may want to try writing goodwill letters to the creditors to see if they will remove the derogatory information. Since you’ve said you were able to bring your accounts current and even pay off one of the loans, it would seem that may be a viable option for you. I will defer to those members here who have much more experience with goodwill letters to go into greater detail.

Standard wisdom is that 3-4 revolving credit cards and at least one installment loan are sufficient for maximizing your FICO scores. Some will say you also need a mortgage, but many of us don’t have mortgages and/or aren’t in a position to get one or desire one. So I wouldn’t worry much about that, at least not now.

There are many other tips, but those are some of the basics. As for signatures, you have to be a member for a short time before you can do that. A Moderator can create a signature for you prior to that though.

Best of luck to you and never be afraid to ask questions!

[SomewhereIn505]

---

@Anonymous wrote:

Hi all, Im currently sitting on the following:

equifax - 603

transunion - 599

experian - 570 

I had a rough year last year that lasted up until june of this year. I hit one 120+ past due on capitol one cc with a $1,300 bal, and 1 x 30+day late with navyfed on my $5k credit card. I was also late on two vehicle loans that i had with navy fed, one of which i paid off recently and the other im back and current on. 

my question is the following. I am currently blessed with very good income where i will see myself debt free within the next month, and i am wondering how to most effectively use my income to help me increase my credit scores faster. I have thought about not paying off my remaining vehicle loan because its "good debt", right? i have mostly been using my navy fed CC for all my purchases because i figured i might as well rack up points if i am able to pay off my balance every month. i am aware of the 10% utilization rule for credit cards, so i am going to try to keep them at that or less. 

is there anything you would do with those low scores that would raise them more agressively? 

also, how do you guys put the little FICO scores in your signature? are those considered tags? macros? 

---

@Anonymous addition to what @Anonymous said, I would focus on the goodwill letters first. Baddies will hold you back. You might even see enough of a spike in your scores which may open you to a few prime cards.

[Anonymous]

OP—An additional thought I had was that if you rent, many companies now (for a nominal fee) will report your on-time rent payments to the CRAs. This may also be an avenue to increasing your score.

[xaximus]

---

@Anonymous wrote:
OP—An additional thought I had was that if you rent, many companies now (for a nominal fee) will report your on-time rent payments to the CRAs. This may also be an avenue to increasing your score.

---

Rental income shows/impacts the new Fico 9 score (I believe), I don't think it has much impact on Fico 8. 

As for OP's situation - reach out to the OC (original creditors, in your case - Cap1 & Navy Fed) and explain your situation on why you were late, sometimes they can remove the lates (again, sometimes, it may or may not work - YEMV). If not, then let them age, every month that goes by, the impact will lessen. Also, for the future, set up auto-pay on your accounts, this way you don't have to worry about missing any payment. Whatever the minimum payment is - add a few $ to that and set it up. If anything, have a separate account setup for auto-pay that you can fund. Payment history is a large part of your CS so I would pay close attention to that. If you have any baddies - check your credit reports - reach out and do PFDs, send GW letters, any baddies that fall off will have a positive impact.

Good luck - you can do it!