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5 to 6 years...and no improvement on credit score!

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Re: 5 to 6 years...and no improvement on credit score!


@spiritcraft1 wrote:

@jamie123 wrote:

My suggestions:

 

  • Join a credit union that offersSSLss (Share Secured Loan) likeAlliantt Credit Union. A share secured loan is taking out a loan that is secured by money that is in your savings account. (The money is locked in your savings account and is slowly released as the loan is paid off.) You are literally borrowing money from yourself. These loans are pretty much guaranteed approvals and offer very low interest rates. Take out a $500 loan for the longest period that they offer, 4 to 5 years if possible.
  • Get your own secured credit card. I would suggest a lender like Open Sky. Open Sky doesn't charge excessive fees and doesn't try to rip you off as much as some of the other secured credit card companies. Keep in mind that they do charge a fee to increase your secured credit line in the future if you ever intend to do so.

You need to establish credit in your name and start getting good marks on your reports every month to offset all your baddies. If nothing else, as soon as all your baddies drop off, your scores will rocket because of the good credit behavior that you have established. Once the baddies are gone you will have what it takes to start getting better credit cards.

 

Good luck!

 

EDIT: It won't make a difference to your scores if you pay the charge offs or not. The damage is already done. Let sleeping dogs lie IMHO.


This is all good advice.  You need to start building positive credit.  Get any secured card that is without fees (also try a local CU).  A store card for now as well.  Remember anything you open and pay in full now can be closed later as you get better cards.  A share secured loan from a local CU or a Nationall like NFCU  (are you eligiblee?).

 

You will not get anywhere without building new positive credit.  Au's help but only when you also have your own card(s).  And when all these derogs drop off, you want to have started and maintained a positive payment history.  

 

Check my profile, I started at a 406 EQ Fico.  I would still be in the low 500's without positive accounts.  Good luck!

 

Also:  Who did you burn?


This is reassuring. Can I actually get a store card with that low of credit? This wouldn't have even crossed my mind...

Good point about opening cards and closing them if needed.

 

That makes sense starting with positive accounts because your right the AU hasn't done a single thing. Maybe state of mind?

 

406?! Wow. That's quite the turnaround. Well done! I will check out your profile.

 

I don't really want to say who was burned, if possible. I feel bad. I would say on two occasions it was face to face asking for more credit. I not only let myself down, but they took a chance on me and I let them down. I can't speak for others but it gets to a point where the car is going down the hill and you lose a wheel, then the brakes and eventually the steering wheel and you are just trying to keep it together. It got messy but I'm glad that it's starting to get behind me.

 

Thanks Spiritcraft1!

Message 31 of 69
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Re: 5 to 6 years...and no improvement on credit score!


@nmk94 wrote:

@spiritcraft1 wrote:

You will not get anywhere without building new positive credit.  


I'll second this. As you can see from my replies, I was always building positive credit. Even though I still have the anchor of those CO/CA/Judgements (major baddies), I was still able to gain 91 points by creating new positives.


Right!

Message 32 of 69
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Re: 5 to 6 years...and no improvement on credit score!


@spiritcraft1 wrote:

@sparky2star wrote:

Right.

 

Usually, after a couple of years, the credit improves. This has not been the case and I have paid off some accounts in full.

 

As of today, my credit score are these:

Equifax 521, Transunion 522, Experian 543

 

Repossession (car) - 8/2015 Charge off

Credit card - Debt $900 10/2014 Charge off 

Credit card - Debt $7000 10/2014 Charge off

Credit card - Debt $3000 10/2104 Charge off

Credit card - Debt $300  11/2014 Charge off (I actually paid this)

Credit card - Debt $2200  4/2013 Charge off

 

Collections for $7000 debt above (attorney)

Collections for $3000 debt above

Collections for $198.00 which I will pay.

 

So my question is "WHY" it hasn't improved one bit. That 520-540 score has been the same since 2015.

 

I have paid off three other debts that too did not improve the score. More than likely I will pay off the $900.00 debt. However, if these do not improve my score, frankly, there is no incentive to pay off the other debts, as 7 years will have passed by.

 

This is my confusion...

 

 


If these accounts are for the same debt and both show balances, dispute the CO's since only one should show a balance if it is a CA from a Junk Debt Buyer.

 

Please list who these are.  

 

Get your annualcreditreports ASAP.  Find out the date of First Delinquincy for each.  Some of these may be going away very soon!  Know where you stand.



First off. I did look at your profile. I saw the improvement after 14-15 months. Incredible! BTW, you have this thing where it says you will have a clean report in 367 days. Is that when the rest of the baddies come off?

 

As far as your other question...I think I understand, but let me clarify. The debt is for 7k and is a judgment that is on my collections sections of my report (Myfico). They are attorneys that aren't particularly friendly. I recall one letter saying that they may renew the judgment or something to that effect if and when the 7 years come around. They haven't sent me a letter for over a year, so...

I'm not sure if I am making sense. Probably doesn't.

 

The other is a credit union - 3K. I believe they got an attorney for this too but weren't aggressive.

 

The other collections believe is Verizon debt that has been a thorn in my side and have tried to pay a couple of times without success.

 

Does the Annualcreditreport give more info that the regular myfico report?

 

Thanks for your help Spiritcraft1!

Message 33 of 69
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Re: 5 to 6 years...and no improvement on credit score!

AU’s either count or they don’t depending on specific FICO model.

The fact they can be discounted and sounds like they are here, means everyone regardless of current score should be establishing their own tradelines.

Lenders hate AU scoring after the various abuses of the past and they are the customers of FICO / bureaus / everyone else in the risk analysis space when it comes to consumer lending.

As a result, always get your own tradelines: secured, unsecured, doesn’t matter... they just need to be yours.



        
Message 34 of 69
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Re: 5 to 6 years...and no improvement on credit score!


@Revelate wrote:
AU’s either count or they don’t depending on specific FICO model.

The fact they can be discounted and sounds like they are here, means everyone regardless of current score should be establishing their own tradelines.

Lenders hate AU scoring after the various abuses of the past and they are the customers of FICO / bureaus / everyone else in the risk analysis space when it comes to consumer lending.

As a result, always get your own tradelines: secured, unsecured, doesn’t matter... they just need to be yours.

I did not know this. Good advice!

 

I suppose the algorithm has changed but the AU seems to just serve as an authorized user...not someone who is building credit on someone else's back, so to speak.

 

Thanks Revelate!

Message 35 of 69
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Re: 5 to 6 years...and no improvement on credit score!

That is exactly why they did it.

Actually if you google for “piggybacking” the first hit is a credit site. Funny that, but back in 2008 or so there were a bunch of pay-for-AU sites and because that manipulated the resulting score to not accurately reflect the consumer in question they have attempted to make it such that that abuse is stomped out.

There has been fits and starts and at one point they even removed AU’s entirely (to the horror of some who had no credit besides being an AU on their spouse’s tradelines) which got struck down, they came up with some anti-abuse algorithm to try to combat that.

The problem is nobody knows the abuse algorithms and FICO 9 may have changed again from some reports and as such best bet is just defend yourself and build your own credit file rather than counting on AU’s. We have, to my knowledge, no recourse as consumers if AU’s aren’t counting even if they ostensibly should (the aforementioned spouse scenario) so they shouldn’t be relied on for credit scoring in the modern market (read as within the last decade).

What you may be able to do in the meantime is check for a couple lenders (usually credit unions) that use the older scoring models where AU’s absolutely count. Your scores may well be higher there which might allow you to sidestep the secured or deep subprime unsecured route to establishing a few tradelines.



        
Message 36 of 69
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Re: 5 to 6 years...and no improvement on credit score!


@Revelate wrote:
That is exactly why they did it.

Actually if you google for “piggybacking” the first hit is a credit site. Funny that, but back in 2008 or so there were a bunch of pay-for-AU sites and because that manipulated the resulting score to not accurately reflect the consumer in question they have attempted to make it such that that abuse is stomped out.

There has been fits and starts and at one point they even removed AU’s entirely (to the horror of some who had no credit besides being an AU on their spouse’s tradelines) which got struck down, they came up with some anti-abuse algorithm to try to combat that.

The problem is nobody knows the abuse algorithms and FICO 9 may have changed again from some reports and as such best bet is just defend yourself and build your own credit file rather than counting on AU’s. We have, to my knowledge, no recourse as consumers if AU’s aren’t counting even if they ostensibly should (the aforementioned spouse scenario) so they shouldn’t be relied on for credit scoring in the modern market (read as within the last decade).

What you may be able to do in the meantime is check for a couple lenders (usually credit unions) that use the older scoring models where AU’s absolutely count. Your scores may well be higher there which might allow you to sidestep the secured or deep subprime unsecured route to establishing a few tradelines.

Right. This is good stuff! Gets into the theory of it or at least by deduction. It makes sense. 

 

Also this Fico8 or Fico9 is something I am new too as well. There seems to be a lot of new education which I am now exploring. I really don't need credit right now but I appreciate the side step bit. Realistically I just need to get started and I have some education now to do it. Obviously it's not bulletproof but I certainly know a lot more than when I started this thread. And there have some nice finds as well.

 

I really appreciate your taking the time to write this out Revelate! 

Message 37 of 69
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Re: 5 to 6 years...and no improvement on credit score!


@sparky2star wrote:

@spiritcraft1 wrote:

@sparky2star wrote:

Right.

 

Usually, after a couple of years, the credit improves. This has not been the case and I have paid off some accounts in full.

 

As of today, my credit score are these:

Equifax 521, Transunion 522, Experian 543

 

Repossession (car) - 8/2015 Charge off

Credit card - Debt $900 10/2014 Charge off 

Credit card - Debt $7000 10/2014 Charge off

Credit card - Debt $3000 10/2104 Charge off

Credit card - Debt $300  11/2014 Charge off (I actually paid this)

Credit card - Debt $2200  4/2013 Charge off

 

Collections for $7000 debt above (attorney)

Collections for $3000 debt above

Collections for $198.00 which I will pay.

 

So my question is "WHY" it hasn't improved one bit. That 520-540 score has been the same since 2015.

 

I have paid off three other debts that too did not improve the score. More than likely I will pay off the $900.00 debt. However, if these do not improve my score, frankly, there is no incentive to pay off the other debts, as 7 years will have passed by.

 

This is my confusion...

 

 


If these accounts are for the same debt and both show balances, dispute the CO's since only one should show a balance if it is a CA from a Junk Debt Buyer.

 

Please list who these are.  

 

Get your annualcreditreports ASAP.  Find out the date of First Delinquincy for each.  Some of these may be going away very soon!  Know where you stand.



First off. I did look at your profile. I saw the improvement after 14-15 months. Incredible! BTW, you have this thing where it says you will have a clean report in 367 days. Is that when the rest of the baddies come off?

 

Yes, the last derog will fall off then (or sooner)..

 

As far as your other question...I think I understand, but let me clarify. The debt is for 7k and is a judgment that is on my collections sections of my report (Myfico). They are attorneys that aren't particularly friendly. I recall one letter saying that they may renew the judgment or something to that effect if and when the 7 years come around. They haven't sent me a letter for over a year, so...

I'm not sure if I am making sense. Probably doesn't.

 

Does the CO also show a balance?  If it is an Atty there likely a collector only.  I do not think it should be listed twice in that case.

 

The other is a credit union - 3K. I believe they got an attorney for this too but weren't aggressive.

 

The other collections believe is Verizon debt that has been a thorn in my side and have tried to pay a couple of times without success.

If that is out of the statute of limitations, you can invoke their "Arbitration Clause"...  it is an official 30 day notice.  They will likely go away because it would cost them $3-4K to move forward.  If it is going away in a few months to a year anyway, they will delete certainly.

 

Does the Annualcreditreport give more info that the regular myfico report?

You will get more accurate DOFD dates.  They should all be the same.

 

Thanks for your help Spiritcraft1!


I was asking who you burned to narrow down options.  If you go the Open Sky route, after a couple months you should be in the low 600's, then you could add a store card or another secured etc.  Just stay away from the bottom feeders.  Use whatever card or cards and pay in full.

 

We ask about Navy as they are far superior to PenFed for rebuilding.




Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
8-1-18 -
12-24-18 -
12-1-19 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, FuelMan .8K, Citi Tractor Supply Rev .8k, Builder Pro 5.4K, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG | AMEX Biz Gold NPSL
Message 38 of 69
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Re: 5 to 6 years...and no improvement on credit score!

 


@spiritcraft1 wrote:

@sparky2star wrote:

@spiritcraft1 wrote:

@sparky2star wrote:

Right.

 

Usually, after a couple of years, the credit improves. This has not been the case and I have paid off some accounts in full.

 

As of today, my credit score are these:

Equifax 521, Transunion 522, Experian 543

 

Repossession (car) - 8/2015 Charge off

Credit card - Debt $900 10/2014 Charge off 

Credit card - Debt $7000 10/2014 Charge off

Credit card - Debt $3000 10/2104 Charge off

Credit card - Debt $300  11/2014 Charge off (I actually paid this)

Credit card - Debt $2200  4/2013 Charge off

 

Collections for $7000 debt above (attorney)

Collections for $3000 debt above

Collections for $198.00 which I will pay.

 

So my question is "WHY" it hasn't improved one bit. That 520-540 score has been the same since 2015.

 

I have paid off three other debts that too did not improve the score. More than likely I will pay off the $900.00 debt. However, if these do not improve my score, frankly, there is no incentive to pay off the other debts, as 7 years will have passed by.

 

This is my confusion...

 

 


If these accounts are for the same debt and both show balances, dispute the CO's since only one should show a balance if it is a CA from a Junk Debt Buyer.

 

Please list who these are.  

 

Get your annualcreditreports ASAP.  Find out the date of First Delinquincy for each.  Some of these may be going away very soon!  Know where you stand.



First off. I did look at your profile. I saw the improvement after 14-15 months. Incredible! BTW, you have this thing where it says you will have a clean report in 367 days. Is that when the rest of the baddies come off?

 

Yes, the last derog will fall off then (or sooner)..

 

As far as your other question...I think I understand, but let me clarify. The debt is for 7k and is a judgment that is on my collections sections of my report (Myfico). They are attorneys that aren't particularly friendly. I recall one letter saying that they may renew the judgment or something to that effect if and when the 7 years come around. They haven't sent me a letter for over a year, so...

I'm not sure if I am making sense. Probably doesn't.

 

Does the CO also show a balance?  If it is an Atty there likely a collector only.  I do not think it should be listed twice in that case.

 

The other is a credit union - 3K. I believe they got an attorney for this too but weren't aggressive.

 

The other collections believe is Verizon debt that has been a thorn in my side and have tried to pay a couple of times without success.

If that is out of the statute of limitations, you can invoke their "Arbitration Clause"...  it is an official 30 day notice.  They will likely go away because it would cost them $3-4K to move forward.  If it is going away in a few months to a year anyway, they will delete certainly.

 

Does the Annualcreditreport give more info that the regular myfico report?

You will get more accurate DOFD dates.  They should all be the same.

 

Thanks for your help Spiritcraft1!


I was asking who you burned to narrow down options.  If you go the Open Sky route, after a couple months you should be in the low 600's, then you could add a store card or another secured etc.  Just stay away from the bottom feeders.  Use whatever card or cards and pay in full.

 

We ask about Navy as they are far superior to PenFed for rebuilding.


That makes sense.

 

Unfortunately, I don't qualify for Navy. I got in with Federal a long time ago...

 

I appreciate that. Thanks!

Message 39 of 69
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Re: 5 to 6 years...and no improvement on credit score!

As far as your other question...I think I understand, but let me clarify. The debt is for 7k and is a judgment that is on my collections sections of my report (Myfico). They are attorneys that aren't particularly friendly. I recall one letter saying that they may reneTw the judgment or something to that effect if and when the 7 years come around. They haven't sent me a letter for over a year, so...

 

This is a perfect "let sleeping dogs lie" scenario. Yes, I believe in some States judgements can be renewed for up to 24 years! I would suggest not doing anything and hoping that they forget to renew the judgement. If they renew the judgement you can always tackle that when it happens.

 

You want to get a SSL for the longest term possible. It seems that most people gain about 20 points by having an open installment loan on their reports. Thet's why you want the longest term possible. Once you pay this loan off you lose the points unless you have another open installment loan. You want to make sure that you have about $550 in your savings account when you take out the loan. The extra $50 should cover the interest expenses. Set up auto payments from the savings account to pay the loan and you will never have to worry about it. They will cut you a check for the $500 loan so you are really only out $50 for getting this loan.


Starting Score: EQ 653 6/21/12
Current Score: EQ 817 7/10/19 - EX 802 7/13/19 - TU 815 6/03/19
Message 40 of 69
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