Can FICO ever go up?

[Anonymous]

Hello, So I have been trying to improve my score for the last 2 years. I feel I've done everything right. I got a car loan a few months ago for 23K, it's now at 13K left on it and 1.5 years left on term. I have 1 secured CC open for "revolving" credit. Both of these items I have never been late on. I do have some charge-offs and collections, but they are all paid in full, and more than 1 year in the past, and I have 1 tax-lien paid in full, paid last year also (was $150.00 tax lien). However, after reading through FICO documentation on the site and using this site for a while it dawned on me that: I will stay at 620, maybe get to 650 for the next 6-7 years because even though everything is now paid in full and on time, that doesn't matter to FICO, and the lien puts an auto 40-80 hit, and the others, even though paid, also tick down. Is this the case? I'm basically a nobody for the next 7 years? I just find it kind of sad. Years ago I had some financial troubles; school, etc. I'm now fortunate enough that I have a good low 6-figure job and can pay cash for just about anything I want ( could of for my car, but I decided to get a loan only to help my credit ), but I would like to still have a good credit score. So now I feel even doing the right things, I'll just sit and suffer with a low score for the next 6-7 years. Thoughts?

[Anonymous]

No you are doing everything right and yes your score can go up. Since you only have 1 CC I would suggest strongly to apply for more credit cards. Secured cards are fine. I would get 3 more credit cards if you can handle it. You will be building payment history 4 times as fast and that will get you where you want to be faster. Good will letters might help to remove negatives that you PIF'd on. Try them. But for the moment I'd get more secured cards. Get one from each good bank that way you are more likely to move in to a prime card with them in a year or two. Kinda a trick to getting approved with each bank. Don't pay more than $50 a year in fees for a secured card either. I'd say $20-$40 is about average for total yearly fees.

Bank of America Definitely!
Wamu
Citibank
Chase
National City
Wachovia
HSBC Definitely!
Cap1

are just a few places you might get a single secured card from to get the ball rolling. After 12 months try for a prime unsecured card. Building history with a bank can and does often get you what you want. Take this route.

As for your score with these extra cards you are likely to build your credit score too. Time will do some healing as well.

But YES, I have proven many times there is usually lots of room to grow your score from any position!

[Anonymous]

ilovepizza,

Thanks. That makes me feel much better. I'm hoping to get to a "good" score. I'm not shooting for the stars like the high 700's or 700, but it would be nice to be at like 700 or 710. Breaking the 700 barrier is my ultimate goal.

I'm thinking of picking up a U.S. Bank card. I'll looking into the BOA. I have an HSBC (Orchard) secured that i got with a 2K limit. Every so often I carry over a small balance, like a 100 or so, just so it shows up, then pay the amount, as I know paying in full everymonth isn't totally helpful, and I need the score boost .

I'll keep doing what I'm doing and watch my report like a hawk . Really appreciate your response. It also makes me feel better because my g/f ( soon to be finance ) has perfect credit ( like 800 ), and I don't want to bring her down, so I'm hoping my score will come up where it won't effect her much; and "us" for that matter for our future, like purchasing a house, etc. As I'd hate to walk in to a place for a 300K loan, when our combined income is around the 400K range, and get denied because of me . Definatley my worse fear ( not the denial, but letting down my partner ).

Anyway, yeop, gonna just hope everything works out and continue doing the right thing.

[smallfry]

Listen to pizza. Don't be late and keep the utilization under 9%. Within 3 years you will be knocking on 700. Don't give up.

[Anonymous]

You could try writing some GW letters to get rid of some those collections.  As time goes by those bad TLs will affect you less and less and your score WILL go up as long as you continue to pay EVERYTHING on time all the time.  Also, adding CCs to your credit mix should give you a boost.

Good luck on getting your credit score up and on your upcoming proposal.

[Anonymous]

Souvent, your problem is that you don't have enough accounts in good standing. Look at picking up a couple more cards, even if they are crummy ones.

It's hard to make progress beyond the low to mid 600s with a collection or charge-off that's under a year old. Now that these baddies have aged past a year, you should find the pace of your improvement will pick up later this year.

[Anonymous]

Yeah, I'm def going to pick up at least 2 more cards, if not 3. Also, can anyone give me a link to more information about these "Good Will" letters and perhaps getting some of the charge-offs/collections off my report using these letters? I am unfamiliar with that.

[smallfry]

Check the preapproval sites before you start applying.

[haulingthescoreup]

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@Anonymous wrote:
Yeah, I'm def going to pick up at least 2 more cards, if not 3. Also, can anyone give me a link to more information about these "Good Will" letters and perhaps getting some of the charge-offs/collections off my report using these letters? I am unfamiliar with that.

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Start by reading Credit Scoring 101, which is stickied at the top of almost all the forums. It has gotten pretty enormous, but do get through the original first post, plus several more pages where people are thinking out loud about what they've learned.

AFTER reading Credit Scoring 101, click on Frequently Requested Threads. You'll see several threads about GW and PFD --be sure to slide all the way down, because some are at the bottom.

Once you've done all your "homework", you should be able to sketch out a plan of attack. You might want to start a new thread on General Credit Issues, posting your plan and asking for feedback. If you have specific questions about how to go after something, post on Rebuilding Your Credit, which is the sleeves-rolled-up, wade-on-in forum for cleaning up messes.

HTH --good luck!