Paid accts to 3% and not seeing increase

[Anonymous]

So how bad is my situation? Will my scores ever budge? I have 2 charge offs and 1 collection, but I paid my 4 revolving accounts to 3%. Been waiting weeks to see if anything moves and it hasn't. 

I haven't started on the CO and collection yet. Once I get those taken care of, is that when I will see a boost?  My lowest score is 565 and my highest is 644. I have low credit limits, $1500. Should I try to increase those? Two accts have one 30-day late each. Never late on car payment or student loan.  Oh I have a chapter 7 that will drop off in 2yrs. 

Is this snapshot enough to give feedback on my next move? I was hoping to apply for mortgage in September. There's a lot of stuff wrong on my credit report, names addresses. I tried to get simple stuff removed with the credit bureaus and nothing happens. I have 2 disputes pending which I expect to be unresolved.

I don't understand how people are cleaning up credit reports. Even LexisNexis says they don't have a file on me. Very strange...impossible. 

So confused and frustrated.

[blindambition]

Your scores will continue to be suppressed by those 2 CO accounts. Major derog until removal.

You might see slight gain with one account with low balance, and others paid off. Instead of all reporting 3%. This is known as AZEO, or All Accounts at Zero except One. This can also give slight boost when more than 50% of accounts aren't reporting a balance. 

Are the CO updating monthly? If so, paying off, or settling stops updates. Allowing scores to recover.

Can you PFD that collection? That may provide a few points.

[dragontears]

What were the balances before paying them down? If you didn't cross a threshold then a score change isn't expected. 

As @blindambition said, the negative information is going to keep your scores depressed. 

[blindambition]

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@dragontears wrote:

What were the balances before paying them down? If you didn't cross a threshold then a score change isn't expected. 

As @blindambition said, the negative information is going to keep your scores depressed. 

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This is also good info!! I didn't ask what percentage you paid down accounts.

[thornback]

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@Anonymous wrote:

So how bad is my situation? Will my scores ever budge? I have 2 charge offs and 1 collection, but I paid my 4 revolving accounts to 3%. Been waiting weeks to see if anything moves and it hasn't. 

I haven't started on the CO and collection yet. Once I get those taken care of, is that when I will see a boost?  My lowest score is 565 and my highest is 644. I have low credit limits, $1500. Should I try to increase those? Two accts have one 30-day late each. Never late on car payment or student loan.  Oh I have a chapter 7 that will drop off in 2yrs. 

Is this snapshot enough to give feedback on my next move? I was hoping to apply for mortgage in September. There's a lot of stuff wrong on my credit report, names addresses. I tried to get simple stuff removed with the credit bureaus and nothing happens. I have 2 disputes pending which I expect to be unresolved.

I don't understand how people are cleaning up credit reports. Even LexisNexis says they don't have a file on me. Very strange...impossible. 

So confused and frustrated.

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How much are your chargeoff balances? In addition to suppressing your scores for simply being a derogatory- and moreover if updating regularly, keep in mind that unpaid chargeoffs factor into utilization- so if your other limits are low, your available credit (even with low balances reporting) may not be enough to offset the chargeoff utilization... hence, little to no score improvement for reducing the balances on your active accounts. 

[dragontears]

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@thornback wrote:

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@Anonymous wrote:

So how bad is my situation? Will my scores ever budge? I have 2 charge offs and 1 collection, but I paid my 4 revolving accounts to 3%. Been waiting weeks to see if anything moves and it hasn't. 

I haven't started on the CO and collection yet. Once I get those taken care of, is that when I will see a boost?  My lowest score is 565 and my highest is 644. I have low credit limits, $1500. Should I try to increase those? Two accts have one 30-day late each. Never late on car payment or student loan.  Oh I have a chapter 7 that will drop off in 2yrs. 

Is this snapshot enough to give feedback on my next move? I was hoping to apply for mortgage in September. There's a lot of stuff wrong on my credit report, names addresses. I tried to get simple stuff removed with the credit bureaus and nothing happens. I have 2 disputes pending which I expect to be unresolved.

I don't understand how people are cleaning up credit reports. Even LexisNexis says they don't have a file on me. Very strange...impossible. 

So confused and frustrated.

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How much are your chargeoff balances? In addition to suppressing your scores for simply being a derogatory- and moreover if updating regularly, keep in mind that unpaid chargeoffs factor into utilization- so if your other limits are low, your available credit (even with low balances reporting) may not be enough to offset the chargeoff utilization... hence, little to no score improvement for reducing the balances on your active accounts. 

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Great point, I missed the mention of the unpaid CO 

[Anonymous]

Paying down accounts to 3% isn't enough information.  If you paid them down to 3% from 4% for example, no score gain would be expected.  If you paid them down to 3% from 90%, a significant score gain could be expected.  Knowing what your starting point was is a major factor.

[SouthJamaica]

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@Anonymous wrote:

So how bad is my situation? Will my scores ever budge? I have 2 charge offs and 1 collection, but I paid my 4 revolving accounts to 3%. Been waiting weeks to see if anything moves and it hasn't. 

I haven't started on the CO and collection yet. Once I get those taken care of, is that when I will see a boost?  My lowest score is 565 and my highest is 644. I have low credit limits, $1500. Should I try to increase those? Two accts have one 30-day late each. Never late on car payment or student loan.  Oh I have a chapter 7 that will drop off in 2yrs. 

Is this snapshot enough to give feedback on my next move? I was hoping to apply for mortgage in September. There's a lot of stuff wrong on my credit report, names addresses. I tried to get simple stuff removed with the credit bureaus and nothing happens. I have 2 disputes pending which I expect to be unresolved.

I don't understand how people are cleaning up credit reports. Even LexisNexis says they don't have a file on me. Very strange...impossible. 

So confused and frustrated.

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It's a marathon, not a sprint. You just need to be patient.

The negatives will reduce in importance over time, until they fall off.

Any of the negatives which you can pay off, pay off.

Try to report zero balances on all but one of your revolving accounts.

Make no new credit applications.

Apply for CLI's only if they're a soft pull.

Follow these principles and your scores will increase over time.  Whether they'll be good enough for your liking for a September mortgage application, only time will tell.  But they will be better than they are today.