Paid off cards - minimal increase?

[Anonymous]

In June, my Equifax score was 661.   I've since paid off one card in July, and other in August.   I paid down a third to 6% utilization, and I have a Macy's card that I pay off every month.  No other balances.   I just checked my score and now it's....668.   After paying off thousands in debt, I expected more of an increase than that.  

What do I need to do to increase my score?  I'd deliberately left 6% on one card, but should I pay that off as well?  The only other negatives are old late pays (most recent was a year and a half ago) and a single $40 collection from an old gas bill I never knew about.  I'd been advised not to pay that so it wouldn't update it.   I'd like to get a non-FHA mortgage eventually (a lot of sellers aren't accepting bids with FHA loans).   Is there anything I can do to raise this score, other than wait?

[MarineVietVet]

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@Anonymous wrote:

In June, my Equifax score was 661.   I've since paid off one card in July, and other in August.   I paid down a third to 6% utilization, and I have a Macy's card that I pay off every month.  No other balances.   I just checked my score and now it's....668.   After paying off thousands in debt, I expected more of an increase than that.  

What do I need to do to increase my score?  I'd deliberately left 6% on one card, but should I pay that off as well?  The only other negatives are old late pays (most recent was a year and a half ago) and a single $40 collection from an old gas bill I never knew about.  I'd been advised not to pay that so it wouldn't update it.   I'd like to get a non-FHA mortgage eventually (a lot of sellers aren't accepting bids with FHA loans).   Is there anything I can do to raise this score, other than wait?

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The late payments and the collection are all hurting you. You say "lates". Is that several 30 day lates? 60? 90? That can make a big difference. A collection whether paid or unpaid carries just as much negative weight. I will let the collection experts help you further.

Good luck to you.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

[RobertEG]

As for the collection, you have been advised not to pay it.  That may or may not work.

If you dont pay it, they may just give up, and it could go away from your CR at 7 1/2 years from the DOFD with the OC.

But they could still bring legal action against you at any time.  If the SOL has expired, and you show up in court to assert that defense, you may prevail.  But it is still there. 

Mortgage lendors dont usually like to grant credit with unpaid collections on your CR.

I would send the CA a PFD offer.  That is the only way to clear it from your CR.

[haulingthescoreup]

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FloatingHoliday wrote:

In June, my Equifax score was 661.   I've since paid off one card in July, and other in August.   I paid down a third to 6% utilization, and I have a Macy's card that I pay off every month.  No other balances.   I just checked my score and now it's....668.   After paying off thousands in debt, I expected more of an increase than that.  

What do I need to do to increase my score?  I'd deliberately left 6% on one card, but should I pay that off as well?  The only other negatives are old late pays (most recent was a year and a half ago) and a single $40 collection from an old gas bill I never knew about.  I'd been advised not to pay that so it wouldn't update it.   I'd like to get a non-FHA mortgage eventually (a lot of sellers aren't accepting bids with FHA loans).   Is there anything I can do to raise this score, other than wait?

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Did you pull your EQ FICO from here? If so, what are the negatives, listed in order, on screen 2 of the 661 report and the 668? This is the screen with the balance scales, with the negatives on the left and the positives on the right.

The list of negatives on the myFICO reports are taken directly from the list of negatives that accompany the full reports pulled by lenders. The first-listed hurts you the most, then the second a bit less so, and so forth. The positives are there mainly for entertainment value and morale, I guess. I think they're from the same list, but from the bottom up. In other words, those items least hurting you, so to speak.

[Anonymous]

Thanks for the replies thus far.   I do have a lot of old late pays, including some at 120.  However, the worst of it was years ago.   The $40 collection was three years ago.  Someone said that it was best not to pay it, so it wouldn't update it.   He said a mortgage lender will just tell you to pay it off before closing. 

Financially, I'm in a far different position than I was when those late pays were done.    My salary has doubled, I now have very little debt (just the 6% on one card that I could pay off now; no loan payments of any kind), and my savings have really ballooned.  Overall DTI (including rent) is like 18%.    

There's not much I can do about the late pays, is there?   So it is worth it to try to PFD the $40 gas bill?     For some reason, it's not on my Transunion report and that was at 700 in June.

[daisyduke]

Personally, get rid of the collection, that is what i would do...I would PFD with the Ca. it's 40.00...

Not all CA's report on every report. I've had some only on TU, and I've had some on two out of three...just depends I guess...

Sometimes, they'll play head games with you...like one nasty one i had...wanted to wheel and deal, boom, they added the CA to my TU report (it was on EQ i think)...

You also risk more inquiries on your reports from the CA's...lenders don't particulary care for collection inquiries...

or maybe you can DV them first, since you think you don't owe it anyway.