collections removed, and no change in score

[Anonymous]

Hi all!, i'm new here, i have a few quetions, I turned 29 today and im trying to get my credit score back, when i was 18 i was in the high 700's and ran into personal situations that really screwed me up, what are the main things creditors are looking at, payments everymoth or paying off your balance? i also thought if collections are removed your score goes up?

[Anonymous]

It depends on whether or not you have other major negative items present on your credit report, such as other collections, charge-offs, delinquencies, etc.  If you remove your last negative item, you'll a big FICO score increase, usually to the tune of 60-80 points.  If other major negative items remain after some are removed, often the score gain is minimal or even nothing.  Still though, great job getting negatives removed, as the fewer you have the better you look upon a lender manual review.

Where are you getting your score(s) from, BTW?

[Anonymous]

here, but could it be that because the new report didn't come out yet, that the changes have not shown on there?

[Anonymous]

• 599
• 18Total Accounts - credit mix very good
• 11 yearsLength of Credit good
• 3Inquiries good
• 76%Revolving Utilization good
• 2Missed Payments fair

so i am alittle confused, why my scores are not going up

[Anonymous]

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@Anonymouswrote:

• 599
• 18Total Accounts - credit mix very good
• 11 yearsLength of Credit good
• 3Inquiries good
• 76%Revolving Utilization good
• 2Missed Payments fair

so i am alittle confused, why my scores are not going up

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I'm not sure why 76% utilization is showing as good, that is not good. Your utilization should be under 28.9% utilization and less than 8.9% utilization is ideal. Your high utilization is hurting your score.

[Anonymous]

it was from 104- maybe that's why it said good?, i dont see a change in the collections off, i think 3 of them came off or all 4 recently. will it show up on next report on 3/26 thank you for your help.

[Anonymous]

It sounds like you're looking at fluff software provided by a CMS.  Utilization that high is poor and anything outside of perfect payment history is more or less considered poor as well.  Those 2 sectors make up 2/3 of the FICO pie and are killing your score currently.

[Anonymous]

So basically the credit utilization is what is hurting my score?, also do you suggest I pay it off in full or do monthly payments?

[Thomas_Thumb]

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@Anonymouswrote:
So basically the credit utilization is what is hurting my score?, also do you suggest I pay it off in full or do monthly payments?

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The high credit utilization is hurting your score by up to 100 points - IMO. However, the collection(s) and lates may be hurting your score even more. Note: If you have 4 collections and 3 are removed you still get the major score penalty. All collections have to be removed to see the full positive impact on score.

If the two lates are 90 days they will hold down your score substantially regardless of their age. If the lates are 30 or 60 day their impact will be much less severe - particularly if they are over two years old. 

I would recommend getting your revolving utilization under 49% ASAP to reduce potential for adverse action. After that pay off remaining balances as your income allows to eliminate interest payments. Then maintain future reported balances/utilization under 29% at all times and for best score potential maintain aggregate utilization under 9%.