Thread: Credit Gurus Please Step Inside!

Time plays a big role in credit scores. So the more time goes by and you don't have any dings the better your scores will be. 10 months probably isn't long enough.

Other factors include # of recent credit inquiries so try to keep those down. Also, ratio of available credit to existing balances - especially with revolving (credit card type) accounts. You want to keep your total balances on these less than 50% of the credit limits.

Last but not least, removing negative items from your reports is what will help boost your scores most because then the negative just isn't there any more so time factor doesn't matter. That's what credit repair companies try to do for you.

What he said ^

Originally Posted by 4thgenx42

Well for you credit gurus out there. I need some insight please.

Well about a year ago my credit score sucked, it was at I believe 535 or 545. So I decided to get responsible and pay all of my past dues. I had a few deliquencies with a few companies. I took out a collateral loan with my bank to pay everything off.

I called all of the companies and came to agreements to pay. Everything has been payed off since 12/06/07. I just called DCU to try and get a loan to buy a vehicle. They tell me my credit score is at 546.

My questions are:

How often does your credit go up?
Why is my credit score only 1 to 10 points higher than it was 10 months ago?
How can I better my credit score?

I do have a credit card now that I have been religiously paying since I got it about 4 months ago. What do you think my chances are on getting this loan? The loan would be for $25,000.00. (I know tuff luck huh?)

Thanks for any of your insight!

Unfortunately as far as FICO scoring goes paying a charge-off, collection or a judgment will do nothing to improve your scores. I know it stinks. I agree with one of the other posters about removing negative info from your credit reports. And yes this can be done legally and ethically. For any paid baddies on your credit reports you might want to write a GW (goodwill letter) asking the creditor or collection agency to remove the paid collection. This letter can be used to remove late payments as well. To answer your questions!

It's highly unlikely you will get approved for a loan this big with favorable terms. I would talk first with a bank or credit union in your area that you have a solid relationship with. No guarantee though. Are these scores FICO?

1.) Credit scores can increase or decrease any time new info is updated on your reports. Sometimes there might be no change in your scores even when it updates.

2.) Not enough positive info on your reports and the bad stuff is still there.

3.) I would write GW letters to all of your creditors on the paid baddies and late payments if you have any. Most of the time this fails the first time but keep writing them and hopefully your GW letter will fall in the hands of someone who is sympathetic to your situation.

4.) Contrary to popular belief, 1-9% on CCs will get you max FICO points.

5.) Never ever be late on any payment, this will really tank your scores.

6.) You probably need another CC as well, ya know dilute the bad with good tradelines. I recommend the BoA secured Visa. With a good payment history they will graduate you to an unsecured card.

Great thread. Green rep for you peeps.