mominwashington
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| Credit Score |
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How many points can I raise my credit score in one year with perfect payments and no over limits? We are considering selling the house so we can make perfect payments (i've been un and under employed for a while). I would like to raise my score 150-200 points (currently low 500's) is it possible???????
Thanks,
Peggy
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Wed Apr 04, 2007 5:00 pm |
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Kiaser
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You'd have to combine that with more than just proper payment history for twelve months. If you have negative notations on your credit you would have to get rid of those as well.
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Thu Apr 05, 2007 3:02 am |
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mominwashington
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quote:
Originally posted by Kiaser
You'd have to combine that with more than just proper payment history for twelve months. If you have negative notations on your credit you would have to get rid of those as well.
How do I get rid of the negatives except waiting over time?
Peggy
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Thu Apr 05, 2007 8:19 am |
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Kiaser
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quote:
Originally posted by mominwashington
quote:
Originally posted by Kiaser
You'd have to combine that with more than just proper payment history for twelve months. If you have negative notations on your credit you would have to get rid of those as well.
How do I get rid of the negatives except waiting over time?
Peggy
First, if any balance remains on them pay it down. That will help quite a bit. Second, if you have arguable circumstances about the negative you may want to dispute them. Credit companies are so backed up and now that they are under law to have researched and respond about the dispute within 30 days they are pretty fair at deleting negatives especially if they are paid for. I had a negative removed quite easily from my credit, although it shouldn't have been there in the first place. Remember you have to dispute with all three credit bureaus and if they don't remove it just keep trying over and over.
I posted a sample of my letter to dispute on these forums a few months back, but don't remember where. Use the search and search for my posts and I'm sure you'll find it.
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Thu Apr 05, 2007 1:31 pm |
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Shawpiro
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There are companies out there that can help you raise your credit scores in a short period of time. Be sure and check any company out carefully. There are a lot of scams that you can fall in to. Credit repair is a tricky business and there are professionals that can help you turn your score around.
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Sun Dec 30, 2007 9:11 pm |
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Shawpiro
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| Little Fish - Big Sea |
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Folks there are a lot of things you can do to get negatives off your credit reports. Challenge the negatives on your reports with the credit bureaus. They will come back as confirmed like they always do. Now you challenge it again and force them to produce the documentation from the lender. They will not take the time to contact the lender and get these documents. Now they have to remove the challenged negative or produce the documents. Thats where a credit repair company comes into play. The good ones know how to back them into a corner and get this done. They will not spend the time to check everything on your or anyone else's bureau! They are too big and this is not a profitable situation for them -It Cost Them Money! You are a small fish in a big sea and they dont care about your little credit challenge or bureau. You are a number to them and that is it. We challenge everything on your bureau and get 50% of whats challenged off on the 1st challenge because they know we mean business. If you go to them with an "I mean business" attitude you can get the same results but this takes a long time and a lot of learning. Its up to you do it yourself and take a long time or leave it to a reputable company and get it done in most case in 30 -90 days. Like I have said numerous times in my postings today "There is Nothing that can't be removed from your bureau if you know how".
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Mon Dec 31, 2007 5:18 am |
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Sid
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| Increasing the Score |
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My spouse read that now the more unused open credit lines you have, the higher your score becomes. Is this now true in the credit reporting world? Years ago I was told I had too much open credit line and it hindered a loan I was applying for. I know things change over time and I did hear the Fair Issac was making some changes, so I'd like to get the latest scoop.
Is it currently better from a credit score perspective to have -0- debt with large available lines or a little debt on large lines? Is it better to have a few large credit lines open and close the smaller ones, or should I keep them all open at -0- balances?
Want to do exactly the right thing to increase my score as high as possible.
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Mon Jan 14, 2008 8:11 pm |
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pf101
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| Re: Increasing the Score |
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quote:
Originally posted by Sid
My spouse read that now the more unused open credit lines you have, the higher your score becomes.
This is only kind of true. Yes, the ratio that Coaster mentions is important, but you don't need many cards to get that ratio. If you have 10 cards each with a $5k limit you still have the same amount of available credit as 2 cards with a $25k limit each.
Having too many open lines of credit can definitely hurt your score, as can having too much *available* credit. You have to find the balance. My personal rule of thumb is no more available credit than 1/2 of your annual income. There is no rule that it's based on and no formal calculation it has just been what's worked for me and others I know.
My suggestion is to close the newest cards with the smallest limits. There's really no reason to have more than 2-3 cards open at any one time. And definitely no cards that charge a fee.
Personal Finance 101
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Wed Jan 16, 2008 5:32 am |
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cbass1017
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| available credit limits |
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I don't know so much about having half of your annual salary in available credit? I currently work a job where I process loan applications for one of the top ten banks in the country and if you wanted to get an automobile loan or a 2nd mortgage you would probably get declined just due to your debt to income ratio. This is a lot of times widely overlooked.
Most lending underwriters have a cut-off point for your debt to income ratio and it is usually under 50% unless your applying for another credit card. Most Credit card companies don't even care how much money you make. As long as you have a high credit score they'll give you credit.
I think we're all forgetting whats improtant here.People just have to remember that credit cards should only be used under extreme circumstances. So many people tear apart payday loan companies when carrying a credit card is almost like having an available payday loan anytime you need it. If you can't afford it you probably shouldn't be buying it. 
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Fri Jan 18, 2008 2:52 pm |
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pf101
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| Re: available credit limits |
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quote:
Originally posted by cbass1017
I don't know so much about having half of your annual salary in available credit? I currently work a job where I process loan applications for one of the top ten banks in the country and if you wanted to get an automobile loan or a 2nd mortgage you would probably get declined just due to your debt to income ratio.
There is a big difference between having available credit and having debt.
quote:
I think we're all forgetting whats improtant here.People just have to remember that credit cards should only be used under extreme circumstances. So many people tear apart payday loan companies when carrying a credit card is almost like having an available payday loan anytime you need it. If you can't afford it you probably shouldn't be buying it.
There is absolutely nothing wrong with using credit cards - as long as you use them well. They are a tool, just like anything else. If you use them appropriately they help you. If you misuse them they can do a lot of damage. Also, credit cards are nothing like payday loans. Credit cards max out at about 30% interest and that's if you have *really bad* credit. Payday loans charge about 300-600% interest and that's just standard.
Personal Finance 101
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Fri Jan 18, 2008 6:14 pm |
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cbass1017
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I think you might be bending my words a bit. I don't believe I said available credit and debt were the same thing. Ofcorse there is a difference between having available credit and debt. I am just saying that when applying for something like a car or anything other than another credit card, most lenders may decline your application just for having a lot of high limit credit cards. It doesn't matter if you carry a balance or not.
Thats just how it is were I am now and also two other financial institutions I have worked for in the past. I'm not trying to argue. I'm sure that some other lenders' underwriting guidelines are different than the places I have worked. If you feel I'm wrong about this than thats fine, just please don't bend my words and make it seem like I'm saying things that I'm not.
As far as credit cards and payday loans... I know I was exagerating big time there. Sorry. Its just that over half of people with credit cards don't use them responsibly. I saw on forbes that over 90% of people going through foreclosures are over atleast 10K in credit card debt. I'm sure there wouldn't be as many foreclosures if these people didn't have so many credit card bills to pay. Don't you think?
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Sat Jan 19, 2008 6:19 pm |
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pf101
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I must have misread how you meant "debt to income ratio". To me, when the word "debt" is used, it means how much you owe, not how much you have available. I agree that having too much available credit (whether used or not) can hurt - I mentioned that above.
I think there wouldn't be as many foreclosures if people hadn't stretched themselves to buy houses they couldn't afford in the first place - no matter how much other debt they have. Other debt, including credit cards, do play into it a bit, but I don't think credit card debt is the main (or even large) cause of foreclosure because if that were the case, people would just stop paying on their cards and everything would be fine with their mortgages. But, for most people, even if they stopped paying every other bill they still wouldn't be able to meet their mortgage payment because they just flat out purchased something they couldn't afford.
Personal Finance 101
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Sun Jan 20, 2008 1:53 am |
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