formercreditidiot

Little help, Please!

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dh was notified by myfico that his score dropped 18pts :confused: a call to myfico told my dh that his student loan company reported 2 (60) day lates..that were back in 5-2006. The rep from myfico stated he doesn't know why the us dept of education is re-reporting it, but they are. dh called UsED and was told he should fax in a copy of his CR and they will investigate it. Anyone ever deal with issues like that? Can they report this on a closed paid student loan account? It is so confusing....

thank you for any help!

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...he should fax in a copy of his CR and they will investigate it....

...his score dropped 18pts ... his student loan company reported 2 (60) day lates..that were back in 5-2006. .

Sounds like you already have a plan, contact them first. Your score dropping 18pts - on something that happened 3.5 years ago, suggests there might be something else adding to the cause. The only way I could see this effecting the score. If during that time there was no, or little new activity on the credit report.

Think of your credit report as a heart, what goes in, is what comes out. If a person has a lot of bad information, by pumping in new (good) information, the bad information will be washed away. You always need new information going into your credit report, or your report will dry up.

I see this a lot in mature borrowers that have had excellent credit all their lives. They pay everything off, and are debt free for several years. An emergency arises and they need money. They find their credit score "N/A" rated - meaning no activity. Meaning their have to build their credit profile all over again.

On the issue of payments being updated on close loans. I had a case where a borrower had late's appearing on a year old closed loan - sent a letter with proof disputing this to the credit bureaus. A month later the late's came off, the score was unchanged.

..:)

Edited by 2ndTimeAround

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thank you so much for your fast and helpful reply!

well, i had dh call myfico again and this time he was told a totally different story! this time he was told that the reported dates from the student loan are correct, but that it was the 2 credit pulls he had last month by our l/o that hurt him. does pulling credit twice really take 18pts? I thought it was 2-4 pts per pull...but i may be wrong. i am still confused as to the student loan reporting lates that were that old, but i am getting info second hand from dh since myfico will not speak to me about his account.

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Think of your credit report as a heart, what goes in, is what comes out. If a person has a lot of bad information, by pumping in new (good) information, the bad information will be washed away. You always need new information going into your credit report, or your report will dry up.

That is absolutely true! A credit score is based on the continual input of data. A lack of good data means that any little bad thing can drag your score down. But if there is a lot of good positive data (continually added) then very small stuff like an inquiry won't impact your score much at all (so it becomes very temporary) as long as there is a constant stream of good data being added.

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thank you ravenous!

let me ask you this, should i wait a bit before applying for a retail store cc or gas cc? I am trying to figure out ways to put in good info. We already have a new car loan that was opened 2yrs ago with no lates at all, 2 cc that were opened up 2yrs ago with no lates at all too...but that is it. should i apply for more cc? will that help? I paid down mybalances on the 2 cards to less than 40% and will pay the remainder over the next two months.

any advice is greatly appreciate. thanks so much for taking the time to help me out. :)

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Gotta ask. Why are you concerned about your credit score?

The score that myFico gives you is the FICO consumer score...closest to the FICO Bank Card score (what I call the "sucker score"). Its used primarily by CC to determine who they will make money off of by charging interest and occasional late fees and over limit fees. IMO, this score is of little consequence.

If you're looking to buy a house, then remember that the mortgage loan officer will be looking at the FICO Mortgage score. Given the information you've provided, its likely to be just fine.

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pulling credit ......

Over the years seen thousands of credit reports - there were many times I fixed someones credit just to get them a loan. I still get asked to fix credit - when asked I refer them to this website. Everything is here (and more) for an individual to repair their own credit....

As for the number of times pulling a credit report before it affects a credit score. Having 3 hard pulls (all 3 CB's) in one week, will drop your score big time. If you have more than 5 people running your report over and over again each month, this will drop your score as well. If is healthy for you to check your credit report a few times a year. So if there is any wrong information, you can dispute off.

The worst credit report I have ever seen was 250+ inquiries on one report. The lowest credit score I've seen was 315 - advise that person if I could frame him, and put him on my wall as the lowest credit score ever.:mrgreen::mrgreen::mrgreen:."

new car loan that was opened 2yrs ago with no lates at all, 2 cc that were opened up 2yrs ago with no lates at all too...but that is it. should i apply for more cc? will that help? I paid down mybalances on the 2 cards to less than 40% and will pay the remainder over the next two months.......

On your car, I suggest sending in more than the required payment, because you can reduce your term, slightly lower your net effective interest rate, best is you are reported as being more responsible and your score goes up. This is one of my personal secrets of how I drove my credit score into the high 700's, sending in more than the required payment on installment debt.

See you have credit cards all ready - you are correct about keeping your balances below 50%. The next step is keeping it below 25%. If you have credit cards now, forget what I said in my first post. Work on a payment plan to improve your score. If you have at least two bureaus reporting, that is all you need to qualify car, credit, home loans.

Take it easy......:)

Edited by 2ndTimeAround

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Thank you willingtocope and 2ndtimearound. Great info and I REALLY appreciate the help. :)

I will definitely send in more with my next car payment. I can't believe that didn't dawn on me sooner to do. I will also work towards lowering those balances to 25%. Is it true that keeping a low running balance is better for you and your score than paying everything to zero?

Thank you also for the heads up on the mortage fico scores. Never knew that either.

You guys are awesome. It is so nice to have a complete stranger take time out of their day to help someone out. :)

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Is it true that keeping a low running balance is better for you and your score than paying everything to zero?

First, read my signature. Paying everything to zero is best...period.

Second (if what you're really interested in is getting more CCs), then keeping a "utilization" (ratio of balance to available credit) around 9-25% is better for your sucker score.

For the other scoresw, "utilization" isn't as important as long as you're not carrying $50-100k in unsecured debt and you owe 100% of it.

For your mortgage score...available credit in the 10-15 thousand range, with a $0 balance is better. For your new car score, a history of paying on car loans on time is better. For your insurance score, a history of no claims is better.

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i had no idea there were insurance scores!? so much to learn...my head is already hurting. :)

a car loan may be in the horizon...I have no lates at all with all 3 cars that I have owed. They all show paid in full/never late. My dh on the other hand, has about 15 lates over the course of 4 cars he had owned...one of which was his ex's car, but since they were still legally married at the time, got reported to his credit as well. Our most current loan we have together has zero lates....do you think i will still get a decent rate dispite his lates? That is something I am wondering...the answer may mean we will have to wait to get a car loan.

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