TraceyC

How do I raise my credit score 70 points with bad credit?

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Hello everyone! Thank you for the help in advance. I'm going to try and not draw this out for everyone, so lets get to it. 

 

Here's my current status and situation:

 

Recently I moved to MI and obtained a job that brings in about $1600 monthly after taxes. My bank account has a balance of around $2k at any given time. I'm currently lucky enough to live with family until my finances are straightened out enough to get back to my own place.

 

My GOAL by February 2016 is to have a 650-700 credit score so I can move down south. I'm hoping to be able to boost my credit score while maintaining a stable work/housing history to purchase my first house. 

 

First things first though, repairing my credit. 

 

Current credit score: 568

 

'Open Collections Balance' of $1,095. Two accounts are reflected in this:

1- ER visit $748  OPENED 01/2014 REPORT DATE 04/2015

2- Verizon $347  OPENED 12/2013 REPORT DATE 03/2015

  • Should I pay these off? *I am able to pay them off now if need be*
  • Would they help my credit or am I just paying into nothing?

'Past Due' 

1- Credit Card $5,569- OPENED 08/2011 REPORT DATE 02/2013 

*Account status for this is still OPEN. This is actually a car that I have given back to the credit union once my ex went to jail. They have not contacted me to let me know how much was needed to be paid on it after they came, got it and put it up for auction. 

  • Should I contact the credit union regarding this?
  • Should I pay it?
  • Would it help my credit score?

'Student Loans'

1- $3,914 

*Making $100 monthly payments on it. I believe this is my only account in good standings/no late payments.

  • Do student loans reflect on your credit rating?

No revolving credit or credit cards at this point. No bills in my name, but I will be obtaining a secured credit card this month.  

 

What, if anything, could I do to raise my credit score? 

 

Once again, thank you for the help.  ::daisy::

 

 

 

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Hello everyone! Thank you for the help in advance. I'm going to try and not draw this out for everyone, so lets get to it. 

'Open Collections Balance' of $1,095. Two accounts are reflected in this:

1- ER visit $748  OPENED 01/2014 REPORT DATE 04/2015

2- Verizon $347  OPENED 12/2013 REPORT DATE 03/2015

  • Should I pay these off? *I am able to pay them off now if need be*
  • Would they help my credit or am I just paying into nothing

 

Medical debt is ripe for pay for deletion.  I would try that.  Same with Verizon.  Paid accounts are far better than open collections.  Those are VERY damaging to your credit score.

 

'Past Due' 

1- Credit Card $5,569- OPENED 08/2011 REPORT DATE 02/2013 

*Account status for this is still OPEN. This is actually a car that I have given back to the credit union once my ex went to jail. They have not contacted me to let me know how much was needed to be paid on it after they came, got it and put it up for auction. 

  • Should I contact the credit union regarding this?
  • Should I pay it?
  • Would it help my credit score?

 

You are going to have to contact the credit union to find out what the balance is and settle this.  You have no choice to pay it if your intention is to get a mortgage.  A repossession is most certainly hurting your credit score.

 

'Student Loans'

1- $3,914 

*Making $100 monthly payments on it. I believe this is my only account in good standings/no late payments.

  • Do student loans reflect on your credit rating?

 

This is helping not hurting.  Leave this alone and DO NOT miss any payments.

 

My GOAL by February 2016 is to have a 650-700 credit score so I can move down south. I'm hoping to be able to boost my credit score while maintaining a stable work/housing history to purchase my first house.  

 

What, if anything, could I do to raise my credit score? 

 

A demonstrated history of ON TIME payments, responsible management of credit, and clearing up your debts will improve your credit score.  The best way to manage your credit score is to aggressively manage you DEBT.  

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Once your collections and past dues are paid or removed, I would work on increasing my debt to limit ratio.  This is what had the biggest impact on my score when I was doing credit repar.

 

Most secured credit cards do not report, but if you find one that does make sure that your "available credit" stays above 80%.  In other words, don't use it.  I started off with one of the bad fee harvisting cards with a $500 limit.  I would only use it to put gas in my car and I made sure to pay it off in full on time every month.  This led to increases in my credit limit which then showed a better debt to limit ratio.  Then when another card could be gotten, I doubled my available credit, but still did not actually use my credit.  About a year I would say my scores increased by 100 pts during this time.  This was also combined with removing anything showing a past due balance or collection from my reports as well.

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'Open Collections Balance' of $1,095. Two accounts are reflected in this:

1- ER visit $748  OPENED 01/2014 REPORT DATE 04/2015

2- Verizon $347  OPENED 12/2013 REPORT DATE 03/2015

  • Should I pay these off? *I am able to pay them off now if need be*
  • Would they help my credit or am I just paying into nothing?
 

 

I'm going to guess that the date of the ER visit was 01/2014 which is the date you would add 7 years too and so it probably is going to be on your credit report until 2021.  I would do as @Clydesmom suggests and try first for a PFD, if that doesn't work, then pay them.   You don't want them suing you and having that on your report too.  The same with Verizon. 

 

 

 

'Past Due' 

1- Credit Card $5,569- OPENED 08/2011 REPORT DATE 02/2013 

*Account status for this is still OPEN. This is actually a car that I have given back to the credit union once my ex went to jail. They have not contacted me to let me know how much was needed to be paid on it after they came, got it and put it up for auction. 

  • Should I contact the credit union regarding this?
  • Should I pay it?
  • Would it help my credit score?

 

 

I'm not sure I understand why a car loan was reported as a credit card, but I don't see how they could eventually convert the tradeline to a repo either.  Talk to them before it develops into something worse.  If they have sold the car, then that amount should be deducted and if there is still a balance, definitely pay it off.

 

 

 

'Student Loans'

1- $3,914 

*Making $100 monthly payments on it. I believe this is my only account in good standings/no late payments.

  • Do student loans reflect on your credit rating?

No revolving credit or credit cards at this point. No bills in my name, but I will be obtaining a secured credit card this month.  

 

What, if anything, could I do to raise my credit score? 

 

Once again, thank you for the help.   ::daisy::

 

 

Do what ever you need to in order to keep that student loan in good standing because they do affect your score.

As for obtaining a secured credit card and raising your score, I got a First Progress back in August and my score jumped a little (forget how much).  First Progress reports to all 3 bureaus and your limit can be as high as your deposit.  I pay it off every month.  With your score, you might even be able to get a Capital One regular credit card.  It might only be a $300 line at first, but they will do reviews each 6 months and raise your line of credit accordingly.

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