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Feathy

Improve Credit and Remove Collections......

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Please help.....How can I possibly increase my FICO's?

Hello all,

I need help. I'm frustrated and losing hope. I had perfect credit my whole life but my family hit a catastrophic financial situation several years ago with me getting very sick and out of work, my wife losing her job, and our firstborn arrived increasing our lifestyle expenses. 

Experian = 615

Equifax = 658

TU = Unknown

Inovus = Unknown 

 

I have the following on my reports:

  • Credit One CC account with perfect payment history for 26 months in my name solely
  • HELOC with perfect payment history as a joint user
  • 3 CC accounts with perfect payment history for several years BUT as an authorized use

I am in Florida and understand the SOL is 4 years.
Derogs:

  • CC1: DOFD = 4/19 and paid via settlement. 
  • CC2: DOFD = 11/16 and paid via settlement.
  • CC3: DOFD = 2/16 and paid via settlement. 
  • CC4: DOFD = 2/16 and paid via settlement.
  • 1 CC that I never settled with has an outstanding balance of almost 17k. Charge off started 2/16 and I understand it is outside SOL (in Florida)

2 of the 4 settlements, I paid because I was served with lawsuits on. The other 2 a CRO advised me to pay them as he stated he could get those removed after I do so but he never was able to get them removed. I fired him. 

We own our current residence but need to move soon to get in a better school district and hence need a loan. I've been working as much as I can to help this CRO (which came referred to me by a creditable individual) to improve my scores. I hired the CRO in 2/2019, I decided to do so because I truly do not have time nor knowledge to repair my credit myself and wanted to give it a shot to see how it would, so I did. Here we are exactly 1 year later and my scores barely improved to 615 which is about a 15 point increase since I hired the CRO. Since increasing the balances on 2 of the cards to have a high utilization now, my scores have dropped to 580. I'm not worried about this because I will have everything paid off in 1 to 2 months from now. I have removed myself as AU user so these should improve. 

I'm just spent and exhausted with this all. I'm really upset because I was faithful in being responsible and paying my financial debts all my life, but life happens. Our family hit a financially catastrophic event, avoided filing BK like SO many of my friends and family did because I wanted to do "the right thing", settled 4 cc's by paying thousands, hired a CRO, piggybacking off a family members perfect credit BUT YET MY SCORE IS STILL NOT MOVING! Ugh, I'm so sick and saddened from all this.

Looking back, I'm thinking filing BK was the better play here. I would have had great scores, saved myself 20k in paid settlements, and been lendable for a mortgage.

They seriously need to revamp these antiquated scoring models. It's like there are only 2 options for scoring people.........perfection or total garbage.

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13 hours ago, Feathy said:

piggybacking off a family members perfect credit

FICO figured this tactic out years ago.  Now unless the relative lives with you this does not work to improve a FICO score.

13 hours ago, Feathy said:

hired a CRO

HUGE mistake. These organizations rarely if ever do the job they are hired to and more often create more problems.

13 hours ago, Feathy said:

1 CC that I never settled with has an outstanding balance of almost 17k. Charge off started 2/16 and I understand it is outside SOL (in Florida)

It may be outside the SOL for a lawsuit to collect but it likely has at least 2 more years if not 3 to report and this account is probably doing the most damage.  If you settled the other accounts for less than the full balance and it is reporting that way that is also holding the score down.

Something else to consider is more than likely the under writers will expect you to take care of this account before they approve the mortgage given the large balance.

13 hours ago, Feathy said:

I've been working as much as I can to help this CRO (which came referred to me by a creditable individual) to improve my scores.

STOP spending money on this because they are not going to improve your scores.

13 hours ago, Feathy said:

Credit One CC account with perfect payment history for 26 months in my name solely

Having a perfect payment history is good but what is the balance on the card?  If the credit line is over 50% utilization each month that is killing you scores.

13 hours ago, Feathy said:

We own our current residence but need to move soon to get in a better school district and hence need a loan.

Given the current economic disaster in the entire country selling a home and buying another may be a really bad plan.  Lenders are going to be tightening down on EVERYTHING for at least the next year if not longer.  I would look in to selling your current home.  Bank the money because you have a year to repurchase and not get hit with a capital gains tax.  Rent something short term in the better school district and wait out this covidiocy to see what the lenders are going to do.  In the mean time you need to build your credit portfolio more.  Credit One is viewed as a subprime card.  See if you can get a Capital One QuickSilver or Platinum card.  Discover would be another one to consider.  Get your reporting balances to be less than 30% if not ZERO each month and you should see a big improvement to your scores.  

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11 minutes ago, Clydesmom said:

FICO figured this tactic out years ago.  Now unless the relative lives with you this does not work to improve a FICO score.

HUGE mistake. These organizations rarely if ever do the job they are hired to and more often create more problems.

It may be outside the SOL for a lawsuit to collect but it likely has at least 2 more years if not 3 to report and this account is probably doing the most damage.  If you settled the other accounts for less than the full balance and it is reporting that way that is also holding the score down.

Something else to consider is more than likely the under writers will expect you to take care of this account before they approve the mortgage given the large balance.

STOP spending money on this because they are not going to improve your scores.

Having a perfect payment history is good but what is the balance on the card?  If the credit line is over 50% utilization each month that is killing you scores.

Given the current economic disaster in the entire country selling a home and buying another may be a really bad plan.  Lenders are going to be tightening down on EVERYTHING for at least the next year if not longer.  I would look in to selling your current home.  Bank the money because you have a year to repurchase and not get hit with a capital gains tax.  Rent something short term in the better school district and wait out this covidiocy to see what the lenders are going to do.  In the mean time you need to build your credit portfolio more.  Credit One is viewed as a subprime card.  See if you can get a Capital One QuickSilver or Platinum card.  Discover would be another one to consider.  Get your reporting balances to be less than 30% if not ZERO each month and you should see a big improvement to your scores.  

Thank you so much for responding. :)

Today I removed myself as AU on the maxed out credit cards. 

I fired the CRO a month ago to take my credit into my own hands.

I'm not going for a mortgage until Q4 of this year or this time next year so I have time. 

The balance on the card with perfect payment history is $0. 

Do you think GW's (Saturation Method) would work?

Can I realistically get a Capital One or any of the other cards you recommended with my scores?

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14 hours ago, Feathy said:

Can I realistically get a Capital One or any of the other cards you recommended with my scores?

Yes.  Cap1 is very forgiving and a good rebuilder.  Discover might require a secured card at first but both creditors have a prequalify page that can determine if you meet the minimum standards without a hard pull.  Nothing to lose by trying.

14 hours ago, Feathy said:

Do you think GW's (Saturation Method) would work?

What is that?  Never heard of it.

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2 minutes ago, Clydesmom said:

Yes.  Cap1 is very forgiving and a good rebuilder.  Discover might require a secured card at first but both creditors have a prequalify page that can determine if you meet the minimum standards without a hard pull.  Nothing to lose by trying.

What is that?  Never heard of it.

Ok, as soon as the AU accounts drop, I'm going to go for Cap1 and Discover! As long as it's not a hard pull. Thanks my friend!!

Are you 100% these cards are not hard pulls?

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piggybacking off a family members perfect credit

FICO figured this tactic out years ago.  Now unless the relative lives with you this does not work to improve a FICO score.

@Clydesmom I just reread what you wrote. The relative DOES live with me. So the AU accounts would help me then?

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12 hours ago, Feathy said:

The relative DOES live with me. So the AU accounts would help me then?

Not if the cards are maxed out.

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On 4/14/2020 at 9:57 PM, Clydesmom said:

you have a year to repurchase and not get hit with a capital gains tax.

Nonsense. If a person lives in the home for a combined 2 of the last 5 years, it's considered a primary residence and they never pay capital gains tax if the potential taxable profit is not greater than $250k ($500k for a married couple).

If a person/couple live in the home for less than 2 years, the IRS considers it an investment property, and requires the seller to roll the proceeds into another investment property within 180 days. And you must identify the replacement property within 45 days of the sale of the first property. This is referred to as a 1031 Exchange. 

On a different note, I'm not expecting a "financial meltdown" in the residential real estate market.  Unlike the crash in 2008, people are still working if they want to. Commercial real estate may be a cause for concern, but even still, most business have figured out how to stay open and generate revenue for the time being. 

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1 hour ago, Harry Seaward said:

Nonsense. If a person lives in the home for a combined 2 of the last 5 years, it's considered a primary residence and they never pay capital gains tax if the potential taxable profit is not greater than $250k ($500k for a married couple).

If a person/couple live in the home for less than 2 years, the IRS considers it an investment property, and requires the seller to roll the proceeds into another investment property within 180 days. And you must identify the replacement property within 45 days of the sale of the first property. This is referred to as a 1031 Exchange. 

On a different note, I'm not expecting a "financial meltdown" in the residential real estate market.  Unlike the crash in 2008, people are still working if they want to. Commercial real estate may be a cause for concern, but even still, most business have figured out how to stay open and generate revenue for the time being. 

You are 100% correct and know what your talking about! Well done my friend. 

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7 hours ago, Clydesmom said:

Not if the cards are maxed out.

@Clydesmom to be clear, I have removed myself from the few cards that are maxed out and kept myself on as an AU on ONLY the cards that have $0 on them AND the relative lives me. So I ask again, these then do work in my favor, right?

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2 hours ago, Feathy said:

I have removed myself from the few cards that are maxed out and kept myself on as an AU on ONLY the cards that have $0 on them AND the relative lives me. So I ask again, these then do work in my favor, right?

They help a little bit but not as much as they used to.  Being an AU on a card only means you have access to the credit.  In no way does it show potential lenders or creditors that YOU can manage your own credit.  An AU trade line adds a few points to your credit score but it may not induce a lender to extend credit based upon that.  You aren't reporting enough positive trade lines showing you can manage your debt/credit.

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