BungalowMo

It isn't.  This is merely their opinion here.  Mine says "fair", yet I pay about $500 every 6 mos on  a pickup truck with a loan, and my BMW that I own outright.  I have full coverage, towing, roadside assistance & a $250 deductible.

Please don't let this article freak you out.  Personally, I have never had an insurance company run my credit for auto insurance.  EVER!  I had (in the last 7 years) Progressive, Travellers & now Geico.  None of them did this.

Personally, I would use much caution before simply following the advice they offer in your personal credit section.

If I followed their advice, I would "save" money on my auto loan by paying less each month, but for 72 months rather than 36, at 6.6% instead of 5.6.  Hmmmmm

Next, I could also "save" by apping for a capital one card at 17.9% interest, instead of keepint the ones I have which are 9.9, 11.3 & 12.9.  That sounds like a hell of a deal!  (not)

If you follow the basic rules of keeping your credit card balances low, not applying for credit that you don't need, and keep an eye on your reports to be aware of any unknown charges on your cards & ID theft....then your reports will be looking great & in time, even any negative marks will age & fall off.

I get my credit information from a broad range of places.  Mostly from the myFICO forums, Suze Orman & Clark Howard.  Here...not so much.  CK even says my insurance score is just "medium".  I have full coverage w/geico...100/300k coverage, towing, loaner car, all the bells & whistles with a $250 deductible... $225 per 6/mo.   That sounds a lot better than MID to me!

Credit Karma uses their own scoring algorithm.  TU uses their own.  Experian and Equifax both use their own as well.  Just like all those free report sites...they all have their own.

The difference with the FICO score...First, it is the only scores used by lenders.  Fair Isaac (developer of the FICO scoring system) was hired, for lack of a better term, by EQ TU and EX to develop a similar but different algorithm for each of these 3.  So even if your 3 reports were exactly the same, your 3 FICO scores will be close, but not exactly the same.  Any score out there that is not a true FICO score, is whazt we call a FAKO.

That is why you should never apply for credit based on scores that are not true FICO's

They show 5 different refi options for me on Credit Karma.  My Credit Union has me at  5.3% & this company wants to "save" me money with a rate of 5.99 over 72 months rather than 36.

What a JOKE!

The article mentions: " VantageScore is being touted as “The New Standard in Credit Scoring”,

I'd be interested to know WHO is "touting" this.

I have never requested credit from anyone who didn't prefer and request a FICO score. 

Well said Nickster!  The only thing I'd like to add is going to the "Opt Out" website & print out that form & send it in.  You will receive NO offers in the mail.  Most are simply hoping you apply, when in reality, their "pre approvals" are bull.  Get that junk out of your mail box, go to the Creditboards website & check out their (gotta create username) credit pulls database.

If you REALLY want to know what your chances are, the detailed information on there is great.  I have checked there every time before I applied anywhere for the last 5 years.

I'll never app without it!

This data is certainly for entertainment purposes only.  Email addresses have no correlation to your credit.  My brother has FICO's in the 800's & doesn't even have a computer!

He calls me to look up where local club driving events are being held.  I have the guy call him.  haha

Simply paying off or settling collection debts will not raise your scores.  You still have the collection account showing & that in itself is the damage.  Paid or not.

What you can do is write goodwill letters to each of the collection agencies that you have paid in full.  This is best done by email & to an executive.  Without knowing who you owed & who is paid, I can't help with how to proceed.

Google the term GW letters.  I just did & the first link for the fico forums will help you.  That entire site is gold! 

If you can figure out their email format (joe.blow, j.blow, etc.) this is the guy you want to write to.  He's their CFO. 

http://people.forbes.com/profile/john-c-gerspach/19725

Writing him will let him know that you are determined to be able to get this acct back.  I have sent letters to the big boys on a few occasions.  Make him earn that 500k + salary!

Just be nice, be honest & be yourself.  Make sure you include your full name, acct#, phone #.

Good luck!

I agree....and you can always call those card companies & request a lower rate and or higher limit.  I wouldn't accept either of them if they require a hard pull.  You have been a customer for a long time & trust me, they've been doing soft pulls on your credit for years.

If they don't accept YOUR terms, do like nandog mentioned...

When you say "low" what is the number?

When you say "score", where did you get it? 

Different card companies pull different reports, but bottom line...they all pull a FICO score & if you don't know what it is & what report the lender pulls, don't app anywhere.

So...that being said...if your FICO's are in the 500-600 range, you can likely be approved for a Credit One card.  I had one when my scores were in the high 500's.  Even if you have chargeoffs, BK's (discharged), and other red marks, you can get it.

The reason I mention this card in particular is because even though they start you out with a low limit, high interest & yearly fees, this card is one you *can* get.  Every 6 mos or less, you can call the cust serv # and request a credit line increase.  I got $100 every 6 mos.

BUT...if you get this card, do NOT max it out, pay it off in full every month (before the day the statement closes).  Carrying a balance on a 25-30% interest card is going to kill you & defeat the purpose of what you are trying to do.  I kept my card for about 4.5 years & the day I got a 9% interest 10k limit card, I called them and cancelled the card.  It had served it's purpose & served me well.  It gave me nearly 5 years of clean credit history.

I hope this helps!

To get an accurate response to this...everyone who has ever applied would have to see this and respond.

What is on your Experian report? (that is the report AMEX pulls) 

Good stuff?  Bad stuff? If there is bad stuff, how old is it?  Everyones report is looked at differently.  I was originally turned down until I called cust serv.  I was given a fax # to send supporting documentation...approved! 10k

Nothing is set in stone, but if you have an old baddie, you need to have documentation on how you fixed it & have those duckies in a row when you call.  The last thing you want to do is blindly app for cards & hope for the best.

Best advice...go for the card you can GET...not the card you simply *want*.  Oftentimes, they are not the same thing & will result in unnecessary hard inquiries & nothing to show for it.

I learned this lesson about 7 years ago. It has been a long, slow learning curve & any time I can guide someone in the right direction, it's a good thing!!

What are you asking???? 

 yeah....their website does not exist.  100% bogus.

Let the cards you have age.  Depending on the cards you have, you can ask for credit limit increases after a good year or so of usage.

It is also best to keep your utilization below 9% .  30%, honestly, is just too high.  For optimal FICO scores, here is what you want to try to do.  Don't be afraid to use your cards, BUT...take a look at your statements.  Look closely for the statement "closing" date (not to be confused with due date).  Make sure to pay off 2 of the 3 cards befor the closing date & pay the 3rd card down to under 9% before closing date.  After the 3rd statement closes, then pay that 3rd card off. 

You can also accomplish this by using only one card per month, pay it to nearly nothing by closing, then pay in full after statement cuts.

As far as closing cards, I wouldn't do that any time soon, but as your FICO** scores increase, take stock of what you have & if you have cards that are charging you a yearly fee, get rid of them.  Once your FICO scores hit the 700 mark, you can get better credit & can dump the starter cards. 

**the scores here are not FICO's and are normally never used by lenders...just an informative FYI.  You can get your TU & EQ FICO's at myFICO,com  Experian does not sell us consumers our FICO's anywhere.

If CK is showing up as hard inquiries, you need to contact them.  I know there is a section of the FCRA (fair credit reporting act) that addresses this.  YOU have an acct with CK and you use them to monitor your credit.  They are not a creditor & CANNOT BY LAW do a hard inq.  If they refuse to remove, you can take them to court and WIN!

 If it's going to be a few years until you're really ready to buy, I suggest going to your bank you use and ask to speak with a mortgage specialist.  Have them pull your tri-merge reports for both of you.  This report is all 3 reporting agencies combined and your 3 FICO scores that the banks pull.  Keep that paperwork.

Not to get into another debate with a member here, but the scores & simulator you see here is not what banks use.

Just remember, the cleaner your reports, the higher your FICO's. 

 You can contact the CA (collection agency) and ask for a removal.  I did this with one & they removed it 2 years early!  My FICO's jumped by about 25 to 30 points across the board.

 As long as these creditors report your AU status to the 3 reporting agencies, this will be a huge boost to you!  Do it, as these do not result in hard inquiries on your reports.

If they also give you a card to go with these accts, treat them like GOLD....do not abuse!

You can try calling the credit card company & ask if they would consider reopening your acct.  Some will, some won't.  If they do, that will give you all that history back.  Opening new accounts won't immediately boost your score, as you will take a hit for the inquiry and the new acct will drop your average acct age, but those bounce back fairly quickly.  It's always a good thing to keep your accounts active / open.  As they age, you can call or go to your acct online & hit the "LUV" button asking for a credit line increase.  These requests sometimes result in a hard inquiry, depending on the creditor.

Sometimes those inq's are worth the small ding to the score when you get more available credit. 

 "Everyone has their hidden agendas"

Yes, including bankers.

 One correction...Vantage scores are never used by prime lenders.  The claim in that link that 4 out of 5 use it.  They don't prove it.  WHO?  They don't say who.

Also, the monitoring scores are not ADVERTISED as educational scores.  They call them "Credit Scores" all over the TV commercials, in an effort to get consumers to purchase their product.  I suppose it is a credit score, but it is not an industry standard by a long shot.

I stand by my comments until actual banking names, ones we know as prime lenders, give their backing.  In Print...like NY Times or Wall Street Journal or the like.

A banker does not make you an expert.  And I NEVER EVER claimed to be one either.  It is when people think the scores here are the ones used for loans, then they get a big surprise when their reports are pulled, that is when I want them to know that CK scores are not used.  I also never said that Vantage scores were never used.

I simply said that FICO's are used more than most.  Which is true.  And yes, there are different  algorythms used for mortgage and auto loan pulls.  They are similar, but not exactly the same.  Mine are never even close to what Vantage or CK tells me.

So before you "poo poo" the FICO system, pull your reports & tell us the honest difference.

Exactly!  CK is FAKO, Toyota pulled FICO.  FICO is the one lenders use.

Don't worry about it.  That insurance score means nothing.  Mine says it's low (don't recall the #), but I have a perfectly clean driving record with +5 points on my record. (that is five points to the good)  I have very low rates.