phnxangell

Your credit report will list a 'high balance' for each of your cards.  This does not impact your score, but shows that you use your credit.  This can be seen as you had leveraged your credit, and your current balance shows you can control your credit.  So, in all, many lenders would see that as a positive, not a negative.

I've been trying to understand the Vantage score and exactly how it works.  Earlier this month, one change to my credit report sent my Transrisk up more than 20 points, but my Vantage score plummeted.  The two scores are so far off from one another on a relative basis to each of their scales, that it is not making sense.

At this time, I am glad that the Vantage score is being used by very, very few creditors, if any at all.

And, for the notion that FICO and TransRisk would punish more for older things than Vantage?  The opposite really appears to be true in my case.  There are some older things that were negatives, and the newer stuff is all positve. 

Something just doesn't seem to add up.

I'm in a similar boat.  My transrisk score (which would more closely mimic the FICO score) went up.  But, my Vantage score went down.   Relative between the two, my transrisk score is SIGNIFICANTLY better than my Vantage score. 

I am not getting why the difference here.  Why would something that makes the Transrisk score jump by 20 or so points, but make the Vantage score go down by about 20. 

The collections agency for this type of student loan is the US Department of Education.  It isn't a typical collections agency that you have with most.

Each scoring system is slightl different.  Here is an article outlining the major ones:

http://www.creditkarma.com/article/differentscores

This site use TransUnion.  Quizzle uses Experian.  The algorithms used by the two agencies are pretty close, and alot of the differences between the two have to do with the differences in data between what is reported to each of the sites.

From a creditor standpoint, most use only one of the bureaus for most types of credit.  One bank may look at Experian when the offer credit cards. Another my look at TransUnion, and another may look at Equifax. 

Then, there is the FICO scoring system, and a FICO score can be generated from each of the credit bureaus, which is different than the score that you get directly from them.  For mortgages, some have looked at your FICO from all three and averaged them.  Others would pick your top, and others would pick your middle.

There is no one score a person has.  Each score is your score. That which a creditor uses depends on the creditor.

The collections account is going to have a negative impact on you for 7 years.  Any time your name is on a debt, regardless as to who has primary responsibility, you have the responsibility to ensure that payments are made.

Best thing you can do is to pay it off, get the balance to 0, and let it age off.  It will have less of an impact on your score as time goes by.  All you can do is to take care of your credit oetherwise and do what you would if that wasn't there, just knowing that your score will be at least a little lower as a result.

Did you ever have a credit card?  If so, are you sure the account is actually reported as being closed?

This site has two different balances it lists when it comes to credit card.  The balance for utilization is your actual credit card balance.  Your 'balance' for overall debt is your credit limit of all your cards combined.

The credit card balance can also include other revolving debt you may have.  Do you have a line of credit that you can tap when you need? 

If none of this applies to you, I would make sure that you get a copy of your credit report and check to see what the specifics are.  Someone may have taken out a card (or cards) in your name, and you need to track that down.

Depends on your situation as to whether or not your score will go up.  There are many different factors that go into your score.  But, with all things being equal, your score may go up a little over time, but if you have been making paymets on all debt, then it will likely not move much.

However, if you don't pay on it, your score is likely to drop like a rock.

This site is always free.  And, unless you opt in for some additional service on quizzle, that is always free.  You can update your credit score here once per day, no strings attached.  And, on quizzle, you get a credit score and report update twice per year (or is it three times per year)?

Annualcreditreport.com is the official place (and only place) where you can get your credit reports from each of the three bureaus once per year for free.  Anything beyond that is something for which you opted in and decided you wanted to pay for.

These are the only sites where I know you can get free information about your credit without it being a trial period.  There may be more out there, but I am unaware of them.

New credit line (less than a year of payments) is considered unproven, and thus, drags on the score until it is proven (12 months in good standing and payments).  This is a negative for now.

New credit line reduces the average age of credit.  This is a negative on the score.

Hard inquiry .. this is a negative on the score.

Also, what is your credit utilization?  Is that going up (e.g. your balance)?  If so, that is a negative, even if you are making payments.

In order to determine what is really happening here, we would need to know more about your specific overall situation. 

When an account gets into collections, payments are not recorded on the credit report, only balance and current state.  Payment information is for open accounts, not closed accounts, including collections.  A collections agent is not obligated to report payments.

If you are requesting a change to your existing line of credit, such as increasing your credit line, and if the bank checks your report, it is likely to show up as a hard inquiry.  If the bank increases your line of credit without you prompting them, then it should not.

If it has been in collections for 2.5 years, chances are you can settle it for a fraction of that, depending on the collection agency it is with.  Settlements can be anything from 30-80% of the amount due.

Being a college student, and with this on your record, and most likey having limited income, it is unlikely that you would be able to get an unsecured loan.  You would need a co-signer.  But, if it is possible, I would talk with the credit agency to see what amount you may be able to settle it for (without commiting to it), before taking out a loan.  If they are willing to settle for $1500, you just saved $1500 (but, be aware that the savings counts as taxable income).

If you file bankruptcy, you cannot obtain a mortgage for a minimum of two years according to FHA policy.  And, if your wife works, even though it may just be you declaring bankruptcy, her assets and income count as part of the equation for what will happen in bankruptcy.

But, be careful of many debt relief programs.  Many do not achieve what they lead you to believe.  And, you need to look at the fees associated with each of the programs, as well.

What you need to do in order to determine what is best for you is first, go through your debts.  List them out, including minimum payments, etc.   Determine which ones cannot be discharged through bankruptcy, such as most student loans. 

How many of the debts are with collection agencies?  Many times, you can work out favorable repayment plans with them that are better than you could get with the original lender, and also, many will give periodic settlement offers for anywhere from 30-70% of what you owe.

Regardless, it will be some time before you can buy a house, and most likely before you can get a car loan.  You need to find a way to start establishing some good credit, but that also means having an open line of credit that you are actually using and/or paying off that is not in collections or closed to being able to charge more (for revolving credit).

A debt relief program typically does a number of things that you can do on your own, but charge you a fee for the service.  Bankruptcy is on your record for 10 years.

You will also want to look at whether you can qualify for Chapter 7 bankruptcy, or whether you have to file chapter 13.  Each type has a different impact on your financial life going forward.

What is right for you?  I don't know.   You have two children and a family to think about, which must be part of your decision-making process.  There are many different pieces of the puzzle, including any employment you may obtain after you graduate.  And, you are at a time of your life when many things can change very quickly.

Under chapter 13, a bankruptcy trustee takes control of much of your finances.  Most of your money above and beyond basic expenses (food, clothing, etc) goes to the trustee to pay creditors.  Typically, any bonuses, tax refunds, and any extra money must be turned over to the trusee during the duration of the bankruptcy.

Chapter 13 can last up to 5 years.

Most student loans are not discharged.  If you want to stay in your home, you must catch up in your mortgage.  If you want to keep your car, you need to get current.

Whether bankruptcy is right for you depends on your situation.

There could be a number of things at play.  What type of credit is that line of credit (revolving vs. installment)?  If revolving, is it a line that you use, or is it mostly dormant? 

What does the rest of your report look like? 

Closing an old line of credit that boosts your average age of open lines, as well as reducing the number of open lines of credit is typically a detrement.  However, other things could be coming into play here.

Talk with some of the loan officers from your local credit unions.  Some of them are more likely to lend to a small business without much credit history than major banks.   They may also have some other flexibility that typical banks would not have either.

May also want to talk with the local chamber of commerce, as well.  They may be able to assist in some way, as well.

It depends the creditor.  Some report on or around that date, some don't.  But, what I have found is that if you have this pull your score each day during the month, you can determine when which does by looking at the changes in your balances. 

What do you consider low?  How many lines of credit do you have?  What type of mix is it?  For your revolving credit, what is your utilization percentage?

There is no way we can answer the question for you without at least some background. 

Black mark on your report for 7 years.  You could see your score drop anywhere from 100-250 points as a result (foreclosures hit your credit score hard)

It affects you in other ways, as well.  You will not be able to get a mortgage for a period of 4 years.  (FHA guidelines).  It is part of the public records in the property records, which does not have an expiration date, so there will always be something out there that can be found.

It depends.  But, you can expect a black mark against you to stay on your report for up to 7 years.  Payments are typically on the report for 48 months.  As long as the account is in good-standing otherwise, your late payment will drop at the 48 month mark.

Many guidelines look at a 30% ratio as being a target.  It depends on a number of other factors for what is optimal for you.  The higher your income, the higher an acceptable ratio because of the amount of money available for meeting your basic needs.

But, for guidelines by many lenders, they tend to look at a 30% mark.

If you have an installment loan (e.g. set payment on credit for which you have scheduled payments and cannot take out additional money), that does not play into your utilization.  Utilization is only for revolving lines of credit.

How much your score goes up will depend on alot of different factors.  Going from 80 to 40% utilization will help your score, but other components can cancel out the increase.  But, it may go up anywhere from 10 - 30 points, all things staying the same. 

The length of credit history weighs in, and with only two lines of open credit, that may hold your score back, as well.

For unsecured, Orchard Bank is the best place to start.  But, you should get a second card, as well, and a secured card may be necessary for that.

A hard inquiry occurs whenever someone who does not have a previous relationship with you inquiries about your credit or has an existing relationship and a change in your credit has been requested (such as a credit line increase) [pulls your report].   Such a request must be authorized, and always be careful of what you sign and agree to with banks, because it can open the door fror them to pull what may seem as unauthorized inquiries, but they are allowed to.

A hard inquiry may also occur when a collections agency takes on a delinquent debt and they pull information.

A soft inquiry occurs whenever you request a copy of your report or score for your own use, or when a financial institution with whom you have a line of credit open is obtaining 'maintenance' information, and you had not requested a change in your line of credit.

These are basic guidelines.