5 People Helped
Member Since: July 2012
Applied with CK approval odds as very good. Immediately declined. Score 675 no negatives, no bankruptcy, no repos, etc. called reconsideration line and spoke for five minutes with rep. Asked me why I had no long term credit history, explained to him that I went 20 years paying cash and not borrowing money from any one. If I couldn't pay cash I couldn't afford it attitude. Unfortunately I had some serious medical issues and was unable to work for 3 years, burned through my savings of course, but still no collections or negatives, but now I need a new job and car insurance etc, and the credit bureaus have done an amazing job convincing people that your credit score somehow overrides your actual background! So, long story short I was forced to try and improve my score just for everyday needs, not credit. Of course the credit bureau answer is to borrow money and go into debt if you want a better score. Was told by Barclays that I was declined because I didn't have enough of a history owing money.
The moral of this is you are better off with a lower score and some negatives as long as they go back a while. By the way went from 520 to 675 score in 18months. But didn't matter much, no credit cards and high risk car insurance despite clean driving record for 35 years.
Dave0944's response was:
I can only answer based on my own experiences, had three negative medical collections listed, made a pay for delete arrangement with them, all three removed with ZERO improvement in score. NO other changes for three months on report. NO IMPROVEMENT. Anyone telling anybody that they know what actually happens is wrong, fico and the other scoring models DO NOT and WILL NOT disclose their actual scoring algorithms, claim that they are proprietary property. That's why all of the experts use language like it should, or probably, no absolutes, such as : if you do that, then this is the result. Bottom line is that your score is what they say it is, you have zero ability to dispute anything other than incorrect info. Logic is not part of the equation. Keep in mind that the credit bureaus and Fico DO NOT represent consumers, they are for profit business whose customers are lenders.
I know that's not what you want to hear, but the simple answer is : no. There will be long convoluted attempts to explain it, but the reality is that the credit bureaus and Fico are not in business to help consumers, once the damage is done , it really can't be undone. That's the reason a lot of people will tell you that there really is no incentive to try a repay any debt once it's on your report.
Unfortunately disputing inquiry's is a complete joke and waste of time. I bought a new car and specifically told the dealer that I was only interested in one fiancé source and NOT to pull anyone else. That's whoe financed my auto, but a few days later I look at my report and see 15 additional pulls for auto financing! I immediately imitated a dispute for the extra 15 with Equifax. Took them less than one business day to verify and close dispute! I called and spoke to the customer service dept and a mgr and informed them of what happened and also that in Texas where I live they are required to tell me how they verified these inquires. Well, all they do is see if the inquiry's were made by legitimate customers of there's. If so then as far as they are concerned that's a valid inquiry. They don't even contact the people who made the inquiry. I called these banks and was told they didn't have any record of requesting my credit report, but since I didn't fiancé with them they wouldn't have any record, then refused to remove the inquiry because they didn't make it!
Long story short is this, unless you go to the police and convince them that there was fraud involved and get a police report, there is no way to dispute credit pulls.
Usually takes about a month or so before your report reflects the paid off loan. Now the bad news, your score is probably going to drop. The people who pay the credit bureaus bills don't like when you don't pay all the intrest they think they deserve . Unfair but true.
I can only speak from my own experience. I bought a new car, so for a while I actually had three car loans listed on my report with the total from all three, NO effect on score for two months,, but as soon as the loan showed closed with no missed payments etc, and the amount came off the total of loans my score DROPPED 12 points with no other changes to report. I have been told it's because that was my oldest loan. So, you can only conclude that the credit score agency is going to ding you for not paying their customers ALL of the interest they feel they have coming.
From a credit score perspective only, there is really no upside to paying off loans early.