Pharkus

84 Contributions 91 People Helped Top Contributor

Member Since: June 2013

Most Helpful Contribution

credit scores vs credit karma scores

May 05, 2016
Always check real FICO scores
Helpful to 35 out of 37 people

I lived without credit cards for 6 years with the belief that I should live within my means and without credit.   I paid off my car loan without ever a late payment but when paid off a year ago, I had no open accounts.  My credit score on CreditKarma was 579 becaise I had no open accounts (revolving or installment).

So I began a credit rebuilding plan.  Got a secured credit card from Capital One for $500.  After three months of less than 10% utilization and always paying off completely AFTER statement, I was approved for Capital One QuickSilver unsecured card for $500.  Now I have two credit cards with perfect payment history below 10% utilization each month for 7 months on secured and 4 months on QuickSilver.  

CreditKarma says my credit scores are

TransUnion: 670

Equifax: 666

I am getting ready to apply for FHA loan with low income grant from state for 3.5% downpayment and closing costs (need score of at least 640).  So I decided I needed to know what my REAL FICO score was instead of CreditKarma's FAKO score.

So went to myFICO.com (Fair Isaac Corporation) and purchased FICO Score 3B Report ($29 per month but can cancel anytime) which includes all three credit bureau scores for many score models.  myFICO claims "FICO Score-8 is most widely used for mortgage lenders" and they now have SCORE-9 but not widely adopted yet.  They state this about SCORE-8 "This is the FICO® Score version most widely used by lenders and that's why it is most prominently featured in your FICO® Score explanation"

My FICO Score-8 scores were dismal:

Transunion: 618

Equifax: 604

Experian:  623

I was shocked.  CreditKarma had me eligible for FHA mortgage at 666-670 scores and I was not even close.

Then, I clicked on the little i (information) by "Need help understanding FICO Score versions".  It says "It is very likely your mortgage lender is using FICO SCORE-5 at Equifax, FICO SCORE-4 at TransUnion and FICO SCORE-2 at Experian.

My FICO SCORE-5 at Equifax:  661

My FICO SCORE-4 at Transunion:  678

My FICO SCORE-2 at Experian:  650

These numbers are very close to what CreditKarma was telling me.  My guess is myfico.com is emphasizing Score-8 model but most mortage lenders are NOT using SCORE-8 at present.  Mortgage lenders have to purchase these scores from Fair Isaacs and it is probable they prefer sticking with the ones they are used to and have experience with rather than wade into uncharted waters with newer less tested scoring models.

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credit scores vs credit karma scores

May 05, 2016
Always check real FICO scores
Helpful to 35 out of 37 people

I lived without credit cards for 6 years with the belief that I should live within my means and without credit.   I paid off my car loan without ever a late payment but when paid off a year ago, I had no open accounts.  My credit score on CreditKarma was 579 becaise I had no open accounts (revolving or installment).

So I began a credit rebuilding plan.  Got a secured credit card from Capital One for $500.  After three months of less than 10% utilization and always paying off completely AFTER statement, I was approved for Capital One QuickSilver unsecured card for $500.  Now I have two credit cards with perfect payment history below 10% utilization each month for 7 months on secured and 4 months on QuickSilver.  

CreditKarma says my credit scores are

TransUnion: 670

Equifax: 666

I am getting ready to apply for FHA loan with low income grant from state for 3.5% downpayment and closing costs (need score of at least 640).  So I decided I needed to know what my REAL FICO score was instead of CreditKarma's FAKO score.

So went to myFICO.com (Fair Isaac Corporation) and purchased FICO Score 3B Report ($29 per month but can cancel anytime) which includes all three credit bureau scores for many score models.  myFICO claims "FICO Score-8 is most widely used for mortgage lenders" and they now have SCORE-9 but not widely adopted yet.  They state this about SCORE-8 "This is the FICO® Score version most widely used by lenders and that's why it is most prominently featured in your FICO® Score explanation"

My FICO Score-8 scores were dismal:

Transunion: 618

Equifax: 604

Experian:  623

I was shocked.  CreditKarma had me eligible for FHA mortgage at 666-670 scores and I was not even close.

Then, I clicked on the little i (information) by "Need help understanding FICO Score versions".  It says "It is very likely your mortgage lender is using FICO SCORE-5 at Equifax, FICO SCORE-4 at TransUnion and FICO SCORE-2 at Experian.

My FICO SCORE-5 at Equifax:  661

My FICO SCORE-4 at Transunion:  678

My FICO SCORE-2 at Experian:  650

These numbers are very close to what CreditKarma was telling me.  My guess is myfico.com is emphasizing Score-8 model but most mortage lenders are NOT using SCORE-8 at present.  Mortgage lenders have to purchase these scores from Fair Isaacs and it is probable they prefer sticking with the ones they are used to and have experience with rather than wade into uncharted waters with newer less tested scoring models.

Please add "Pay off accounts in collections" to the Credit Score Estimator

Jun 07, 2016
Paying off Collections won't help
Helpful to 14 out of 15 people

Once an account is in collections, it will stay on your credit reports for 7 years whether you paid it off or not.  If they are less than 2 years old (or still within your state's statute of limitations), you should pay them or negotiate with collection agency for a 50% or less  payoff for it to be paid in full.  (Get it in writing). Collection agencies buy accounts for pennies on the dollar so by settling for half or a fourth of the amount, they have made a lot more money than what they paid for the account.  Make it clear to collections that you are doing your best to pay off debts and want to make a partial one-time payment to clear up the debt.  Don't agree to pay any monthly amount.  You will just reset the calendar on your statute of limitations.

I want to purchase a home next year. I will be paying off my open balances. Do medical bills count?

Jul 11, 2016
maybe not
Helpful to 7 out of 7 people

Depends how old the accounts are and the amounts. Medical bills under $100 are generally considered "nuisance" and most bureaus don't include then in credit score. Also bills older than statute of limitations for debt collection may be ignored. My state statute is 3 years. Any debt older than 3 years is "not collectable" meaning no legal action can be taken to enforce payment. The more recent medical accounts should be paid off as you are still liable for the debt and collector can get judgment, garnish wages, attach your bank and savings accounts. This might make you unable to pay mortgage. Every lender is different but most are more flexible with medical debt (especially smaller amounts) versus credit card or personal loan default.

Please add "Pay off accounts in collections" to the Credit Score Estimator

Jun 07, 2016
Helpful to 4 out of 4 people

Dispute it through credit bureaus (Transunion,, Equifax, Experian).  If the account is truly invalid and the creditor does not respond to the dispute, it will go off your reports.  Creditor must have some documentation to support their claim that you owe.  Many collections agencies don't bother getting the paperwork from original creditor so cannot prove you owe.

how can i raise my credit score 100 points in 6 months

Jun 07, 2016
I raised mine by 90 in 7 months
Helpful to 2 out of 2 people

I wanted to buy my first home with FHA mortgage but had paid off my car loan March 2015 and had no open accounts so my credit score was 570 back in November.  I opened a $500 secured credit card and charged less than 10% during month and paid off total before payment due date.  After 3 months I qualified for an unsecured card for $500 but maintained charging less than 10% between the two cards.  Paid off totally before payment due date.

After 3 months, my secured credit card was raised to $800 by the company without me asking for increase.  Today I was prequalified for FHA mortgage with credit score at 670.

I was easy for me because I had no open accounts or installment debt.  FHA requires 2 open lines of credit with good payment history.  So that is why I got the second credit card.  My available credit is only $1300 but by keeping utiilization below 10% and paying down to zero each month, my credit score went from 570 to 680 in 7 months.

This strategy clearly works for those that have thin or no credit history.  Probably the best way for a person just establishing a credit history.  Probably won't work so well for people with large credit card/installment debt with late/missed payments, collections, judgements, chargeoffs, etc.

If my report calls a collection account "closed" and a "charge off", can a collection agency sue me?...

Oct 14, 2015
No debt if court already ruled
Helpful to 2 out of 2 people

If court already ruled you are not party of the account,  then you owe nothing.   But the collector is trying to have a do over.   If you fail to appear,  judge could rule without knowledge the court had already ruled on the case and they get the judgment they want.    Always respond and bring previous court paperwork with you.   Judge might slap them with contempt of court for resubmitting instead of appealing.   I would file complaint with Consumer Finance protection  agency.   That should stop this nonsense.   Be sure to dispute the account with all three credt bureaus and provide court documents that shows the debt is not yours to get it removed from credit report. 

why did my equifax score go down when i pay everything on time and even pay more than the minimum.

Oct 14, 2015
Helpful to 4 out of 5 people

WRONG ANSWER:  Utilization is the balance on your card WHEN REPORTED to credit bureaus,  not balance on statement.   Most report a week or more BEFORE billing date.   So if you almost max out card and then pay entire balance of statement,  your utilization will be almost 100% at report date.

bankruptcy with credit score of 715, no negative creditors

Jun 07, 2016
Credit easier after Bankruptcy
Helpful to 7 out of 10 people

The reason people are able to get credit so easy after bankruptcy is that creditor knows you cannot file again for 7 years.  So they can garnish your wages, take money from your bank account with a court judgement and you can't do anything about it.

So if you file bankruptcy, take it as a fresh start and use credit wisely afterwards.  Don't get into debt trouble and you will be able to establish a good credit history over time. 

I would like to know can you remove dismissed bankruptcies?

Jun 07, 2016
Helpful to 1 out of 1 people

Bankruptcy is reported to agencies via public records.  And you cannot DISPUTE a bankruptcy off your report.  The Federal Bankruptcy Court does not have to provide records to credit bureaus to keep it on.  Once you filed and it became public record, it is not going away via Dispute process.

Will my SSD benefites change when I reach retirement age?

Jun 07, 2016
From SSA webpage
Helpful to 1 out of 1 people

"Social Security disability benefits automatically change to retirement benefits when disability beneficiaries become full retirement age. The law does not allow a person to receive both retirement and disability benefits on one earnings record at the same time."

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