brighterfuture

9 Contributions 27 People Helped

Member Since: January 2012

Most Helpful Contribution

Top 5 Credit Misconceptions

Jan 28, 2012
Helpful to 4 out of 4 people

@gogreen1716: the thing about waiting is that the balance will be registered on your credit report, impacting your score.  If this balance is above 10 or 30% (depends on who you talk with) then it will negatively impact you score regardless if you pay the entire previous balance off.  Continue paying off the balance and keep the balance below 30% and your score should do fine - from what I learned.

Activity (3 Total Contributions)

Top 5 Credit Misconceptions

Jan 28, 2012
Helpful to 4 out of 4 people

@gogreen1716: the thing about waiting is that the balance will be registered on your credit report, impacting your score.  If this balance is above 10 or 30% (depends on who you talk with) then it will negatively impact you score regardless if you pay the entire previous balance off.  Continue paying off the balance and keep the balance below 30% and your score should do fine - from what I learned.

To increase score fast do I pay down current cards or settle charge offs?

Jan 29, 2012
Helpful to 1 out of 1 people

I agree with tcsgirl.   Old debt no longer active has already done its damage.  Current debt is most important to keep in good status.  

If you plan to take on old debt you need to take into consideration the status of each of the debts.  Debt with a status of Charge off are beyond fixing.  Even if you contact them, if they are legit lenders, they will not even deal with you on the debt any longer.  They will state it is closed and sold or charged off.  The new debt holder, the junk collectors, are a different story.  If they are posting monthly as though it is a truely active debt, then you need to do something about it like fight it as being legit (wite validation letters for instance), or pay if off.  However, you also need to take into consideration the length of time it has been on your report.  Normally, your report will state when the entry will stay on your report for.  If the time extends beyond when you want to get a loan, then you probably should settle it or fight it off your record as it will look better being resolved then liguring there.   Also confirm the length of time is within your state's statues of limitation.

Taking on old debt can take sometime but you have resources and options available such as settle offers, lawyers, state attorney general, etc.  It all depends on how you want to handle the entry.  

Where's the American Dream

Jan 29, 2012
Helpful to 1 out of 1 people

Thanks MonocleCollector for the link.  At first it didn't seem all to informative, but then I got to the end and read thru the example.  Wow!  Obviously this is only one method for calculating risk and approval, but it definitely sheds additional light on the subject that: (1) the number of inquiries in a certain period of time are taken into into account; (2) risk is increased if they feel the length of time for the loan is longer than they feel comfortable giving it - which raises additional questions; and (3) their is the potential for every financial institution to have such a grading scale.  This is something I would like to know more about.  

Perhaps this is a good time to asking everyone reading this to raise the question next time they request a loan.  Get the details such as what the example shows from the link provided by MonocleCollector

- loan grades

- loan limits

- risk factors such as inquiries

- modifiers

...and how they factor everyting each step of the way resulting in the final result which approves or not approves the loan request.  It will most likely be a struggle, but if you are inclined and are successful, please share the results.

Thanks.