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jel1990

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Help With Credit Improvement
I never really understood credit. In the past year I have really started working on improving my credit as I am wanting to purchase a home in the next three years. My current TU FICO is 571 EX FICO is 565. I have 4 collections on my TU and 6 on my EX. Some are 3+ years old some are a year or so old. I could pay all of the collections except one. One is a medical for $3,200 that is 3 1/2 years old. I have several student loans all in deferment and 3 finance company loans. I also have a $16,000 auto loan that is a year old. No revolving. Payment history is 91% but I have 46 inquires from my auto shopping. I need to know how to proceed in order to best help my score. Should I open a secured card? Should I try pay for delete on the fresher collections? Should I pay off my finance company loans? I'm wanting to improve my score in the most efficient way possible. I'd like to be in the mid 600s by the end of the year if possible. Any help would be greatly appreciated!

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Leave the loans open, but pay them down a little if you can, but for now your money is best spent trying to get "pay for delete agreements" on the collection accounts. Yes, get a Secured credit card that is reported to all three credit bureaus. The most important thing right now though is to try to eliminate the negative information on your reports. The only new account you should open any time soon is a Secured credit card. Wait until some of the inquiries age off and your score improves before going for a second credit card. Keep reading all that you can about credit, it is extremely helpful. Also you get Transunion and Equifax here, not Experian. You get Vantage Scores here, not FICO scores, maybe you already know this but I felt that there may be some confusion. FICOs are the scores for you to worry about, the Vantage scores not so much.

Reply by
jel1990

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Thank you for the advice. I will certainly follow those steps!

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