Credit Advice

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Question By
stephanierose7610

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how can i increase my credit 100-150 points within a few months
my credit is 631, I finally got approved for a credit card. I am in school , with 2 kids and need my own house as well as a car ! I cant get approved for a loan based off my credit. I need the increase FAST ! I don't have much in my name, I have 2 student loans, one paid off fully one doesn't start payments for 6 months.. I have one bank account that went to collections for identity theft. I have 8 hard credits from past and present ): I don't know where to turn but I need HELP!

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Increased score 200 pts

Helpful to 2209 out of 2375 people

I am a mortgage officer at a community bank. Knowing the importance of credit I have been helping my daughter to rebuild her credit over the past 11 months. Payment history makes up 35% of your credit score. If you have late payments -a good payment history takes time to rebuild! When I started working with my daughter her credit score was 533 due to late payments on her student loan and a medical collection of $135. I am pleased to say her current score is 754! You may ask how could her score be increased over 200 points in less than a year?

•    First thing we did was put her student loans on automatic payments so she was sure not to have another late payment!

•    Next she obtained a secure credit card with a limit of $1000 to pay for gas and groceries and pay off monthly

•    I then added her to 3 of my credit cards as an authorized user. I choose the oldest with high credit limits.(I did not give her the cards to use-only added her as an authorized user for my own protection) BEFORE being added as an authorized user be SURE you know the credit history and habits of the owner of the account. If there is a late payment on their account this will be reflected on YOUR credit history!

•    This increased her credit approximately 100 points

•    She paid the collection (less than 24 months old)directly to the creditor NOT to the collection agency

•    Use caution when paying collection accounts if over 24 months old. If you make a payment the account then becomes active and can actually hurt your credit score

•    She received offers from credit card companies as pre-approved this gave her credit with out a credit inquiry

She and I meet regularly to discuss budget and use of credit cards-she uses them for normal expenses that she previously used her debit card for-gas & groceries. This allows her to save the money and pay the credit card balance monthly.

Always remember how difficult it is to increase your credit score and be sure to maintain it!

Reply by
Coblin

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thanks

Reply by
rjcurcuru

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If an individual is added as an authorized user on a credit card, does she have to use the account herself? For example, if I add my wife to a credit card, does she have to use hers or does her score increase simply by my using mine?

Reply by
D411

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Helpful to 28 out of 78 people

helpful thanks

Reply by
Goro75

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Great response! Perhaps you could clarify something for me-

I to am rebuilding my credit for the past 2-1/2 yrs and to get it past 750 and most recently got added as an authorized user on my moms' credit card (more for using the card in an emrgency on her behalf than rebuilding my credit) and would like to get a possible clarification- If my mom misses a payment or maxes out her credit limit on her card that im a authorized user on, will it impact my score (currently 730)?

Reply by
Ghenghis

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paying collection accounts if over 24 months old, is it true some companys don't allow payment once at a collection agency? how would I pay the direct company not collection agency? do they have to except payment?

trying to figure best way to pay them & who to pay, as they are over 24 months old. they are all in collections. want them removed from my credit asap once paid. who to pay & best way?

as I have 3 small debits for under $150 each for medical & 2 that are for the court (MUNICIPAL) that are about $1000 in total. so with everything I have a debit of about $1500 total that is killing my credit. was wanting to get a $1000  fixed interest rate Secured credit card at about 5.99%-8.99%. & start paying off Debit, killing 2 birds with one stone. instead of just paying the debit with cash, use a low interest Secured credit card. paying about $200 month then leaving a low balance of $25 on card to continue to get credit once debits are paid in full.

Reply by
ajterrell31

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14 People Helped

Enter Your Replymy credit use to be at a 676, i had 2 car payments that were a week late and now my credit is at a 536. can you please help me, im 21 and really really need help. 

Reply by
delightful25

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So even if a collection agency has sent you a letter, so you are saying I should pay it directly to to lender and not the collection agency? 

Reply by
nederbugsmom2

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I have a card in collections.  It has been there for awhile.  From what I read, I am still able to go to the store I got the crad through and pay it off?   Why is this better than going through the agency that it is currently in collections with?

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Reply by
RayPR1

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Just to let you know pre aproved offers if you actually apply is a HARD INQUIRY !! not like stated above.

Reply by
crobe97

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Enter Your Reply so is it best to put all that u have on auto pay so there is no late payments whatsoever

Reply by
yfultz1011

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thanks  for this helpful tip. I will be assisting my kids by doing the same. 

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Reply by
ekindred

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Helpful to 3 out of 3 people

Thank you. I thought my scores were better than they are and I contacted a mortgage lender who said my scores were much lower than I thought. He said to pay off all negative open accounts. Most are medical bills. He also said that even with a car loan and a secured card and Fingerhut it is not enough trade lines. He suggested I open another secured card. Use one for gas and the other for fun/groceries. He said charge no more than 30% on each only if there is the money present to pay it off when I get home that day. If so, pay all but $5 immediately. He said that plus the debt should help within a few months to raise my score in addition to keeping the existing items current. My husband has a tax lien so I promptly made arrangements for that and have applied for and was approved for a second secured card as well. I just have to wait until payday to fund it and then will work to pay off these debts and build my score. Hoping for some big results in six months.

Reply by
TeresaMarie

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Extremely helpful. Thank you so much!

Reply by
HoldenG3Ray

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Enter Your Reply

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Reply by
FirmAndSteady

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That's very commendable of you to handle your daughter's financial problems that way.  I used to be employed as a loan officer in finance, but things have changed so much in the last 20-30 years.  I accomplished something very similar to her situation, but I started in the fair range on scoring.  I raised mine 204 points in less than 9 months.  Thanks for passing along this great advice and experience.

Reply by
ams030

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Thank you for this. I have been building my credit back after Economy struggles and long term illness.  Today, I'm in a better position physically and materially. Most of my credit issues are resolved. However, I'm curious as to your next step once you resolved the medical bill situation.  Did you pay the creditor and subsequently write a letter to the credit bureaus? I have a $284 medical bill I can't recall not paying, but I would like to resolve the matter this year. 

Reply by
debombe

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1 Person Helped

You're the best. My mom added me as an authorized user to a couple of her cards (when I was 12, and she never even told me about it), but they're at 99% utilization and have late payments! I'm still in the process of trying to get myself removed from those, and getting those accounts completely removed from my credit report, not just listed as closed accounts. 

Awesome job, dad!

Reply by
dathrasher

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Why do you say to take caution about repaying collections over 24 months? I've also been offered pre approved credit card companies but when I've applied I get denied due to my credit score. All of my collections are medical.

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Reply by
3teekids

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I was wondering if you could give me a little advice to help raise my credit score within 5-6 months. I have recently paid off all of my collection accounts and was told to get at least two secured credit cards, as I do not have any active credit. The only active credit that I have is my student loans because I am in school all deferred until 2018& 2021, current car loan which I pay on time and a credit card from my credit union (that I pay on time) but it only reports to one bureau (Equifax), bummer!! About a month ago a mortgage broker pulled my credit and my lowest score was about 540 the highest was 590, and he said I needed to increase my score but didn't say how (no advice given). Since having my report pulled I have paid off the collections and have obtained 2 secured credit cards. My credit cards have not been reported to my credit report yet and all of the paid collections have been updated so I'm not sure what my scores are as of know. I am looking to be able to be approved for a home loan in the next 5-6 months with good interest rates. Can someone please give me advice that can possibly help me to raise my score about 80-100 points in this time frame?  Also I would like to say that there is a lending company that will give FHA home loans with a credit score of 580 credit score in my area, but not sure if their interest rates are ridiculously high. Would going with this company be a good option? 

Reply by
EricFleet

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"I then added her to 3 of my credit cards as an authorized user. I choose the oldest with high credit limits.(I did not give her the cards to use-only added her as an authorized user for my own protection) BEFORE being added as an authorized user be SURE you know the credit history and habits of the owner of the account. If there is a late payment on their account this will be reflected on YOUR credit history!"

-- This part smells of fraud.

Reply by
BooHunter

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Very helpful response. Thank you.

Reply by
candygir87528

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EricFleet, what could be fraudulent about being an authorized user on someone's account?

Reply by
superheadcase

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Enter Your Reply

I call bull**** the secure cards do nothing for your credit and they over charge the hell out of you It is not reconized as credit it's secure.

Reply by
TripleA26

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What if I paid off a 24+ month old collection account in full? Can it still hurt my credit score or will it help it?

Reply by
mrsarimorales

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If I added my husband as an authorized user and his credit isnt the best and his personal accounts are late/delinquent can this affect my scores? I have noticed a slight decrease recently but wasn't sure why since I have been maintaining on time payments and keeping the balances bellow 30% and or paying them off. 

Thank you great information! 

Reply by
arobinson2011

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If you have an old collection account that becomes active because you inquired about it, should you go ahead and pay it?

Reply by
Klgordon85

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Thanks this was very helpful

Reply by
NevaehJ

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Hello Your response was very informative.  I have poor credit is well and want to get into my first home. I want to pay off on my creditors I was with a credit company that helps build your credit and I was paying 80 dollars a month. Not sure if you know but I wanted to ask is there away that I can just pay the creditors directly and just pay it.  It would be from three years ago

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Reply by
Emylin

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Would it hurt my credit if after couple months my mom take me out of her credit cards again?

Reply by
CUS1AMC

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I have a question I just recently had to file bankruptcy and everthing was finalized and I received my final decree of the discharge as of 02/12/16 and I working on trying to rebuild to get increase my credit score and not sure where to start. Looking for some suggestions.

Reply by
lswimp

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Thank you so much for this wonderful information

Reply by
badfriend

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I have had my identity stolen and when I became aware of this I was almost 7,000.00 in DEBT, so after getting many letters from the credit card companies that I did not apply for these cards and my information was stolen.  Along with a Police Report I  typed many letters and got the cards  removed from my credit report But, As this happened I watched my credit score go DOWN VERY QUICKLY, I was shocked I was the victim and my credit score just kept going down, down, down. Now I have POOR credit I did obtain 3 credit cards and always pay the card off monthly, Does this help me by paying them off every month or not?? But just a note KEEP YOUR INFORMATION THAT IS PRIVATE, PRIVATE IN A SAFE!! THE PERSON WHO DID THIS WAS MY X PARTNER OF 17 YEARS.    

Reply by
CARLISAHOWAR

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Very helpful. I didn't know that old accounts could be active again.

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Thanks for the helpful information. Being a loan officer, would you please be able to help guide me in the right direction of obtaining a home equity loan or refi on my paid mortgage? My home has been paid off for years now, and I would like to rent it to elderly HUD housing in my community. I need to make some modifications to be able to comply with HUD standards plus some other repairs. However, my credit file is very thin, and I was hoping to be able to use the home as colateral. Is this possible? Any feedback would be a blessing. Thanks so much for your time.

Reply by
brandon8163

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Suicide

Reply by
YRR

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Enter Your thank you so much. That was what I need to hear. That was me all the way.

Reply by
bsc0617

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How long did it take your daughter's score to increase after adding her as an authorized user to your credit cards?

Reply by
steffanyhapp

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Why should you not pay the collection agency? Is there a reason to pay the collector rather than the agency?

Reply by
Gryphaeon

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Great advice! There is only one issue and I am honestly hoping this is just an unclear explation because I would be quite surprised that you got this wrong considering your line of work... Once a debt is charged off, it stays charged off. It can not be "re-activated", "re-aged" or "re-" anything. The law states that the Statute of Limitations (SOL) is fixed at the point which the debt is charged off and it stays the same no matter what. This won't change your credit score unless you can have that line of information removed from your credit report. A charged off debt stays a charged off debt whether you are paying on it or not.

What can and DOES change is whether you have a collector pursuing you for the debt. If you are talking about a dormant account that has been in collections and has finally been left alone with no collections activity for a few years, messing with it can be problematic from the point of view that the collections people will start pestering you again to see if they can get money and if the SOL isn't up, they can start reporting on it again which can affect your score or they could even file suit if your state SOL isn't up.

Even if the debt has passed the SOL in your state for suit (variable by state) and even the federal SOL for reporting (roughly 7 years from when the debt discharged) a collector may still pursue you for this money if you owe it. They will just never be able to collect it or report it if you don't allow them to, although they will certainly try and hope you are ignorant enough of the law that they get money from you.

The FCRA section 605(c)(1) states; The 7-year period… shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

The best way to handle these types of information lines on your credit report is to dispute them but you have to remember that if that isn't done correctly, it is like kicking a hornets nest. Just calling them and saying, "hey, I dispute this." is NOT good enough, regardless of what ANYONE says. It has to be done with a certified, return receipt letter that has been properly worded to prevent the sleezy little buggers from using a loophole. You can find a lot of information out there about how to do this on sites from people like Dave Ramsey or with self help books like Weathering Debt (either one works, but I prefer Weathering Debt, it was much more concise and to the point) but whatever you do, DON'T try to wing it and don't pay someone to do something you can do yourself with ease and for free. Besides, you need to know how to stop the problem from happening again, right?

Otherwise, the advice you have given is great and works well for a quick boost but having the ability to remove lines of information from your credit history is even better because once it is gone, it can no longer affect your score. BTW - don't take my word or anyone elses for that matter, educate yourself! You can find either of the sources I mentioned just by Googling either of them if you want and I promise you, the more information you have, the better!

Reply by
Pondal86

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I know this is old, but seriously what a great Dad you are! You didn't hand her money and you didnt leave her to flounder. You helped her in immediate ways she couldn't do herself like adding her as an authorized user, but also helped her long term by guiding her, teaching her, and establishing a plan. Plus, sharing your thoughts has helped many others. 

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593 - 651 in 2 Months

Helpful to 518 out of 608 people

I applied for a home loan - wasn't approved - the loan company works with people with subpar credit though.  She gave me list of action items that needed to be done. She figured it would take me about a year to take care of it all. Gave me a deadline of 1 year out.  I sat down did all her action items in a week - waited 30 days, credit jumped to 620. She got an approval on a home loan but it wasn't ideal.  Waited another 30 days, credit was 651... she said we could get an ideal approval with a credit score of 640.  I don't know how, but I was so happy. signed on house at 3 months instead of 1 year. The loan officer couldn't believe it!  I now own my home, have lived in it for over a year.  Love my house!

Action Items:

DO NOT DISPUTE NEGATIVE ITEMS ON CREDIT REPORT

REQUEST THAT THE CREDIT BUREAUS CANCEL ANY DISPUTES WITHIN THE LAST TWO YEARS

DO NOT PAY OFF OLD NEGATIVE DEBTS

IF YOU PAY SOMETHING OFF - GET WRITTEN PROOF AND FILE IT AWAY

PAY DOWN ACTIVE CREDIT CARDS OR PAY OFF CREDIT CARDS.

NO UNDOCUMENTED DEPOSITS INTO YOUR PERSONAL BANK ACCOUNTS (UNTIL AFTER YOU SIGN ON YOUR HOME) 

HAVE YOUR DOWN PAYMENT "SEASONED" IN YOUR ACCOUNT -- MEANING IT NEEDS TO BE IN YOUR ACCOUNT FOR AT LEAST 3-6 MONTHS OR IF YOUR CHECKS ARE DIRECT DEPOSITED OR IF YOU DEPOSITS ARE DOCUMENTED AND PROOF THAT IT DIDN'T COME FROM A LOAN OR OTHER SOURCE THAT WILL HAVE TO BE PAID BACK.

MEDICAL DEBT WILL STILL SHOW UP AND WILL NEED TO BE RESOLVED.

BEST ADVICE - CHECK WITH A GOOD LOAN OFFICER AND ASK THEM TO GIVE YOU ACTION ITEMS SO YOU CAN MAKE THIS HAPPEN.  Be careful when finding tips online... often they are misguided. Several of the tips I'd found I'd tried and they either backfired or were not acceptable by the loan office. 

Reply by
CaramelChica39

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Thanks for this input, I found it pretty helpful!

One of the replies said to cancel the CC to increase your score & I'm pretty sure that is incorrect. 

Reply by
RebeccaAnn33

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Great tips thanks

Reply by
Emarquez01

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May I ask what your action items were? I have been told to take out two credit cards to increase my score dramatically in the next 3 months. I currently don't have any revolving credit. 

Reply by
toniwiesman

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I am very happy for you! If you don't don't mind me asking, what mortgage lender did you use? I was recently denied with a 556 score, but they did not offer any support on what I should do to be approved. I am very anxious to get approved, and would love some guidance.

Reply by
gingerpate

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Can you tell me which morgage company you used?  Any I have talked to have not given advice...

Reply by
ItsSettled

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Curious to know why you say to NOT dispute derogatory information on your account. I disputed several items, which were eventually removed with no further action and it increased my score. Just want some clarity and better understanding of the action item you listed. 

Also, why ask them to cancel disputes for ast 2 years.

Reply by
CA287

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Did you go through a large bank for your home loan, or a small credit union? My husband was in the Marines and we were told to go through USAA, but I've heard negative reviews on their home loan process. Just curious.

Thanks for the info - this has been very helpful!

Reply by
HisEden

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Hello, you mentionedREQUEST THAT THE CREDIT BUREAUS CANCEL ANY DISPUTES WITHIN THE LAST TWO YEARS... What exactly do you mean by this? I have not disputed any items on my report before, I have noticed that 2-3 ur old Charge offs are still reporting as current. Any advice on how to proceed? Thank you

Reply by
dabneyls

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But what other 'action' items did you do other than pay down credit cards? Majority of the list consisted of not doing anything.. so cancelling disputes and paying down credit cards got you the 58 point increase alone ?

Reply by
wandabrown3058

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Enter Your Reply can you share the info on your  loan officer who informed you what to do

Reply by
cchipss75

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Hi. Why do you say not to dispute the negative items on the credit report?

Reply by
cchipss75

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Why do you say not to dispute the negative items on the credit report?

Reply by
KatiewOjo

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who was the loan officer?

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Bump up your credit

Helpful to 528 out of 610 people

Take out a secured credit card from a credit union. With Most banks you will need 300-500 to start. After you receive your card charge $15-$20 at the most. When you get the bill in, pay it by or before the due. DO NOT PAY LATE!! Do this a few times and your credit should jump about 20-30 points. When your credit goes up to where you want, you can take out the money from your secure credit card. DO NOT CANCEL YOUR ACCOUNT OR YOU WILL LOSE YOUR CREDIT. (SHRED THE CARD INSTEAD) Hope this helps. God Bless 

Reply by
TalleyKarma

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Thanks for your resopse to this it really helped me out a lot and i was actually wondering if you could give me more information about getting a Credit Card to help your score enstead of making it worse.

Reply by
Coblin

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I am going to try that secure credit card ,,I am at a 590...need a 620 by april hope it is possible...

thanks

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Reply by
lauravalerie

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What do you mean when you say "take out the money from your secure credit card"? Does that mean you close the account?

Reply by
superheadcase

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bad idea they kill you in fees and unsecured does nothing for your credit . I found a jewery store on line that has you put %50 down and then make payment on the rest . and they report it . unsucured credit cards are bad news they don't help just make the banks alot of money . for example the person said transfer to a better card and leave the old one open . yeah if you want to pay a bunch of monthly and yearly fees .

Reply by
mpsinu

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I would disagree with this option, as a credit analyst its my job to investigate credit and determine customer eligibility for loans etc... typically creditors do not look for a card thats been used 1 time for $15 then never used again this kind of credit is disregarded and or not taken seriously. When we look to approve a consumer we look at several factors and what that makes a large impact is how they make their payments, the balance currently on all their revolving and installments and the history of payments. if you only charge a tiny amount and pay it off its going to show no history and therefore not be a heavy influence. in fact if you can handle it it is good to sometimes charge the card near max but then pay it off super fast. yes this well temp drop score however. it will show creditor your applying for that you can handle larger amounts and that you pay them down good and fast. 

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Reply by
Catrina01

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This is incorrect.You cannot decide when to take the secured deposit back-only the credit card issuer can do this.Also, shredding a card is a bad move as creditors will lower your credit limit or even cancel your card if it is not used somewhat regularly.The end result of this will be one less line of credit and a lower credit limit (which can make it harder to keep your utilization low),thus resulting in a lower credit score.

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588 - 657 in 6 weeks

Helpful to 101 out of 122 people

My wife and I recently decided we wanted to buy a home better suited to starting a family and sell our townhouse (which she owned when we met). I didn't have the best, let's say, track record with financials in my past and my credit was abysmal. I hit rock bottom 2.5 years ago when my car ( a beautiful fully loaded Jeep) was reposed on Xmas eve morning. Even then, although angry and ashamed, I didn't do much to help myself out. My 20's, which were years of partying, spending and generally speaking not caring had finally caught up. I was 29. So, we got to work with fixing things. Paying off creditors, paying down debts, making on time payments, etc. When we had my credit run about 6 weeks ago, it was 588. This was much higher than the 410 I had a couple years ago, but still a far cry from good. (Side note here, be mindful of using credit cards that track your fico score, or having a credit bureau account that gives you your score. There are around 30 different scores that are used, and different scores are used for different types of inquires (auto loan is different than mortgage)). So we got to work, paid off the last couple things and really started paying attention to what was happening. One thing I can't stress enough is every year, you're allowed to get 3 free credit reports, 1 from each bureau. You MUST do this each year. This is where I found my credit windfall. I was able to uncover the fact that a debt that had been paid of was still being reported as open and late. I also found a debt that wasn't mine! A big one. $1700 showing open and late for 2 years with a collector. I filled a report with the CFPB (Consumer Financial Protection Bureau) and they started an investigation. The company that had this debt wrote me a letter saying that even though I had no proof that the debt wasn't mine, they would absolve it and would contact the 3 credit bureaus to have the reporting removed and cleared. At this point, I called my broker and said it's time to run the simulator. They ran it, and then performed what is called a Rapid Rescore. Some brokers charge for this; good ones don't. Since they are trying to get your business they will do it for free. If it's at cost, it's roughly $10 per item per report. If you have a lot of issues it can add up. Anyhow, they did the rescore, did the simulator, ran a hard inquiry and BOOM, 657.

This story is long winded and all, but the point is, it doesn't matter how bad you have screwed up. It happens to the best of people (I'm an alright kind of guy). But the only way to fix it is to put your foot down, get dirty and fix it. It won’t always be as quick as this and will most likely take a year or more to get in a good place. Then years of maintenance. But if you need a quick hit to your score in a good way, read through your reports carefully (with a credit advisor if you need to. Many personal banks will do this with your for free if you have accounts there in good standing) If it looks like there's something off or something you can fix, call your broker, go over the report with them and STRONGLY insist on a rapid rescore. They will get all your info and see what they can do.

Hope this helps at least a little!

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Credit Score

Helpful to 148 out of 196 people

How long does it generally take for your credit score to increase? I'm at a 530 now and I want to be at a  700 by March. What should I do?

Reply by
Therian86

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I'm 28 and have never had any loans, debt, or credit cards (everything paid with green backs) till last year (oldest CC is 9 months old of this post) and I'm sitting at 730. My original credit score was "000" when I did my first credit card offer through my bank and when I got my discover card I was sitting at 700 which is 3 months old now.

What I did was never go above 20% utilization and always payed my bills the same day the bill was processed and mailed. Next on my plate is to get my credit limits up to give myself more breathing room.

Reply by
ajterrell31

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14 People Helped
Helpful to 14 out of 31 people

have you fixed your credit yet? if so how. im in the same boat please help

Reply by
focus01

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23 People Helped
Helpful to 13 out of 28 people

My current goal as well.........its March 2015 i say by Sept 2015 my goal but whats some great advice on how too o_0

Reply by
hcharif

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A company called  credit pros and more.  will give you $5000 unsecured revolving credit line.  they help me tremndously. check them out.  www.creditprosandmore.com.  Hope this will hellp. good luck and God Bless.

2 Contributions
99 People Helped

naca.com

Helpful to 94 out of 119 people

NACA does not go by your credit score to get a house. The interest rate is phenomenal. I agree with the person about not over extending yourself. I am set to close and had "many" issues. Check it out for yourself. I wouldn't try to get a house and car at the same time. Too much. Hang in there. Will be praying for you and your family. God bless.

Reply by
djdolo37

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Helpful to 18 out of 30 people

NACA also takes up to a year to qualify for a home with their program. You'd have to pay ALL your accounts current for 12 months straight. If you have that type of patience this works for you if not, look at other alternatives 

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49 People Helped

bOOSTING MY SCORE EVERY WEEK

Helpful to 47 out of 64 people

Hi , so I started out with a 421 in December 2014 , I had a foreclosure , no credit cards , horrible spending habits , collections etc. My foreclosure fell off my report and I went to 453 . I applied for a credit one unsecured card , high interest and annual fees but all I could get at the time (300 credit limit). Charged gas every month , maybe 50 and paid it right off .In March got a cl increase to 500. My credit went to a 479. Appied for a Capital one card w/ 300 cl. Got it , charged very little every month paid it off , in June got a credit increse to 700. Also got offered a platinum mastercard w/500 cl from Credit One . I also had my husband add me to his Capital One credit card w/ 1000 cl. As of July 15 my score is 556. Not ideal but every week I check with Credit Karma and my score is going up . It takes time but you have to be disciplined . My name added as a user on hubbys card and my new credit card has now shown up yet on my credit so Im hoping for a decent jump when it does . As far as old collections , I paid off a 1700 Fingerhut bill and it had no effect on my credit whatsoever , I really wish I hadnt paid it , it says paid but still shows as derogatory. Tommorow I am going to my bank and getting a 500 secured card . As you can see I started this quest in December 2014 when I decided it was time to take responsibility and do something and its been 8 months and my credit score has jumped about 135 points .

Reply by
josielynntaylor

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Helpful to 14 out of 20 people

The 1700 you paid off that didn't help your credit...what if you had never paid it? I'm trying to figure out how to handle all of the super old collection accounts on my report. Do I pay them? Do I not pay them? How do I know which one to do?

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326 People Helped

consistancy

Helpful to 30 out of 34 people

Yes, consistancy of paying bills on time is critical to your score, and having available credit and not using more than 30% on each credit card shows responsibility..ive sat down amd talked to somebody who specializes in credit and credit repar, a legit professiinal..dont get more than 2 or 3 secured credit cards, dint spend more than 30% on each one and whatever you spend pay off right away..a vehicle loan can help some to..jyst live within your means and be responsible and your score will climb.there is no overnight fix, you just have to build cr3dit history, everybody does..640 is bottom line score a top banker told ke, 680 is much better, and 720 is much more easy to work with, 750 or higher is pretty good shape and you will get better offers..i was younger and made key mistakes and economy recession hurt a lot..but get back on the horse and get grinding away to bring your score back up..lifes much more easy being able to get loans for a home, car, whatever..im planning on buying a home in 2017 ..but no rush because i wanna really do my best on doimg my home work and educating myself on making the very best deal on a home..

Top Contributor
26 Contributions
169 People Helped

Helpful to 88 out of 117 people

 It still could take a little time. I started from zero with a touch of bad but mostly no credit. I got a rediculous card at first with high interest and monthly and yearly fees. Soon as my credit built up with some payments, yours isnt terrible, mine was in the 5's, I was able to get a better card. Dont spend much of your available credit. REALLY try and keep it lower than 30% and your uliliztion will look better and help your score rather quickly. im my case opening a new account with a higher ballance and transfering my debt to it (15 months 0% interest but was a 3% fee to do it) saved a lot of money over paying a couple of cards at 20-24% interest. If you have a good utilization % then you might even close the old account but if you are looking at a big purchase soon then it may be better to keep it open. Either way, my closing that horrible card actually made my score rise because of the newer better replacement card showing up. Again mine was in the 5's so it took a bit for new expanded credit acceptance but once it did it is currently going up very quick and am almost 700's. Id plan on a year though if you have negative stuff but you are ahead of me with your starting score already. 

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10 People Helped

Bad Advise

Helpful to 10 out of 10 people

I do not agree with the secured card info you've provided.  They are great tools when used correctly.  You can find one with no/small annual fee.  The interest rate won't come into play if you pay your balance in full each month.  Even if you don't pay in full, the interest on a very low balance is a non-factor.  Alomst any credit union will allow you to open an account with as little as $5 and secured card with $300/500.  My card is $500 and I never charge more than $150(30%).  It takes will power to not max it out.  You don;t want to fall back into old habits (if that is what got you into this situation in the first place).

A single month afgter opeing, my scores went up 64/68 points, from the 598 range to 665 range.  Keep a low balance or utilization rate of less than 30% (preferrably less than 10%).  Studies show the sweet spot is 1-9%.  Paying on time 100% of the time and knowing the date your card reports the balance to the credit bureaus is the key.  Always pay by the due date and be below 30% (or 10%) on the reporting date.  After as little as 6 months, but usually 12, they will convert your card to UNSECURED, likely with a limit increase and give you your original deposit back.

I would also look into what is called a share secured loan.  You basically open an account with $1000 and loan it to yourself by paying installment payments (always on time!!!).  These two products alone put me into the 695-705 range, all within 6 months.

Hope this helps somebody.  It sure helped me  :)

Remember, not everyone got into credit trouble by being irresponsible. 

Reply by
tigerware

2 Contributions
2 People Helped
Helpful to 2 out of 2 people

One should look carefully at the terms of the secured card they sign up for.  With a large nuimber of secured cards, the only way to get your deposit back is to close the account - and even then it can take 2 months to get it.

Not all Secured Cards have the option to be graduated to an unsecured card - though most of the larger banks and credit unions are able to.  As you mentioned, it is generally 12 months - but can take longer and is entirely at the issues discretion.  

Capital One is an odd example of this.  I have read many reviews that state that after 18 months with stellar payment history and carrying no balance that users were told they qualified for an unsecured card but would first have to close the secured card (In order to get the deposit refunded) - or you can keep the secured card and open the new unsecured card as well.  A few people indicated they were able to graduate without changing the card and it was converted for them - but 95% of reviews speak to how difficult it is to get deposits back - even from them.

A good blog with reviews on Secured Cards can be found at:

http://www.beverlyharzog.com/category/credit-card-reviews/secured-credit-card-reviews/

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