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Question By
wirerunner

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

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Creating a Plan to Improve Your Score

Helpful to 1709 out of 2121 people

I run the consumer loan department for a midsize bank.

I have read a lot of bad advise as to how a person can raise their score 100 points or more in a short period of time. The truth is, you can raise your scores, it takes time and some of the advice given will actually hurt your score.

For example:

Having your limits increased every three months. While it’s true that a larger unused limit will improve your utilization, this advice is flawed for several reasons. 

Each time you request an increase in your limit, most lender will re-pull your credit, creating another inquiry. Too many inquiries will hurt your credit. Furthermore, most lenders will not increase your limit every three months. Therefore, you have actually lowered your score (due to the inquiry), which unfortunately makes it harder to get credit.

Improving your score is not a one stop fits all recipe. Depending on your individual credit you may want to apply for a loan, or consolidate your bills, or pay off debt. But what if you have a bad score and only 10% utilization? Then the solution for your situation would be different from someone with a low score due to high credit card utilization.

The first step to improving your credit is to analyze why your score is low, then create a plan to rectify the issue.

Reply by
skuti14

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Helpful to 344 out of 521 people

Where do I go to get specific advice on my particular situation? Will it cost me money? I have paid off a lot of my debt... I have a little money owed on a couple credit cards.. but for the most part... I have several credit cards that have a 0 balance and I have my auto loan which is current and my student loans which are finally current.... the student loans went into deffered status for a little while... as my father said he was paying them and come to find out... he wasn't.

I have had bad credit card issues in the past but nothing I haven't cleared up. I get offers for credit cards constantly and I was approved on my auto loan... yet, my score says Very Poor. Not sure how that is? I did notice that I went to purchase a car a while back and they ran my credit with like 5 different banks in one day. Terrible. But other than that.... I'm not sure what I should do in my particular situation and I would love to know what to do in my particular situation!!

Reply by
ABS3214

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Helpful to 129 out of 214 people

1.  divorce

2.  bad health

3.  parent plus student loans

This journey started in 2005.  Oh and a disabled veteran since 1991.  So, how can I rebuild my credit. FedLoan sent to collections then to Sallie Mae now back to fedloan.  done deferrments, hardships and this is doing is keeping my credit screwed.  Yes my daughter is in school.

Reply by
Sharron47

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Helpful to 63 out of 115 people

How do i find out why my score is low?

Reply by
elaeo

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Helpful to 33 out of 51 people

If a lender that you have an account with runs an inquiry, it doesn't affect your credit score. If you have an account with a lender that pulls your report, it won't show publicly on your credit report or effect your score because you have an account with them. For example, I have an American Express. They pull my report quarterly and review my account for interest increase/decrease credit limit increase/decrease reasons. Them doing this does not leave an inquiry on my credit report. I have previously called as well to have them adjust my credit limit and no credit inquiry was posted, yet they pulled my report.

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Helpful to 3 out of 5 people

You didn't answer the question, you only talked about flawed reasons.

Reply by
V2014

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Helpful to 31 out of 50 people

I have 3 open CC one $0 bal, other low & one with a high bal that I just paid to go below 35% student loan and car. I have 1 item in collections. Should I start paying on it or settle? It's been 2 yrs almost . Would getting a nother CC help bring up score or would a loan of some sort help more . My goal is to raise it by 50 points.  

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10 People Helped
Helpful to 10 out of 18 people

I have a credit card with a $1000 limit. I got an email saying that if I make 5 payments on time, they'll increase my limit to $1500 automatically. Will this be another hard inquiry that will lower my credit score?

Reply by
jmb122255

1 Contribution
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Helpful to 6 out of 9 people

Best advice get a secured credit card or 2. Use once and pay it off immediately and never use again. Do not close accounts, clear all balances. Learn to budget and stick to it.  I went from 520 to 714 in 18 months and have 3 major credit cards and 4 local gas and store cards. It takes time and patience but it works. Best of luck.....

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Reply by
ernestf01

115 Contributions
1223 People Helped
Helpful to 76 out of 94 people

 Best way to get 100 points in 6 months to a year. If starting from scratch is to go to get your free annual credit reports from all three agencys and dispute all errors from exspired bad history to mispelled personal information to jobs 20 years ago. first one and hardest to hit is equifax you may be disputing there information for years. But once reports are cleaned up. You will notice a spike in three months. Get two secure bank card with no annuals fees backed bye a savings account from a bank. rotate months using them. A credit card gives points more often than a loan ever will. That and some banks after 6 months of good usage turn the secured cards into regular credit cards. as for six month no take 3 months just for every one to update every one else. Now if you go annual fee cards at the end of six month apply for no annual fee cards. like barclays. Now this is the part most people will argue. You got to trash your credit to build your credit. No you don't ask for credit increases once your score gone up enough you flat out apply for new credit lines. You don't do online applications you talk to some one in chat or on the phone. you describe your situation to them and ask them what is the best card for your credit score and history. If they give you annual fee secured card hang up. If they say they don't know hang up. Any one who know there job can ask you a few simple questions and pretty much tell you which of there cards to apply for or none of them. Now in your first few years of building new credit you are going to get a lot of hard hits and if your shopping for best rates and limits you should be. You got to trash one side of your credit to build the other side. hard hits for deceint lenders. PS I did 100 points in a year after a bankrupcy brough on from disability. But after 2 years I suggest one hard inquiry every six months and start droping cards you dont want as you get better ones but keep your oldest account. for a good credit history you got to have twenty plus accounts current and closed and in good standing. And dont be late on not one payment. As for getting credit limit increase on a card. depends on the lender if they stuck at 500 limit after a year you got to charge it up and pay it off in a few days. if they give generous increase then stay in ten percent utilization. As for charging up the 500 dollar one. make sure its withing 10 percent of your over all credit. Most people with bad credit score all make their payments on time. But they seldom upgrade their cards,negotiate better apr.when a bank says you need a co signer they never ask why. I refuse to use a co signer myself thats like linking bad credit with good credit to bring the good one down. thinking I buy a 30k car every 3 years. That shows bank tied up money or over extended. Home paid off tells lenders new roof,remodeling insulation just because house is paid off doesnt mean it isnt a expense. people got to realize equality and revolving credit are based differently. equality is on what you have. revolving is on what you can spend and pay off

Reply by
sethyg2020

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Helpful to 7 out of 7 people

I was trying to get my score up like 50 pts and do not get a loan that backfired on me big time. I had a 682 and wanted to get into the 700s so I applied for a little personal loan like 350 bucks and I made every payment on time and paid it off 3-4 months later and 1 week after that my score goes from 682 to 609!!!
That s my problem... anyone have any answers why this happened to me?

Reply by
jgandert

2 Contributions
3 People Helped
Helpful to 3 out of 3 people

I followed the suggestions from Credit Karma and my credit soared. Getting more credit cards was a shocker to me, but I did it and pay them off each month. They want to see that. I also cleared up a disputed medical payment from a couple years before, even though I still felt I was in the right. Paying it off increased my score. 

Reply by
jbmercedes2006

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1 Person Helped
Helpful to 1 out of 1 people

How do you figure out why your score is low?

Reply by
WTG6477

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This is not necessaryly true. I have a capitalone cc and started off w/a $300 limit, which was raised to $500 automatically after my 1st 5 on time payments, after 1yr i went online and requested an increase, i was approved for a $1000 credit increase w/no inquiry at all, soafter only having the cc for just over a year i now have a $1500 credit line......

Reply by
markeith52

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I have alot of hospital bills and one repossession on my credit. How can get them off 

Reply by
gstudly5

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I have a few loans and credit card balances that I would like to take a loan out and pay off completely.  Would it help my credit score if I take out a loan and payoff all my credit card balances and 2 personal loans?  Or would the loan hurt my score basically keep me score where I am at? Any advice would be great! Thanks in advance!

Reply by
lifeback

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My situation seems to be unfairly complex. I'd recently filed for bankruptcy then a few months later was serverly injured. I was off of work for a year do to a Tramatic Brain Injury. Currently in a legal battle over outrageously  high medical bils. My other day to day bills are in collection and lost most ly every thing i owned. Am I able to have these accumlated bills to be removed due to hardship, can they be put in dispute? What can I do to regain my credit back?  

Reply by
Felisa1985

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I really need help with ur advice I'm having trouble with finding things that will help me but it's always a turn down what can I do it I'm Ronald I'm disabled veteran and my daughter needs help to fight her scores as well?

Reply by
AML1991

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Hi I know this is kind of irrelavent to this persons question, but I was wondering if you can answer my question. My fiance opened a secured credit card through Capital One in August and put me on as an authorized user. Sense then we have paid the credit line responsibly and kept the total balance low and it has sky rocketed my credit. I was wondering if I applied also for a secured credit card throug Capital One would I still get approved being an authorized user on his? I would love to see the same affect double

1 Contribution
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99 points in 6 months

Helpful to 539 out of 649 people

I had 4 medical bills on my report. $65, $150,$750, $1600. The goal is to pay off as many as possible. Working from the smallest all the way up. And the one for $1600 they mailed to the wrong address so i disputed. Literally made 20 calls, talked to several managers, then reported the creditor and original debt holder to the BBB. Finally got it removed. Remember these guys buy debt for pennies on the dollar. Negotiate with them...usually you can get them to accept half the payment. Get it in writing first. Second go to your bank and talk to them. Get a pre paid credit card. You basically put money on the card up front then charge just groceries or gas. Keep it less than 20 percent. Also get a loan for debt improvement. In my case they loaned me a $1000 and kept it in my account i could not touch it. Then they withdrew the money from my automatic deposits from my paycheck. 6 months later i went from 597 to 696. If your problem is the same as mine...you just have to get off your behind and do it.

Reply by
allan0918

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ive paid off old debt the last few month.. only have 2 left to pay off.. i already got the sercured card through my bank... it did help a lil bit .. Not to much though!!  I dont know what else to do .. my total debt is less than 1000 dollars.. i cant quallify for a loan to help build my score

Reply by
bobbyjoeboggs

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Helpful to 31 out of 95 people

That is bs. No way that could be true. Bad advice, and it is also impossiabl.

Reply by
elaeo

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Helpful to 61 out of 102 people

That's a shame because if you would have waited, behind medical bills will soon have no effect on your credit score.

Reply by
hopey028

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Helpful to 8 out of 10 people

 When you paid off your medical bills, did they come off of your report? 

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Reply by
kjarrett1991

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check your credit report and see whats on it that might be why but just keep paying on your card on time and eventually they will increase your limit it might take sometime

Reply by
silkmandel

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Helpful to 1 out of 1 people

Who did you get the loan through?

Reply by
cpaige08

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Can you please explain the part about them loaning you $1000 and keeping it in your account.  

My situation is a bit different.  I have had a Kohls card, a Best Buy card, three vehicle loans and one mortgage.  I did have some late payments and derogatory remarks from when my ex used my Kohls card and I didn't know, therefore was late on paying.  I am going to write Kohls and see if they will work with me to remove any of those negative marks.  

I don't have a lot of credit and a small portion of it is bad.  How can I increase my score quickly?  I got a Home Depot card a few months ago and just recently requested an increase.  They did a hard hit on my credit which lowered my score by one point.   I learned my lesson but sadly the hard way.  

Since my husband and I both don't have hardly any credit, the max HomeDepot would give me on a credit line was $500.  This is not helping me improve my score.  :( 

Reply by
Chiazar

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Scob: where did you find that type of 1000 loan? A credit union? I am interested in somethign eimilar to improve my credit. I have love revolving accounts. thanks!

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442 People Helped

If You GOT TIME.....

Helpful to 442 out of 504 people

Get a Credit Report and go to work! I raised my credit score 92 points from April 2014 to Dec 2014. Takes alot of letters to Credit Bureaus! You have to know what to say and know how to read your Credit Report! It can be done! Also, I had alot of old debt, but it was worth the letters and time to get my score up, I have 1 more item coming off in Jan 2015. Experian will send you an updated Credit Report every time you dispute a debt! They will also tell you when the debt is coming off your Credit Report! Out of the 8 items removed, 4 were by Experian telling me, what dates, items were coming off my credit report and me sending a letter to remind them! The other 4 was timing and them not responding in 30 days, so they had to remove by default! So again, know what to say in your letters and make them search for the Co. and bad debt! It will work, with time and alot of hard work, it's worth it to stay on top of your Credit! IT"S IMPORTANT! You will thank me!

Reply by
nsardina

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Helpful to 90 out of 123 people

Can I ask, What you said in your letters to get the 4 off from experian not responding in time?

Reply by
TQN7

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Helpful to 44 out of 73 people

Yes, can you please share what needs to be written? 

Reply by
m3shelle

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Helpful to 18 out of 41 people

Thanks for the message TheChefswin. 

After analyzing my situation I believe the best step, for my situation, is to contact the cb in writing.  Did you work with anyone on this? I am skeptical.. especially if diligent online research does the trick in helping what and how to type.

Michelle

Reply by
Chanehead

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Enter Your Reply. I disputed some errors from a childsupport debt to experian and transunion, I mailed it return receipt so I'd know when they got it! Only one of the two responded saying they want remove it but will update it to the correct balance being that it showed a great deal more then what i'am behind, mind you I'm no longer on childsuport I pay a set payment towards the arrearages until it's paid off, so my question to you is if they do not respond who do I take this up with to guarantee they remove it if they fell to respond that is within the given time 45 days?

Reply by
Sarahtroll

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Enter Your Reply What do i have to say to get the help?  And it's just to the 3 credit bureaus right? 

Thanks 

Reply by
hopefulone1

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I would and have been trying but it seems impossible. Im told that I already recieved a free credit report well I havent! And now Im chasing everyone just to try and get it from SOMEONE!!!!!

Reply by
dartanyan1990

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Helpful to 0 out of 1 people

How do you mean by "The other 4 was timing and them not responding in 30 days, so they had to remove by default!"? If you send a letter and they don't respond within that timeframe they must remove the report?

Thanks in advance for your help!

Reply by
bubbs922

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What questions did you ask them? 

Reply by
beckfree27

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Yes! I would love to know exactly what you wrote in your letters? Were the items due to come off? Or were you just questioning their validity? I have a few that should be coming off soon, they have been coming off in a timely manner. A lot of items have been picked up by collection agencies, and are all 5-7 yrs old. I cannot read your replies to everyone else unfortunately. So sorry if you are repeating yourself. Even if you could copy and paste your responses that would be helpful. Thanks so much!

Reply by
nkmend

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Can you tell me what to write in the letters? What about late mortgage payments in the past? 

Reply by
nkmend

2 Contributions
0 People Helped

What do you write in these letters? What about late mortgage payments in the past? 

Reply by
michelle0816

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What do you say in the letter?

Reply by
clark1969

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What do you say in your leeters. where can i get a sample letter?

3 Contributions
264 People Helped

158 points in 45 days

Helpful to 238 out of 261 people

I went from a 496 TU to my current 654 in a little over 45 days and I'm still  getting positive bumps every two weeks. Just follow the basic formula and anyone can do it. At my current rate I should be hitting mid 700s by summer time. 

-Pay bills on time

-have 3 open credit cards with utilization below 10%

-pay off old collections starting with the most recent ones as they have the greatest impact on your score

-don't apply to too many places. Get your three cards and call it quits. it's all you will need for now

It's very simple. 

Reply by
Juanisha82

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Helpful to 13 out of 18 people

Very true. I did the exact samething

Reply by
GadgetMang

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I'm going this route also, so far my score is 595 TU and the 2 cards I have are secured. When I hit 6 months on one of the cards going to apply for a  Amazon Prime Card. (unsecured store card) 

Keeping utilization below 10% is a bit unrealistic for me, my credit limmit's are $700 and $200, so will just keep them under 30%. I'm expecting positive results for my score in 6 months and will post if it was.

Reply by
jetsettinbeauty

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Helpful to 18 out of 20 people

I did the exact same thing. I paid off all of my debt-made settlements-and had them removed from my credit reports. I also went through my bank and applied for a Chase Slate credit card. I was approved for a credit line of $500 and I kept my utilization below 30% and after the 1st billing cycle my 3 scores jumped 60+ points. I added must husband as an authorized user to that account and his scores jumped 100+ point within the 1st month of me adding him. I pay the minimum amount each month and I make sure at the end of each billing cycle my utilization/balance of the card is less than 30% of my credit line. I like credit karma because it gives you an idea of your crdit scores, but I absolutely LOVE MYFICO because those scores are 100% accurate.

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Most Helpful Response

watch closely

Helpful to 231 out of 244 people

10 months ago i had a score of 550, the easiest credit i could get is with fingerhut, got a $400 credit limit, for the first couple of months i didnt spend more then $100 at a time for bithdays and things i needed around my home and paid it off quick, 3 to 4 times what the payments required each month, Within 3 months my score went up to 613, i needed a newer, more economical car, I had the dealer get the finance company for me, I know the dealer gets kickbacks but i didnt mind, i was on a mission to fix my credit, My payments where $170 per month, I paid between $200 - $230, my fingerhut account credit limit went up to $1000 after 5 months, again I would not spend more then 25% of my limit and paid it off fast, Score went up to 640, just before christmas fingerhut bumped me up to $1600, I use them for presents, spending a little over $500, with W2's coming in mid January I knew i would pay this off fast, went from 28% usage to 17% to 0% by mid March this year and put 4 payments down on my car, i was already 2 months ahead with all these on time and advanced payment my score jumped up to 730 as of last week 4/4/15, i got my first credit card this week, it cost me 4 points and got me a $2000 credit limit 16.99% APR which doesnt start until April next year (was expecting maybe $500 to start) I use my card for Gas and groceries, i make sure i have the cash in my checking account and transfer to my savings each time i use my credit card, I will tranfer the fund to my card at least 5 days before the due date, Im sure this will help my credit score too,  Credit karma tells you what % you are using on your credit accounts, keep a close eye on it and you shoud be seeing a lot of positive numbers on your score, mine went up 180 points in 10 months.

Reply by
Juanisha82

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Helpful to 16 out of 24 people

Very, very, very helpful. I had to screen shot this...lol

Reply by
gobbly1337

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Spot on.  This is basically what I did.  Went from ~640 to 750+ in 2 months, though it took more like 6 to set it up for that jump.  It really depends a lot on your current profile, so no one can answer you definitively, but the story above is a great example of what can be done if you understand how they are calculated.  It would behoove the OP to get a feeling for how the number is derived, and formulate a strategy specific to their credit profile.  There are some general rules of thumb that are good though.

Avoid more than 1-2 hard hits.  If you have 3 cards, you have what you need, if not, get 1-2 more, stop at 3.  Don't apply unless you are fairly sure you will be approved.  I did it with 2, 3 is more effective as you end up with more available credit.  If you have issues with credit and budgeting, don't even bother with this strategy.  You have to be able to quickly pay off what you put on cards, ideally in full by the due date.

I used 2 cards, started at 2k limits on both.  Moved all my spending to those cards, put ~1-1.2k a month on them, alternating back and forth, and paid it off each month.  In 6 months both cards went to 6k+ limits, one automatically, the other I had to request.  As soon as those higher limits hit, my score started to really climb.  The number 1 way I have seen to raise your score when you are closing in on the excellent scores is to increase your limit enough that you can shift all of your monthly spending to cards, stay under 20% utilization, and pay them off in full each month.

Not everyone is in that situation though.  The reason It worked is that I don't have much else that was pulling me down.  I didn't have terrible credit, I just didn't have a lot of it in general, specifically I lacked avail credit on revolving accounts.  I had 99.8% on-time payments, an average age just over 8 years, one paid collection and no records.  Climbing quickly isn't all that difficult for some, but climbing against a lot of negatives pulling you down is difficult to say the least, and in some cases unrealistic.  Some things you just have to fight the reporting company, or wait it out till they drop off naturally.

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17 Contributions
502 People Helped

Helpful to 465 out of 559 people

Pay all bills on time and have 20 percent or lower utilization.

Reply by
RCJB

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HOW DO YOU FIGURE 20% OF UTILIZATION

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Reply by
HariKariGirl

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20% Utilization would be 20% of your total credit limit.  So if your credit limit is $100 than 20% would be $20.  If your total credit limit was $200 then 20% would be $40.  And so on and so on and so on.

Reply by
go56football

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Helpful to 16 out of 30 people

you take the total of what all of your credit cards are and see if you are under or over the 20%

Reply by
Kneltx33

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What's utilization? 

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Reply by
eastcoastman73

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Enter Your Replyi keep mine under 10%..the lower the better though...pay it down to 0% percent now and then..

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Advice from a Loan Broker

Helpful to 331 out of 520 people

Obtain as many revolving accounts as possible and keep the balances under 45% of the limit to avoid a negative effect. Keep in mind to only apply for lines that are most probable and make the inquiries within the same reporting period. Every 90 days contact your existing creditors to increase your line and generally you can expect roughly a 20% increase until you hit the maximum allowed for the program. Be sure to do that when your balances are below 20%. You may want to show a high balance of almost maxing out the card the month prior then paying it down to under 20%. That will give justification to raise the limit and show you can successfuly charge it up and pay it down. If you obtain 5 new accounts and raise the limits at least once per account, you should get at least a 50 point bump as long as everything else has been in good standing. After 12 months of seasoning, you could end up seeing another 25 points. 

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Reply by
EddyTX

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Helpful to 115 out of 145 people

This seems like very risky advise. 

Reply by
boyerjohn68

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Helpful to 38 out of 59 people

my thoughts are, charge a small amount on your 0 balances, with auto pay as not be late,at 0 there is nothing showing as far as payments, keep it under 30% or less and hire a firm like lexington to dispute any negative credit. They barrage the collectors to show proof and most cant provide it. It will cost 100 for aggressive or 49.99 for semi aggressive tactics. but they will help improve your score fairly quick.Ive saved thousands and my score keeps rising.good luck

Reply by
Srybutusuck

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Helpful to 84 out of 118 people

You should not be giving people advice

Reply by
traychawk

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Helpful to 27 out of 36 people

Yeah, I agree with everyone else, you should NOT be giving advise!! DON'T LISTEN PEOPLE!!!!!!!! 

Max out credit cards and pay them off is such bad advise, and opening as many accounts as possible is even worse! Every time you open an account or ask for a limit increase, that effects your score in a negative way.

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Why shouldn't  he/she give advice and how is that 'very risky'?  I have 4 credit cards, 3 that I've obtained within the last 12 months.  $300 starting limits.  2 of those are now $2,300 each, one is $600, my oldest is $7,500.  How did I get the $2,300 on the two newest ones?  Paid all my monthly bills with them, then paid them off every payday.  Every single bill was paid using those cards, rather than simply using my checking account.  The checking account paid off the credit cards. Simple.  The cards were not used to buy stuff I couldn't afford, ONLY to pay normal monthly budget.  My credit score has jumped over 100 points.  

If I have a relapse and become stupid as I was around 10 years ago, then yeah, it would be risky as I'd just run out and rack up those cards and drown in debt.  But I was young, immature, working full time, but raising 3 kids, and pretty much just spent money (read: used credit) without using an ounce of common sense.  

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Reply by
kjarrett1991

40 Contributions
82 People Helped

that happened to me and my score did go up i spended up and paid it down but i am trying to keep it at 30% or less

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Reply by
kjarrett1991

40 Contributions
82 People Helped

that happened to me i spend up and pay it down and i was afraid it would affect my score but it didnot it went up..But i try to keep it within the 30% ..thanks

Reply by
mlizcano

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Helpful to 4 out of 5 people

Telling someone to open as many revolving accounts as possible without exact guidance is not prudent advice. Credit increase request every 90 days will lower score as will obtaining "as many revolving accounts as possible," All balances should be under 30%.

I raised my score dramatically by NOT opening any new credit and just paying them off using 0% balance transfers between four existing cards. There is a trick and not easily done without knowing all the tricks the CC companies use to mess you up. For example if you transfer $3K to an existing card with $0 balance and $4K limit, your score drops for exceeding your limit by 30%. Then the CC company has the right to negate the 0% interest rate because your score has dropped and they trap you with a higher interest rate. Therefore, when you transfer money to a CC, that CC should have a zero balance, the transfer should be less than 27% to account for balance transfer fee, usual 3%, and you should not use it again until the balance is paid off. My score has gone up 77 points in less than a year, I have paid 3% interest 4 times, and the rest of the interest has been 0% with the exception of one card that has a 2.99% interest for the life of the balance transfer.

Another CC usage I practice is using my CC (if I have to) for no more than one week after the closing date. To that end, I do not charge more than I can pay off in 6 weeks. The new charges will be delayed and you have more time to pay them off before the following closing date.

Example: Using a credit card with a closing date on May 27 and payment due on June 26.

The next closing date is June 27. If I charge 250 bucks within one week after May 27, these charges will not appear until June 27 with a due day of July 26. Thus,  the CC companies do not report to the credit bureau companies the new charges (credit bureau does not see this charge and only see the payment with the balance going down). Now you have several weeks  to pay down that 250.  I personally calculate the number of payments to pay it off (or as much as possible) on July 26.

Here is a real example of how planning CC usage can save you money. I need a new AC,  cost 2800 bucks.  I transferred $2000 to a CC with 0 interest for 18 months and the 2K transfer is 25% of my available credit. I am now transferring the remaining 800 dollars to another 0% balance transfer and this is 12 % of my total available credit for the second CC.  The money I transferred from CC1 to CC2, was never seen by the credit bureaus on CC1 because I transferred out before the closing date. Even if it did see the charges, it will show the 2K charge with the 2K payment for the balance transfer. CC2 now has a 2K balance with 0% interest. I will not use CC2 nor CC3 until it is paid off and I will make $112/month to pay it off in 18 months. CC1 is now paid off and I will only make small affordable charges (if necessary) that I can pay off within 6 to 8 weeks (~$600) until the balance transfer cards are paid.

CC credit card companies only want to make money, Cash back is a joke if you are paying 17 %. If you are going to get a credit card try getting a credit card from a credit union.  They have the best rates.  I pay 7.25 % and when I first joined them, it was 9.25 % interest. The lowered it when my score exceeded a certain amount and paid them off. I know this is easier said than done.  It has taken me quite some time to get to this point. But my accomplishment of rarely paying interest more than a single 3%  from balance transfer fees for the past 4 years was worth the planning and careful usage of my CC.  The bottom line is that CC should be a tool not a way to get what you want just because you want it now.

Just my opinion and methods 

Reply by
10sfit

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 Hello,  Thanks for  the advice!  Now I have questions about what you are saying.  What is Revolving accts?  If you mean credit cards, how do I apply for one without them giving me a hard pull on my credit?  If I pay off credit card completely each month will that help my credit or does credit bureau want to see a balance to register on the report?  

As of now I have no credit cards so want to do it right and   for the sole  purpose of raising credit scores.   What should be my strategy? 

Reply by
hollyk923

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I have raised my score by 80 points in 6 months just by getting two additional cards and keeping them below 30% every month ..simply amazed

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Reply by
stgcret

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In my humble opinion, this is really stupid advice, but he is a Lender!

If you are going to have Credit cards, the magic number is keeping the U/R or utilization rate under 30% and the lower the better (mine is 13%).  I read U/R wasn't understood very well on this blog, so here goes;

1) U/R only has to do with Credit Cards

2) I will use 4 credit cards to show the math

3) Card one has a max credit line of $2000 and you have used $1000, then you have a U/R of 50% on that card,

     card two has a max credit line of $5000 and you have used $2000, then you have a U/R of 40% on that card,

     card three has a max limit of $10,000 and you have used $2000, then you have a U/R of 20% on that card,

     card four has a max limit of $3000 and you have used $300, then you have a U/R of 10% on that card.

To figure to total U/R, add all four cards max limit; $2,000 +$5,000 +$10,000 +$3,000= $20,000 divided by the amount you owe or; $5,300/$20,000= 26.5% U/R    hope this helps

Reply by
farout68

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Obtaining as many revolving accounts as possible is stupid! It just shows you are willing to get credit no matter what the interest rate is. It also might show you are a gambler needung  availible quick cash.

I might add buying a new vehicled does not help your credit. All delaers send out a blanket request to a bunch of lenders at the same time and flood your credit report with as much as 10 different "hard inquries".  I bought three trucks in a year and now I have 24 hard inquries showing on my report. Even though I did not authorize them all they are there for a long time. My FICO score was just over 700, now its 581. I am really upset.

Here is the kicker, Credit Karma suggest bankrupcy in their reccomdations for my credit. That would be death step for me as I am 70 and it takes at least nine years to get that of my credit report. 

I am very leary of what Credit Karma says.  

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Reply by
texansfanfromTX

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This is the worst advice I have ever heard!  

I had a hard time opening a Chase Freedom card this month because I had too many inquiries earlier this year. All in the same reporting period. 

45% is an outrageous utilization ratio.  Lenders want to see MAX 30%.  And most lenders like  Capital One will only Consider increasing your limit every 6 months.  Also this guy never said to make payments in excess of your minimum. This is what will get your limit increased, but not every three months. 

1.Pay off any collections smallest to largest.

2. Apply for the Capital One Platinum card or the Quicksilver One mastercard versions only! If these don't work get a secured card. 

3. Maintain <30% utilization and make your payment every month. 

With these CO cards they put you in the Credit Steps Program. Make your first five payments and they increase your limit. But if your making Large payments, not the minimum, after the first three months ONLY  you MIGHT be able to have your limit increased. I had both these cards started with $300/$500 after 3 months $800/$1500 and now there @ $1300/$2000 at the end of the Steps Programs. 

Started with 551/549 in March 2015 in November 2015  662/657. That's 6 months >100 pts in 7 months. 

Reply by
adriatictales

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In all honesty, this is horrible advice. If you are a loan broker, you obviously think more of the bank you work for than your fellow man. People, I have had the lowest score you can imagine, I was in the low 400's due to excessive debt, bad collections and more. And now I am working my way out to 700. Here is how. Stop spending. My wife and I were fed up with living in apartments when we found out we could have a monthly mortgage for less than we were paying in rent, so we finally sat down and made a plan. The bills have to come first. And this is the major reason I say that this persons advice is bad. Yes, getting larger and more credit limits MAY, increase your score, maybe. But you also have to have the dicipline to not use the money. Most people who are pinned down under a bad credit score are there due to bad debts, creditors calling, or unpaid bills. Borrowing more money is not the solution. Debt is just that, debt. And debt does not make you money. Assets however, do. You have to find a way to make your money work for you. And while you are looking at those options, just stop spending money on stuff for a while. Try going a whole month doing nothing but buying groceries, gas, and paying bills. See how much is left over. This is your discretionary income. The money you could do whatever you want with. Then take that money and put it down on a bill that is over due, or a card that needs to be paid down. Where we got into bad debt was everything was always overdue. We were paying an extra 100 dollars a month almost in late fees alone. You would be amazed at how much less stress you will have when everything is paid for the month and there is still money in the bank. Even if it is only 20 bucks...

Reply by
artgal7

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I have to agree with EddyTX. Seems to me all this frequent requesting of lenders to raise your limit is going to result in a lot of negitive inquiry dings on your score. I tried it once a year or so ago and although my acct was in excellent standing I was refused the increase but of course, not the inquiry point against my score. And all this from a credit card that I regularly made 3x the minimum pmt on every month. Booo ..Hissss!

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Improving Is Possible

Helpful to 14 out of 14 people

In January of this year I decided I would get my credit together with the hopes of purchasing a home within the next 2 years. I have always been able to get car loans with very high interest rates and have managed to always be on time with my payments. I had school loans that were never paid on time due to all the payments combined being over $1000 per month. Credit cards have never been an issue because trufully no one was going to give me one with my credit score. So when I decided to start making changes at the begining of the year I decided to take a chance and applied for a capital one credit card. I really thought I would not be approved but to my surprise I was approved for 2 unsecure cards for $300 each. At that time my score was 560. 

Over the past few months I consolidated my school loans to a more manageable payment. I have used my credit cards responsibly and keeping my utilization under 10%. My capital one cards CL have each been increased to $2300. I now also have a credit one, merrick bank and walmart credit card. All of my bills are on auto pay so that I make sure I don't miss a payment. I have a few things in collections but they are all really old and will be coming off of my report in 6 months-2 years. I have been advised by my future mortgage lender to just let those be.

Yes you heard me right I did say lender. One of my friends in real estate was aware that I have future plans to purchase a home and set me up with one of her trusted lenders. She thought it would be a good idea for us to meet in order for them to pull my credit and set up goals that I can work on to make sure I get the loan when I'm ready. When my score was pulled my middle mortgage score was 643. I was told I can qualify for the loan now but I choose to wait because I want to continue saving and also raise my score more. I was advised to leave the few collection accounts alone and the only thing he wanted me to work on since I'm not buying now is to get my car refinanced. I started working on that after leaving the lenders office. I was real sketipical even still with a 643 about getting approved for a loan. I tried my hand and applied at NFCU (which the lender suggested) and within 15 minutes of applying I received an approval for $23000 :-) My interest rate went from 14.25% to 3%. My payments went down significantly! Between the savings of my car payment, finding cheaper car insurance, lowerig my cell phone and cable bill I am well on my way to reaching my savings goal well ahead of time.

I say all of this to say that making improvements to your credit and score are definitely possible. In only 8 short months I have gone from having poor credit to having decent credit. I was shooting for purchasing a home in 2018 however, that might be happening in early 2017 for me. Come January I will have my mortage score pulled again and if I am at 720 I will move forward in buying. I'm very optimistic that if I continue to do the things that I am doing I can increase my score by 77 points. I will definitely update my progress then.

******I forgot to add that I pulled all 3 of my credit reports at the beginning of the year and did what I see some people paying Lexingtonlaw and places like that do. I disputed things myself. The credit agencies make it easy to do yourself online now. I was able to get MULTIPLE items removed myself and it didn't cost me anything except a little time. The money that I would have used to pay someone else to do the exact same thing I was able to add to my savings and it didn't take long at all. I just added this because I want people to know you can do it yourself and it is not difficult at all.*********

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Excellent!  And for those of you who need to dispute with the collection agency's or debtors like I did, I want to share with you what I wrote.  Keep in mind if it is a legitimate debt, this won't work.  There was no way I was paying anyone to do something I could do myself.  Here is my letter of dispute and it worked:

When disputing errors on your report, here is a letter that worked for me.

Insert Date, your name and address

Insert debtors name and address

                        CERTIFIED MAIL    RETURN  RECEIPT

RE:  (type what this letter is about)        Account Number:  Unkown (It was for me)  

Dear Sir or Madam:

I have recently obtained a copy of my credit report, and it shows that you have reported

(fill in this blank)  as "placed for collection".  I have NEVER had an account with ......... (or explain your reason)

This reporting placed by you is very disturbing and it is doing serious damage to my credit rating.  For the past two years, I have been working diligently at improving my credit.

As you know, you are required by law to make sure that bills are accurate and sent to

the correct address.  I have never received any bills or I would have contacted you

immediately to notify you that I do not have an account with you.

I hereby request that you take the following steps to remedy this situation:

- Send me a notarized statement attesting to your compliance with all provisions of the

 Fair Credit Billing Act with respect to this account.

-  Provide any and all documentary evidence of my indebtedness for all charges you claim

   Including billing statements to me. 

Please attend to my requests promptly as time is of the essence.

If I do not receive the above requests within the period prescribed by law, I will expect to

receive written notification that you have, in fact, made the required deletions from your

reports and that you have removed from my file any reference to the disputed account.

If you cannot provide the statements and documentary evidence required, then I insist

you delete all negative references from your reports to Experian, Equifax, and

TransUnion. 

I also require that you communicate with me only in writing.  Please do not contact me

by phone at any time for any reason.

To verify my ID and my address, I am enclosing copies of my Drivers License.

Sincerely,

 This was an actual dispute.  I never had an account with them yet they were on my credit report.  Save your letters.  What happened in this case, was that they closed out the case, removed it from my credit report and sold it to another collection agency who reopened the entire case as if it were brand new.   I had to write to the new collection agency.  I used the same letter.  Of course, I changed the name of who I was addressing the letter to.  I also attached my original letter with the new letter serving as proof that this is now being disputed a second time, actually a 3rd time as I also disputed with the original creditor.  In the end, everything was cleared up.

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Utility Bills

Helpful to 14 out of 14 people

Get a credit card(secured if need be) for each utility bill you have. Have each utility bill auto pay on one of the credit cards. Pay off credit cards every month. The beauty of this is it's money you would have to spend anyway but it's building your credit while you pay your month to month bills.

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Debt sold to other collection companies

Helpful to 160 out of 222 people

What cn you do to remove collection companies who purchased your account after it's been charged off or closed out by the original creditor?

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Reply by
BungalowMo

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First off...they have every right to report.  Something that has been charged off is a bad debt & it gets sold to collection agencies. 

Your best course of action is to send them a letter offering a "pay for delete".  You pay them off...they remove it from your reports.

Do EVERYTHING via us mail  send the certified mail, return receipt.  That way you know they got it.

Lastly, the original creditor will, and legally can, keep this on your report for 7 years from the last date they received anything from you.

Hope it's old cuz it's gonna hurt for a long time.

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pay it its been charged of because it has been sold. so now that  collection company will be on your report for the what seven years or whatever

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oh and a collection agency CANT DELETE something off your credit report they can only report it to the credit bureaus as Settled in Full or Payed in full. Getting it removed would have to be done by the cb

Reply by
Gdukot

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First, turn this into a seek and destroy mission.  You need to find out how much the debt is.  How old is the debt.  Also, what are the statue of limits in your state.  When I lived in Arizona it was five years.  This means after 5 years they can no longer pursure you.  If the debt is over a year old negotiate a settlement.  For example give a low ball figure.  They will offer a high ball.  Meet them in the middle of if you can.  Example: a doctor bill 500 dollars. Offer 150.  They will want probably double depending on the age of the debt.  Try to settle for 200 and kill it.  Once paid wait about 5 days and file a credit bureau dispute as the debt is paid and get it off your report.  If you do not regonize the debt or do not know who the collections sold it still dispute it.  This force the companies to reveal themselves.  They want their money.  Settle collections, get it off your report.  Chop your credit card debt in half.  Get you usage around 19 to 20 percent.  This should increase your score.  Also, apply sparringly for credit and racking up hard inquires.  Go forth and sin no more.

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Don't listen to BungalowMo's advice, he obviously works for a dirt bag debt collector.  Never admit to the debt or pay anything to a collection agency, it may trigger a new start date to the Statute of Limitations time frame.  You don't want that.  If you are past the statute there is not much they can do except harass you into paying, oh and file invalid lawsuits.  Now one comment on a lawsuit by a creditor or debt collector (mainly the scum bag debt collectors), 95% of people sued by collections companies, don't show up to court.  The scumbags then get an uncontested judgement against you which allows them to garnish your wages.  

If you are sued, show up to court and challenge the suit on 3 points - Statute of Limitis - in california the time frame begins on the last payment you made for that acount.  Show the judge when you defaulted, or last payment and if you are outside the limits, move for dismissal, 2 - Dispute the validity of the account - It is the scum bag's obligation to prove in court that the account was in fact your account.  Anything short of a copy of your original application for that credit line, is grounds for dismissal, if they don't have it, which they won't.  Move for dismissal.  3 - Challenge that particular scum bag's right to collect on the specific line of credit.  A bill of sale from teh original creditor as reciept of the sale to this particular scum bag is the only document you accept.  They won't have it, they never do.  The system doesn't work like that.  Once your account is in defaulty and then written off it is sold to an aggregator that bundles it with ten's of thousands of other accounts and then they put the bundle into a pool where variuos scum bags can take chanks of it to try to collect.  

Obviously, do your research and get real comfortbale on the laws and get legal help from an attorney befoe you walk into court.   It's always better to have attorney represent you but If you are like me, I think it's fun to play attorney for a day.  That saide the judges typiically don't like it unless you kinow the court process very very well.  

Reply by
boyerjohn68

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Depends, if its over 1k they are more likely to try and sue you.  If they havent yet I suggest Lexington Law ,they will barage the collector in different  ways to make them provide accurate proof which most dont have, then itll drop off or be removed from your credit. I have used them for 4 months and had 2 charge offs dropped as well as numerous other innacurate discrepencies. 99 a month for aggressive, or 49.99 a month for less aggressive. Its working for me and I dont have to do the legwork. good luck

Reply by
notarytm

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Have Pre-Paid Legal (or the like) send them a letter.

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The collection agency is the one who TELLS the CB to remove a collection.  I just had 5 collections removed from my credit report after discussing my situation with a bankruptcy lawyer this past summer.  All 5 medical bills have been removed from all my reports, all 5 of which were from the same predators.  Patient privacy my a$$... if they can't tell me when and a generalized why/what the bill is for, they can't tell me to fork over money to pay the bill!  Well, they can, but they didn't get a dime.

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Reply by
eastcoastman73

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Helpful to 1 out of 1 people

Enter Your ReplyCollection companys can all delete the collection if paid, they all will say they dont do this...you tell them its no benefit for you to pay without the complete deletion or your not paying it!!!   keep calm and dont be rude, just stay stern to it..everytime they told me no they dont delete it..by time i got off the phone i can have them deleting it to get me to pay it!!!    do not buy into they dont delete it!!   they all say this..i tell them they put it on there and if they want paid they will remove it or im not paying, it dont benefit me at all..everytime i get the deletion people...dont buy it when told they cant delete it, dont pay until they do please!!! 

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