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Sazerac1

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How can I raise score? Have three 0 balance closed debts but TERRIBLE score
My score is atrocious, sitting in the low 500's. I made some bad decisions when I was younger. When I was 18 I had 2 credit cards totaling around $5,000 balance. Maxed them out and sent them to collections. I paid both off in a settlement about 4 years ago. They are still negatively showing on my report, even though they are and have been 0 balanced for 4 years. The third account was an $18,000 auto loan at 8.9% APR. I was on time for something like 85% of my payments, but the account is paid in full and closed. Even with my terrible score in the low 500's I was able to lease a $40,000 truck somehow, but no matter how on time I've been with my recent payments my score will simply not go up.

My credit utilization is at 37%, open debt $393, limit $1,070. My derogatory marks is a B with only 1.

I've read a lot of the help section on this site, but I guess I'm kind of hoping for a more personalized response. Thanks in advance!

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Some things can change, some not.

Helpful to 1 out of 1 people

Sorry, but you can't get those two old credit cards removed since they are part of your credit history.  The negatives regarding them will drop off 7 years after the date of last payment as required under the Fari Credit Reporting Act, which is a federal regulation.  The late payments on the old car loan also will remain on your report for 7 years from the date of last payment. 

How are the payments on the student loans going?  Just for information, those loans cannot be removed in any way until they are paid off, so you want to do everything reasonably possible to keep their payments on time.  Any late payments on these will have a negative impact for some time. Been there.

Another change you may want to make is reducing your utilization on the current credit cards to 20% or lower, with the goal to pay them in full every month so you don't have to pay any interest. 

As the negatives disappear, you should see your score start to climb, especially since you are making 100% on time payments now.  Keep up the good record and the rewards will keep adding up.

Hope this helps.

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Helpful to 1 out of 1 people

You say you have three zero balance closed accounts yet you say you have $393 in open debt. Somehow it doesn't paint the full picture. With the limited and conflicting information given my recommendation is to review your actual big three credit reports and challenge any errors noted; continue paying down your $393 debt with a minimum and quick target of $200 (less than 20% utilization) and consider obtaining a secured credit card to add to your now good payment history.

Use the recommendations here at CK to evaluate the possibility of a conventional credit card to add to your credit limit thereby reducing your utilization.

Don't ever get behind on any payment!

Don't 'shop' rates. Every hard credit inquiry will have a short term detrimental effect on your credit.

Reply by
Sazerac1

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Thanks for your response taylor, I'm sorry I wasn't clear and I'll try to clear it up a bit more. What I meant to say, and hopefully can say a bit clearer, was that 4 years ago I ran up some credit card debt on 2 cards. I settled with them, and they are paid. The balance is $0 and has been for years on both cards. The third was an auto loan that was finally paid in full about 3 months ago, but it shows negatively because I was only on time for 85% of my payments (according to this site).

As far as the $393 in "open debt", I still have 2 active credit cards, totalling a limit of $1,070. So to recap, I ran up about $5,000 in debt on 2 cards when I had great credit, settled with the collections agency and they closed those cards. They have been sitting at $0 balance for years now. I still have 2 active cards, and my credit utilization is at 37%. 

I guess I'm asking how, if, and should I get those 2 old cards from years ago removed? Can I even get them removed? I would figure that would shoot my credit score back up as I have a new lease (100% on time), 2 credit cards (100% on time), and some student loans. I really hope that cleared it up for you, I'll mark you helpful and I hope you can respond again! Thanks!

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