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cnakanashi

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How to increase 575 CS to 620?
I have a 575 credit score - minimal credit - around 1K in medical bills in collections (currently disputing w/ all 3 bureaus). No credit cards ever. I just opened an auto loan for 11k about a week ago and my score shot up about 30 pts, I also received 8 additional hard inquiries during this process. A credit union approved me (with co-signer w/ 800CS) for 2.99% interest. I have no positive credit history.

I do realize that paying my car payment on time for at least 6 months will help but not a great deal. My family and I are looking to purchase a home in the next 1-2 years and I am trying to get my credit score in a good place for that reason only.

What else can I do to help increase my score? I do not have a bank currently. Will setting up an account with the credit union that just financed me help any? Any information is greatly appreciated.

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Disputing the medical collection accounts is a great first step. You did not say how old these were but if they are 1-5 years old and the debt is verified as a result of the dispute, contact the creditor directly and try to work out some kind of settlement. A "pay for delete" is best, meaning you agree to pay a negotiated amount for deleting the item from your credit file. Make sure you get the agreement in writing before you pay them any money. They may go for this, they may not. Getting those collection accounts off your record will surely boost your score. You will need some kind of positive payment history in addition to the car. The 8 inquiries are probably costing you a good 30-40 points and they stay on your record for 2 years but do not impact your score significantly after the first year. I would try to get some kind of revolving charge card. A secured card might be your best bet. Keep the balance at 20% or less and pay it in full each month. The more types of credit you have the more positive an impact on your score as long as payments are made on time and balances kept low. Limit the number of hard inquiries you have as you have quite a few at 8, that's why the secured card is a good move. Best of luck to you!

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8 People Helped

RE: How to increase 575 CS to 620?

Thank you for your reply! The medical debt accumulated in collections ranges from 1-3 years old.

Would it be worth my time to dispute the credit inquiries?

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