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help! 2 maxed cards what to do!?? 639 Transunion


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Hi all! This is my 1st post. I have 2 credit cards, each maxed out: $7000, and $1500 limits. The minimum pmt is 107 and 29 respectvely. I used to have more credit, about 5 cards, but I closed them 2 years ago(stupid me). I have 1 30 day late pmt from 22 months ago. I just closed on a new 8k car loan ($164/mo). I've been paying the minimums for a while now and in the process of geting my reports. I have my transunion already, and it says my "score" is 639. What is the best way to improve my fico? Should I get another card and do some balance transfer and also start paying down the debt? I can only afford, at most, an extra $200/mo towards the debt. However, I want to save up to do some REI also. What is the best way to get at better used/line ratio? Paying it down will take a while. Any suggestions? I had the idea of getting good credit with a few banks, and eventually getting signature loans on which I will transfer a little of my credit card debt at a time to, and pay it off while making my credit ratios better. Any thoughts? PLEASE HELP!

 

Thank you

Sam B.

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Hi Sam, and welcome to the boards.

 

Your situation is not that bad, you can get your scores up with a little work.

 

I suggest three steps to start with:

 

1) Check all three of your credit reports: Experian, Equifax and Trans Union. If you have better scores on EX or EQ you can apply for cards that pull only those reports. Your utilization is hurting your score more than your late payment. It would be good to get some new lines of credit so that your total utilization goes from 100% to under 34%. But in order to, you should try to get your score up a bit first. There are some good credit unions that give large credit lines that pull Experian and Equifax. PenFed and Patelco to name two.

 

 

2) Dispute your late patement from 22 months ago

 

3) Pay min. payment (for now) on the $7,000 card and as much as you can on the $1,500 card.

 

 

The above is what I would do. Do some reading on the boards first - A LOT OF READING!

 

Good luck

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Hi Sam, and welcome to the boards.

 

Your situation is not that bad, you can get your scores up with a little work.

 

I suggest three steps to start with:

 

1) Check all three of your credit reports: Experian, Equifax and Trans Union. If you have better scores on EX or EQ you can apply for cards that pull only those reports. Your utilization is hurting your score more than your late payment. It would be good to get some new lines of credit so that your total utilization goes from 100% to under 34%. But in order to, you should try to get your score up a bit first. There are some good credit unions that give large credit lines that pull Experian and Equifax. PenFed and Patelco to name two.

 

2) Dispute your late patement from 22 months ago

 

3) Pay min. payment (for now) on the $7,000 card and as much as you can on the $1,500 card.

 

The above is what I would do. Do some reading on the boards first - A LOT OF READING!

 

Good luck

 

To reinforce what was said in response above by Go West, I can tell you I did PRECISELY what was recommeded above. I had very high utitilzation to start, and one adjustment to what Go West said: I would pay MORE than the minimum payment on the two existing cards, at least $10-$20 per card, just so your records will show you made more than the minimum. I found a lot of the lenders kept records of whether I paid only the minimum, and were disinclined toward granting increases in limits if I had a history of mimimum payments. They don't record how much over the minimum I paid, just " Paid over the minimum " or not.

 

Steps

 

Pulled all three FICO scores from MYFICO

Picked TU and EQ as the strongest reports

Extensively reviewed the thread on this forum called CREDIT APPROVED to find which companies pulled TU and EQ

Applied for cards with companies I knew pulled these two reports

Appled for high limit cards with good BT(Balance Transfer) terms

Moved the balances to those new cards

Called to " reinvestigate " on EQ and TU as soon as a payment posted

Payments were updated on TU and EQ as soon as possible, rather than when the CC's next cycle posted. Claimed I had paid balance in full, did NOT tell them I had made a payment of xxx and the balance was lower, because they would tell me the balance would update " next month ". So I found I had to tell them it was paid to zero. Trade lines came back with updated payments earlier, scores went up.

Made sure to keep alll new and old card balances under 50%

Applied for second round of cards to do the same thing again

Pay down the balance on high interest cards down to zero balance

" Retired " some high interest rate cards to the sock drawer for the first time in my life

 

Follow this advice, and you will do well. I have applied for and received more new credit in the past two months than I could have ever imagined, learned lots about utilization, and bettered my knowledge of credit to a point where I feel I understand lots of factors like never before and can navigate through the jungle.

 

Good luck. And one key: If your scores on EQ are your best, remember one name: Pentagon Federal CU. www.penfed.org

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Called to " reinvestigate " on EQ and TU as soon as a payment posted

 

Gotta be careful here. Because if one OC drops the ball and fails to verify or update, a positive TL could be removed and as far as what I have read here on CB, no one has been able to get a "positive" TL reporting again. This could actually hurt your scores.

 

If looking for a quick bump in scores a "rapid rescore" might be a better route if looking into real estate or car buying.

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Called to " reinvestigate " on EQ and TU as soon as a payment posted

 

Gotta be careful here. Because if one OC drops the ball and fails to verify or update, a positive TL could be removed and as far as what I have read here on CB, no one has been able to get a "positive" TL reporting again. This could actually hurt your scores.

 

If looking for a quick bump in scores a "rapid rescore" might be a better route if looking into real estate or car buying.

 

Not sure what you are talking about here. Are you assuming the positive TL's are no longer active? Because if I read that original post from Sam correctly, the two CC's are active accounts. Why would the OC stop reporting an active account with a balance? I think what you have been reading applies to closed postive trade lines, not open ones. With closed TL's, one wants to dispute only negative entries, never positive ones. But with open accounts, disputed accounts are updated with current information. And that is the case with this original post, someone with a CC at $7500 and a CC of $1500.

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What ArmySarge6 is referring to can happen with any tradeline - open or closed is irrelevant. If you dispute a tradeline and the OC does not respond for whatever reason then the CRA can delete the tradeline. If a tradeline has been deleted due to a dispute, then the CRAs will not update it regardless of how often the OC reports.

 

Some folks have disputed positive open tradelines and have never been able to get them back once they were removed.

 

That is why we caution folks against disputing positive tradelines. You run the risk of permanently loosing the account from your report.

 

Granted this does not happen every time, but it is a risk many folks would rather not take.

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Called to " reinvestigate " on EQ and TU as soon as a payment posted

 

Gotta be careful here. Because if one OC drops the ball and fails to verify or update, a positive TL could be removed and as far as what I have read here on CB, no one has been able to get a "positive" TL reporting again. This could actually hurt your scores.

 

If looking for a quick bump in scores a "rapid rescore" might be a better route if looking into real estate or car buying.

 

Not sure what you are talking about here. Are you assuming the positive TL's are no longer active? Because if I read that original post from Sam correctly, the two CC's are active accounts. Why would the OC stop reporting an active account with a balance? I think what you have been reading applies to closed postive trade lines, not open ones. With closed TL's, one wants to dispute only negative entries, never positive ones. But with open accounts, disputed accounts are updated with current information. And that is the case with this original post, someone with a CC at $7500 and a CC of $1500.

 

tall,

 

Queen is right on point and I am with ya. It would be logical to assume exactly what you said. What I am talking about is this....I have an OC that began reporting every month, say with TU, and then all of the sudden the OC stops reporting. Then I want the balance to report correctly since 3 months have passed. Now I dispute with TU, the OPC doesn't respond and *poof* a good TL is gone.

 

If I am not mistaken companies pay to report to the CRAs. If XYZ CC wants to save money, they may decide to report to only one CRA. Then if you dispute an inaccuracy with the CRAs you are risking having it deleted.

 

I am not sure, but a better route, IMO, would be to contact the OC and ask for a "goodwill" gesture on their part to remove the late payment, as in the OPs case. If it is a balance issue, the same, I would contact the OC and ask them to please update.

 

Hope that helps.

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Called to " reinvestigate " on EQ and TU as soon as a payment posted

 

Gotta be careful here. Because if one OC drops the ball and fails to verify or update, a positive TL could be removed and as far as what I have read here on CB, no one has been able to get a "positive" TL reporting again. This could actually hurt your scores.

 

If looking for a quick bump in scores a "rapid rescore" might be a better route if looking into real estate or car buying.

 

Not sure what you are talking about here. Are you assuming the positive TL's are no longer active? Because if I read that original post from Sam correctly, the two CC's are active accounts. Why would the OC stop reporting an active account with a balance? I think what you have been reading applies to closed postive trade lines, not open ones. With closed TL's, one wants to dispute only negative entries, never positive ones. But with open accounts, disputed accounts are updated with current information. And that is the case with this original post, someone with a CC at $7500 and a CC of $1500.

 

tall,

 

Queen is right on point and I am with ya. It would be logical to assume exactly what you said. What I am talking about is this....I have an OC that began reporting every month, say with TU, and then all of the sudden the OC stops reporting. Then I want the balance to report correctly since 3 months have passed. Now I dispute with TU, the OPC doesn't respond and *poof* a good TL is gone.

 

If I am not mistaken companies pay to report to the CRAs. If XYZ CC wants to save money, they may decide to report to only one CRA. Then if you dispute an inaccuracy with the CRAs you are risking having it deleted.

 

I am not sure, but a better route, IMO, would be to contact the OC and ask for a "goodwill" gesture on their part to remove the late payment, as in the OPs case. If it is a balance issue, the same, I would contact the OC and ask them to please update.

 

Hope that helps.

 

I think we are getting the message mixed up here. If we are talking about a balance correction on an open account that is one thing. But above you began talking about a second and totally different matter, the late. And the advice the first responder provided is the part I responded to, that the late is not as important as the utilization. And the updates I am talking about are for an open account, to update the balance and change the utilization more rapidly than waiting for the end of the cycle. It has worked repeatedly for me over the last few months with many accounts---all of them open and paying as agreed. And for open and paying accounts, the creditor continues to pay for the reporting, because it is an open account. None of this applies to closed accounts, but I am not talking about closed accounts, as the original post is asking about how to increase scores. And my suggestion is nothing more than making sure the open account balances are updated as soon as possible.

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Called to " reinvestigate " on EQ and TU as soon as a payment posted

 

Gotta be careful here. Because if one OC drops the ball and fails to verify or update, a positive TL could be removed and as far as what I have read here on CB, no one has been able to get a "positive" TL reporting again. This could actually hurt your scores.

 

If looking for a quick bump in scores a "rapid rescore" might be a better route if looking into real estate or car buying.

 

Not sure what you are talking about here. Are you assuming the positive TL's are no longer active? Because if I read that original post from Sam correctly, the two CC's are active accounts. Why would the OC stop reporting an active account with a balance? I think what you have been reading applies to closed postive trade lines, not open ones. With closed TL's, one wants to dispute only negative entries, never positive ones. But with open accounts, disputed accounts are updated with current information. And that is the case with this original post, someone with a CC at $7500 and a CC of $1500.

 

tall,

 

Queen is right on point and I am with ya. It would be logical to assume exactly what you said. What I am talking about is this....I have an OC that began reporting every month, say with TU, and then all of the sudden the OC stops reporting. Then I want the balance to report correctly since 3 months have passed. Now I dispute with TU, the OPC doesn't respond and *poof* a good TL is gone.

 

If I am not mistaken companies pay to report to the CRAs. If XYZ CC wants to save money, they may decide to report to only one CRA. Then if you dispute an inaccuracy with the CRAs you are risking having it deleted.

 

I am not sure, but a better route, IMO, would be to contact the OC and ask for a "goodwill" gesture on their part to remove the late payment, as in the OPs case. If it is a balance issue, the same, I would contact the OC and ask them to please update.

 

Hope that helps.

 

I think we are getting the message mixed up here. If we are talking about a balance correction on an open account that is one thing. But above you began talking about a second and totally different matter, the late. And the advice the first responder provided is the part I responded to, that the late is not as important as the utilization. And the updates I am talking about are for an open account, to update the balance and change the utilization more rapidly than waiting for the end of the cycle. It has worked repeatedly for me over the last few months with many accounts---all of them open and paying as agreed. And for open and paying accounts, the creditor continues to pay for the reporting, because it is an open account. None of this applies to closed accounts, but I am not talking about closed accounts, as the original post is asking about how to increase scores. And my suggestion is nothing more than making sure the open account balances are updated as soon as possible.

 

Tall,

 

Maybe I am being confusing. Sorry, been a tough couple of days here as you may have heard on the news. Let me get back OT here:

 

I am not saying that the post you said was incorrect. I was simply urging caution that in asking for a "reinvestigation" could, if the OC doesn't respond for some reason, cause the TL to be deleted. I think for getting a balance updated it would be advisable to contact the OC and ask, although this would not be done quickly as you alluded to.

 

Just as with anything we discuss on this board the "YMMV" applies to everything. I simply wanted to let the OP know that a positive TL being deleted was a possibility if it is put into dispute. Don't get me wrong, I believe that it has worked for you and that is awesome. Others have had just the opposite happen.

 

Just playing "devil's advocate". Sorry for the confusion.

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  • 6 months later...

Are you really filled to the brim on that $7000 card? That is a really low minimum for your balance (1.5%). Is your rate on that card 18% or higher? If so, make sure you pay more than the minimum. You might not even be defeating the interest!

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  • 1 month later...

Well, I just came into a windfall of money and I'll be able to pay off both of my Credit cards in 3 weeks. However, I was wondering how best to improve my credit rating given this. I am in the process of looking at a $51k house that I want to buy. I have enough cash to put 5% down, even after I pay off my debts. How do I get my tradelines and credit reports to update after I payoff my cc's as fast as possible? Also, are there any temporary ways to boost my score when I apply for a mortgage(I'll be looking in the mortgage forum soon). Anyway, my income is around $2166/mo after tax, so I hope that I will get approved. Any suggestions on how to best improve my credit rating? I intend on closing in July.

Thanks

Sam B.

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