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overtherainbow86

Need help with stagnant credit score

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I have been working on improving my credit score the past couple of years. I started with a score in the high 400's with 6 charge-offs reporting on my CR. During this time I managed to arrange PFDs for all of them.  Unfortunately,  2 OC's from the charge offs are still currently  reporting from 2014. They are reporting with a balance of $0 and missed payments.


I have sent 2 goodwill letters and proof of payment from debt collector on behalf of the OC to both remaining OC's with no response in the last 2 months from either. My FICO scores for TU/EQ now seem stagnant around the 665 mark. 

 
I currently have my car loan with $1700 remaining.  I opened 2 secured cards last year which are Capital One with a $700 limit and Discover which already returned my deposited and increased my credit line to $1500.  


I am looking for any advice as to how I can increase my credit score from this point.  Should I continue sending goodwill letters to the 2 remaining OCs?  Should I open yet another secured card or apply for an unsecured?   

 

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You have enough credit cards for FICO scoring purposes so there's no point in getting another secured card. I wouldn't apply for another credit card until your score is high enough to get an unsecured card that has a reward structure that's beneficial for you. It always takes longer to go from the mid 600s to the 700s than it does to get out of the 400-500s. I think you just need patience at this point.

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Those COs are going to hurt for as long as they report (your ceiling is probably in the high 6s for the duration).  Anything you can do to get rid of them is your ticket up the FICO score ladder.  

 

You should be selectively and methodically building up to having at least 5 open revolvers (the best ones you can get) so you have a thicker file when your credit is clean... otherwise every time you open something it hammers your AAoA and you get kicked down a few stairs.

 

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What balances are reporting on your current and active credit cards?  Remember that the algorithms look not only at the ratio of cards to cards with balances, but are also looking at utilization percentage on each card.  You want, ideally, no more than one credit card to report with a balance in a given cycle, and you want that one balance to be low. 

 

Learning when each account reports is a critical part of maintaining the reporting of zero balances given that you can control what balance reports. 

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