Ask me anything about your Credit Score

[ojsdaman]

Soss- 1st of all thanks a ton for doing this thread. You are helping so many of us out.

1. I followed your instructions for disputing a late payment. I was wondering what is the best way to have a collection removed? Do I need to dispute through all 3 credit agencys.

2. If a credit card account I closed 2 years ago is still reporting, may I reopen that account. Is it worth doing so?

3. Do secured credit cards help even if I have regular ones now? Will I be hurt by closing the secured credit card account because I would like my money back?

Thanks

[otctrader]

Soss -

1) Slightly OT, but what's your opinion pro/con on doing a credit freeze for proactive security purposes in states like NY where establishing it is free? Is this overkill or paranoia? Is a fraud alert a better choice (I've heard they are not enforced)?

2) As I understand it, credit freezes can be temporarily unblocked by giving the inquiring party your PIN. How does this work with automated systems like Firepay/Neteller that ask you questions regarding your credit history to verify identity online?

3) If you're not freezing credit and don't want to run your report every week, is there any cost-effective solution that monitors your credit report automatically and sends you e-mail alerts any time an inquiry is made or account is opened?

Thanks for the thread

[SossMan]

[ QUOTE ]
I just printed out my Experian free report at that website and it is 30 pages long.

In addition to carrying $50 on that LOC from 1994 at 11.25%, could I try reopening an old credit card, or could I try carrying say a $25 balance on two existing credit cards that I don't use regularly for purchases?

[/ QUOTE ]

30 pages?? holy christ....

Experian does the credit reports landscape, so they are longer, but 30 pages is a lot...lol.

All that stuff will help you. Your score is likely pretty upwardly mobile, so it shouldn't take too long to help out..maybe less than a year to get you 750+

[SossMan]

[ QUOTE ]
Soss- 1st of all thanks a ton for doing this thread. You are helping so many of us out.


[/ QUOTE ]

You are welcome.

[ QUOTE ]
1. I followed your instructions for disputing a late payment. I was wondering what is the best way to have a collection removed? Do I need to dispute through all 3 credit agencys.


[/ QUOTE ]

If it is a paid collection, then www.annualcreditreport.com is the best way to dispute it, and yes, you would need to dispute it with all three bureaus (assuming it's reporting to all three)

[ QUOTE ]
2. If a credit card account I closed 2 years ago is still reporting, may I reopen that account. Is it worth doing so?



[/ QUOTE ]

I'm sure it varies with the CC companies, but I would assume that they wouldn't reopen it with the same card/number. They would probably just offer to give you a new account/card.

[ QUOTE ]
3. Do secured credit cards help even if I have regular ones now? Will I be hurt by closing the secured credit card account because I would like my money back?


[/ QUOTE ]

Secured cards help as much as regular cards from a score perspective. Closing them would have the same effect as closing a regular card. Most secured cards will convert to an unsecured after a year of activity and good payments and return your deposit.

[SossMan]

[ QUOTE ]
Soss -

1) Slightly OT, but what's your opinion pro/con on doing a credit freeze for proactive security purposes in states like NY where establishing it is free? Is this overkill or paranoia? Is a fraud alert a better choice (I've heard they are not enforced)?

2) As I understand it, credit freezes can be temporarily unblocked by giving the inquiring party your PIN. How does this work with automated systems like Firepay/Neteller that ask you questions regarding your credit history to verify identity online?

3) If you're not freezing credit and don't want to run your report every week, is there any cost-effective solution that monitors your credit report automatically and sends you e-mail alerts any time an inquiry is made or account is opened?

Thanks for the thread

[/ QUOTE ]

1. It can be a pain in the ass, but caution can't ever really be faulted, IMO. ID fraud ssssuuuuuucks.
Fraud alerts are good in case you do get ID fraud, the agencies will act quicker.

2. I'm not sure.

3. There are a ton of credit monitoring services out there. The only one I have any experience with is www.freecreditreport.com and I wouldn't give them a rec based on their shotty customer service. I'm not sure what their monitering service is like. I would google it and I"m sure there are plenty of reviews.

[HoosierAlum]

Soss,

First of all thanks alot for doing this.



I am 24 years old and have a credit score of 640. In college I opened 2 credit cards and was irresponsible with them. I maxed out both of them (1k and 2500). Within the past few months I have paid them both completely off, but there was a period of time a while back (more than 1 yr ago) where I was not making payments at all.

There were also a couple x-ray bills in college that I neglected that were eventually sent to collections. (~$150 each) I have paid these and every outstanding debt that was on my credit report.

Currently, I am trying to rebuild my credit and have had 1 secured card for ~6 months and never missed a payment. I just opened up another secured card. I also have a student loan that I've never missed a payment on, and this is the only balance that I carry. I completely pay off my cards each and every month.

What else can I do to increase my credit score? I would like to be able to have a credit card with a >$500 balance; how many consecutive months of payments before I will be eligible for a non-secured card?

Also, I have a fairly large balance in my accounts at my bank and have a well paying job. Would my bank be inclined to offer me a credit-card due to the large balances that I keep in my account?

Here is what I was told via my credit score: Having low credit limits on your accounts and loans is lowering your score. Having a high amount of credit is a positive factor because it indicates to lenders that other creditors have trusted you by lending you money in the past. However, since your major credit card limits are generally low, lenders may think you don't have enough experience with high limits. Keep on minimizing your outstanding debt and pay all your bills on-time, and some lenders may eventually raise your credit limits, which in turn may increase your score.


Thanks again.

[SossMan]

[ QUOTE ]
Soss,

First of all thanks alot for doing this.

[/ QUOTE ]

No prob.

[ QUOTE ]
I am 24 years old and have a credit score of 640. In college I opened 2 credit cards and was irresponsible with them. I maxed out both of them (1k and 2500). Within the past few months I have paid them both completely off, but there was a period of time a while back (more than 1 yr ago) where I was not making payments at all.

There were also a couple x-ray bills in college that I neglected that were eventually sent to collections. (~$150 each) I have paid these and every outstanding debt that was on my credit report.



[/ QUOTE ]

The only thing that will help with this is time. You have done all you can by paying them off and now making ontime payments. You may want to try and dispute the medical collections since they are paid off...this is often a good source of increased scores. www.annualcreditreport.com

[ QUOTE ]
Currently, I am trying to rebuild my credit and have had 1 secured card for ~6 months and never missed a payment. I just opened up another secured card. I also have a student loan that I've never missed a payment on, and this is the only balance that I carry. I completely pay off my cards each and every month.


[/ QUOTE ]

This is a great start.

[ QUOTE ]
What else can I do to increase my credit score? I would like to be able to have a credit card with a >$500 balance; how many consecutive months of payments before I will be eligible for a non-secured card?


[/ QUOTE ]

It might take a while. If you are paying them off every month and you don't mind a small (~$50) annual fee, I would try www.orchardbank.com for an unsecured credit card. They have terrible rates and there is an annual fee, but with your score, it will help to establish some more credit.

[ QUOTE ]
Also, I have a fairly large balance in my accounts at my bank and have a well paying job. Would my bank be inclined to offer me a credit-card due to the large balances that I keep in my account?



[/ QUOTE ]

Find out from them what the largest secured credit card they can give you. This will help with the low limits problem.

[ QUOTE ]
Here is what I was told via my credit score: Having low credit limits on your accounts and loans is lowering your score. Having a high amount of credit is a positive factor because it indicates to lenders that other creditors have trusted you by lending you money in the past. However, since your major credit card limits are generally low, lenders may think you don't have enough experience with high limits. Keep on minimizing your outstanding debt and pay all your bills on-time, and some lenders may eventually raise your credit limits, which in turn may increase your score.

[/ QUOTE ]

100% accurate.

[BradleyT]

HoosierAlum,

Ask the companies that gave you a secure card to turn the account into a non-secure account. I started with a $300 secured providian gold card with an annual fee and now it's a $5,000 platinum + rewards unsecure card with no annual fee and low APR. They also kept it as the same account so I didn't lose a year of credit history when they switched my card over.

Since you have money in the bank what I would do is take the card you've had for six months and max it out every month (pay everything you possibly can with it) and reload the entire balance each month. After 6 months of that I'm sure the card issuer would love to give you an unsecured card. Just call and ask after you've had the card for one year - all they can do is say no and they'll often say yes.

[anders0n]

First off, many thanks for taking the time to keep this thread up and help all of us out.

I'm almost 25. My credit scores range from 640 to 646. My credit history from one beureau includes a $1600 outstanding balance (from a $1000 charge off) which is still in collections from irresponsible use back when I was 20. I now have a 20 hour a week minimum wage job at the local bookstore and am making about $600-1000 more per week playing poker, so I can afford to pay it off. Should I? If so, how do I go about contacting them?

I am also considering applying for an auto loan/other credit cards to improve my score (and because I need a car). Is my current bank the best place to go for this, based on my current score and income situation?

Thanks in advance for any advice.

[SossMan]

[ QUOTE ]
HoosierAlum,

Ask the companies that gave you a secure card to turn the account into a non-secure account. I started with a $300 secured providian gold card with an annual fee and now it's a $5,000 platinum + rewards unsecure card with no annual fee and low APR. They also kept it as the same account so I didn't lose a year of credit history when they switched my card over.

Since you have money in the bank what I would do is take the card you've had for six months and max it out every month (pay everything you possibly can with it) and reload the entire balance each month. After 6 months of that I'm sure the card issuer would love to give you an unsecured card. Just call and ask after you've had the card for one year - all they can do is say no and they'll often say yes.

[/ QUOTE ]

yep...right again Bradley.