Your Questions About Credit Reports With Scores

Betty asks…

How much (if any) will my credit score rise once this bankruptcy falls off?

I have a bankruptcy that will fall off my credit reports December 2012. My current scores are as follows: Equifax 575. Transunion:591 and Experian: vanguard score of 614. As a mater of fact about 3 other collection accounts should also disappear by then. So what should my score rise too once this happens? Does anyone care to estimate my possible new score?

John answers:

By the time a bankruptcy ages off your credit report (10-yrs. For chapter 7), it is having very little effect on your total score.

So your score will rise very little if at all and as another poster pointed out it may actually go down.

Which way it goes will depend on what you have done since the BK to reestablish your credit as either good or bad.

Good luck.

Laura asks…

How can I request Credit Reporting agency to correct their report?

I got a free Credit Report (online) that gives my credit score too. In the report I saw a Collection agency activity which is incorrect as I paid off the money long ago. How can I correct the matter? How do I formally let the agencies know about it?

John answers:

If it is an error on their part and the money was there all along, then you can call them and ask to speak to a supervisor to have the credit report bid retracted. They will likely ask you for a copy of your bank statement showing the date the payment was withdrawn from your bank.

Lisa asks…

what is the best way to remove negative items from my credit report and boost my fico score?

what is the best way to remove negative items from my credit report and boost my fico score. i have late payments on there and a bankruptcy from 7 years ago and now i have no outstanding bills , but my credit score is still low , how is the best way and the fastest boost the score

John answers:

Yes, it’s possible to fix your credit yourself. With a little hard work and perserverance, and patience, you could get it back up there. What you have to understand is what makes up your credit score:

1. Payment history- 35%
2. Total debt owed to avialable credit ratio-30%
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%

With that in mind, this is some steps that you should do in order to get yourself in a better financial position to rebuild your score:

1. Open a checking and savings account- while this won’t directly affect your credit score, it does many things. It re-establishes a relationship between you and a financial institution, which by being an customer in good standing, could help make it easier to get approved for credit cards and loans. Most importantly, by opening a checking account
it gives you the single most powerful tool in building credit, to help pay your bills on time, especially if the bank offers online billpay.

2. Gather ALL your credit reports- It’s important to know exactly what’s on your reports. A lot of times, people believe that their credit is so bad, that they don’t bother to check their reports for mistakes, and trust me, mistakes DO happen. The credit bureaus don’t get paid to be accurate, they get paid to report. It’s important that you gather reports from all 3 agencies to determine not just who and how much you owe, but to make sure that what’s on there is even correct. If you do happen to find something that you’re sure is not right, you should dispute with all 3 agencies, they all have an online dispute feature in which you can dispute the item. Once you’ve made sure that there’s no inaccuracies on your report, then you should arrange your debts from most recent and lowest amount to oldest and highest amount. Debts that are newer than 2 years are hurting your score the worst and should be handled first. What you should know that just paying off debts, especially collection debts will not help your score. A “pay to delete” or “deletion payment”, which is a payment in exchange for removing it from your report completely. I posted several links that explains this more in detail.

Http://www.creditinfocenter.com/debt/settle_debts.shtml

http://www.creditinfocenter.com/debt/neg_rating_after_settle.shtml

http://www.creditinfocenter.com/debt/CanCreditorSue4SettlementDifferences.shtml

http://www.creditinfocenter.com/debt/ActualDebtSuccesses.shtml

http://www.creditinfocenter.com/debt/debt-negotiation.php

If you’re sucuessful, this will help your score.

3. Open new credit- I had mentioned in #1, about opening a checking and savings account with a bank or credit union, I’m going to tie that in with what I’m about to say. Some major banks (Bank of America, Wells Fargo, USBank, Orchard Bank) and some credit unions offer secured credit cards, which are credit cards that require a deposit to establish credit. Whatever you deposit would be the credit line, for example, if you deposited $300, then your credit line would be $300. The deposit isn’t used to pay for what’s purchased on the card, you would still need to either pay in full or make monthly minimum payments. The deposit is used only if the account becomes delinquent and goes to collections. A couple of good things is that you can increase the credit limit by adding to the deposit, which can help your score because it creates a much needed cushion between the total debt that’s owed and the available credit, and also the deposit is sometimes linked to a savings account which earns interest while you’re building credit, so the deposit isn’t just sitting there. A good way to build credit with the card is to make small purchases ($20/month max) and pay it off on time every month, while adding to the deposit. Usually after a year or so, of paying it off on time, the card either converts to a regular card or it’s upgraded to a better card, and most importantly the deposit isn’t needed anymore and it’s given back. My suggestion would be to open another secured card and repeat the process or open 2 at a time, which would speed things up. If you make small purchases, pay it off and increase the limits, that will really help your score. In the end, you’ll have 2 credit cards with decent limits and an emergency fund from the deposits.

4. Enroll with PRBC- PRBC is America’s Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus:

Rent
Cable
Phone
Daycare
Insurance
Electric
Natural Gas
Cell Phone

The only time your payments for these bills are reported to the other credit bureaus is if they’re missing or late.With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history. PRBC offers two simple ways to start building credit today.

In closing, just a few more things to keep in mind.

-Don’t spend more than 30% of your combined available credit on all your cards.

-Only apply for credit when necessary.

-Pay on time

Hope this helps…

Thanks for reading and…

Good luck!

Ruth asks…

How do you find the final credit score from three scores?

My aunt received her credit report that has three credit scores from the three bureaus. How do you calculate them to get the final score? Do you average the three numbers?

Thanks!
She is just trying to find what her actual score would be. Do people usually just say their highest score?

John answers:

You can’t.
Credit scores are there to confuse you so that you keep paying for them.
They all have different TIER systems
So that you can’t add them all together and divide by 3
Only if she got her fico score (with the same tier system) could she do this
^ and she didn’t get her fico scores
On top of that, all reports may contain different information – so you can’t take an average

Quick note: The score is not really that important.
What’s important is knowing the secrets of maintaining the best scores you can
Knowing things as never to carry credit card balances, and keeping items out of collections is important
A mortgage company will review the reports line by line, not focus on a 3 digit number
——
You can’t even say the highest score
Again, they all have tier systems
some are 500 to 990 and others are 350 to 850
So saying the highest number to anyone is really insignificant
A score of 700 in one may be rated good, but rated above normal in another
Again, all to confuse you – so you keep falling for the scam

Donna asks…

I had a judgement that is now released, how soon can that affect my credit report?

How soon after a judgement is satisfied does it affect a person’s credit report? Will my score go up at all just from getting that paid?
and when they say, it will raise it “some,” what does “some” mean? just a few points? around 20?

John answers:

It will be affected as soon as it is reported (which should be pretty fast). Having a judgment paid off will increase your credit score, but not a lot. After seven years your score will go up dramatically as the judgment will drop off entirely.

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