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 mick
living in perverty
Registered: 07/06/04
Posts: 7,939
Loc: hb, cali
Last seen: 15 minutes, 34 seconds
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 The first time ive seen my credit score 
#10599301 - 06/30/09 08:09 PM (3 years, 10 months ago) |
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Im applying for pre approval for home loans and wanted to know what it was considering my shaky history.
Its 686
this is with a bankruptcy i filed in 2006, chapter 7, which I think is 10 years in california. But shit I was expecting like 300 or something. Ive been paying my bills on time (student loans). And I have one unpaid medical bill for 470$ that I need to pay and totally avoided.
What are good ways to bump my score? I guess paying that one bill, maybe getting a credit card?
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http://kittiesntitties.tumblr.com/
notapillow said: "you are going about this endeavor all wrong. clear your mind of useless fear and concern. buy the ticket, take the ride, and all that.... "
ChrisWho said: "It's all about the journey, not the destination."
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NobodyCares
Holy macaroni!
Registered: 05/31/06
Posts: 1,861
Loc: Brilliance/Insanity
Last seen: 1 year, 2 months
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Re: The first time ive seen my credit score [Re: mick]
#10600351 - 06/30/09 11:22 PM (3 years, 10 months ago) |
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There are a number of things that go into determining your FICO score. Make sure that you have resolved any past due bills or any judgments against you, because first and foremost those will show up on your credit report. The next step would be to open credit with a bank/finance company, even if you only open a card with a low limit. If you are only interested in improving your score, simply carry a small balance of $20-30 and make your payments on time. If the balance gets to $0, then charge something small again to make sure you are carrying that small balance. That will take care of your revolving portion of the credit report. The next portion is the installment portion, which can only be changed by debt with is fixed to a security such as a car, boat or home. This kind of debt is much more difficult to secure if you have a bankruptcy on your record, but not impossible. Unfortunately, most secured loans are very long term, so this may not be something you can improve in preparation for getting your home loan. Also it is important to remember that a person actively seeking credit equates to higher risk, so the more inquiries you have to your credit history, the less favorable it looks. If you are seeking a secured product, you may fall into a grace period which lasts from 14 to 45 days, depending on the formula used to compile your score. During this grace period, known as the rate-shopping period, you can have any number of inquiries with considerably less impact on your FICO score.
If you have any more questions, feel free to message me. I work for a financial company, and deal directly with credit management every day. If you want an online source, check out myfico.com which is a website compiled by the Fair Issac corporation, the company which monitors and compiles your FICO score.
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If you can be told what to see or read, then it follows that you can be told what to say or think. ~Boards of Canada
Now we see things, as in a mirror dimly, and we shall see each other face to face.
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At first there was a time, when I believed a kiss was just a kiss, no matter how I missed you...
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 DieCommie
El Guapo
Registered: 12/11/03
Posts: 25,374
Loc: Street of Dreams
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Re: The first time ive seen my credit score [Re: NobodyCares]
#10600422 - 06/30/09 11:34 PM (3 years, 10 months ago) |
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I just had my oldest credit card closed due to inaction and my score lost about 10 points.  First time ive seen it go down.
I use a credit card for nearly all transactions, get the bonus points (cash) and have my spending itemized which is good for budgeting. Once you start revolving a bunch of charges and payments, even if you pay zero interest, your credit score will go up. Thats basically all Ive done and my score is 780.
Now my revolving credit card is my oldest one and im not gonna let that one get canceled.
edit - I guess I didnt add much, what he said ^. I just applied for a credit card to give me 5% on gas. Last november our credit cards sent us $500 in cash back. Cha ching!
I never tracked my credit score till Ythan posted this a while back - http://www.shroomery.org/forums/showflat.php/Cat/0/Number/8760769
Now I check it every month when I do my finances.
Edited by Qubit (06/30/09 11:38 PM)
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NobodyCares
Holy macaroni!
Registered: 05/31/06
Posts: 1,861
Loc: Brilliance/Insanity
Last seen: 1 year, 2 months
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Re: The first time ive seen my credit score [Re: DieCommie]
#10600465 - 06/30/09 11:41 PM (3 years, 10 months ago) |
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Working directly with the FICO score is a good way to get a feel for where you stand, but it's important to remember that things like past due amounts and bankruptcies can remain on the credit report itself long after their influence on the FICO score has lessened. This is why it's important to always obtain a copy of your entire credit report annually. However for day to day things I very much agree that having access to just your FICO score is useful.
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If you can be told what to see or read, then it follows that you can be told what to say or think. ~Boards of Canada
Now we see things, as in a mirror dimly, and we shall see each other face to face.
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At first there was a time, when I believed a kiss was just a kiss, no matter how I missed you...
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johnm214
Registered: 05/31/07
Posts: 16,559
Loc: Americas
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Re: The first time ive seen my credit score [Re: NobodyCares]
#10601094 - 07/01/09 01:35 AM (3 years, 10 months ago) |
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Quote:
NobodyCares said:
Make sure that you have resolved any past due bills or any judgments against you, because first and foremost those will show up on your credit report.
What makes you think this will improve your score or worthiness, neccesarily?
For one, it can hurt your score long term, as most personal debt will be unreportable for seven years after the last activity on the account, and paying will only move that date to seven years from the date of your payment- which can add many years to the term in which that item appears.
Secondly, anecdotal reports seem to confirm that a default and chargeoff to collections two years old doesn't look any better than a default and chargeoff to collections that you payed last month. Under some analysises it may appear as if the debt is newer, and in any case, the fact that a creditor was stiffed and had to chargeoff the debt will never change.
I'm aware of some loans not being approved unless all debts are satisfied, but my understanding is that these are policies of the lender irrespective of credit worthiness per se, and irrespective of credit score.
It seems to me that in many situation your better off just letting old debts lie and making sure they are accurately reported. Why be punished for paying your obligations when you can be a bum and do better?
A better question is why the law rewards people ignoring their debts and punishes those who pay when they can, but that's another matter?
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NobodyCares
Holy macaroni!
Registered: 05/31/06
Posts: 1,861
Loc: Brilliance/Insanity
Last seen: 1 year, 2 months
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Re: The first time ive seen my credit score [Re: johnm214]
#10602234 - 07/01/09 10:25 AM (3 years, 10 months ago) |
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You raise some legitimate points there. Working for a financial company, I suppose that I am more well-versed in what the specific criteria are for the company I work for, and less so what the general practices are for every credit bureau. However, I can say for a fact that any recent outstanding judgments, hell even any older ones, can be a red flag that can outright stop some lenders from considering you.
In terms of the larger issue about being a bum, all I can say is that the more I work in it, the more I realize that the whole system of credit is royally fucked. 
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If you can be told what to see or read, then it follows that you can be told what to say or think. ~Boards of Canada
Now we see things, as in a mirror dimly, and we shall see each other face to face.
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At first there was a time, when I believed a kiss was just a kiss, no matter how I missed you...
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johnm214
Registered: 05/31/07
Posts: 16,559
Loc: Americas
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Re: The first time ive seen my credit score [Re: NobodyCares]
#10604968 - 07/01/09 07:25 PM (3 years, 10 months ago) |
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Yeah, I'm aware that many lenders will require no outstanding debt that is not in good standing as a matter of policy. (things like car loans, mortgages, et cet).
Things like credit cards, however, seem to go more off an automated system that doesn't distinguish much between a discharged debt in collections that is paid or not- from their perspective I supose the original creditor got screwed regardless of whether you paid the debt collector. And if the original creditor is reporting (usually) its worth noting that they will still have the debt marked discharged to collections, regardless of what the debt collector says after you pay.
And since the payment of the debt will generally make it reported for much longer (if its been a while since your last payment) it is wise to be cautious- if you don't know you need the debt collector's report, then you might as well not pay and wait.
I've heard anectdotal reports that FICO or other propreitary scores don't change for the better when you pay off a debt collector, and you certainly have that mark on your report for that much longer.
Just something to think about. Nobody knows how FICO or the other people do their vodoo, so its kind of hard to give general advice, just something to consider.
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mick
living in perverty
Registered: 07/06/04
Posts: 7,939
Loc: hb, cali
Last seen: 15 minutes, 34 seconds
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Re: The first time ive seen my credit score [Re: johnm214]
#10607414 - 07/02/09 03:08 AM (3 years, 10 months ago) |
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i dont quite understand. this outstanding balance I have from a medical debt collection agency, which went to collections in 2006-2007 might be better off unpaid?
ive read it several times, and am at the understanding that paying a loan is like resurrecting an old thread on the shroomery, it almost wasnt a problem until someone brought it up again/?
I was going to call the agency and see if I could work out a deal for a lesser amount. Are there any ways I should approach this to try and get a lesser payment?
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http://kittiesntitties.tumblr.com/
notapillow said: "you are going about this endeavor all wrong. clear your mind of useless fear and concern. buy the ticket, take the ride, and all that.... "
ChrisWho said: "It's all about the journey, not the destination."
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johnm214
Registered: 05/31/07
Posts: 16,559
Loc: Americas
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Re: The first time ive seen my credit score [Re: mick]
#10607686 - 07/02/09 04:01 AM (3 years, 10 months ago) |
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The law says they can report most debt (like medical) seven years from date of last payment.
By paying again, you reset that date, and get it reported longer. When was the last date you paid on that debt/account or the last date you drew on that credit (saw the doctor/whatever)? It should be gone in 7 years from that date, but if you pay again it will be seven years from your last payment.
Personally, I would tell collections that unless they delete the refrence entirely I wouldn't pay. Why get more time?
Also, they often report it wrongly. They'lll report the day they bought the debt as the last date of activity, when that is irrelevant for reporting purposes- then try and keep it on your account longer.
Just know that paying a debt doesn't change anything except the amount currently owed. Your credit still shows the amount you owed, how late you were, that it was charged off, that it went to a debt collector. This is why it may not be advantageous in all situations to pay it off, especially since it would stick around later.
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙
Registered: 05/08/01
Posts: 17,709
Loc: city of angels 
Last seen: 3 hours, 7 minutes
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 Re: The first time ive seen my credit score [Re: mick]
#10608701 - 07/02/09 11:02 AM (3 years, 10 months ago) |
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If you can pay off your debts, do it. Notwithstanding that you shouldn't be a deadbeat, credit agencies will report resolved collections. I check credit regularly as I manage twelve rental units, and I'm much more inclined to rent to someone who shows negative credit that has been resolved, than someone with open issues who hasn't bothered to make any payment. A credit report is not just about the FICO score, it's what's in the details that counts the most (at least for me when I'm checking up on someone).
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┼ ··∙ long live the shroomery ∙·· ┼
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mick
living in perverty
Registered: 07/06/04
Posts: 7,939
Loc: hb, cali
Last seen: 15 minutes, 34 seconds
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Re: The first time ive seen my credit score [Re: geokills]
#10614362 - 07/03/09 08:59 AM (3 years, 10 months ago) |
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im gonna pay that thing off. hopefully i can haggle it down a bit. I was so reluctant because it never should have been charged to me in the first place, but thats partially my fault and a whole different thread. Thanks for the info everyone.
--------------------
http://kittiesntitties.tumblr.com/
notapillow said: "you are going about this endeavor all wrong. clear your mind of useless fear and concern. buy the ticket, take the ride, and all that.... "
ChrisWho said: "It's all about the journey, not the destination."
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NobodyCares
Holy macaroni!
Registered: 05/31/06
Posts: 1,861
Loc: Brilliance/Insanity
Last seen: 1 year, 2 months
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Re: The first time ive seen my credit score [Re: geokills]
#10634522 - 07/07/09 10:10 AM (3 years, 10 months ago) |
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Quote:
geokills said:
If you can pay off your debts, do it. Notwithstanding that you shouldn't be a deadbeat, credit agencies will report resolved collections. I check credit regularly as I manage twelve rental units, and I'm much more inclined to rent to someone who shows negative credit that has been resolved, than someone with open issues who hasn't bothered to make any payment. A credit report is not just about the FICO score, it's what's in the details that counts the most (at least for me when I'm checking up on someone).
QFT. A lot of people think the FICO score is the most important, but it's key to remember that a real, live underwriter will be looking at your credit report and determining what kind of a risk you are. Resolving outstanding debts may mess up your FICO score a bit, but it looks much more favorable for your credit report as a whole.
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If you can be told what to see or read, then it follows that you can be told what to say or think. ~Boards of Canada
Now we see things, as in a mirror dimly, and we shall see each other face to face.
--------------------
At first there was a time, when I believed a kiss was just a kiss, no matter how I missed you...
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