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I am in the process of getting my FICO score back up it is only in the 580 range. I want to get it back around 700 where it was about 4 years ago. 1.) I have a car lease that is up in may 2011. Would it raise my credit score more if I were to continue to make ontime monthly payments or to pay it off? 2.) Can I contact the 3 credit bureaus and find out when all the bad marks will be taken off of my credit report? 3.) What fico score do I need to be able to apply for a gas card/dept card such as shell gas or walmart so I can use it to make ontime payments and raise my score. 4.) What score do I need to get approved for a 0 percent financing car loan?
The three major credit reporting agencies -- Equifax, Experian and TransUnion -- each report consumer credit scores. Equifax and TransUnion base their credit scores on a FICO formula. FICO is developed by Fair, Isaac & Co. Experian relies on a formula it developed and calls the PLUS Score. The three credit reporting agencies also use VantageScore, a competing score technology to FICO and PLUS Score.
FICO, PLUS Score, and VantageScore are calculated using mathematical methods that incorporate credit history, amount of credit used and available, number of late and on-time payments, whether any payments due are in default, and other variables. The credit report lists specific accounts and financial history that go into the credit score. The proponents of FICO, PLUS Score, and VantageScore claim their scores are superior to the competition at predicting future consumer behavior. These claims are unsubstantiated because all three formulas are trade secrets and are impossible for third parties to test.
It is impossible for anyone other than the mathematicians at Fair Isaac, Experian, or VantageScore to tell you specifically when and how much your credit score will change based on you taking a certain action. I can give you a general idea based on my experience and observations, but nothing precise.
The most sure-fire way to raise a credit score it to pay all accounts on time. A second certain tactic is to reduce credit utilization. A third is to diversify the types of credit used, which the credit reporting agencies refer to as trade lines. Fourth, leave your oldest trade line open because it establishes a baseline for your credit history. Finally, credit reports are notoriously inaccurate. The Fair Credit Reporting Act (FCRA), a federal law, requires consumer credit reporting companies to report accurate information. If you find any inaccurate information in your credit report, you should dispute inaccurate derogatory notations.
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Take a look around you. Everyone you know is broke. Broke is nomarl. Broke is playing the credit score game. Your only 19 straight out of high school and these guys have already given you three credit cards. Go talk to everyone you know and ask them has having a credit card really brought joy into their lives. Sure they are great at the mall but when payment time comes and late fees and over the limit fees and collections come around how great are those cards then. Ask them how would it feel to be out of debt today. How would having that bill lifted off their shoulders feel to them? How would not having to deal with payments and credit scores and fees feel? I guarantee that no one will say that all the hassle is worth the convenience. They will rationalize with air miles and small cash back bonuses, but is all that really worth being subject to credit. Now is the perfect time to start being weird and actually have some money. Cut up those cards and close those accounts. Start your life in freedom not in slavery to the credit card companies and your credit score. If your score is already 708 and you can't get a loan then that shows you that the almighty credit score is not so almighty. Unlike the credit card company the loan office is using it's head. Here is a person just out of high school. Probably doesn't have a great income. There is a lot of risk there, better get someone else on the loan in case they can't pay. Not the credit card company. Hey here is someone with a name let's give them a card.
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Yes, it's possible to fix your cderit 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 cderit score:1. Payment history- 35%2. Total debt owed to avialable cderit ratio-30%3. Length of time establishing cderit-15%4. Types of cderit 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 if you haven't already. While this won't directly affect your cderit 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 cderit cards and loans. Most importantly, by opening a checking accountit gives you the single most powerful tool in building cderit, to help pay your bills on time, especially if the bank offers online billpay. 2. Gather ALL your cderit reports- It's important to know exactly what's on your reports. A lot of times, people believe that their cderit is so bad, that they don't bother to check their reports for mistakes, and trust me, mistakes DO happen. The cderit 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.If you're sucuessful, this will help your score.3. Open new cderit- I had mentioned in #1, about opening a checking and savings account with a bank or cderit 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 cderit unions offer secured cderit cards, which are cderit cards that require a deposit to establish cderit. Whatever you deposit would be the cderit line, for example, if you deposited $300, then your cderit 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 cderit 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 cderit, and also the deposit is sometimes linked to a savings account which earns interest while you're building cderit, so the deposit isn't just sitting there. A good way to build cderit 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 cderit cards with decent limits and an emergency fund from the deposits. Since you already have some CC's you're paying on, you should be ok on this.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 cderit history. If you pay your monthly bills on time, PRBC can help you build cderit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional cderit bureaus: RentCablePhoneDaycareInsuranceElectricNatural GasCell Phone The only time your payments for these bills are reported to the other cderit bureaus is if they're missing or late.With PRBC, your on-time payments count. You build cderit for paying your bills on time, even if you have no cderit history. PRBC offers two simple ways to start building cderit today. In closing, just a few more things to keep in mind. -Don't spend more than 30% of your combined available cderit on all your cards. -Only apply for cderit when necessary. -Pay on timeHope this helps Thanks for reading and Good luck!