Credit Score Question

Wintermute

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This is going to sound stupid but here goes, disclaimer yes I know I made mistakes.

I am working on fixing my credit score.
I have had 11.5k in student loan debt since 2005 that as of two weeks ago I paid off in a 2 year period after starting the payment plan, I also had 2 separate accounts totalling around 800$ that I have paid off, my score was 616 prior to these being corrected.

What (if any) will my credit score go up in 3 months after these are reported and hit the bureaus?

Thanks for any information anyone can help with, appreciate it.
 

kegkilla

The Big Mod
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This is going to sound stupid but here goes, disclaimer yes I know I made mistakes.

I am working on fixing my credit score.
I have had 11.5k in student loan debt since 2005 that as of two weeks ago I paid off in a 2 year period after starting the payment plan, I also had 2 separate accounts totalling around 800$ that I have paid off, my score was 616 prior to these being corrected.

What (if any) will my credit score go up in 3 months after these are reported and hit the bureaus?

Thanks for any information anyone can help with, appreciate it.
in order for a negative mark on your credit score to be removed, the agency that issued it has to bother to jump through the bureaucratic loopholes required to get it removed, which can be a pain in the ass. you will need to get in touch with whatever collection agency had your accounts and see if they will remove the remarks, which I don't think they're required to by law. you should have made your payment of the accounts contingent on them removing the marks and gotten that in writing.
 

Palum

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It's not stupid, most people really have no idea about credit and they have wild misunderstandings of weights for the various products by the big 3 CRAs, FICO, etc. and the fact that various types of lenders still use older scoring models.

First, what is your history like with derogatory marks? Any >30 days delinquent accounts in the past, if so when and for how long? Any defaults or charge offs, did you settle or pay and how long ago?

Basically - active accounts with derogatory info = death, inactive accounts with derogatory = bad, new active = worthless, older active repayment in good standing = great.

The reason your score may not change a ton is if those were the ONLY accounts you had active, you just lost all of your current account reporting.
 

Palum

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in order for a negative mark on your credit score to be removed, the agency that issued it has to bother to jump through the bureaucratic loopholes required to get it removed, which can be a pain in the ass. you will need to get in touch with whatever collection agency had your accounts and see if they will remove the remarks, which I don't think they're required to by law. you should have made your payment of the accounts contingent on them removing the marks and gotten that in writing.

lol, there are no 'bureaucratic loopholes' with private debts really other than the contracts with the lender stipulating duty to report and the fact that you can't update with someone else's subscriber ID without committing fraud. It's very simple as a reporting entity (assuming you are the original subscriber). It's infrequently offered as honey for repayment in a short 'precollection' stage if an agency is managing debt from cradle to grave (usually as a first party) but generally that's it. They will simply report it paid or settled after that point, no one is going to convince a major lender after a charge off to go back in and update to lie about your credit history.
 
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brekk

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With a score in the 600's you should be able to snag a 1% cashback, 0% APR 12-18 month card. Do that. As the 0% expires get another. Etc.

I'm on my 4th card since 2011, I keep a $1,000'ish rolling balance, but after cash back + sign on perks I'm net positive on credit cards vs. interest paid.
 
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Noodleface

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If you want to build credit quickly don't keep them under 10% utilization. Sure, that will build your credit. But I've heard something like 40% utilization and paying them off is better in the short term. Or 60%. I can't remember. Could be pulling out of my ass.
 
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Nemesis

Bridgeburner
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9d 7h 11m
Step 1
check out a credit repair agency like Credit Repair to Help Fix Credit Scores | Lexington Law
the cost is worth it. you'll be much more likely to get results, way faster than you would otherwise on your own, and with relatively little effort.

Step 2
get a credit card - if you can, get a card that has a perk that provides sensible short term benefits, like cash back (instead of airline miles or starwood points)
use that card ONLY for things you'd otherwise use cash for - like lunch. gas. groceries.
pay that card off 100% every month, no questions asked. if you're thinking of buying something you can't be 1000% certain to pay off in full at the end of the month, don't - you're a moron.

Step 3
Profit.
if you're starting out with shitty credit, odds are your card may have few to no perks, your limit may be low, and your APR may be ridiculous... but don't despair

with some time following the above plan, your credit rating will climb quickly.
use a site like Free Credit Score & Free Credit Reports With Monitoring | Credit Karma to learn more about how to improve your credit. you'll be glad you did.
 
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Palum

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Get your parents to put you on a card and it might bump your account age

This was killed in like FICO 4 or 5. Some major lending for real property may still use FICO 3 as ONE score but then they can see the whole bureau so who gives a fuck. None of the major lenders for consumer debt use anything this old, I've even seen FICO 8/9 and Vantage 2 already which is kind of quicker than it used to be.

The good news is your medical debt is gone in FICO 9 so pretty much feel free to tell the medical industry to fuck off as long as you don't need a house.
 
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Palum

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Step 1
check out a credit repair agency like Credit Repair to Help Fix Credit Scores | Lexington Law
the cost is worth it. you'll be much more likely to get results, way faster than you would otherwise on your own, and with relatively little effort.

Those places are scams, absolutely do not use those retards

All they do is mail disputes for all of your negative tradelines and then drop them because they can't substantiate. Or they scam you by doing structured repayment where they basically just debit your bills for you and charge you $100 a month for the privilege. 99% of people have legit tradelines, and even if you did get phantom reported, DISPUTE THAT SHIT YOURSELF. While in processing you may get 1-2 months of a better score. If you take out a loan, it's straight up fraud.
 

Palum

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If you want to build credit quickly don't keep them under 10% utilization. Sure, that will build your credit. But I've heard something like 40% utilization and paying them off is better in the short term. Or 60%. I can't remember. Could be pulling out of my ass.

You don't really want to go above 30-40% ideally. Depending on how your billing cycle synchronizes with reporting time, if you pay your card off every month you can end up with near zero utilization, you'll have to just look at the report date on your bureau to figure it out. You can get away paying it off every month in some cases but usually you need to carry it over a bit. That's what you get 0% for 12 month cards for tho, carry it over a bit and stop using it for a bit and you'll get free 0% for transfers or new purchases offers coming out the ass in a few weeks again.
 

sole

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Palum is right, credit repair entities are scams. You'll do yourself a lot more good just reading the myfico.com forums and taking their collective advice. If you have any dings on your credit, but the accounts are paid in full, keep writing letters of good faith to the creditor until they accept a pay to delete or wait it out until it falls off of your credit report. A derogatory account reporting paid in full is still a derogatory account.
 

a_skeleton_00

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Alright so it looks like my big issue is making sure these actually clear off now that I have paid them.

I guess let me be blunt, first thank you everyone this has been eye opening to say the least.

Secondly, what would be the best way to get each item taken off? Please forgive my stupidity honestly this is one of the few things I truly could use help with.
 

Noodleface

A Mod Real Quick
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Always send certified letters, that's the first step. I had to do that on one false acct on my report
 

a_skeleton_00

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I just received 3 emails with the support next DELETION #Acct, looks like that must have been something they do automatically? I got one from great lakes and two more from another collection agency.

Assuming these are actually fixed, what time frame would it take before I see an uptick if any I mean, 90 days? 180?

Question, can you elaborated on the certified letter? In essence, I pay off the amount, or if it's an older one I already paid off but isn't cleared, I send a certified letter formally requesting that occur?

What incentive does the company have to do that after the fact? Is it just my job to schmooze? Again sorry for all the in depth questions but you're all actually helping a family get a home, we appreciate it.
 

a_skeleton_00

<Banned>
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Also, additional follow up:

I have a chase bank account that has had about 85k run through it the past year, this year I'm on pace for 100k, does that influence my credit line when i apply for a cc in any way?

And on that one final question, is chase a decent place to look for a cc? I only have one right now with a 400$ limit from capitalone
 

kegkilla

The Big Mod
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Also, additional follow up:

I have a chase bank account that has had about 85k run through it the past year, this year I'm on pace for 100k, does that influence my credit line when i apply for a cc in any way?

And on that one final question, is chase a decent place to look for a cc? I only have one right now with a 400$ limit from capitalone
No to first question, to the second one, it's not really going to matter until you get your credit score repaired.
 

a_skeleton_00

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Thank you keg.

Ok so income increase won't matter it's all about the 616 going up.

Looks like I wait until these get cleared off and see if the 616 rises.
 

kegkilla

The Big Mod
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Thank you keg.

Ok so income increase won't matter it's all about the 616 going up.

Looks like I wait until these get cleared off and see if the 616 rises.
your current income is a factor they take into consideration when assigning you a credit limit, but it will be self reported and not tied to how much is running through your checking account. however it's still small beans compared to your overall credit worthiness.