I finally received my credit scores through Identity Theft Protection. It's a great way to get ur scores without having to pay for them. I don't understand why FICA scores aren't free once a year like credit reports are.
This is the first time I have tried to see what my credit scores are and I realize that I have a more than a little work to do. I really didn't take my credit serious and now that I am older and more mature, I have to correct those youthful mistakes. I had to file bankruptcy and I knew then, when I did, it was going to be a up hill
One of the first things I need to do is apply for a secured credit card and maintain that for a good year. The second thing I want to do is call about my school loans....I am a little confused as to what is going on with them. First they were on the bankruptcy, but I keep getting these updates from Sallie Mae. I really need to get on that pronto!!!
I figure that I can work on my credit this next year and try to bring my rating as close to 700 as I can.
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Here is something that I ran across on the internet you may already have this info but it helped me.
ReplyDeleteBlitz significant errors. Your credit score is calculated based on the information in your credit report, so certain errors there can really cost you. But not everything that's reported in your file matters to your score.
Here's the stuff that's usually worth the effort of correcting with the bureaus:
Late payments, charge-offs, collections or other negative items that aren't yours.
Credit limits reported as lower than they actually are.
Accounts listed as "settled," "paid derogatory," "paid charge-off" or anything other than "current" or "paid as agreed" if you paid on time and in full.
Accounts that are still listed as unpaid that were included in a bankruptcy.
Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report.
You actually have to be a bit careful with this last one, because sometimes scores actually go down when bad items fall off your report. It's a quirk in the FICO credit-scoring software, and the potential effect of eliminating old negative items is difficult to predict in advance.
Some of the stuff that you typically shouldn't worry about includes:
Various misspellings of your name.
Outdated or incorrect address information.
An old employer listed as current.
Most inquiries.
If the misspelled name or incorrect address is because of identity theft or because your file has been mixed with someone else's, that should be obvious when you look at your accounts. You'll see delinquencies or accounts that aren't yours and should report that immediately. However, if it's just a goof by the credit bureau or one of the companies reporting to it, it's usually not much to sweat about.
Two more items you don't need to correct:
Accounts you closed listed as being open.
Accounts you closed that don't say "closed by consumer."
Closing accounts can't help your score, and may hurt it. If your goal is boosting your score, leave these alone. Once an account has been closed, though, it doesn't matter to the scoring formulas who did it -- you or the lender. If you messed up the account, it will be obvious from the late payments and other derogatory information included in the file.
4 other credit mistakes
Other actions to beware when you're trying to improve your score:
Asking a creditor to lower your credit limits. This will reduce that all-important gap between your balances and your available credit, which could hurt your score. If a lender asks you to close an account or get a limit lowered as a condition for getting a loan, you might have to do it -- but don't do so without being asked.
Making a late payment. The irony here is that a late or missed payment will hurt a good score more than a bad one, dropping a 700-plus score by 100 points or more. If you've already got a string of negative items on your credit report, one more won't have a big impact, but it's still something you want to avoid if you're trying to improve your score.
Consolidating your accounts. Applying for a new account can ding your score. So, too, can transferring balances from a high-limit card to a lower-limit one, or concentrating all or most of your credit-card balances onto a single card. In general, it's better to have smaller balances on a few cards than a big balance on one.
Applying for new credit if you've already got plenty. On the other hand, applying for and getting an installment loan can help your score if you don't have any installment accounts, or you're trying to recover from a credit disaster like bankruptcy. Get the latest from Liz Pulliam Weston. Sign up to receive her free weekly newsletter.
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By the way, all these suggestions work best if you have poor or mediocre scores to begin with. Once you've hit the 700 mark, any tweaking you do will tend to have less of a positive impact.
And if your scores are in the "excellent" category, 760 or above, you'll probably be able to eke out only a few extra points despite your best efforts. There's really no point, anyway, since you're already qualified for the best rates and terms. Here's one area where it's really OK to rest on your laurels and worry about something else.