I am really very confused by my credit score. I declared bankruptcy in 1998(my ex-wife was a compulsive gambler.) I somehow have a judgement against me from a major retailer that I thought was on the bankruptcy. I have since remarried, and tried to assemble something resembling decent credit. I had two credit cards, and have had a great track record with them over the last two years. So I got my credit reports, disputed what I knew was inaccurate, and at that time(August 2001) my TU score was 599. I have since bought a new car(at a ridiculous interest rate) and I have cancelled the two credit cards. And with all of this, now my credit score is in the 570 range. What gives?? All of my payments have been on time, I always pay more than the minimum on the remaining balances on my credit card....I want to buy a house in the next year, and I am concerned about why my score is decreasing as time goes on, even with my excellent payment record. I have a cell phone, my bills are all on time.... One more question, how do I go about putting comments about the circumstances of my bankruptcy into my credit reports....Thanks in advance for any help...
Welcome to the board gmatt, I can offer you some advice as to why your credit score is not higher than where it is now. You said you had two credit cards and a car loan, however you said you cancelled your credit cards, but you also said you're still paying more than the min. on the remaining bal. on at least 1 c.c.. First off, canceling a c.c. with a current balance is a ratio killer. What happens is your limit part of your limit to balance ratio goes down while your balance part stays the same. Another thing is, it sounds like you only have 1 open tradeline. If you want to raise your score quicker, you should have 3-6 open tradelines (a good mixture of bank cards, retail cards and maybe a gas card would do). BTW, don't put too much stock in TU's score. The only true score is from Equifax, the FICO score. Have you checked your credit reports from Equifax and Experian as well? If not, do it. Both offer a 30-day free trial which allows you unlimited access to your reports, and both give you your score. Equifax's as I said is your true FICO score, Experian's isn't as accurate, but close. As I said before, TU's is off. Hope this helps.
Thanks for the welcome.... I was thinking about getting another credit card, but I am worried about getting turned down....Any suggestions on Credit cards that I should look into getting. I previously had Capital One(paid off), Providian(closed, but still carries a balance) and I am an authorized user on my wifes discover card.....
gmatt, Well Capital One is a good rebuild and beyond card. I know you said you had a C1 card before (not sure if you meant it was charged-off and you paid or you simply paid it and closed it) but either way I'd suggest you open another account with them, especially if your previous account was closed by you, not the other way around. Whats nice about C1 is they report to all 3 CRA's, and if it's a secured card they don't report it secured. Also, depending on how large your balance is on your Providian,... if it's a large one, see if they'll allow you to re-open the account, as I pointed out above, a closed c.c. with a balance hurts your score(s). I've been told Macy's is an easy retailers card to get, however you should still get ahold of your other reports and see what they say. A score of 620+ will get you several good bank cards, 670+ will be prime card land all the way, so with a 570 score, you're on your way.
Matt, Was the judgement prior to your bk filing? If so, the debt that created the judgement is gone but, the judgement will remain. What you need to do is return {with a lawyer preferably} to the court that issued the judgement and petition the judge to vacate the judgement. Pretty routine.
It appears that the judgement was finalized the month that I filed the bk.... But I dont ever recall getting any notice of the judgement....Dont I have to receive notice to appear in court?? I certainly dont ever recall getting one, and bang, there the judgement sits right below my bk.....
For charge cards, definitely consider Target and Best Buy. Target will probably only give you $200 but I've never heard of anyone being turned down. Best Buy (actually HRS) is extremely lenient also. Keep in mind that both of these are charge cards, not credit cards, so they'll help with the mix. As for Cap1 and Providian, definitely try and reopen those accounts. I agree with the others on here that closing your credit card accounts is what killed you. The average age of your OPEN accounts is a determining factor in your score.
I am definitely going to call providian to see if I can at least reopen the account.... As for capital one, I guess it wouldnt hurt, but I would have to reapply. That account was closed and paid off by me. And I dont have any luck with store credit cards....Just for the heck of it I applied online for Best Buy and was turned down. Now, whether that means I was completely turned down or just for instant credit, I dont know, I guess we will see when the letter gets here. I just dont want to many inquires either, as this looks bad on the credit report....damned if you do, and damned if you dont I guess....
Matt, I thought I would weigh in with an opinion about something else you asked -- adding personal statements to your credit reports. My opinion: never do it. First of all, personal statements are practically never read by potential creditors. Your credit score, on the other hand, whether justly or unjustly, is the usual determinant regarding whether or not you will qualify for new credit. Second, those statements usually only make it more difficult to embark on a credit repair campaign later because they usually only confirm what's already there. So, for example, let's say you attach a statement to a 90-day late tradeline that reads something like this: "These late payments were made only because I was suddenly laid off (or sick), but that unfortunate situation changed very quickly, and we have never been late with this or any other account since." You may think that this makes you sound responsible. Unfortunately, to any creditor who happens to read this, it says only this: "NOTE: yes I really was late with this account, plus I'm not smart enough to have an emergency fund to cover basic minimum payments if something goes wrong financially. Therefore, I am a bad credit risk." Even worse, let's say you do learn a few things on this board, and you decide, "Hey, I'll try disputing this account in this nifty new way." Whoops. The credit bureau is going to dismiss your new dispute even faster than it did the old one because there's no need to even take another look: After all, it's right there in your statement that you admit being late, irrespective of the extenuating health or employment circumstance which means nothing to them anyway. Some credit repair old-timers will advise you that the first thing to be disputed are any of those silly 100 word statements if you've ever placed any there. I heartily concur with that philosophy. Finally, there is a statement you can place on an account that actually may encourage the CRA to remove the tradeline (but you risk being flagged as "frivolous" per the FCRA), and it would go something like this: "Equifax freely admits violating Federal law by allowing this erroneous notation to remain on my report. Furthermore, Equifax admits civil liability in this case and will remit $1000 per FCRA violation to this consumer upon demand unless this tradeline is removed within 60 days." Moral of the story: don't insert excuses in your report that simply do nothing except confirm the truth of the lateness. It's terrible and cold, but the truth is that creditors don't care about people getting sick or losing thir jobs; rather, their only concern is whether or not they will lose the money they lend you. Doc
OK, thanks for that advice.... I just looked at all of my reports, and now I have an idea of what my total credit picture is. I also am going to dispute the judgement. I never received anything about this, and the account is listed on the bankruptcy.... This is how my scores stacked out... TU=579 Equifax-FICO=581 Experian=618 Boy, I really like Experian right now ;-)
Ok, just an update. I just spoke with a customer service rep at Providian, and he stated that they can't reopen my account, and that I cant reapply for an account until my balance is paid off. So that leaves me looking for another credit card. I am going to get in touch with Cap1 and see what they have to offer.....
Matt, more advice, lol... If you're opening another credit card just for the express purpose of adjusting your ratios to improve your credit scores, better look past Capital One. Cap One has proven to be a wonderful company in so many ways, however they do have one terrible flaw -- they don't report credit limits. Unfortunately they only report "high credit" (i.e., the highest balance you've ever used on the account). Cap One cards aren't exactly going to be your first choice if you're looking to improve credit scores. Doc
...MORE about CAPITAL ONE...you get 3 inquires for one credit card...THAT IS A PRETTY HEFTY PRICE TO PAY!!!
Yooohooo...HoustonGuy...you have now heard of someone being declined for the Target guestcard...lol. Moi. L
matt, i had the same problem. a med bill that was in collections and didn't know about it when i filed bk7. if you look, search my post i posted the letter my attorney wrote. Which CR did bestbuy pull from?? Whsypers, as for target i was turned down too. I had a mervyn's account they wrote to me to let me know that i would have to pay that and then they would consider it.
I am not sure which they pulled from...it doesnt show up on any of them yet.... Probably TU, since that is my worst one and it seems to be the most popular. I am now searching for some card that I can transfer my balance from the providian... They are not being cooperative at all. But all of these credit cards I have seen are just crazy with their fees...its almost worse than when I first got the CCs two years ago...
here is my post. hope it helps, only thing is yours was in 1998 and i was in 2001 http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=162273#post162273
Can't remember exactly what you've posted...do you have a secured card(s)? If not, that might be your best bet for now. Even if you do, I suspect it's just going to take some time for your numbers to improve. Be patient!
None of the cards I have had were secured. I started out with a $500 CL on Providian, and as we speak it is at $4100. They Cap1 wasnt secured either. And the Discover is my wifes, and I am just an authorized user. I guess time is what its going to take, I am just looking for some ways to help the process along in the meantime...
A couple of comments: Target is not a gimme-I also was declined when my scores were in your range. Its not as easy as everyone seems to think to get this card. I would personally wait until all 3 were in 600-620. Cap 1 is a good card to consider. I have had great luck w/ them and they pulled TU and Cap1, not EQ.