Started with 2 derogs, over the three reports (all three reported 1, only Equifax and Transunion reported the other).... 1st derog came off. Interestingly, this was the only that really should have stayed and all I asked them to do was reflect the accurate last date of activity. For whatever reason, it moved from 10/97 to 1/01. Well, I guess the creditor couldn't find records and just moved it from charge-off to paid as agreed. Interestingly, I only disputed that one with Experian, and it was modified on all reports. After my success with Experian I disputed it with Equifax, which by the time they got the dispute the creditor already changed it. So I got a "We don't know what you are talking about" letter from them. 2nd derog, is an auth user account reporting as a joint account which th ex let lapse into collection. Transunion verified, I sent procedure letter, which they return with their generic procedure (not specific to this account), the infamous "Are you using a credit repair service letter", and then interesingly, another letter saying they let me know the results by 5/20. So I don't know if they re-opened the investigation or not. We'll see. I disputed same account with Equifax, which they removed (was showing "In dispute") in the past couple of days from my online report totally. Awaiting a letter from them for safe keeping along with the online report as evidence of deletion (if it magically reappears!). I think I have TU by the short hairs, because Equifax didn't wait the 30 days to remove, which I'll take, for now, that the creditor told them to take it off. I'll let TU have until 5/20, then I'll focus on their butts. Last item, last credit reporting agency. Nice to be able to focus like this. Now, to pay down some balances (I ran them up starting a business last year). Business is doing well and I can pay down now. Once I can get the balances down, I should get over the magical 720 mark on all the reports, for the best possible mortgage rates. Planning on a major upgrade in housing early next year. Probably larger then the credit card debt that I used to start the business, is the fact that I have two relatively new loans for vehicles on my report, one from July 2000 and one from Oct 2001 with large starting amounts, 26K and 30K. I think paying down both of those to 50% (around 15K) will do wonders for the reports along with another year of aging. Just a little other information, the derog coming off Equifax leaves me with a clean report, with credit back to 1985 (6 car loans, 5 paid off, mortgage and the cards). The increase in score with the last derog coming off amounted to 6 pts, the date of last activity was 10/98. (which included 30, 60, 90, 120 day lates and a charge off). Obvisouly, the balances I'm carrying now have a much greated effect than the derog of 3 1/2 years ago. Thanks for this wonderful resource, I don't post much, but I read everything!
I have found that making large payments on car loans does nothing to the score. I paid down $11,000 at one time and got no points at all. Other large payments have had the same result. Others here have reported the same thing happening. If you want to increase your score, concentrate on the credit card debt first. I find that I get about 1 point for every $700 paid down (On about $60,000 in credit card debt). The theory is this: If you get into trouble financially, you will probably do whatever you can to save your house and cars because you really need them. But, if you have to stop paying something, it is easier to stop paying credit card debt. So, credit card debt counts more towrds your points because it is a better indicator of what you will do when things get tough.
Thanks, Thomas. Yea, I've noticed a 1 pt increase on Credit Expert for every 400 I pay off on CC debt. Equifax doesn't budge much, although I think I'll see a major increase once it gets under 50% (soon). On myfico.com scoring, it shows in order, my score decreasers as: 1. Balances on Installment Accounts (two cars) 2. Too many major bank cards (6 including Amex) 3. Credit utilization 4. Too many cards with Balances I do have one smallish Mastercard that I've never charged anything on, so I'm going to get rid of it. The 4th one will be easy because I have a few cards with smallish 500-700 balances, I'll get those off this month. We'll see if I can get rid of #4 (will have 3 cards with balances). I'll continue to drop a card a month until #2 comes off. On the installment thing, it is more of a sanity check for me. Paying down the car loans, gives me a very decent equity in the vehicles, probably 12K on one and 7-8K on the other. We could get rid of the Mustang Cobra (just had to have it at 0% for 60 months!) if need be to qualify for the house. Just want to be prep'd to sell it quickly (read, below market value) if they mortgage company says "Well, if you have 500 less in monthly debt you could qual for this house" then I can say, "No problem, be 500 less tomorrow".
Let us know how your score is affected when you get below 50% utilization on your credit cards. I hope to be there in a few months and am curious how much it will help.
