Hello all. I have been reading CN for awhile now and have had limited success in improving my credit. I had a BK discharged in 5/03. I pulled my EQ report in 11/03 and found that my FICO was 633. I disputed a collections account that was IIB from FirstUSA and had that removed...My score jumped to 642. I then recieved a HH CC with a whopping credit line of $300. It's a start I guess. My score went down to 620 after the card showed up. Is this normal and will my score rebound quickly? Also CC's that were IIB are showing up as charge-off's on my report. Is this worse in regards to my score?? Should I push for them to be marked as IIB and is that possible? I guess that is enough questions to start. Thanks in advance D-
Addition of new tradelines lowers the average age of your accounts, and yes initially you'd see a drop. The size of the drop is inversely proportional to the number of entries on your report. If after the collection entry removal you are left with only 2 or 3, yes, it's normal ... Dispute your chargeoffs as NOT MINE first; disputing right away as "IIB" is implicitly admitting they are yours
Another major factor is how much of the limit you are using. If you used it, but have a low balance, you may rebound a little faster than if you get the card up to its limit.
Thanks for the info. With the cc I am just putting my gas on it now. I am keeping it below 30% usage and paying the balance down to $20 a month. I was told somewhere to leave a small balance every month. It would help my score to rise faster. is that correct? You say that dispute the cc's that are showing up as charge off's as not mine. Should I do this by asking the OC for verification and similtaniously disputing with EQ? Thanks again D-
Leaving a balance on the card only costs you money in interest. It does NOT affect FICO score. What the person who advised you meant, and possibly you misunderstood, is to have a small balance at the time the card reports to the bureaus. Yes, a small balance is more beneficial than a zero balance. This does NOT, however, necessarily mean carrying over a balance. You can pay the balance of your previous statement in full, but have some pending charges before the new statement generates next month. Also, keeping it below 15% is even better than 30% usage. If it does not cost you another inquiry or $$$ (ask first), see if Household will increase your credit limit. [ But then knowing Household, I retract my advice; save your breath ] Best of luck.
