Privacyguard states that I am currently using 75& on 70% of my credit. How much can I expect my credit scores to increase if I pay down this debt. I am speaking of my equifax report. I currently have to paid collections as of 2000 on unpaid collection as of 2002 and a recent unpaid collection as of 2003. The only other negative that I have is a bankruptcy discharged in June of this year. I can't think of anything else to improve my scores. The collection accounts keep coming back as verified each time I dispute them. How can I dramatically improve my score?
I had just received a settlement from my insurance company because I get hit by a drunk driver in March. Rather then go ape sh!t with the money and by a bunch of crap I didn't need. I decided to use it to pay down my debt. Here is what worked for me; Pre-settlement MBNA 2200/2500 MBNA 4400/5000 Providian 4200/4400 Orchard bank 2400/2500 Credit Union 4600/6000 2 paid medicals EQ=604 Post Settlement MBNA 4800/7500 (combined 2 cards) Providian 1100/4900 Orchard bank 950/2500 Credit Union 3800/6000 1 paid medical EQ=688 I did this all Since October 1st. I only picked up 2 points when the 1 paid medical fell off. I got the other 82 points by paying down my balances.
You're focused on the WRONG number: your FICO score instead of your net worth. A higher score is a good goal, but only one aspect of your financial foundation. Sometimes FICO takes a while to reflect good financial management, depending on how it previously segmented your profile. Stick to the basics by not charging more than you can pay off when the bill comes, set some money aside for emergencies, and start accumulating assets instead of debts. A dramatic restructuring of your money management is all you need.
