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Thread: my credit is shit, and it went down! how do i get it to go back up?

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    Default my credit is shit, and it went down! how do i get it to go back up?

    Hey guys,

    So about four years ago I totally fucked up my credit-- I had two credit cards (a Visa and a Bloomingdales card) and a bank account and due to some personal issues that were going on at the time, my bank account went into the negative and I just stopped paying for the cards. I fixed my bank account but wasn't dancing for a couple years while I was in school and barely had money to pay for groceries and rent, so I just ignored the credit cards which I know was really fucking stupid. Two years later I got a letter saying that a collection company was going to take me to court if I didn't pay off the credit card and someone told me it would be better to make monthly payments for a year instead of paying it off at once, so I did that and paid it all off about 8 months ago. However I applied for four credit cards in the last year and no one would give me one until I finally got a Mastercard last November.

    My credit was hovering around the 600-610 mark at the end of the summer and it jumped up to 630/640 after I finished paying off that credit card, I think I was at 638 or something in November. I've been paying my credit card bill every month, sometimes I pay the whole thing off and sometimes I just pay half or something.

    Anyway, I checked my credit yesterday because I can now do that when I pay my bill... according to my credit card site it says my score is now 598! That is the lowest it has ever been. According to Equifax it's 625, which is still lower than it was before. I don't understand why it's so different? Which one is more accurate? And I don't understand why it's gone down to begin with, since that's a 13 point drop? I'm dying to get into the 700 range and I thought that now that someone was willing to give me a credit card and I could make monthly payments it would go UP, not down.

    My credit card company has like a report card of my credit activity and this is what they told me:

    On Time Payments- A
    Oldest Credit Line- C (5 years? I don't understand this one)
    Credit Utilization- D (have no idea what this means either)
    Recent Inquiries- C
    New Accounts- B
    Available Credit- D

    Anyone have advice? I don't understand anything about credit reports. I have about 30k in loans as well, though it's all school loans and none of them are delinquent since I have another 6 months before they start asking me to make monthly payments.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Read this forum

    https://www.stripperweb.com/forum/sh...ght=bad+credit

    I have been following everything GR said to do and things are getting a lot better. It is a game. It takes time and a lot of paperwork but i definitely can be done!

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    ^thanks!

    The other thing I'm confused about is, now that I'm in the UK, am I on a new credit system?

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    ^thanks!

    The other thing I'm confused about is, now that I'm in the UK, am I on a new credit system?
    I don't think so unless you are a citizen of that country...that is a very good question!

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    Hey guys,

    So about four years ago I totally fucked up my credit-- I had two credit cards (a Visa and a Bloomingdales card) and a bank account and due to some personal issues that were going on at the time, my bank account went into the negative and I just stopped paying for the cards. I fixed my bank account but wasn't dancing for a couple years while I was in school and barely had money to pay for groceries and rent, so I just ignored the credit cards which I know was really fucking stupid. Two years later I got a letter saying that a collection company was going to take me to court if I didn't pay off the credit card and someone told me it would be better to make monthly payments for a year instead of paying it off at once, so I did that and paid it all off about 8 months ago. However I applied for four credit cards in the last year and no one would give me one until I finally got a Mastercard last November.

    My credit was hovering around the 600-610 mark at the end of the summer and it jumped up to 630/640 after I finished paying off that credit card, I think I was at 638 or something in November. I've been paying my credit card bill every month, sometimes I pay the whole thing off and sometimes I just pay half or something.

    Anyway, I checked my credit yesterday because I can now do that when I pay my bill... according to my credit card site it says my score is now 598! That is the lowest it has ever been. According to Equifax it's 625, which is still lower than it was before. I don't understand why it's so different? Which one is more accurate? And I don't understand why it's gone down to begin with, since that's a 13 point drop? I'm dying to get into the 700 range and I thought that now that someone was willing to give me a credit card and I could make monthly payments it would go UP, not down.

    My credit card company has like a report card of my credit activity and this is what they told me:

    On Time Payments- A
    Oldest Credit Line- C (5 years? I don't understand this one)
    Credit Utilization- D (have no idea what this means either)
    Recent Inquiries- C
    New Accounts- B
    Available Credit- D

    Anyone have advice? I don't understand anything about credit reports. I have about 30k in loans as well, though it's all school loans and none of them are delinquent since I have another 6 months before they start asking me to make monthly payments.
    That means your balances are too high. The D's.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by LAChloe View Post
    I don't think so unless you are a citizen of that country...that is a very good question!
    I am.

    Quote Originally Posted by GlamourRouge View Post
    That means your balances are too high. The D's.
    Well the credit limit on this card is $500, so it's hard not to go to the limit if you are going to use it. But I usually pay it down to 150 minimum at the end of the month, for the last 4 months I've paid it off entirely (just paid it off a few days ago). Will maxing it out and then paying it off every month be bad for my credit?

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    I am.



    Well the credit limit on this card is $500, so it's hard not to go to the limit if you are going to use it. But I usually pay it down to 150 minimum at the end of the month, for the last 4 months I've paid it off entirely (just paid it off a few days ago). Will maxing it out and then paying it off every month be bad for my credit?
    No, not at all. Carrying a balance of 30% or higher is bad for your credit.

    Honestly I'm pretty confused as to how you have an A in on time payments if you forgot about your credit cards for years. Were you still making the minimum payments? And idk about the C in oldest credit line...I mean 5 years is long enough.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    I know I was rather surprised about that as well. It said 100% next to the one time. I think they wrote off the two other credit cards I had, I guess it wasn't worth it to Bloomingdales to go to a collection agency but Visa did and so I wasn't paying Visa off I was paying the collection agency. I guess the on-time payments are just for what I've been paying the last two years, the card I have now and when I was paying to the collection agency?

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Credit reports can be so confusing...So 150 is actually 30% of your 500 limit. If you only *usually* pay it down to 150 you are still utilizing 30% of your limit and paying it off in full for four months probably isn't long enough for it to hit your report. I would just continue to pay it off in full every month. I only got a credit card after college so almost 4 years ago and I've always paid it off in full (I have also been told that paying it off in full can be bad for your credit somehow. It pisses off the bank that they are getting no interest from you but whatever, it works for me).

    I checked my report last June and I think my oldest credit line was a B. I think it just because we are young. And I think I am still a couple years older than you (almost 26) which might be why mine was a B and yours is currently a C.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    I am.



    Well the credit limit on this card is $500, so it's hard not to go to the limit if you are going to use it. But I usually pay it down to 150 minimum at the end of the month, for the last 4 months I've paid it off entirely (just paid it off a few days ago). Will maxing it out and then paying it off every month be bad for my credit?
    It means you're untilizing to much credit. Your debt to income ratio is too high. I wouldn't get anymore cards right now.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    the C on 'recent inquiries' refers to 3rd parties checking your credit score. This was probably the result of your apartment searches.

    the C on 'oldest credit line' is strictly a time issue ... it takes 10 years to reach A, 5 years for B etc.

    the D on 'credit utiliation' refers to the unused portion of whatever credit limits you have. Indeed, having a credit card balance exceed 30% of the credit limit will lower your credit score. And this component is supposedly weighted 30% of your overall credit score to boot.

    the D on 'available credit' is related to the total amount of approved credit lines you have, versus your income. This scores badly if you have applied for too little total credit ( i.e. one credit card with a low credit limit ) just as much as if you have applied for too much total credit.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Thanks Melonie!

    So to be clear, will paying my bill off every month, even if I max out the card, positively affect my credit? Or is maxing the card out, even if I do pay it off, bad for my credit?

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    ^^^ Maximum monthly charge shouldn't exceed 30% of individual card credit limit i.e. $150 on a $500 limit card, or it will score badly on 'credit utilization'. A better option would be to try to have the limit raised, or to apply for a new separate UK pound based credit card with a separate credit limit. The 'credit utilization' calculation is based on the total of all your available credit lines. A higher limit or a second card would also probably help your 'available credit' score.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Keep credit card balances at like $5 if you can at all times. That is honestly better.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    So to be clear, will paying my bill off every month, even if I max out the card, positively affect my credit?
    Yes, this will positively affect your credit. Carrying a balance means keeping a balance on the card month month, where you start paying interest. Paying off the card in full every month is like using your credit card like a debit card, even if you go to the full 500.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Do you have any outstanding issues?

    If you have any you can resolve do it

    Be patient, time works things out.

    If you can get the company to increase your limit, that would help, but it may be too soon

    At the six month mark call the credit card company and ask for an increase [an immediate use is always a good reason]

    Carrying a balance proves that you can, well, carry a balance, so a person that pays off every month is not as good a credit risk as someone who carries a reasonable balance.

    Don't keep applying for things, refusals are a negative

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Haha. refer to my confessions post. It's apparent aia shouodn';t try to pay all my cards down to 30% while on my kolonopin. I got locked out of all my accounts =, because apparstly I wasn't putting in the right password!

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by GlamourRouge View Post
    Keep credit card balances at like $5 if you can at all times. That is honestly better.

    Glam, are you saying that every month you pay off everything but $5? I am just making sure I am understanding you correctly.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    So I looked at Equifax again... my has gone down to 598, apparently that last score was not updated. When I look at the timeline it's been going down since July, which is very strange, because I took out my first credit card in October I think. I guess those first few months of having over 30% debt really affected it?

    What makes me SO MAD, is that that Visa that I paid off? It's fucking on there twice. I have 3 negative accounts, the first is the Bloomingdales thing, the second is the collection agency that I paid off (and shouldn't that NOT be in negative accounts since they got their fucking money?) and then the 3rd is the visa account itself. That's such bullshit!

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    I guess those first few months of having over 30% debt really affected it?
    yes !!! Again, the 'credit utilization' score supposedly contributes 30% weighting to the overall credit score, not the 20% one would expect given 5 different categories.


    the second is the collection agency that I paid off (and shouldn't that NOT be in negative accounts since they got their fucking money?) and then the 3rd is the visa account itself
    Well, this is actually two separate 'transactions'. First you must have defaulted to the point of your credit card company 'selling' your delinquent account to a collection agency at a discounted 'price'. The credit card company took a loss as a result, thus the negative credit report from them. Then the collection agency started a 'new' collection effort on the 'new' debt they bought from the credit card company ... which you probably 'settled' for a reduced amount rather than the balance ( plus interest and penalties ) being paid in full. The collection agency took a ( partial ) loss as a result, thus the second negative credit report from the collection agency.

    Where 'settlement' offers are concerned, it's often possible to specifically include a demand for no negative credit reporting from the collection agency as a condition of paying them the 'settlement' money. But this has to be agreed on ... in writing ... prior to making the 'settlement' payment. And even with such a demand included in the 'settlement' terms, this does nothing to eliminate the negative credit report from the original owner of the delinquent account.

    You can try to file a dispute with Equifax to have these listings reviewed and potentially removed ... but if the losses were real the listings will probably remain for the 39 months it takes for them to 'age' off your credit report.
    Last edited by Melonie; 05-20-2014 at 03:20 AM.

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    I actually paid them a $100 more than what was on the credit report. I didn't think to do the agreement at the time, I'll definitely do the dispute! Under status it says "collection account" what does that mean?

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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    IIRC you should dispute on all three agencies. If anything is not 100 percent accurate, by all means dispute it.

    Your score may wander for various reasons, not because you did anything. ISTR you were living with someone else for a while,maybe you no longer had electric bill, cable bill etc etc, and you work for cash, so maybe the computers were thinking 'homeless girl'!


    On one of my refi's for my house the bank sent me a pile of paperwork, including the credit report they get. Well, let me tell you this is not the credit report you see. Lots of commentary about all sorts of things. really scary. My bank loves me, so I still got the loan.

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    Featured Member Vamp's Avatar
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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    Hey guys,

    So about four years ago I totally fucked up my credit-- I had two credit cards (a Visa and a Bloomingdales card) and a bank account and due to some personal issues that were going on at the time, my bank account went into the negative and I just stopped paying for the cards. I fixed my bank account but wasn't dancing for a couple years while I was in school and barely had money to pay for groceries and rent, so I just ignored the credit cards which I know was really fucking stupid. Two years later I got a letter saying that a collection company was going to take me to court if I didn't pay off the credit card and someone told me it would be better to make monthly payments for a year instead of paying it off at once, so I did that and paid it all off about 8 months ago. However I applied for four credit cards in the last year and no one would give me one until I finally got a Mastercard last November.

    My credit was hovering around the 600-610 mark at the end of the summer and it jumped up to 630/640 after I finished paying off that credit card, I think I was at 638 or something in November. I've been paying my credit card bill every month, sometimes I pay the whole thing off and sometimes I just pay half or something.

    Anyway, I checked my credit yesterday because I can now do that when I pay my bill... according to my credit card site it says my score is now 598! That is the lowest it has ever been. According to Equifax it's 625, which is still lower than it was before. I don't understand why it's so different? Which one is more accurate? And I don't understand why it's gone down to begin with, since that's a 13 point drop? I'm dying to get into the 700 range and I thought that now that someone was willing to give me a credit card and I could make monthly payments it would go UP, not down.

    My credit card company has like a report card of my credit activity and this is what they told me:

    On Time Payments- A
    Oldest Credit Line- C (5 years? I don't understand this one)
    Credit Utilization- D (have no idea what this means either)
    Recent Inquiries- C
    New Accounts- B
    Available Credit- D

    Anyone have advice? I don't understand anything about credit reports. I have about 30k in loans as well, though it's all school loans and none of them are delinquent since I have another 6 months before they start asking me to make monthly payments.
    You need to get your full reports. You can get those for free from annualcreditreport.com. (there is a uk site with a similar name but it is not related to this site.) It is a US government sponsored website. It will give you detailed information about each of your creditors, collections, etc. It will also point out what specific items are hurting your score.

    Because Equifax and Experian are both used in the UK all of your American credit history will transfer over. But their system is also different because the laws and regulations are different. They also have alot more government websites set up to help you with this issue.
    http://ico.org.uk/for_the_public/top..._guides/credit

    This is a great learning center about credit and different types of scores ... http://www.myfico.com/CreditEducation/articles/

    What I have always told clients about building credit... You do not have to carry a balance to build credit, just an on time payment. Buy a pack of gum every month and pay it off on time with your credit card. It will build credit and actually look cleaner to a lender.

    You have two choices really ... you either pay off the collections or wait until they are dropped from your report when it reaches the seven year mark. You may have to dispute to have them removed at that time. When you pull the full credit report it should show the last delinquency date. You said it was around four years? Will you need higher credit before it reaches a total of seven years?
    The collections will continue to weigh down your credit score until they are removed from the credit report.
    Last edited by Vamp; 05-20-2014 at 10:35 AM.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by audrey_k View Post
    I actually paid them a $100 more than what was on the credit report. I didn't think to do the agreement at the time, I'll definitely do the dispute! Under status it says "collection account" what does that mean?
    This is where things get confusing on a credit report....

    You have the orginal visa account... when you stopped paying it the account went into default status....when that account is sent to a collection agency it goes into collection status. If your card number changed while you had the account, it may show up under both numbers but only be calculated in the score as one account.

    While you are disputing them... dig up any check copies or information verifying you paid them off.... the credit reporting agency MAY ask for them during the dispute process.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    Default Re: my credit is shit, and it went down! how do i get it to go back up?

    Quote Originally Posted by LAChloe View Post
    Glam, are you saying that every month you pay off everything but $5? I am just making sure I am understanding you correctly.
    It depends when the credit bureau takes the screenshot. You should just keep the balances really low to begin with TBH.

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