So Let's Talk About Good Credit And Ways to Restore Bad Credit...Step Inside...

13

Comments

  • major pain
    major pain Members Posts: 10,293 ✭✭✭✭✭
    edited March 2010
    Bruh I respect your knowledge...but homie everything I put out is correct. My knowledge of this ? goes deeper than just doing a little research....everything I stated is how I took my credit score from a 525 to a 720 bruh...and my ? is continuing to get better...

    Like I said I respect the knowledge, but my ? came from actual implementation


    Props on the good work for yourself, but I have been doing this for myself and people for years now so the things I am saying are from my experience in the industry. The Vantage score is not something used by enough lenders to merit being accurate for applying for credit. When someone goes to buy a new home or car a FICO score is going to be used based on the models for mortgages or cars. If you are basing 720 off of the Vantage score and not the FICO score your credit still needs major work.
  • freshfromatl
    freshfromatl Members Posts: 559
    edited March 2010
    major pain wrote: »
    Props on the good work for yourself, but I have been doing this for myself and people for years now so the things I am saying are from my experience in the industry. The Vantage score is not something used by enough lenders to merit being accurate for applying for credit. When someone goes to buy a new home or car a FICO score is going to be used based on the models for mortgages or cars. If you are basing 720 off of the Vantage score and not the FICO score your credit still needs major work.

    Oh okay...props once again bruh...I get what your're saying now...
  • freshfromatl
    freshfromatl Members Posts: 559
    edited March 2010
    lady_c wrote: »
    settling old debt isnt necessarily the right way to go, it really depends on each persons individual situation. unless you have gotten it in writing as a pay to remove, paying off a debt can restart the clock on the 7 years that it can be reported to the bureaus. so if the person has already waited years to take care of it, they will essentially tack on a new life to it. also, the longer it has been on your reports, the less positive impact a settlement has, unless of course youve done a pay to remove and have it in writing...

    What other reason would a person settle the debt other than having it removed??

    Everytime I've called to settle the debt, I made sure I had the money to pay right then...

    Also that's the reason I said earlier...don't talk with those debt collectors unless you're prepared to pay it off.
  • freshfromatl
    freshfromatl Members Posts: 559
    edited March 2010
    true...if u have a debt and havent touched it in 2-3 years ride that ? out until it falls off ur report. once you pay on it, you restart the clock on it.

    I don't know bruh...depending on the person, that could be a long ass time to just leave bad credit lingering...What if you want to buy a car in the next couple of months, or get a crib or something...

    My thing is...unless you already own a home and got a car...you shouldn't be waiting around for 7-10 years for debt to fall off your report...
  • major pain
    major pain Members Posts: 10,293 ✭✭✭✭✭
    edited March 2010
    I don't know bruh...depending on the person, that could be a long ass time to just leave bad credit lingering...What if you want to buy a car in the next couple of months, or get a crib or something...

    My thing is...unless you already own a home and got a car...you shouldn't be waiting around for 7-10 years for debt to fall off your report...

    He is talking about the way a creditor or collection agency can still screw your credit up even if you pay the debt. The FCRA and FDCPA (you should read through this if you havent) lets a collection agency "restart" the 7 year time frame if you even BEGIN to start trying to make the account "current" or paid. So in the instance of someone that has a bad debt on their credit for 4-5 years and they decide they want to pay it, the account can be "re-aged" from the date they make ANY payment. Unless you have it in black and white from the collection agency or their legal dept. that they will remove the debt from your report, there is not much you can do, and the negative history will be on your report for another 7 years minimum.
  • major pain
    major pain Members Posts: 10,293 ✭✭✭✭✭
    edited March 2010
    What other reason would a person settle the debt other than having it removed??

    Everytime I've called to settle the debt, I made sure I had the money to pay right then...

    Also that's the reason I said earlier...don't talk with those debt collectors unless you're prepared to pay it off.


    If you are only settling this debt, and not having these items removed from your credit, it is not helping you as much as you may think because Vantage may be taking that into consideration, but FICO does not. In the case of a manual (human) review of your credit profile it may help, but most lenders are going with an automated approval system, which basically only takes your score into consideration.
  • lady_c
    lady_c Members Posts: 201
    edited March 2010
    major pain wrote: »
    He is talking about the way a creditor or collection agency can still screw your credit up even if you pay the debt. The FCRA and FDCPA (you should read through this if you havent) lets a collection agency "restart" the 7 year time frame if you even BEGIN to start trying to make the account "current" or paid. So in the instance of someone that has a bad debt on their credit for 4-5 years and they decide they want to pay it, the account can be "re-aged" from the date they make ANY payment. Unless you have it in black and white from the collection agency or their legal dept. that they will remove the debt from your report, there is not much you can do, and the negative history will be on your report for another 7 years minimum.

    exactly...the only difference in reporting before the pay off and after is that it will report as "settled" or paid off but will remain as a negative item. furthermore, if you settled for example a $1k debt for $200, yeah that collection agency or original creditor may show that you have paid off $200, but unless it's in writing that they will not, they can in turn sell the remaining $800 to another collection agency. this will not only allow them to have another collection agency reporting to your bureau, but if they can validate the original debt (usually unlikely) they can collect on the remaining $800 legally. so agreeing to settle may have caused 3 more problems: restarting your clock on the first item, creating a new item for the unpaid portion of the settlement, and allowing for a new round of collections. all of which could be avoided if you have it in writing to have it removed altogether and that the remaining portion cannot be sold to another collection agency. most ppl assume that if they pay it off they are good, when in fact depending on the amount and age of the item that may not necessarily be true. once the debt is years old, it being reported as paid, settled, or written off really all have the same basic effect. age is one of the main factors in credit scores. UNLESS you are trying to pick up a mortgage. if so, every negative item on your reports will have to be removed either by dispute or paid off before they will finance you.
  • freshfromatl
    freshfromatl Members Posts: 559
    edited March 2010
    lady_c wrote: »
    exactly...the only difference in reporting before the pay off and after is that it will report as "settled" or paid off but will remain as a negative item. furthermore, if you settled for example a $1k debt for $200, yeah that collection agency or original creditor may show that you have paid off $200, but unless it's in writing that they will not, they can in turn sell the remaining $800 to another collection agency. this will not only allow them to have another collection agency reporting to your bureau, but if they can validate the original debt (usually unlikely) they can collect on the remaining $800 legally. so agreeing to settle may have caused 3 more problems: restarting your clock on the first item, creating a new item for the unpaid portion of the settlement, and allowing for a new round of collections. all of which could be avoided if you have it in writing to have it removed altogether and that the remaining portion cannot be sold to another collection agency. most ppl assume that if they pay it off they are good, when in fact depending on the amount and age of the item that may not necessarily be true. once the debt is years old, it being reported as paid, settled, or written off really all have the same basic effect. age is one of the main factors in credit scores. UNLESS you are trying to pick up a mortgage. if so, every negative item on your reports will have to be removed either by dispute or paid off before they will finance you.


    Props on the knowledge
  • freshfromatl
    freshfromatl Members Posts: 559
    edited March 2010
    major pain wrote: »
    He is talking about the way a creditor or collection agency can still screw your credit up even if you pay the debt. The FCRA and FDCPA (you should read through this if you havent) lets a collection agency "restart" the 7 year time frame if you even BEGIN to start trying to make the account "current" or paid. So in the instance of someone that has a bad debt on their credit for 4-5 years and they decide they want to pay it, the account can be "re-aged" from the date they make ANY payment. Unless you have it in black and white from the collection agency or their legal dept. that they will remove the debt from your report, there is not much you can do, and the negative history will be on your report for another 7 years minimum.

    Wow this is some very shady business right here...

    I have never heard of a credit agency pulling this act...Wow...

    Every agency I paid off a debt they sent me a letter stating I have been released from that debt and my credit score relected that...I even backtracked and called a few I paid off a minute ago and asked about this...The chick I spoke with actually gave me the "no sir...we do not handle our business like this" speech, lol...if you wanna find out here's the number: 1 (800) 771-5361...Diversified Consultants...


    But this is very troubling though...How often does it happens?
  • major pain
    major pain Members Posts: 10,293 ✭✭✭✭✭
    edited March 2010
    Wow this is some very shady business right here...

    I have never heard of a credit agency pulling this act...Wow...

    Every agency I paid off a debt they sent me a letter stating I have been released from that debt and my credit score relected that...I even backtracked and called a few I paid off a minute ago and asked about this...The chick I spoke with actually gave me the "no sir...we do not handle our business like this" speech, lol...if you wanna find out here's the number: 1 (800) 771-5361...Diversified Consultants...


    But this is very troubling though...How often does it happens?


    It happens quite a bit, but if their letter says that they are removing it from your credit it would not be in their best interest for them to put it back because you could sue. The other thing you have to worry about is if you settled on the debt they can send you a 1099-C for the difference. I'm not trying to discredit your hard work, but you should immediately sign up for the myfico free trial to get your current FICO score, because that model is what most mortgage companies use and it is not taking into consideration that you paid a settled debt. You will probably see a significant difference in your score between Vantage and FICO.
  • Miltown Marauder
    Miltown Marauder Members Posts: 2,881 ✭✭✭✭✭
    edited April 2010
    My tip is, your first credit card you leave open FOR LIFE. Nothing beats longevity.
  • major pain
    major pain Members Posts: 10,293 ✭✭✭✭✭
    edited April 2010
    My tip is, your first credit card you leave open FOR LIFE. Nothing beats longevity.


    Ehh... that really is a case by case basis especially if you are looking for other unsecured credit. Lenders tend to "match" or just beat the limit you have on other cards. Normally, a person's first credit card is a very low limit... under 1k and probably under 500. So, you might be stuck with low limits for awhile with that. Personally, I like moving on to bigger and better things. Pretty good feeling I got when I received my first 5 figure card.
  • Chef_Taylor
    Chef_Taylor Members Posts: 26,584 ✭✭✭✭✭
    edited May 2010
    my current credit score is 695...at the pace im going ill be done paying my suv off next fall...once i've paid the suv off, how far will my credit score jump?
  • major pain
    major pain Members Posts: 10,293 ✭✭✭✭✭
    edited May 2010
    doubletee wrote: »
    my current credit score is 695...at the pace im going ill be done paying my suv off next fall...once i've paid the suv off, how far will my credit score jump?

    Well first off where are you getting that score from? If its not from myfico.com then it may not be an accurate score. Second, paying off an auto loan is good overall, but you may not see much of an increase in the score. The reason being is the majority of your credit score is based off of how you use your unsecured or revolving credit (credit cards, line of credit, store cards).
  • Wishbone Jones
    Wishbone Jones Members Posts: 4,296 ✭✭✭
    edited June 2010
    i need better credit
  • TheBoyRo
    TheBoyRo Members Posts: 13,647 ✭✭✭✭✭
    Bump. Any new advice?
  • Bcotton5
    Bcotton5 Members Posts: 51,851 ✭✭✭✭✭
    Thinking about buying a used car and paying it off really fast to build my credit. Heard contradicting stories that that paying it off faster than your supposed to can hurt more than it helps and won't build your credit.

    Is it better to pay everything on time or pay 2 or 3 months at a time to get it done faster @Sion
  • Bcotton5
    Bcotton5 Members Posts: 51,851 ✭✭✭✭✭
    Sion wrote: »
    Bcotton5 wrote: »
    Thinking about buying a used car and paying it off really fast to build my credit. Heard contradicting stories that that paying it off faster than your supposed to can hurt more than it helps and won't build your credit.

    Is it better to pay everything on time or pay 2 or 3 months at a time to get it done faster @Sion

    Pay everything on time consistently. That's the best way to quickly build healthy credit. Using your credit more also helps a lot. It's more of a matter of how often you use credit and how often you pay for it on time. A great way to build credit is to use your credit card for small purchases and pay it off quickly and often in full.

    Your level of income may sometimes play a role too but not often.

    @Bcotton5

    @Sion aight I was gonna get a used car for like 5 or 6 thousand and just pay it all at once lol would that have a negative impact on my credit
  • Bcotton5
    Bcotton5 Members Posts: 51,851 ✭✭✭✭✭
    Sion wrote: »
    Bcotton5 wrote: »
    Sion wrote: »
    Bcotton5 wrote: »
    Thinking about buying a used car and paying it off really fast to build my credit. Heard contradicting stories that that paying it off faster than your supposed to can hurt more than it helps and won't build your credit.

    Is it better to pay everything on time or pay 2 or 3 months at a time to get it done faster @Sion

    Pay everything on time consistently. That's the best way to quickly build healthy credit. Using your credit more also helps a lot. It's more of a matter of how often you use credit and how often you pay for it on time. A great way to build credit is to use your credit card for small purchases and pay it off quickly and often in full.

    Your level of income may sometimes play a role too but not often.

    @Bcotton5

    @Sion aight I was gonna get a used car for like 5 or 6 thousand and just pay it all at once lol would that have a negative impact on my credit

    No it won't impact it at all.

    Btw I think you should consider a car loan if that's the case. But depends on the car and how long you intend on keeping it.

    Yea that's what I meant , a car loan for a used car but I just pay it all at once instead of monthly. How would that affect it? @Sion
  • mc317
    mc317 Members Posts: 5,548 ✭✭✭✭✭
    Any of yall tried piggybacking on tradelines

    https://www.boostmyscore.net/
  • 2stepz_ahead
    2stepz_ahead Guests, Members, Writer, Content Producer Posts: 32,324 ✭✭✭✭✭
    @Sion we should sticky this an move it to the g&S.

    maybe..just a thought
  • Qiv_Owan
    Qiv_Owan Members Posts: 4,125 ✭✭✭✭✭
    @Sion we should sticky this an move it to the g&S.

    maybe..just a thought

    I agree with this
  • Koltrain
    Koltrain Members Posts: 4,286 ✭✭✭✭✭
    mc317 wrote: »
    Any of yall tried piggybacking on tradelines

    https://www.boostmyscore.net/

    @mc317 Haven't tried it. Do you know anyone that has?
  • Koltrain
    Koltrain Members Posts: 4,286 ✭✭✭✭✭
    edited May 2017
    Made my money back in a week. Using this to supplement my savings.

    Www.myfes.net/dcole5
  • LUClEN
    LUClEN Members Posts: 20,559 ✭✭✭✭✭
    I recently just fixed my credit. If you're in Canada, the website Mogo.ca will give you free credit advice and let you access your equifax score for free, without hurting your score. I went from 616 to 669 in less than 2 months.