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    Credit building or rebuilding

    Who do you talk to about rebuilding or building credit? Like a banker, financial person or a company?

    I had good to very good credit. Went through a divorce and she missed 3 or 4 payments I didnt know about with my name on the loan and it hit me hard.

    I make what I consider good to decent money, pay my Bill's early or on time. Pay more than the minimum payment. I dont want or have a credit card other than some I've payed off and closed the accounts.

    My credit will jump up then back down.

    I'm trying to get it all on the right track as I'd like to buy a house in the near future.

    Sent from my SM-G960U using Tapatalk

    #2
    Get a credit card use it. Make payments keep it a long time. Worst thing you could have done was cut up all your cards for your credit.

    Sent from my E6910 using Tapatalk

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      #3
      Originally posted by westtexducks View Post
      Get a credit card use it. Make payments keep it along time. Worst thing you could have done was cut up all your cards for your credit card.

      Sent from my E6910 using Tapatalk
      I figured that was the case. But I didnt know what name was on some of the stuff so I figured best to cancel. Maybe wrong choice.

      Sent from my SM-G960U using Tapatalk

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        #4
        It’s probably your balances on the credit cards. Any balance on your monthly statement over 6% of your available credit limit starts to negatively effect your score. If the balance on monthly statement is 25% or more of your limit it’s usually a good 20-30 point loss. Yes you should have credit cards open but with low balances every month. Carrying high credit card debt month to month is for financially strapped people and lenders know this.

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          #5
          There needs to be some clarity on "carrying a balance".

          You need to have a balance report each month, then pay off the statement balance before the due date to forgo the interest accrual. It's okay to let a balance report, and it helps your credit to show positive payments each month.

          I've alwyas heard that 10% is the golden rule. Don't allow more than 10% of your credit card available limit report each month. You can stay on top of this by requesting credit limit increases over time. Each card company is different, but they have a standard rule of thumb. For instance, AMEX has the 3x rule every 6 months meaning every 6 months you can ask for 3x your current spending limit, and will generally be approved without them performing another hard pull to your credit.

          If you want to learn everything you can, you should go to myfico forums. There are so many people on there that have battled through bad credit and there's a wealth of information on mortgage lending, and credit cards. You could spend days reading through it all.

          Comment


            #6
            Originally posted by 12RingKing View Post
            There needs to be some clarity on "carrying a balance".

            You need to have a balance report each month, then pay off the statement balance before the due date to forgo the interest accrual. It's okay to let a balance report, and it helps your credit to show positive payments each month.

            I've alwyas heard that 10% is the golden rule. Don't allow more than 10% of your credit card available limit report each month. You can stay on top of this by requesting credit limit increases over time. Each card company is different, but they have a standard rule of thumb. For instance, AMEX has the 3x rule every 6 months meaning every 6 months you can ask for 3x your current spending limit, and will generally be approved without them performing another hard pull to your credit.

            If you want to learn everything you can, you should go to myfico forums. There are so many people on there that have battled through bad credit and there's a wealth of information on mortgage lending, and credit cards. You could spend days reading through it all.
            there is zero difference in the way it reports if you paid off a balance or had zero balance and no payment due. either way reports as payment made on time. you can open a new card and never use it and it reports the same as a card with use. balance over 10% certainly starts to impact score though.

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              #7
              Originally posted by Hawkins View Post
              I figured that was the case. But I didnt know what name was on some of the stuff so I figured best to cancel. Maybe wrong choice.

              Sent from my SM-G960U using Tapatalk
              Do you have a credit karma account? If not, you should get one.

              I will say that the credit score they give you is unreliable. I believe they use the vantage model, not the fico model that most lending institutions use. Couple that with the fact that there are different fico models that are used, it adds to the inaccuracy of the vantage model that credit karma uses.

              However, they give you great insight into which factors are costing you credit points.

              Average age of account is a big factor. It's one of the hardest ones to get to, because you have to wait it out. There's no loop holes out of it.

              If you have derogatory remarks on your account, you can try to call the agencies and ask for forgiveness. You can also write forgiveness letters (goodwill letters), explaining the situation that occurred and your current situation and hope they will remove the negative remarks.

              Some say it works well, others say it wont. I think it depends on the lender.

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                #8
                Originally posted by wes122984 View Post
                there is zero difference in the way it reports if you paid off a balance or had zero balance and no payment due. either way reports as payment made on time. you can open a new card and never use it and it reports the same as a card with use. balance over 10% certainly starts to impact score though.
                That's good information. I was told differently. Thank you for clarifying

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                  #9
                  Originally posted by 12RingKing View Post
                  Do you have a credit karma account? If not, you should get one.

                  I will say that the credit score they give you is unreliable. I believe they use the vantage model, not the fico model that most lending institutions use. Couple that with the fact that there are different fico models that are used, it adds to the inaccuracy of the vantage model that credit karma uses.

                  However, they give you great insight into which factors are costing you credit points.

                  Average age of account is a big factor. It's one of the hardest ones to get to, because you have to wait it out. There's no loop holes out of it.

                  If you have derogatory remarks on your account, you can try to call the agencies and ask for forgiveness. You can also write forgiveness letters (goodwill letters), explaining the situation that occurred and your current situation and hope they will remove the negative remarks.

                  Some say it works well, others say it wont. I think it depends on the lender.

                  He should sign up for an Experian account. It’s $25 a month and all three credit scores are updated every 30 days. I found out that it’s way more accurate than credit karma.


                  Sent from my iPhone using Tapatalk

                  Comment


                    #10
                    Originally posted by MBV77 View Post
                    He should sign up for an Experian account. It’s $25 a month and all three credit scores are updated every 30 days. I found out that it’s way more accurate than credit karma.


                    Sent from my iPhone using Tapatalk
                    Yes, I have an experian account, or the free version. That's kinda why I posted this because it offers a paid version and it says boost your credit by linking a bank account, cell bills, etc. But I didnt feel comfortable doing that and disnt knowing it was safe or worth it.

                    Sent from my SM-G960U using Tapatalk

                    Comment


                      #11
                      Originally posted by MBV77 View Post
                      He should sign up for an Experian account. It’s $25 a month and all three credit scores are updated every 30 days. I found out that it’s way more accurate than credit karma.


                      Sent from my iPhone using Tapatalk
                      I get my FICO through my CC's each month. I have a Citi, AMEX, and Discover. These cover all 3 bureaus each month.

                      Discover uses FICO Model 8 TransUnion
                      AMEX uses FICO Model 8 Experian
                      CITI uses FICO Model 8 Equifax

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                        #12
                        Go to a credit union and ask about a credit building program. I seen my CDU advertising about it and asked out of curiosity. They basically give you small loans that you pay off.

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