Posted on: 12th Jan, 2011 10:55 pm
Hey all,
A few years ago, I got into a little debt trouble and began paying everything off and worked my way back into the Dave Ramsey lifestyle of paying cash, not credit. Six months ago, I was able to get all of my old accounts paid off. With the low mortgage rates, I want to take advantage and re-fi now while I can. Here's the problem. What I didn't realize over the time that I was paying off my cards and accounts was that some went with no balance for a while and were closed by the creditors, and some I closed in my pursuit to be cash only. When I went in to my mortgage broker for a re-fi, I was told that my score was problematic. So I'm a bit puzzled by this. Come to find out, those closed accounts, etc. actually brought my score down a bit since I've not used credit in a while.
I need to get my credit score (610) up as I'm only within 20-30 points of qualifying. My broker said to get new lines of credit going. Any ideas from anyone?
A few years ago, I got into a little debt trouble and began paying everything off and worked my way back into the Dave Ramsey lifestyle of paying cash, not credit. Six months ago, I was able to get all of my old accounts paid off. With the low mortgage rates, I want to take advantage and re-fi now while I can. Here's the problem. What I didn't realize over the time that I was paying off my cards and accounts was that some went with no balance for a while and were closed by the creditors, and some I closed in my pursuit to be cash only. When I went in to my mortgage broker for a re-fi, I was told that my score was problematic. So I'm a bit puzzled by this. Come to find out, those closed accounts, etc. actually brought my score down a bit since I've not used credit in a while.
I need to get my credit score (610) up as I'm only within 20-30 points of qualifying. My broker said to get new lines of credit going. Any ideas from anyone?
It sounds like you recently had a mortgage broker pull your credit report/scores. If that's the case, did he supply you with a copy of Notice to Applicant/Credit Score Information Disclosure?
If not he should have as it is a legal requirement under FACTA compliance. The disclosure would provide you with credit scores of each credit bureau that was used and list the four key factors effecting your score. From that you can determine which items you might be able to improve upon to increase your score.
If not he should have as it is a legal requirement under FACTA compliance. The disclosure would provide you with credit scores of each credit bureau that was used and list the four key factors effecting your score. From that you can determine which items you might be able to improve upon to increase your score.
I would advise that you speak with a mortgage loan officer who not only can pull your credit report but also has access to Rapid Rescore and CreditXpert type programs that he/she can use to answer your question.
Thanks all for your responses so far. I will ask about Rapid Rescore and CreditXpert when I talk to my broker again. My friend who works at a bank nearby told me about trying to find some online places where I can open accounts for shopping and keep them paid up on time to get some quick reporting. He told me he used one called Enchanted Attire and said he was able to raise his score by 60 points inside of 4-5 months by using it to extend his credit lines and show positive activity. Could something like this be a viable option?
Thanks
Thanks
Hi speeddater,
For a case like yours, the best think that you'll have to do is to refer it to mortgage broker. I'm pretty sure they can provide you the answers to all your queries.
For a case like yours, the best think that you'll have to do is to refer it to mortgage broker. I'm pretty sure they can provide you the answers to all your queries.
speeddater, you can use the option that your friend has used in order to improve the credit scores.
Have you checked out the fees they charge you at Enchanted Attire to get their card? $195 activation fee PLUS a $19.95 month fee.
Get a credit card from a regular bank. If you don't qualify get a secured credit card to start with. This will usually have a better impact on your credit scores than going the route your friend took.
You should also get a copy of your credit scores with the key factors that are lowering your scores as I earlier suggested. Then post back again on what you find.
Get a credit card from a regular bank. If you don't qualify get a secured credit card to start with. This will usually have a better impact on your credit scores than going the route your friend took.
You should also get a copy of your credit scores with the key factors that are lowering your scores as I earlier suggested. Then post back again on what you find.
So far, good info. To Jim Gilly:
You complain about the fees and say get a secured credit card if I can't get a regular one.
OK
1) can't get a regular one
2) the best secured card I could get would be only for 300-400$.
3) When I checked out Enchanted Attire, they were willing to extend to me a $4500 credit line. So I took it. $195 for $4500 vs. what...$99 to the full $300 for a $300 card at a bank? If I've got to buy credit one way or another to get my debt ratios recalibrated, I think I'd take the bigger line wouldn't you?
If I can get my score up enough points in only a few months to get that re-fi and save myself long-term, I'd say $195+another $100 in total monthlies is a small price to pay to get me there faster versus missing out on low re-fi rates that can cut my payments longterm and help me out right?
You complain about the fees and say get a secured credit card if I can't get a regular one.
OK
1) can't get a regular one
2) the best secured card I could get would be only for 300-400$.
3) When I checked out Enchanted Attire, they were willing to extend to me a $4500 credit line. So I took it. $195 for $4500 vs. what...$99 to the full $300 for a $300 card at a bank? If I've got to buy credit one way or another to get my debt ratios recalibrated, I think I'd take the bigger line wouldn't you?
If I can get my score up enough points in only a few months to get that re-fi and save myself long-term, I'd say $195+another $100 in total monthlies is a small price to pay to get me there faster versus missing out on low re-fi rates that can cut my payments longterm and help me out right?
First comment, you could get an honest secured credit card that would cost you no more than $50 a year versus the ridiculous charges you seem so willing to pay at Enchanted Attire. Type of credit and utilization ratio are more important than credit limit. Something seemed fishy about your response so I did a little more digging.
Do a search for "Enchanted Attire" and you will see in Google results they market that they will build your credit in the search results heading. Maybe it is just be but I don't recall ever seeing a business selling clothing promting this in their marketing materials. Dubious to say the least.
Now we come to the good part. I also see speeddater that on 12 January when you first made a post on this forum you also posted on the Topix forum under PhoenixMan. Almost the same post except for one little detail. On that forum you said you had already signed up with Enchanted Attire and in two months your credit score went up 20 points. The post you made here on the 16th only 4 days later said you were thinking about signing up with them and wanted to know if it was a viable option. What?
I would be interested in hearing your explanation on why the two conflicting posts. It couldn't be that you have an interest in Enchanted Attire could it? I think I already know the answer to that one.
Do a search for "Enchanted Attire" and you will see in Google results they market that they will build your credit in the search results heading. Maybe it is just be but I don't recall ever seeing a business selling clothing promting this in their marketing materials. Dubious to say the least.
Now we come to the good part. I also see speeddater that on 12 January when you first made a post on this forum you also posted on the Topix forum under PhoenixMan. Almost the same post except for one little detail. On that forum you said you had already signed up with Enchanted Attire and in two months your credit score went up 20 points. The post you made here on the 16th only 4 days later said you were thinking about signing up with them and wanted to know if it was a viable option. What?
I would be interested in hearing your explanation on why the two conflicting posts. It couldn't be that you have an interest in Enchanted Attire could it? I think I already know the answer to that one.
Have you tried consulting it to a reputable experts? You can learn from them what would be the best move to take and how you can recover.
if you have not been using credit and paying off old debt and closed old accounts, it will initially hurt your credit score. a credit score is not only calculated by how many open credit accounts you have, but the rating of those accounts. if you have no active open credit accounts, but have closed accounts with a poor history payment it will not help your score even if you pay them off. the best and quickest way is to establish a current history of better credit. a car loan is the second best thing to a mortgage when it comes to earning points on your credit report, credit cards, student loans, and other types of loans are good too. i would say if you do not have an auto loan take out a small car loan. perhaps an equity loan if you have any equity in your house. 610 could possible enable you to refinance but the rate would be horrible. you need to establish good credit history again and this takes time. usually 6months to a year if not longer depending on how bad your credit profile is. you can pull your credit report for free yourself at annualcreditreport.com all 3 credit bureaus offer this it is a government rule!
this forum should be looked at for the best advice, not just for promoting our services to people who may not need them. isn't that the whole point of a forum. fellow forum peeps some of you need to get a clue!
this forum should be looked at for the best advice, not just for promoting our services to people who may not need them. isn't that the whole point of a forum. fellow forum peeps some of you need to get a clue!
im in the same boat and my mortgage broker referred me to a credit repair service called my credit group. great company and great reviews. they recommended the enchanted attire as it reports to all three credit company's and they said the usually get a 30 to 60 pt jump form initial sign up also recommended OX publishing but they only report to 2 credit company's so now im trying this and hoping it works
Hope you have a good experience with them! :-)
Some insane ideas being bounced around here.
Paying large fees for credit is insane!
Understanding what you are doing will save you a lot of money, taking direction from people that don't understand credit is dangerous.
If you need credit, start with the best secured credit available..Public Savings Bank. They don't pull your credit to offer you a card, the minimum deposit is $200 and you can put down a max of $3000. The APR is 13% and they report to all 3 bureaus. Your deposit is the collateral on the credit. It's your money.
Rapid rescore is only a validation of new data that has not yet hit your report.
For example, if you pay down your credit card balance to $0 tomorrow, it may take 30-90 days for your credit card co. to report the new balance to the credit bureaus. Rapid rescore updates the balance in 3-5 days.
If you pay off a collection and obtain a "deletion letter", that collection can be removed in 3-5 days via rapid rescore.
There are 2 other account types that can be rapid rescored as well.
Contact me if you need more info through my profile.
And no, you don't need to go through a mortgage guy to utilize the rapid rescore process. They are offered the process through their 3rd party credit provider (Credco, Landsafe, FundingSuite, etc..).
This process is available to the general public.
Paying large fees for credit is insane!
Understanding what you are doing will save you a lot of money, taking direction from people that don't understand credit is dangerous.
If you need credit, start with the best secured credit available..Public Savings Bank. They don't pull your credit to offer you a card, the minimum deposit is $200 and you can put down a max of $3000. The APR is 13% and they report to all 3 bureaus. Your deposit is the collateral on the credit. It's your money.
Rapid rescore is only a validation of new data that has not yet hit your report.
For example, if you pay down your credit card balance to $0 tomorrow, it may take 30-90 days for your credit card co. to report the new balance to the credit bureaus. Rapid rescore updates the balance in 3-5 days.
If you pay off a collection and obtain a "deletion letter", that collection can be removed in 3-5 days via rapid rescore.
There are 2 other account types that can be rapid rescored as well.
Contact me if you need more info through my profile.
And no, you don't need to go through a mortgage guy to utilize the rapid rescore process. They are offered the process through their 3rd party credit provider (Credco, Landsafe, FundingSuite, etc..).
This process is available to the general public.
A mortgage officer will help with all suggestions of increasing the credit report.