453 Credit Score

[Anonymous]

I have a credit score of 453 and I would like to increase it. I recently settled on three accounts that were 30 days past due. I have four credit cards inwhich two are large amounts that were settled on and two small balance CC that being paid on time. What can I do to increase my score. I look to refinance my house in the next year, or even sell and purchase a new. But I would like to know how to increase my credit score and maintain a good credit rating. 

[Tuscani]

Welcome! What other baddies do you have? Have you read the Scoring 101 thread?

[Anonymous]

Yes. I read several articles talking about how one can write to the creditors after making payments to have derogitory files removed. Is this posible in my case.

[Tuscani]

Yep:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2661

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

[Anonymous]

Is it possible that my score would increase being that I settled and paid  a smaller amount and later sent a goodwill letter to each creditor? 

[Anonymous]

One other thing you could do to increase your score overtime, refi with this score and the lender will include all of your debt in the loan, you may get a little higher interest rate but all your bills would be paid and refi after 1 year, this will start you with a clean slate, I know this sounds like who's really going to refi me with this score, if your mortgage is current this could be your way out and a fresh start.

[MercyMe]

I did that!  It helped to get the company credit cleaned up and put a new roof on the house.  Not a bad deal!  After a year I refinanced again and got a 6% fixed!  Best thing I ever did!

[girlie]

when my score was in the toilet (466) i was told by country wide full spectrum lending that i needed at least 500 to be considered.  not to be pessimistic, but i don't think any lenders will touch anything under 500.  you should try to raise your score to at least  that before you think about refi'ing.  also, i was looking for a refi when my score got up to 546 and i was gonna get hit with a high rate and a three year pre-payment penalty.  i basically said forget this i'm going to spend time raising my scores and then see what i can get.  rates are so much higher now, but with my mid score 667, i can at least get a prime rate.

[Anonymous]

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bubba608 wrote:

Is it possible that my score would increase being that I settled and paid  a smaller amount and later sent a goodwill letter to each creditor? 

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GW won't reduce your credit score. Did your GW request work?

[Momof5]

Ahhhhh the damage we do when before we find credit forums!  You would have been better off simply bringing those 30 day late accts to current by paying the past due plus the current due.  The effect of a 30 day late minimizes after 24 mo.  "Legally paid for less than full amount" is a score killer and will look bad on a manual review.  You can try a GW, but they are not always successful and your chances decrease when you settled instead of PIF.

With the new subprime mtgs at 620 (up from 580) you can bet your sweet bippy that a refi won't fly. 

It also appears that these actions are fairly recent so it is unlikely that you can dispute and see them disappear.

So how do you fix this?  (1) Make larger than normal payments to you open CC accts and get them paid off.  Add new tradelines (subprime cc's(?), secured cards (if necessary), possibly a car note) and pay EVERYTHING on time.  Keep track of what is going on with your CR and make sure no more baddies are added.

I cannot predict what you could have score-wise in a year, but you should be in a better position to refi then.