New Scores/What Else can i do!
Date: Tue, 09/08/2009 - 19:19
I've been paying down my old collections and the balances are being reported as lower, but that doesn't seem to be helping..I feel like i'm working as hard as I can but am getting nowhere. I'm afraid to try and get new credit, and soon i will need a car and also an apartment. I've read a lot of stuff online and around, and it all seems to confuse me more or make me feel more lost. It feels hopeless, and I know I can't go 2-3 more years with those CAs on there without being able to get anything.
It usually takes around 6 months of clean credit to start seeing
It usually takes around 6 months of clean credit to start seeing a higher score, as the time between the bad mark and the present is a huge determinant in the score. You may also wish to take a small secured credit card, one that reports every payment (check their Disclosure statement).
Here are some salient features of FICO '08, * The new FICO scor
Here are some salient features of FICO '08,
* The new FICO score has taken more lenient approach towards missing payments. Small missed payments, less than $100 wouldn't mar the credit score as it used to before the changes.
* With the new system the debtor wouldn't be penalized for single delinquency if it is more than two years old, provided he had maintained unblemished record afterwards.
* However, debtors with high credit exposure may expect a drop at their credit score under the new system. Living close to the credit card limit might not help you in improving the score.
* The new system would also try to single out debtors who would try to improve their credit score through 'piggybacking' , since it gives a wrong impression to the lender about the credibility of the debtor.
Apart from these points, the overall system hasn't experienced much changes, and FICO has never really disclosed its formula for computing score. Hence, you may only hope to see positive changes in your score soon.
