How bad are these scores?

[BK'd-Betty]

Okay, ya'll inspired me to pull my credit. I used the Walmart link for TrueCredit.com

Background info:

BK 7 discharged 10 mos ago. Home still showing in Foreclosure. No new credit obtained. No clean up on report. Still showing two very high balances as as owed, even tho it also says IIB. Much clean up needed.

These are TC FAKO's, how bad are they:

Mine: TU: 628 EX: 577 EQ: 598
Husband: TU: 636 EX: 610 EQ: 598

I'm going to start mopping up the mess next week. I just don't know where to start.

If there are many inaccuracies, do I send one letter to each of the CRA's with all of them, or one letter to each CRA for each inaccuracy?

Thanks-Betty

[jetset]

I've already cleaned up my credit reports, my CH 7 was discharged in July. I have one credit card and awaiting for my new orchard bank in the mail.

You're scores are still better than mine! Get those reports cleaned up and they'll be even better!


jetset

PS. I was amazed at how high the scores jump after you get something corrected in your favor.

[CindyLou]

not a bad place to have to start!!! Good luck.

[HHM]

They are not great, you are still in the sub-prime, second chance category, but being over 600 is good. Once you are two years out of BK and once your scores get over 680, (note, just being 2 years out of BK does not mean your score will be 680) then you will be out of Sub-Prime/second chance territory. (that doesn't mean you will get the "best" deals, you need scores in excess of 720 for those, but you will get decent market rates.)

[FilingOnMyOwn]

Not horrible scores, I'd work on your experian score first. They seem to be a tough spot for everyone. If they were all as easy as equifax, well nevermind...

[BK'd-Betty]

Thanks for the feedback guys-much appreciated.

I have positive T/L's showing on my report from as far back as 1980 (I was 18 in 1980! LOL)

I'm going to start writing letters tomorrow. I don't plan to apply for credit anytime soon, but I guess better to start the clean up now rather than later.

[BK'd-Betty]

Update!

Okay, so far I've disputed all AU's (mine on his and his on mine) and got one paid collection to report as paid and several accounts that were not reporting as IIB and IIB, and one old collection that wasn't mine removed. These disputes are through TU & EX, I haven't done anything with EQ yet as I can't do that online. So, I'll start writing those letters next week.

I still have at least 3 accounts, including my mortgage that are still reporting as open and 120+ past due, and even though all are reporting IIB, they still are labeled as Charge Off's

But just with those changes here are our current scores:

TC FAKO's as of 11/22:

Mine: TU: 693 EX: 630 EQ: 598
Husband: TU: 667 EX: 640 EQ: 598

TC FAKO'S as of 11/2:

Mine: TU: 628 EX: 577 EQ: 598
Husband: TU: 636 EX: 610 EQ: 598

Still not great, but a significant improvment with very little effort.

If I get EQ cleaned up and get the Mortgage to report as 0, and get the rest to report IIB & delete the Charge Off, I'm hoping the scores will all be in the middle to high 600's.

We *may* both get orchard and or hooters cards to start reporting postive trade lines, in hopes of raising the scores enough to get a decent interest rate on a used car loan in two years.

But honestly, I'm REALLY AFRAID of getting any credit cards. I guess I'll really need to set some hard and fast rules about using them. Like, he can use one for gas, which we'll PIF every month and I'll use one for groceries that we'll PIF every month - at least we'd be using our normal expenses which are already budgeted for each month to help re-build our credit.

Anyway, just thought I'd post an update for anyone that might be feeling discouraged about credit clean up. It works.

[HHM]

Just an interesting FYI, in researching for another post, I came across a clause in the FCRA (Fair Credit Reporting Act) that exempts many of the reporting restirctions on credit accounts that are, or could realisticaly be, in excess of $150,000 (i.e mortgages). For example, it appears a mortgage in excess of $150K could still report adverse info in situations where a regular credit account couldn't.

[BK'd-Betty]

Oh that is interesting HHM, thanks for the information - I'll have to look into that.

The interesting thing about our Mortgage is that on TU it shows open and with a balance & also notes IIB - on EX & EQ it show as closed, 0 balance and IIB.

Even with that reporting though, my TU is my highest score! LOL

So what your saying is that it *could* be legal for them to continue reporting as open with a balance?

[HHM]

So what your saying is that it *could* be legal for them to continue reporting as open with a balance?

What is the status of the mortgage? By your posts, I would assume the mortgage is no more, correct?

If the mortgage is no more, then I don't think they can still report an open balance (that is plainly inaccurate), but from what I saw, they probably could report it as IIB and continue to report any defaults or missed payments etc.

[BK'd-Betty]

Actually, I'm still going around and around with the insurance company. However, my thought process was that because of the BK 7, the balance should show ZERO despite the other issues I've had.

It does show Foreclosure, 120 days late, IIB. But only TU shows a balance due, others are ZERO.

I guess I won't worry about it until everything is settled with the other issues, once they are issued a check the balance should say ZERO anyway, and I realize that the Foreclosure, 120 & IIB will remain.

[HHM]

Actually, I'm still going around and around with the insurance company. However, my thought process was that because of the BK 7, the balance should show ZERO despite the other issues I've had.

It does show Foreclosure, 120 days late, IIB. But only TU shows a balance due, others are ZERO.

I guess I won't worry about it until everything is settled with the other issues, once they are issued a check the balance should say ZERO anyway, and I realize that the Foreclosure, 120 & IIB will remain.

Exactly, and I wouldn't worry about it until the foreclosure is complete. Once it is complete, then all the credit reports should at least show a zero balance.

Also, I am not saying you shouldn't dispute other adverse entries related to the mortgage to see if they are willing to re-verify, i.e. the late payments and what not, but if those entries don't come off, I wouldn't pursue it much further because there really isn't much you can do.

[tradewiz50]

They are not great, you are still in the sub-prime, second chance category, but being over 600 is good. Once you are two years out of BK and once your scores get over 680, (note, just being 2 years out of BK does not mean your score will be 680) then you will be out of Sub-Prime/second chance territory. (that doesn't mean you will get the "best" deals, you need scores in excess of 720 for those, but you will get decent market rates.)

Would love to know where you get your information HHM? A 680 FICO score is not sub-prime lending.

[HHM]

Would love to know where you get your information HHM? A 680 FICO score is not sub-prime lending.

Ok, let me clarify terminology...I generally like to keep my posts straight forward and not have to qualify every term...Strictly speaking, within the "lending industry", "true" sub-prime (which relates to a specific type of loan paper) is considered about 520-620, however, you do not get Grade A Loans ("A" level paper) until your score is over 680, and a score of 720 or above gets you the best rates. Thus, in loose terminology, sub-prime is effectively anything below 680 because until your score reaches 680 or above, you will generally not get market rates on loans. The market rates are those rates you see quoted in various publications...if your score is below 680, a lender will add incremental increases in your interest rate, make you pay points, require larger down payments, or only offer a loan on a reduced LTV, based on their lending criteria.

Also, there is some regional and state to state variation, but the above figures are a good generality.