Frustrated - Score isn't coming back very quickly

[ChaserRu]

Hey guys,
I had BK discharged in April of 2008(almost 4.5 years ago). Since then, I have gotten a $1k card, $700 card(got in '09). Also have about $5k in student loans(had several years). Also have a ~$2500 installment loan. I do have a $4k card showing up on my credit as I'm a cardholder on an account in my wife's name. In the last 4.5 years my negative items are a 60 day late 2 years ago on a student loan(missed the bill, not $ issue), and a public record of a tax lien that was filed 2 yrs ago and immediately paid in full(shows $26k on public record, but was only about $800). My score is still only in the 600-625 range. My credit utilization bounces between 0-100% as I use the cards frequently for my small business. Score is 620 right now with 53% utilization. I am needing to get some additional working capital to grow my business but cannot due to my credit. I had thought I would bounce back a little bit faster than this!

Discharged:
- A couple of mortgages
- $30k or so in unsecured credit, maybe 7 accounts.

Questions:
- Any idea if my wife's $4k card would help/hurt my score? It's about 1-1.5 year old account.
- "Last reported date" on two of my old accounts discharged shows as '11/'12. Does this have an impact on my score?
- Any other suggestions to get score up?

[LadyInTheRed]

You need to keep your credit utilization below 30%. Below 10% would be even better. And I think that needs to be on each card, not in the aggregate. My guess is that utilization is what is keeping your score down.

The 2 year old items probably don't have a huge effect, but may have some, especially when combined with your BK. You need to make sure you have no more negatives. If the amount of tax lien is incorrect, dispute it with the credit agencies.

Whether your wife's card hurts or helps depends on the utilization on the card and whether there are any late payments on it.

[frogger]

In the last 4.5 years my negative items are a 60 day late 2 years ago on a student loan(missed the bill, not $ issue),

a public record of a tax lien that was filed 2 yrs ago and immediately paid in full(shows $26k on public record, but was only about $800).

My credit utilization bounces between 0-100% as I use the cards frequently for my small business.

with 53% utilization.

IMO, you listed why your score is not any better than it is. It doesn't matter if it's a missed bill or a lack of money, when you miss a payment, you miss a payment. The credit reporting agencies don't care why.

Once you get 90%+ utilization of credit cards, you're toast.

[drowning123]

Whatever you do, ChaserRu, please don't go down the same road you did 5 years ago. Sometimes too much credit is no good. I have one secured (yes) Capital One card ($451) and a car payment. I probably use the card once a month to get gas ($50). Then I pay it right off. My average score is in the high 600's (around 680), and I'm only 2 years discharged. Good luck.

[ChaserRu]

Hey guys,
Yes I understand, we use the cards for fuel and such so I can make one payment out of my checking as my business acct is limited to 150 transactions per month without paying additional. I only have ~$5-6k available on cards, we spend $2k+ per month on fuel and several thousand more on supplies. Our business monthly gross has tripled this year so trying to keep up with the business.

We haven't had a late payment on any of our cards. I do understand that the late payment counts no matter the reason. I guess my thought was that since it was 2+ years ago, and even at 52% utilization I would be higher than 600-620. The "simulators" only bump it up about 20 points going down to 0 utilization.

[frogger]

Hey guys,
Yes I understand, we use the cards for fuel and such so I can make one payment out of my checking as my business acct is limited to 150 transactions per month without paying additional. I only have ~$5-6k available on cards, we spend $2k+ per month on fuel and several thousand more on supplies.

I've got a cash back card with a 2K limit on it. I use it pay most of my expenses, instead of writing checks for them. Now running several thousand dollars a month on this card, but I pay the card once a week, therefore not burning my credit limit. On the day that the statement is scheduled to close, I keep the balance under $200.00, below the 10% threshold.

Enjoying watching that cash back build up each month. That goes to savings!

[HHM]

Sounds like your utilization is what is hurting you the most.

Also, being an authorized user on a card is almost no value anymore in the FICO scoring model.

[joshuagraham]

Once you get 90%+ utilization of credit cards, you're toast.

Agreed. Before I went belly up I was at about 95% utilization on my $160K credit lines, and no one would offer me more credit. In retrospect, I suppose they were prudent, as the hole I was in was far too high to climb out of.

[ronsetoe]

It also sounds like you need to find a new bank. 150 transactions is a joke for a business....unless it a really small or a hobby