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Originally Posted by V_RocKs
Hehehe.. In November my Fico score was about 540. I had debts I never paid off since I got divorced back in 1993. I looked over my old debts and decided to pay off the non revolving debts. Things like an out standing gas bill (old renting partner had it reinstated in my name and then left me the bill. It was only $210 so I just paid it off to be done with it), an outstanding hospital bill of $620, etc. etc... Basically leaving the CC's and paying EVERYTHING else.
Fico score went up to 715 in January. Then I went back and checked my credit report and found that the hospital didn't remove my shit so I talked to them and they did. In Feb it was 728. Then in March I paid in full the debts on 3 cards. My score went DOWN to 645. I was like, WHAT THE FUCK! Aksed a guy who does lones for a living and lives and breathes this shit (for determining interest rates and risk of loans) and he basically said that when you repay back a fucked up situation that has been formant for so long (last report was a chargeoff in 1996) you basically make it a newly talked about bad debt. After 2 years I will be back above 700 if I Don't payoff the other 2 cards.... if I do I will be around 690... But if I do I can talk to the person underwriting the lone and inform them that I now make 3 times what I used to and have ZERO debt...
1 more month or so to ZERO debts... fucking yee-haaa!
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yeah, I feel ya... been there, done that. It sucks.
But I tell everyone on the subject, there isn't one single magic cure... it's a combo punch. Keep the revolving down, but active. Larger loans, run them for a while, then kill them. I got a couple of large long terms I've been steady on for about a year that I'm getting set to nuke in about a month...
the formula works.... 12 years ago I couldn't get anyone to even give me a pre-paid card. It was that bad. Now I got mutha fuckers throwin' credit at me. My score actually went down a few notches a couple months ago because I had too much 'available' credit. (crock of shit if you ask me).
But I think the most important thing is just to keep things moving... keep shit active, don't go crazy, and every once in a while, show them you got what they want. Charge up $20k... pay a few months minimum payments.... then pay it off. A month later your limits will double. I have personal cards with $30k limits. It's obscene.