Fico Score Raise
How do I raise my FICO score?
In the past I have had a fico socre of 580. Since then I have paid of all revolving debt (which my problem debt to income to high) How long until score will raise?
Unfortunately, credit scoring is much too complex a calculation for me to tell you specifically when your credit score should improve without knowing much, much more about your credit history.
Even if I had a copy of your credit report, it would be difficult for me to tell you when and if your score would improve based on your current credit history. As you mention in your question, you have been paying all of your accounts and have paid off your revolving accounts. I would suspect, that given your score of 580, that you have delinquencies or even charge-offs in your credit history.
Continuing to pay your accounts on time should slowly improve your credit profile, but how long it will take for your score to improve really depends on how much damage your credit score suffered during the past 3-4 year, and how many positive credit listings are now appearing on your credit report.
While I cannot tell you when your credit score will improve, I encourage you to continue making your monthly payments in a timely manner, as the longer you make payments, the more positive influence the accounts will have on your credit history. I encourage you to regularly obtain copies of your credit reports from the three major credit bureaus (Equifax, TransUnion, and Experian) to verify that all listings appearing on your report are accurate. If you find any inaccurate credit listings, you should dispute the item with the credit bureau reporting the information.
If it would help you for future knowledge, I can help you to understand how your credit score is calculated. Your credit rating is calculated based on several variables, including: your payment history (do you have any late payments, charge-offs, etc.), the amount and type of debt that you owe, if you have maxed out any of your trade lines, and then several other secondary factors like the length of your credit history and how many recent inquiries have been made to look at your credit history.
Without contesting, all items remain on your credit report for up to 7 years. A bankruptcy may remain on your credit report for up to 10 years.
For you to start seeing improvements, here are some things you perform:
1. Pay off all debts and keep revolving lines below 25% utilization (and certainly don't 'max out' any loans or cards {in your case, paying down your revolving accounts is a great start}; 2. Get a small store card or gas card or credit card and make payments every month {this will help you re-establish a track-record of positive payment history}; 3. Write a letter to the three bureaus (Experian, Equifax, TransUnion) explaining your situation and why you are now in a good credit situation. Request that they add this letter to your file; 4. Pull your credit report and contest to remove any inaccurate information.
We hope that this helped you to Find, Learn, and Save!
These are a few of the considerations. If you would like more information about a solid financial game plan, please download our FREE budget and personal finance guide:
To learn more about credit reports and credit scoring, I encourage you to visit the Bills.com Credit Solutions and Resources page at http://www.bills.com/credit/
I wish you the best of luck in rebuilding your credit history. I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.Bills.com