Credit Help! So confused! Please read completly.?

Question

I have a 570 credit score but I havent been late with a bill in 3 years! I own a paid off 140k house I rent out, a 04 jeep wrangler paid and a 02 GSXR but cant get even get a home equity line of credit due to my score!!! Ive paid my rent of 600 for over a year early every month. Same with my power, water, cable, and more. Have a checking and savings acct with balances between 400-2k consitently. I even got one of those really bad credit cards that charge about 300 bucks just for starting them and only have a 300 $ credit limit and pay it off completly every month and my score hasnt changed! I reported all inaccuracies on my credit report and went back to the cards I got when I was 18-20 and paid them even though they werent trying to collect but it didnt do any good. The only advice the credit unions will give me is to pay off everything I owe and lower my balances but suprise! I dont owe anything so thats useless advice!
HELP! My lease is expiring on my apt and I want another house

Answer 1

You have made a number of mistakes already.

1) You listened to a banker. What sort of advice would you expect a banker/loan officer? Of course they will tell you to pay the debts! But as debts get older, they lose importance on your credit score. Once you make a payment, you change them back to a "recent" debt, and that will hurt your score.

2) Paying off a debt does NOT help your credit score because all notations about charge offs, late payments and collections are still going to be listed. All it does now is change to "paid" but it's still a negative report.

3) Credit scores do not reflect what you own, but what your credit history is. So owning a home and car doesn't help you. Being super-mega rich does not impress the scoring companies. Amazing fact, huh?

OK, so what to do?

Start by disputing all negative information on your credit reports. This will not fix all of the bad marks but will remove some of them.

Send a letter to those people you you paid back and ask them to please delete any negative information on your report. Again, only a few will help you because it's not natural for a collection agent to want to help you with your credit problems.

Next, start rebuilding your credit by using your credit cards to pay on things you normally pay cash on. Utility bills, groceries, etc....and pay off the bills each month.

Note that you should keep a very small balance on your charge cards. Another strange quirk in credit scoring is that if you pay off your card each money, you actually look like a deadbeat to the credit companies because you always have a zero balance. But regardless, you need to keep up a history of charging for things.

Your score is still very low, and I suspect something else is happening to it. Go over your credit report very carefully.
Consider going to http://www.myfico.com/12 and purchasing their credit score. It includes a detailed report of the negative codes on your report, and what you should do to improve your score.

Finally, don't expect any "magic bullet" cures to improve your score overnight. It's going to take several months of work.

Answer 2

It takes a long time for that stuff to fall off your credit report and increase the score.you also have to have a solid creit history, no misshaps. You are using the credit cards and paying it off every month, that’s what you need to do first.. You do not have a car payment, so there are no loan payments to report. The only time your rent will show up on the report is if you miss a payment, or get evicted, they do not report good behavior to the credit agencies, just the bad. Same goes for the checking and savings, and utilities. You need to open up some unsecured credit lines that you pay off each month, and make sure that the report to all three credit agencies. Your best bet with the apartment is to get a co-signer, or look for a place that does not run a credit check (like a small complex or private room) and make sure your landlord gives you a reference. I’m sorry, I know it sucks.

Answer 3

GO to another lender.
Some of the bigger lenders do not have the authority to make an on the spot decision about you like some of the smaller hometown banks do.
With the kind of money you make, it sounds like you could be an acceptable risk for a loan with a slightly higher interest rate due to your low score.
IF you have been in your same job for over a year, write a 'disupute' with the credit agency. They will be required to send a copy of same to anyone who inquires about your credit.
In this 'dispute (might be called something else-) you can take each negative entry point by point or you can make a general statement explaining why you were late for the year or two that you were.
Again with some of the smaller banks, your ability to pay back your loan now coupled with the fact that you have paid off some huge loans would be a strong mitigating factor in your favor.
If this does not work and you still want a home, you are luckier thanmost in that you can borrow against your paid off home....to secure the debt on your newest purchase. I would do this as a last resort since a bird in the hand is worth two in the bush....
is there any chance you can kick out your current tenant in the house that you just paid off and save that money you would have paid out to buy a house and just save it.
At the end of five years (saving $500* per month *the amount you would have paid in rent someplace else), YOU CAN PAY CASH for for damn near whatever house you want. Everyone else with bad credit in in envy of you!
GOOD LUCK!

Answer 4

It sounds like you have a past history of not paying things such as the credit cards from your youth. Does the fact that they weren't trying to collect on your debt have anything to do with not being able to find you? Companies are very, very, slow to forgive. It takes them 7 years to remove a bankruptcy from a credit report so I'm guessing 7 years for everything else too. That is 7 years from the date you paid them off! Though when I recently got my credit report there were addresses listed that I had lived at 18 years ago! The creditors who you didn't pay in a prompt manner will probably never lend to you again unfortunately and it isn't illegal on their part at all. You are probably going to have to renew your lease, move into the house you own, or find a new place unfortunately. Of course what really sucks is because of your bad credit you may have difficulty finding a new place to lease but maybe your current landlord will write you a reference? Sorry,

Keep up the good work though. It really sounds like you turned a corner 3 years ago and I'm hoping for your sake you stick with it.

Answer 5

I don't know how old you are or if it's relevant, but I know I didn't "get smart" until later in life. I was called "stupid," looked down upon, etc., for a long time. I finally took some collage courses to see if I actually had the brains. I obtained a 3.75 grade average and have a 133 IQ. I don't let other's opinions sway me any longer. As long as you find portions of existing philosophies or find your own along the way, forget about what everyone else thinks or says. I understand you feel the need to contribute to the class, but for now, just try to learn. Like another answerer said, keep an open mind, learn what you can, learn to have your own school of thought and don't let the others get you down. We are all intelligent in different areas of life. Maybe philosophy isn't your strong suit. Find another area close to philosophy, such as sociology, that you may excel at.

Answer 6

Well, one of your problems is that you have no outstanding balances on which to build a credit rating. In order to build a credit rating, you have to carry a balance and pay at least the mimimum due on time each month.

Reports are sent to credit companies by your creditors based on how you manage your outstanding debt. Since you are paying off your credit card each month, there is nothing to report, therefore, your credit rating will not change.