MyFICO score +79 point in 2 months!

Every year for the past three years I have been getting a free annual credit report. Sometimes I would go the extra mile and pay to look at my score. This year, 2010, I have taken everything more seriously.

So, In March I paid for myFICO will TransUnion and Equifax, Experian no longer was available through MyFico.com so, I went to Experian website to get that score. I notice that some stuff had fallen off that was hurting my score. My score had improved but it was still bad. So, I disputed a couple collections items that were listed more than once, same account but different agency.

Look I am not perfect and my credit is improving. So many of you can witness my testimony of needing your credit improved but you don’t know exactly how to do it. I was always told that a credit card would or unsecured lines of credits would help you bring your credit score up.

The issue about that is…. When you have bad credit…. No one gives you a credit card. If you can get a credit card from one of the bad-credit card companies such as Orchard Bank; the fees are OUTRAGEOUS and on top of that you start with a very low available balance. The catch to those types of cards is they charge you with some product up front on how to build your credit and then you have to figure the rest out.

Here’s my story….

I received a letter from a debt collection agency over a year ago named Jefferson Capital. It was a small debt; the debt was about 3 years old. The debt came about from a credit card that I had. My husband and I both had great jobs and we were fixing to close on a brand new house built from the ground up. On the same day, I lost my job and two months later he lost his. We didn’t close on our house. We lost a brand new SUV that we had just purchased. Hadn’t had the car two months and could not afford one payment. Things got bad, but we had experienced worse. So, I had a great deal error going on.

So, when this agency contacted me, I tried it. The payments were low $21 for 12 months and then the balance would be transferred to the new credit card. With 0% interest, it sounded too good to be true. I paid the debt in 3 months. I got the Emblem MasterCard two weeks after my final payment. I have had the card for a year and received credit increase every three months. I have always paid down the balance.

Everything bill that I pay online using my debit card; I apply those payments to my credit card and use my credit card to pay bills. So, when its time for my statement, it show that the card has been used but my balance is paid down. Which give me a positive credit to debt ratio when its time for them to report to the credit bureau on a monthly basis. So credit cards are not of the Devil. If you use them wisely, it can truly help you.

What happen with the disputed items…?

I told you that we couldn’t afford to pay anything right… Well, we had repossession on our credit for $25,000 for that SUV we bought. That would really some damage to your credit report, right? Remind you that was only three years ago. So, it was hard to get a car. About a year ago when I pulled my credit and got all the account updated to make sure it was accurate, the repossession showed up as if it had just happen. Drop our credit score again!

In March, I know I was opening up a can of worms to check the accounts but I checked into the item. This time, instead of updating it the repossession and the collections agencies on the repossession were deleted from my credit report. I thought it would raise it dramatically but it only raised my score 19 points. I had received a 50 point increase in two month just by paying my balances down on my credit cards.

We received a letter from the collection agency in which finance our vehicle on behalf of the banking institution and all account that there was a $0 balance and the repossession had been removed as if there was no account for it at all. That in and of itself was a miracle! I was honestly trying to check into items so I could really get my credit cleared up. God went above it and wiped it clean!

So two months +79 increased in credit score. I can’t wait to see what it looks like in 6 months!!