Bankrate: Credit scores don’t improve overnight
I just read an interesting article over at Bankrate about improving a credit score. It seems the writer had some nicks on his credit history less that 7 years ago, but has been clean on his payments on recent loans. He is looking for quick results.
I am trying to get my credit up to par and am getting nowhere. Last year, my FICO score was 619 and my current score is 624. I have one credit card which I pay off every month and only use as a way to show my good credit behavior.
I also have two installment loans, one with a balance of $14,000 and another at $99,000. These loans were used to pay off my mother’s adjustable rate home equity loan and to buy a house for myself. All of my payments have been on time and the accounts are all 6 months to 9 months old. I have some old bruises on my credit, but nothing more recent or worse than a foreclosure from April 2003.
Here is the article writes take:
Your credit score is based on the information in your credit report. The foreclosure is going to stay on your credit report for seven years. A clean payment history will help your credit score, but the foreclosure will continue to have an impact on your credit score through 2010. You say that your mortgage (installment) loans are only 6 months to 9 months old. You build your credit score every month that you pay on time.
It sounds like you’re doing all the right things, but you want results now. There’s no magic solution to get those results now. Keep paying your bills on time, get another credit card (use it sparingly) and things will get better.
My take away from this article is to have patience and be diligent about those payments. It is amazing how one or two slip ups can ruin years of good work.
Filed under: Finance and Investing
