3 Delinquencies removed. Now what?

[Trisha]

3 old delinquent accounts are being removed from my credit report, and I was wondering what kind of effect that will have on my score and how substantial it will be because my score is a rough 515 now?. I am hoping that it might be enough to get me to 640 and if not what else will help? I have a few items on my report being reviewed and I’m sure they will be removed because I wasn’t even in the country when the accounts were opened.

[Tracy Winters]

Hardly

Your score won’t get to where you want it. If these delinquencies are old (how old exactly?), then you can expect 50 points rise at the most.
The FICO score formula puts emphasis on the information age. The more recent information (good or bad) affects your score much more than older information. Forom my experience, something else is pinning down your score. High utilization ratio perhaps? Any other delinquencies you didn’t mention?

Here is a list of the most common negatives that can bring your score so low. Items are listed according to severity in decreasing order:

• Bankruptcy
• Foreclosures
• Repossessions
• Loan Defaults
• Charge Offs
• High Credit Utilization (above 80%)
• Court Judgments
• Collections
• Past Due Payments
• Late Payments
• High Credit Utilization (above 35%)
• Credit Rejections
• Credit Inquiries

What I’d suggest is that you pull your credit reports from all three bureaus, go over them and try to identify the culprit. Additionally, when you pull your report you get an explanation sheet that lists your most problematic delinquencies. Here is a good guide for identifying your credit problems and improving your credit score.

Good luck

P.S. do come back and let us know how old where the delinquencies, how much did your score went up after they were removed and finally – what was your real reason for your very low score.

[Author]

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