How much will my credit score increase?
Okay, I'm looking to buy a house next year and am in the process of using an agency to clean up my credit report (mainly charge offs and a false lien). My question is, what's the "norm" amount your score will increase by per negative item removed? 10pts an item? 20? Thanks for your help...
Public Comments
- That's a difficult question to answer. The credit reporting agency have never really released an explanation on the exact way that scores are calculated. Depending upon the size, age, and type of item that's reporting on your credit report, it can effect the score in varying degrees. It also depends on what else you have on your credit report. Do you have a lot of items reporting? Are they positive? Negative? How about inquiries? Credit scoring is a tricky business. Anyone who gives you an exact number or even an estimate is at best guessing.
- Y R U NOT ASKING THE AGENCY U R USING?
- It depends what your current Fico score is at the moment. If it's already high, removing derogatory items won't affect the score too much. But if it's low, around 600, then those negative items can make a huge impact. What agency are you using? You shouldn't have to pay much for removal of those items. Any standard "free" credit report company will have tools to remove false derogs from your report for about $29.95 a month. And then you can cancel their service once they're cleared up. If you're in the mid 600s, removing a collection could raise the score 50 pts. If you remove multiple negative items, your score could jump 100 pts. It may take a few months, but I'd like to commend you for starting on this now, as opposed to a month before buying a property. You're smart. Learn about mortgage, credit, and finance: http://www.thetruthaboutmortgage.com
