100 Point Jump in Credit Scores in less than 12 months

| March 14, 2011 | 0 Comments
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This is a story from back in my bank lending days when I had just heard about Lexington Law…in fact I didn’t even know that credit repair was possible at the time. I figured if a person made some mistakes, paid bills late, etc that they were just screwed, for several years at least. This story was my first experience with drastic jumps in someone’s scores:

My friend Kevin had recently gotten back into town after going to college out West. He got a good job and was renting a house with some friends. You know, normal 25 year old post-college stuff. Not long after, he came to me because he wanted to buy a condo and was curious if he could qualify for a mortgage. I took one look at his credit report and told him that qualifying for a mortgage loan was out of the question…at least right then it was. Luckily, he had some time before he wanted to buy so we had plenty of time to get his credit back into shape. But let me back up first and tell about how he got the bad credit in the first place, because the story is all too common:

Kevin, like most college kids, wasn’t used to being responsible for his own finances. He was fresh out of high school, had a little spending money from his parents, but wanted the cool stuff his friends were buying such as Playstations, clothes and kegs of beer. Lol. Enter credit cards. You see there was a period a few years back where every college kid was being offered all kinds of free stuff like t-shirts, shotglasses, hats, etc and all they had to do was fill out a one-page form of some kind…which of course turned out to be a credit card application. Companies were recruiting college kids to get applications filled out by other college kids in exchange for X amount of dollars for each one (not sure how much they paid). And they would tell you to just throw the card away when it showed up in the mail if you didn’t want it. Or, if you could use it, you could always keep the cards too. Hmmm. Well, a couple cards showed up at Kevin’s dorm the next week and he decided that would be a good way to finance some of his spending and then he would just pay them off when he started working in the summer. Sounds good, right? I mean the cards had small limits anywhere from $500-2000. Not that hard to pay off. So what happens next? Cards used, tabs run up, late payments, no payments, etc. You know the story. One 30 day late payment turns into 60 days turns into collections and charge-offs. On a couple cards.

Now when Kevin came to see me it was a couple years after the fact. These accounts were old, closed and charged off for the most part and they were bringing his score down to the 600 range. Now I didn’t know it before but an attorney at Lexington Law told me an old, delinquent charge-off is actually easier to remove than anything recent. (Good to know, in case you have old charge-offs and collections.) So like I said, Kevin had a year left on his lease before he wanted to buy a condo, plenty of time for Lexington to do their thing. And like I usually say in these blog posts, I don’t know 100% of everything they do but it includes deletion letters, phone calls and credit-rescores through the 3 bureaus. And sure enough, 12 months later that 600 score had jumped over 100 points to the low 700s. I was able to do his mortgage loan, he got the condo he wanted and Lexington had another happy customer.

All in a day’s work ;)

If you are in need of a FREE credit consultation, call 888-586-1776 or fill out the form on the right.

Good luck!

-Chris, CreditRepairLife.com

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