Making on-time payments is the best thing you can do to improve your 458 credit score. A close second is enlisting an expert to assist with deleting derogatory information (if doing so is justified).
That’s the formula Karyn M. used to make a big improvement to her 458 credit score on the CredEvolv platform.
Karyn was behind on a few accounts when she came to CredEvolv with a 458 credit score. Her personal credit counselor taught her how to set a budget and catch up. Meanwhile, the counselor challenged and removed three charge-offs and two collection accounts. Karyn’s 458 credit score soon jumped 139 points to 597, just a few points shy of her goal of 600!
Falling behind on payments is a big no-no when it comes to borrowing money. It can also lead to the other two negatives Karyn had on her report.
What are collections and charge-offs on a credit report?
- A collections account occurs if you fall behind on payments. At that point, the lender or creditor can decide to transfer your account to a collection agency. They can also sell it to a debt buyer. This can occur anytime from the date you begin missing payments or not paying the full minimum payment to a few months after you become delinquent. Lenders and creditors will usually send you letters or call you regarding the debt before they send it to a collection agency.
- A charge-off is an accounting term that indicates the creditor doesn’t think you’ll pay back the debt. When that happens, the creditor writes off the debt and stops attempting to collect the debt themselves. However, if a collections agency has purchased the debt, it may attempt to collect what you owe. That amount can include the outstanding balance and any interest that has accrued.
Now that Karyn has almost reached her credit score goal, she’s in a better position to achieve her financial goals. She also has the option of remaining on the CredEvolv platform to take her score even higher with the lessons she’s learned about budgeting.
Read more credit success stories here!