Do you know what your FICO score is? Do you even know what a FICO score is or what it pertains to? Simply put, a FICO score is also called your credit score, and your score is calculated and re-calculated on a regular basis. The score you're given is a figure that reflects how well you pay your credit obligations and whether or not you pay them on time. In other words, it is used by lenders to calculate your credit worthiness so they can determine if they want to offer you a loan or approve your loan or credit application. It is likewise used by lenders to determine how attractive to make the interest rate that they'll offer you. If you're determined to become a good credit risk and have a high FICO score, then you'll typically qualify for the preferred' interest rate, and perhaps also a higher credit line, since you have shown over the years that you're responsible with your credit obligations.
You said that your credit score is only 200. This is an extremely low credit score. Something isn't definitely right about your credit score. A credit score below 600 is considered low. I am referring to FICO score here. A credit score of 300 is also impossibly low. Either there are some mistakes or a different credit scoring system has been used in your case. Spend around $20 to know your actual FICO credit score once.
It is a good thing that the credit card company has removed the late fees. Now, you have to work hard to make your credit report perfect. You need to check the precision of the information that is there on your credit report, for that. You can get a free copy of your credit report if you claim for one. This is because the credit card company has rejected your application.
And There's So Much More!
It will be better if you pull credit reports from the 3 credit reporting agencies since youre facing credit problems. You can get comprehensive information from the 3 credit reports. Next, find out if corrected information (late fees that have forgiven by the credit card company) has been issued on your credit reports. If it isn't there, then you require to send a letter addressed to the credit bureau where it's meant to be that the credit card company has withdrawn the late fees.
You can apply the same procedure to delete the other negative items on your credit report. It may be true that the other credit card companies also did nt receive any payments. Youve to send letters (received from other credit card companies) to credit bureaus also. This would help you correct the information regarding your credit report.
Keep it in mind the fact that only inaccurate information on your credit report can be eradicated. If a credit card company has refused to forego the late payments, then that information cant be changed or deleted in any way.
Itll take many months to clear your credit report. However, the sooner you clean your credit report, the better for you.