topic Re: Dawgamus and the deep dark hole of sub 600 in Rebuilding Your Credit

Dawgamus and the deep dark hole of sub 600

Dawgamus — Fri, 05 Oct 2012 22:45:23 GMT

How we got to this place;

I was promoted and moved by a retail chain to manage a failing store in Feb. 2k7. I bought a house on the lake in march I broke a company rule and was fired July 2k7. They closed the store Oct 2k7. I was unable to make payments on several debts. Was foreclosed on in Nov. Got a new job a week after they filed the papers. Citibank loan, was for home improvements, I had payed for disability/loss of job insurance. But they denied it because of the status on job loss (no unemployment). So I never picked up payments again. Yes I am stubborn. I was laid off from last job in Cot. 2011 and have not worked since. I am on disability at 1600 a month.

I will post my credit report on my next post, and my plan of action after that. I am expecting a lump sum settlement on an annuity. I have limited resources, Live in a leaking 24 ft Motor Home, and need to get out by December. So the quicker I can raise my scores the better. Please let me know what your advise is. Esp. if you see me doing something stupid.

Thanks,

Dawg.

Re: Dawgamus and the deep dark hole of sub 600

Dawgamus — Fri, 05 Oct 2012 22:46:28 GMT

CENLAR FSB #***********

Account Type: Mortgage Account

Balance: $0

Date Closed: 11/27/2007

Remarks: FORECLOSURE COLLATERAL SOLD

Estimated month and year that this item will be removed: 07/2014

Reported by all 3 experian has it listed as pending

CITIFINANCIAL #*****************

Loan Type: UNSECURED

Balance: $0

Pay Status: >Account paid in Full; was a Charge-off<

Date Closed: 06/01/2008

Account Sale Info: ACCOUNT SOLD TO ASSET ACCEPTANCE

Remarks: ACCT INFO DISPUTED BY CONSUMR

Estimated month and year that this item will be removed: 11/2014

reported by all 3

HSBC BANK #***********

Loan Type: CREDIT CARD

Balance: $529

Pay Status: >Charged Off<

Date Closed: 10/12/2011

Remarks: DISPUTE RESLVD-CUST DISAGREES

Reported by all 3

ASSET ACCEPTANCE LLC #************

Placed for collection: 07/02/2012

Date Updated: 09/09/2012

Original Creditor: CITIFINANCIAL (Retail)

Pay Status: >In Collection<

Reported by all 3

Account Name: PHYSICIAN & DENTISTS C

Account Type: Collection Department / Agency / Attorney Collection Account

Date Opened: 4/1/2009 **Not true date at least 2 years before**

Payment Status: Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department Unpaid

Reported by Experian

Account Name: AUDIT & ADJUSTMENT COM

Account Type: Collection Department / Agency / Attorney Collection Account

Past Due: $1,145.00

Payment Status: Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department Unpaid

Comments: COLLECTION ACCOUNT MEDICAL

Reported by EQ and EX

Account Name: I C SYSTEM INC

Account Type: Collection Department / Agency / Attorney

Balance: $185.00

Terms: 1 Month

Reported byExperian

Account Name: FREEDOM STORES

Account Status: Open

Date Opened: 6/1/2012

Balance: $2,349.00

High Balance: $2,607.00

Past Due: $0.00

Payment Status: Pays account as agreed

Comments: SECURED

Reported by Equifax

MILITARY CREDIT SERV

Account Name: MILITARY CREDIT SERV

Account Type: Installment

Account Status: Open

Balance: $0.00

High Balance: $2,133.00

Payment Status: Pays account as agreed

Comments: PAID ACCOUNT / ZERO BALANCE

Reported by Equifax

Re: Dawgamus and the deep dark hole of sub 600

Dawgamus — Fri, 05 Oct 2012 22:49:08 GMT

Dawgamus Plan of Action

A. Goals

Clear up CR
Purchase House
Purchase Car (2)
Start building Credit
Start retirement fund (again)

B. Dispersal of Lump Sum Payment

Amount Received approx. $15k
Vehicle for Grandson $5k
Secured Card 1 $1k
Secured Card 2 $300
Escrow Acct (down Payment for house) $ 5k
PFD HSBC BANK. $550
PFD PHYSICIAN & DENTISTS $350
PFD AUDIT & ADJUSTMENT COM $1200
PFD I C SYSTEM INC $200
Vacation been 25 years since last. Remaining after payout
Retirement /college fund remaining from vacation/savings on PFD

C. Credit Rebuild

Secured Card 1 USAA
Secured Card 2 Wells Fargo
Follow-upon Existing Accounts

D. Retirement Fund

Self $400
Cade College Fund $0

E. VA Loan for House

F. Purchase New Car

My goals as listed are not in any particular order.

Re: Dawgamus and the deep dark hole of sub 600

Dawgamus — Fri, 05 Oct 2012 22:51:47 GMT

Looking at the above, am I on the right track? and if so how long to 640? What am I missing?

Re: Dawgamus and the deep dark hole of sub 600

igids1 — Sat, 06 Oct 2012 04:29:09 GMT

If you want pure financial/credit advice here it is. Please take this as like SPOCK talking to you, this is only logical, no emotions here. First thing is cancel the 5k for the grandkids car.

Account Name: FREEDOM STORES

Account Status: Open

Date Opened: 6/1/2012

Balance: $2,349.00

High Balance: $2,607.00

Past Due: $0.00

Payment Status: Pays account as agreed

Comments: SECURED

Reported by Equifax

This is hurting you alot in a few ways. First, its new credit. Not even sure what it is. Second, the balance to high balance and the comment that its secured, leads me to think that you are almost maxed out on the credit. If so, the balance that high, is going to have negative impacts on your credit, and keep you from even getting a subprime credit card.

The PFDs are definetely the right track. I think you are underestimating how much its going to cost you to buy a new home. 5k for a down payment plus closing costs seems unreasonably, low, in addition, any place that is going to possibly give you a mortgage is going to want to see that you have some money in "reserves". Telling them that you are giving them your last 5k, and you will have nothing after that, is not going to go well for you. Asset acceptance is definetely going to need to be deleted, or you will most likely not be approved, its too recent. DELTED, not updated to paid in full. How to long to 640 is going to depend on how many of your PFD are accepted. With your limited history you posted (of positive open credit) I do not feel it is realistic you will be approved for a mortgage by december. I would apply for a capital one secured now, they are VERY forgiving. That will start the positive credit now. And start working on what you have said. I think you are looking at six months depending on how many of your PFDS are accepted.

Re: Dawgamus and the deep dark hole of sub 600

rckstrscott — Sat, 06 Oct 2012 05:06:44 GMT

igids1 wrote:
If you want pure financial/credit advice here it is. Please take this as like SPOCK talking to you, this is only logical, no emotions here. First thing is cancel the 5k for the grandkids car.

Account Name:    FREEDOM STORES
Account Status:    Open
Date Opened:    6/1/2012
Balance:    $2,349.00
High Balance:    $2,607.00
Past Due:       $0.00
Payment Status:    Pays account as agreed
Comments:    SECURED
Reported by Equifax

This is hurting you alot in a few ways. First, its new credit. Not even sure what it is. Second, the balance to high balance and the comment that its secured, leads me to think that you are almost maxed out on the credit. If so, the balance that high, is going to have negative impacts on your credit, and keep you from even getting a subprime credit card.

The PFDs are definetely the right track. I think you are underestimating how much its going to cost you to buy a new home. 5k for a down payment plus closing costs seems unreasonably, low, in addition, any place that is going to possibly give you a mortgage is going to want to see that you have some money in "reserves". Telling them that you are giving them your last 5k, and you will have nothing after that, is not going to go well for you. Asset acceptance is definetely going to need to be deleted, or you will most likely not be approved, its too recent. DELTED, not updated to paid in full. How to long to 640 is going to depend on how many of your PFD are accepted. With your limited history you posted (of positive open credit) I do not feel it is realistic you will be approved for a mortgage by december. I would apply for a capital one secured now, they are VERY forgiving. That will start the positive credit now. And start working on what you have said. I think you are looking at six months depending on how many of your PFDS are accepted.

I don't agree with this post about Freedom Stores hurting you;

Couple of points igids:

First; OP has two positive trade lines, this being one of them.. regardless of high balance, this is a paid as agreed trade line with no lates. This has to stay open; esp if OP intends to eventually build some form of AAoA. It appears to be a new purchase, likely furniture, that will be paid down monthly, so the balance will go down and the util will as well -- Bottom line is you cannot have a good credit score until you build credit, this is building credit.

As far as hurting in a few ways; if OP had 6 accounts and a 7 percent util, then yes, this is hurting in a lot of ways.. but the OP doesn't; so it isn't hurting much at all, if anything it is helping by having an open positive trade line. If the goal is a subprime card in one month, then yes, this is impacting, but if the goal is long term rebuilding, you need to start somewhere. OP started here. So; closing it now would do nothing at all

-scott

Re: Dawgamus and the deep dark hole of sub 600

scmami — Sat, 06 Oct 2012 06:24:24 GMT

It will be important for you to get Asset Acceptance to delete. They have your Citi account right? Any collection under one year (paid or unpaid) was a deal breaker in my FHA app process. I have not dealt with them but I am sure many on this board have. Best of luck in your rebuilding!

Re: Dawgamus and the deep dark hole of sub 600

mmmagique — Sat, 06 Oct 2012 16:09:46 GMT

Dispersal of Lump Sum Payment
Amount Received approx. $15k
Vehicle for Grandson $5k
Secured Card 1 $1k
Secured Card 2 $300
Escrow Acct (down Payment for house) $ 5k
PFD HSBC BANK. $550
PFD PHYSICIAN & DENTISTS $350
PFD AUDIT & ADJUSTMENT COM $1200
PFD I C SYSTEM INC $200
Vacation been 25 years since last. Remaining after payout
Retirement /college fund remaining from vacation/savings on PFD

Dawgamus, you can't afford to buy your grandson a car, and you can't afford to go on vacation right now.

I suggest you take the car money and the vacation money, and use it to pay off your debt and to fix your credit.

Once your credit is back on track, and you are working again (are you going to be working again, or will you be retiring? I can't remember) you can do all those wonderful things you want to do for your grandson and your loved ones.

I know it'll be hard to explain that even though you want to do those things, you just can't afford it right now; but if you spend it the way you're proposing, I don't see your credit improving, and only more of these problems in the future.

Re: Dawgamus and the deep dark hole of sub 600

mmmagique — Sat, 06 Oct 2012 16:13:02 GMT

P.S. I wish you all the luck in the world, and I hope you get a lovely house.

Re: Dawgamus and the deep dark hole of sub 600

Dawgamus — Sat, 06 Oct 2012 16:15:52 GMT

I copied and pasted from my list posted on fridge. Grandson is 26 days old. My son totaled the car in a freak incident. The freedom acct is my only open tradeline at the moment. I have tried several times for a dv with AA but no answer. Last night i followed the example of several people here and filed a complaint with BBB. We will see what happens there. Why the Citi card and not the two i have listed? I am drafting gw letters for cenlar and citi. I guess i ran on my thoughts in my last post. Right now in my area there are a lot of lease purchase available. So i was trying to figure out if i should take advantage. I wasnt trying to get to 640 by dec. Have to make a decision to take advantage of the LP or move to apt.

Good news is lump sum payment should be in acct in ten buiness days.

Re: Dawgamus and the deep dark hole of sub 600

igids1 — Sat, 06 Oct 2012 16:18:08 GMT

Rckstrscott

I don't think I was clear in my explanation of the freedom stores. You are absolutely correct, that for long term growth, this is a positive. The OP seemed to indicate that he wanted to be applying for a mortgage very soon, one could almost infer he is meaning by December, which is 2 months away. I did not mean to try and say it should be paid off immediately and closed. I meant that it should be paid down SOME, pay perhaps 1,000 towards it right away. If the current balance is that close to the opening balance/amount owed, then that is CURRENTLY hurting his credit. Will it go down over a year, two, three, sure, but again the OP seemed to imply that he wanted to increase his credit VERY quickly.

Re: Dawgamus and the deep dark hole of sub 600

Dawgamus — Thu, 11 Oct 2012 07:59:57 GMT

Thanks for all the input. I know scores don't change instantly. I tend to run my thoughts together,the reference to december has little to do with how long do you think it will taketo get to 640. I am more curious because i need to figure out how long of a lease to get. Or if I am in the window for a lease purchase. I just opened a USAA secured card and a wellsfargo card. So Step 1 is complete.

Re: Dawgamus and the deep dark hole of sub 600

Johnny_Favorite — Fri, 12 Oct 2012 22:14:58 GMT

Does the car need to be 5K?

That seems like a 2002 car more or less.

I'm thinking you can buy a 1998 Ford for about 2k or less. It won't be pretty, but it will run and get him to and from where he needs to be. You can use the other 3K to pay bills. It's pretty much just a compromise.

Just saying