03-06-2013 09:17 PM
You can't remove all the baddies. But you can build the goodies My suggestions, in addition to your GW, PFD, repair work is:
1. Establish a savings account with a credit union that offers secured loans (make sure rate is not more than 3% above the savings rate) and secured credit cards.
2. Deposit $500 to $1000 into a savings account.
3. Take out a "secured" personal loan. This is a good addition to mix as an installment loan.
4. When you get the loan check (the money you borrow), deposit it back into savings.
5. You now have doubled your savings balance (example: you deposited $1000, then borrowed $1000 which you deposited into savings giving you $2000). The amount of interest you collect on $2000 should be equal to or higher than the interest they charge you for the loan on $1000....so essentially you are not out (of pocket) any cost to build your credit with this loan.
6. Ask for a secured credit card. If they won't approve initially, ask again in 6 months.
7. Once you obtain the secured credit card, only use it for items you PIF each month (don't accrue interest)
8. Pay off the loan at 12 months.
9. At 12 months ask to unsecure the card.
10. You have established to great credit references and credit TL's and built a relationship with a solid credit source....credit union.
11. During the course of the year above, continue working on the repair side of your credit.
12. You may also obtain other builder card such as CapOne or Orchard to add an addition TL and CL.
13. After you pay off the loan to the credit union, continue to make regular deposits to saving, just like you were still paying the loan off. This is a financial habit that you need to continue, and it gives you your emergency fund and savings that protect against unforseen events which can take you by surprise (and hurt your credit if you are short on cash).
+1 ! ! ! THIS is great advice ! ! ! And can be applied to so many different situations where one is trying to grow their credit.
ONWARD AND UPWARD ! ! !