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Learned my lesson after 20 years...

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pattycake
Established Contributor

Learned my lesson after 20 years...

I have learned the hard way about dealing responsibly with credit, so I would like to impart my knowledge with those of you rebuilding your credit.

When I was 21, I received my first credit card, a Citibank Visa (back in the days when they didn't have 16 digits). I had left school for a short period, but the CCs didn't give out student cards in the 1980's, so I had qualified for that and subsequent others on my own!

I lost my job and started missing payments on all my cards, and they eventually all canceled accounts on me. When I was 26, I was in debt, the economy was bad, and I couldn't find full time work. I declared bankruptcy and didn't even have a debit card, thus, any purchases I made had to be with cash or with a check.

Five years after my BK, I started getting CC offers for secured cards, so I applied and was approved. I used these for several years, with good credit, but then started maxing them out during my divorce. Without child support, I barely made enough money to pay the minimums, and eventually defaulted and had them charged off. I had co-signed for my ex's car before we divorced, then he stopped making payments and his repo showed up on my CRs, too. The only positives on my credit were my car payment and my Target Red Card; everything else was in poor standing. Four years ago, I got enough $$ from my tax returns that I decided to settle my outstanding accounts.

Three and a half years ago, I started getting CC offers from Merrick, Orchard and Credit One (they were First National Bank of Marin, I think, at the time). The CLs were low and the cards all carried annual fees, but I needed to build credit. The time came when I had to buy a new vehicle, and I had to get a loan at 17.5%. Later, I refi'd at a much lower rate.

This is my third chance at building stellar credit, and I am determined to do it right this time. I charge only what I can afford to pay off each month, make all my payments on time via Internet, and I save money in an online savings account every month. I save coins, shop wisely, and keep my DTI low. My goal is to reach the 700 club in the next six months (am in the 660 - 685 range now), so I am being smart with credit and working toward buying a home by the end of 2008.

I congratulate all of you who are making an effort to rebuild. It isn't easy, but it can be done. Pay down as much as you can if you do carry a balance, and only add new debt that you can pay off at the end of each month.

Good luck to everyone!!!
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Message 1 of 5
4 REPLIES 4
fused
Moderator Emeritus

Re: Learned my lesson after 20 years...

WTG! Reading your post tells me you have learned a lot and your plan to PIF every month is sound.  
Message 2 of 5
moonman
Frequent Contributor

Re: Learned my lesson after 20 years...

congratulations.......bad things happen to good people and you subscribe to my motto patience and perseverance will reward you in the end. we are all proud of you and support you. smile.
Message 3 of 5
marty56
Super Contributor

Re: Learned my lesson after 20 years...

I just finished a 4.5 year DMP thus ending my 20 year stay in CC hell.  You will get your home.  God bless everyone here and good luck to all of you in your credit goals.
 
 
1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 4 of 5
Anonymous
Not applicable

Re: Learned my lesson after 20 years...

pattycake, thanks for sharing, and wonderful food for thought.

Our credit lives somewhat parallel each other so gosh do I know where you're coming from. Smiley HappyAnd your last paragraph rings so very true in my mind.....daily.

Keep up the good work. And you'll get your home. I feel it. Smiley Happy
Message 5 of 5
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