Rebuilding

[Anonymous]

Hello ladies and gents. I've tool the plung of trying to repair my credit. I have a consultant making challenges and I have paid down some of my debt trying to get everything below 30%.

Right now my fico is 534. I expect it to hit at least 550 within the next couple of weeks.

As of now I'm looking for a good secured credit card.
I searched the forums, read some stickies and the only one I like is the Capital One secured. Note I already have a secured Capital one, but my credit was 600 when I got it. I'm worried about getting denied and all the guaranteed cards got very bad reviews and scam reports.

I don't know who's gonna approve and be a good card. Also I've read that a personal loan would be good as well. Hoping to get some suggestions for both. Now that I'm serious about my credit I'm terrified of yet another denial and inquiry!

[RobertEG]

A sub-600 score indicates major payment history derogs are likely reporting, as they have the most impact on credit scores.

What are the major derogs reporting on your credit report, and what efforts have been taken to address their reporting?

Are they all accurate?

Have you considered making pay for deletion offers to remove some of the major derogs?

It might be preferable to first attempt cleaning up payment history before apping for any new credit......

[brother7]

If you already have a Capital One Secured card, I don't know why you'd want another. I would wait until your credit report and scores improve, then try for the Discover Secured.

[Anonymous]

Clean up you credit report then apply for a secured card with NFCU or another credit union.

[Anonymous]

Typo. I actually have a unsecured card from Cap One. I also have a Kay Jewelers card. I was advised to get one more account reporting as challenges on my report are being made. I mostly have medical bills, one charge off. Never heard of pay to delete. How does that work? Regards.

[Anonymous]

Pay to delete usually involves you or your agent making a deal with the Collection Agency or bank that holds the debt in exchange you paying a certain amount they agree to remove it from CBR. You just have to be careful when doing this because if they are unscrupulous and don't actually delete the debt by you making a payment you actually extend the time they can keep it on your credit report.

[RobertEG]

Paying a debt does not extend the credit report exclusion period for any derogs on an OC account.

Monthly delinquencies are excluded no later than 7 years from date of occurence, and any charge-off or collection must be excluded no later than 7 years plus 180 days from the date of first delinquency on the OC account, regardless of whether the debt is paid or remains unpaid.

[breeo]

how can you pay for deletion of derogatory marks on your credit?

[Anonymous]

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@Anonymous wrote:

I have paid down some of my debt trying to get everything below 30%.

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You should pay off all of your debt, not some of it.  One reason is that you are paying a lot of interest.  Another reason is that you are being hit by a double utilization penalty for having your cards at 29%.  Once you cross over 8.99% you get hit with one penalty; and then you get hit with another when you cross over 28.99%.

Pay it all off and then use one card for something small each month, and use debit cards for everything else.

I agree with the other folks that you need to see how much you can improve your derogs (and as I say pay off your CC debt) before you think about opening any more accounts.  When your score gets to the low or mid 600s -- and after you have established better financial habits (including saving a decent chunk of money) -- then you can think about applying for more cards.  We can also walk you through the Share Secure Loan Technique at that time.

[Anonymous]

I would assume the creditor would be concerned with liability. So I would doubt it, but I'm not positive.