05-19-2017 03:48 PM - edited 05-22-2017 09:34 AM
My rebuilding journey is approaching the final stages! Earlier this week, all three FICO scores FINALLY made to the 700 club! I really wish I had been tracking my credit scores back when began this journey around 2013, but unfortunately, I have to rely on my memory. The best I can recollect is that after having several 30, 60, and 90 day lates on credit cards, one charge off, and numerous student loan lates that approach 120 day lates partly due to being young and irresponsible, and partly due to being stuck in low paying jobs, I finally finished school, got a new job with regular merit and cost of living salary increases, and was able to kick off my rebuilding journey. My scores at that time were around the high 500s.
I joined a debt management program, took special assignments at work that got me extra money, got a few promotions, and used the snowball method to pay the charge off and the closed accounts resulting from the DMB within 3 years. Plus, I got my student loan payments under control and on a regular payment schedule. Even so, my scores stayed stuck in the 650s for most of 2016, because the extra work assignments dried up, so my progress in paying down my highest balance also slowed. BUT THEN!!! My early 2016 auto loan started reporting, which started inching my scores up until they capped out at 665. AND THEN I went on my mini app spree between November 2016 and February 2017 which added almost $25k in available credit, and brought my scores to the 680s and 690s. After one balance transfer and regular payments to the newly added accounts (including most cycles reporting zero balances...as a fellow forum mmber has said "swipe, swipe, swipe, then pay, pay, pay"), my Fico 8s this week are Experian 703, TU 703, and Equifax 706!
I am so proud of myself. For months, I have been worrying that this day would never come. And even better, after checking the 3b report in November before my app spree, my mortgage scores were Experian 632, TU 676, and Equifax 670. I knew I wanted to pursue home ownership by the end of 2017, so I set a goal to get those scores over 680. Today, the mortgage scores are Experian 691, TU 704, and Equifax 682! With this, I felt confident enough to apply for mortgage preapproval (keeping my fingers crossed for good news next week), and sure enough, the lender pulled the same mortgage scores as the myFico 3b report.
All this to say that there is definitely a light at the end of the tunnel. As my fellow rebuilders know, there is no magic solution to credit problems. It takes work, time, discipline, and sacrifice. Repairing my credit took more than four years, and the work isn't done yet...those delinquency baddies still have an impact on my ability to get CLIs, and paying down my highest balance (Amex) is still slow going (I focused on paying off the retail cards with the lowest balances first, and there were several of them managed under the DMP. However, it was worth the sense of accomplishment I felt with every card I could scratch off the list. Then I focused on paying off the highest balance, an $8k Citi charge off. The Amex being the last one left is an accomplishment). So, here's to reaching a few landmark goals this week, and after this four year marathon, here's to the final sprint to the rebuilding finish line by September!
05-19-2017 11:09 PM
05-20-2017 07:33 AM
Congradulation! Welcome to the 700 Club!
05-20-2017 10:39 AM
Congradulations on the 700 club. I recently joined in the last month and I wish I knew sooner how easy it was to acheive. I think when I counted my credit report from a year ago, I had 12 charge offs, 4 collections and a maxed out credit card. Now I am at 1 charge off, paid which I've been working with capita one for the last 3 months to remove, 0 collections, Calvary was the hardest to deal with, and a 19 % utlilization on revolving.
I am currently waiting on hearing back from my insurance company for auto and house. I have a re-rate request into them. My house insurance score estimate went from 630 to 870. and my car only went up like 20 points seeing I'm already in the 800s. I think they are going to take as long as they have to because I know I defently will be seeing a decrease.
05-20-2017 09:04 PM
Congratulations, blossom! What an amazing amount of work you've done, and I am so glad you are reaping the results! Can't wait to hear about your mortgage journey as well.