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01-04-2011 11:07 PM - edited 01-04-2011 11:08 PM
Hi, I am trying to rebuild my credit. I have two negative marks on my account. One from 2006 for $700 from my old school, which I paid in full when it was reported, and one from Sallie Mae in Feb 2009 for $100 student loan payment I missed. I had lost my job a couple of months before and was struggling badly. Since it is a private loan, Sallie Mae wanted $50 for deferment, and I didn't even have that at the time. I have no credit card debt and the only credit card I had was a store card I closed, because I never used it. I have a score of 620, according to Credit Karma. I cannot get a credit card because of my score, so I feel stuck. Please help.
01-05-2011 06:16 AM
You're a lot better off than a lot of people - imagine if you owed more than you can pay! Instead, you're currently even.
Where did you get that credit score from? CK? If you want your real score, you can pull your TU or your EQ report here (google "myfico discount code". I usually use one that's 25% off). You can also get it from transunioncs.com and equifax.com, but make sure it's a FICO before you consider purchasing it.
First, that's just 3 items that you can try to deal with. You can write to your school for good will, they may give it to you. If you are an alumni, that might help - just be honest and throw yourself on their mercy. Excuses are less effective than owning up to your own mistakes and giving them a reason to help you out - reasons usually would be ones that benefit them, although I'm not coming up with one right now.
I'd go to the student loan boards and look up what's worked with Sallie Mae. A GW is in order there, too. I just recently saw a post about someone who got derogs off with 9 months of effort.
It's not the end of the world if you can't get those items off - they will both hurt less and less with time.
You could try calling the company with the store card and asking them to re-open it. The age would help you. Otherwise, check out this link: http://ficoforums.myfico.com/t5/Credit-Cards/BK-Friendly-Credit-Cards-Listed/m-p/34439 . Even though you don't have a BK, there are scores lower than yours that have credit cards. If possible, opt for two or three without a annual fees. Alternate between them which carries a balance - $0 on all but one, 9% or less on one. Another site to check out what cards are options for you is whogavemecredit.com, where people report what bureau the card pulled, what their score was, and if they got the card. There's also a recent thread along those lines on the credit card boards here.
01-05-2011 12:42 PM
I've been working on my credit for the past year (my score was around the same as yours) and if I had to do it over again, I would go for a secured card from BofA, Citi, or at the least Cap 1 where you can make your CL grow with you. Get it up to the $1500 range and then gradually add other accts. I also wouldn't add any other cards until AFTER your secured card gets somewhere above the $1000 mark. Not sure if you'd have to be at $1500 or if above $1000 would do. The reason is, if you get those quick easy cards like First Premier, Orchard Bank, HSBC (BBRZ MC), etc., you may get stuck with low CLs and/or crazy fees and then when you apply for another card, you usually get other low limit amounts that may or may not grow with you (google "toy limits" in any credit card forum). My cards were all starting in the 300-500 range. grrr!
I am an AU on my husband's Discover More card. This card started at $1500 and increases $300 every few months like clockwork. In one year, it's up to $3100 whereas my Best Buy Reward Zone (HSBC) card doesn't budge off it's silly $300 limit, no AF thank goodness. My husband doesn't like Discover and never uses it, so I take care of this card. It feels great that I'm growing this card, but it stinks that I'm just the AU. Go figure...Discover won't approve me for their card...even though I'm the one using and making payments to them perfectly! ...but I give 'em stinkeye all the time! lol
It's been said many times that the large CLs beget large CLs. I've found that to be true, but unfortunately, I didn't play the game right so I can only see this theory from afar!
Anyway, good luck on your trek!
01-05-2011 06:08 PM
A little more info, please.
Negative marks arent really individua accounts. You list two accounts you have had prior delinquecies with.
Under each account, could you please list each and every monthly delinquency, CO, or CA based on each?
You appear to have some major derogs in your CR
01-06-2011 05:39 AM
I have a Capital One that started at $200 and I did request one CLI a long time ago and went to $500, where it remains. Then I got an Orchard Bank (since closed) that was at $300. Target gave me a Target card for $200, then, unprompted, a little later sent me a Target Visa instead at $1k, where it sits today. I just about freaked when I applied for and received a Chase BP Visa for $4300. So now I currently have the Capital One at $500, Target at $1k, and the Chase at $4300....so at least there's one exception to that low CL thing! (Not that $4300 is in the range of a lot of other people....but it is still not in the same category as the other 2 cards)