At a loss with my credit scores

[Zara_Lun]

I've been reading the forums for a little over 2 years, the knowledge some of you all have is really humbling. I'm finally ready to take control of my credit and I'm hoping someone out there can provide me some insight into what I can do next.

Here are my current 3 scores: 594 Equifax, 624 TransUnion and 588 Experian.

I only have one CC (It's secured) with BoA, credit limit was initially $300 but I increased it to $1500 a few days ago, this happened after calling BoA to try the unsecuring process again but I was declined. My month-to-month balance on the secured card is usually $7-22, nothing else. I also have a car loan from May 2013 with an 18% APR, bad deal I know, that has a perfect payment history. I'd like to think that the current issue with my credit are my prior lates...all my accounts are current now.

As far as my collections, I have 3 in Equifax and Experian, but just 1 in TU - not sure how this happened but it's really killing my EQ and EX scores. The total balance on those collections is $654. However, I fear that paying them off will do absolutely nothing for my credit score. Please correct me if I'm wrong.

The lates in my reports stem from student loans that I believe were not being reported correctly - they're with FedLoan Servicing and I'm not sure how to get them to 'forgive' my lates - if that's even possible. 

At this point, I'm not sure what to do first or if I should just sit back and let these things fall off my report, I just would not rather wait a few years for it. Any guidance in this would be highly appreciated!

Zara

[Anonymous]

Have you tried to get a Capital One secured card or a secured card anywhere else? Try to get at least one more card (or 2) that reports to all 3 bureaus regularly. Get some additional positive information reporting. Have you tried "Pay for delete" (PFD) with the collection companies reporting? If not try to get them to agree in writing to delete the account from your reports in exchange for your payment. Just make sure you are prepared to pay in full, I would advise against getting into any payment plans with them. The collections and negatives that are reporting on your reports, are they all accurate? If they are not, you should try to correct them. There are some other things you can do as well, but this would be a start.

[Anonymous]

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@Zara_Lun wrote:

I've been reading the forums for a little over 2 years, the knowledge some of you all have is really humbling. I'm finally ready to take control of my credit and I'm hoping someone out there can provide me some insight into what I can do next.

Here are my current 3 scores: 594 Equifax, 624 TransUnion and 588 Experian.

I only have one CC (It's secured) with BoA, credit limit was initially $300 but I increased it to $1500 a few days ago, this happened after calling BoA to try the unsecuring process again but I was declined. My month-to-month balance on the secured card is usually $7-22, nothing else. I also have a car loan from May 2013 with an 18% APR, bad deal I know, that has a perfect payment history. I'd like to think that the current issue with my credit are my prior lates...all my accounts are current now.

According to everyone here you need at least 3 revolviong cards to maximize your scoreing potential. Hope that BoA will evenutally unsecure but til then congrats on the limit bump. Check Capital One's prequalification page to see if you qualify. Im sure you can probably get the Quicksilver One or the Platinum. My scores are sililar to yours and I just got both of them.

As far as my collections, I have 3 in Equifax and Experian, but just 1 in TU - not sure how this happened but it's really killing my EQ and EX scores. The total balance on those collections is $654. However, I fear that paying them off will do absolutely nothing for my credit score. Please correct me if I'm wrong.

I am no expert on collections however I know that if they are updating monthly you want to get those taken care of ASAP as they are killing your score that way. What are those collections like? How old are they? What are they for?

The lates in my reports stem from student loans that I believe were not being reported correctly - they're with FedLoan Servicing and I'm not sure how to get them to 'forgive' my lates - if that's even possible. 

Ill save this for someone else as I have no clue about student loans

At this point, I'm not sure what to do first or if I should just sit back and let these things fall off my report, I just would not rather wait a few years for it. Any guidance in this would be highly appreciated!

I would probably start off by getting two more bank cards to add to your wallet. But im kinda new here too so lets see what else people say before jumping the gun.

Zara

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[Anonymous]

If your total balance of collections is only 600+ and you are financially capable of taking care of these at least one at a time then what are ya waiting for?

You could ignore these and hope they don't turn into judgements but if one does that will make it worse.

I would start talking pay for delete. Start rebuilding now.

[Anonymous]

I would only pursue the student loans if you have proof that it was the lender's error and not yours.  Some are willing to be forgiving for late payments but it's a gamble.  Not many have luck.  Check the threads in student loans.  My loan is with ACS and I've only seen one or two people in the past year have luck getting lates removed.

Getting new cards help but until you remove your COs you won't see anything significant.  COs with a balance really hurt you especially with your scores. Good luck!  You can do it!

[ms_cora]

Try writing goodwill letters for those student loan lates

[Rebuilding69]

You should try for the Cap1 unsecured Platinum MC and/or Quicksilver One cards.

Just for comparisons sake, I had 3 paid judgements, about 13 collection items listed on my CR(4 of them are still reporting open, just waiting for CA's to update to paid) & my fico scores range from 580-620. I make about 37k per year & have about 2.5 years AAoA.

If you get the cards, limits would prob be in the $500 range, but after 5-6 on-time monthly payments, you supposedly get a CLI(not sure how much though), and I guess every 6 months after that you can request a CLI?

Go to their prequal site & see what they offer you.

[Anonymous]

Everything above is absolutely correct. I will compile the data for you. 

1 call the collectors. Tell them you have some money to pay things off. Whoever agrees to delete gets first dibs. Those are crushing your scores. 

2 write goodwill letters on the student loans. If you honestly believe there is a mistake, contact them and try to solve it.

3 get a couple more cards. Secured, unsecured whatever. If you want to go the secured route, click on my name, i reviewed all of the secured cards i used to rebuild. You can compare and figure out what works best. Unsecured, cap1 may well be your best bet, or a local credit union. 3 cards seems to be the sweet spot for best scoring. I went from scores in the very low 500s to mid 700s in 10 months.