Chasing FICO! My first month - up from 562 to 669!

[ChasingFiCo]

Like many other people that are on this Forum, I am trying to clean up my credit.  For years I have felt haunted by past mistakes and just couldn't seem to get out of the bottom of the well.  After joining this site a month ago, I really wish I'd known about it 10 years ago!  What a difference a month has made & how much I have learned!  I've put much into practice right away & I'm still learning.  THANK YOU all so much for sharing your journeys and what has worked, and providing tips on how to clean things up.  I still have some work to do, but one month in, I'm feeling like a whole new FICO person!  Here are my details: 

March 2014

Citi  5122/5000

Comenity  137/150

CFNA  1051/1200

1-CapOne  772/750

2-CapOne  718/750

3-CapOne  283/300

GE/Care  351/500

BBRZ-Citi  256/300

GECRB  453/500

Fingerhut  0/200

March 2014 -  EQ: 562    /  EX:  ??  /  TU:   546   // Utilization 94%

Solution:  Took out 401k loan to pay off all CC debt.  I don't presume to make this a suggestion for anyone, but it was the right solution for me.  High interest credit cards w/ balances were costing me a lot more than the cost of a low interest rate loan on my 401k, even if that meant lost growth in the meantime.  The added bonus is that this loan does not get report to the CRAs.

I don’t really recall when I would have applied for Fingerhut credit, but it just sits out there as zero; has never been used.  Don’t need it, but from everything I’ve read, it’s good to have it showing as available credit; so I’m leaving it for now.

May 2014

Citi   552/5000

Comentiy  0/200; CLI +50

CFNA  0/1200

1-CapOne  0/750

2-CapOne  0/750

3-CapOne  0/750; CLI +450

GE/Care  0/500

BBRZ-Citi  0/300

GECRB  0/500

Fingerhut  0/250; CLI +50

3 Accounts received auto CLI; couple were small, the one CapOne account was a pretty good jump.

!!  May 2014 – EQ:  669  /   EX:  663  /  TU:   635  //  Utilization 5%  !!

Other accounts in good standing:

• Auto Loan:  74% outstanding
• Student Loans:  130% outstanding (was in deferment, unsubsidized)

 Lates:

• 1 30-day on BBRZ; sent 2 GW letters; both declined, generic response. 

Best Buy Reward Zone Mastercard (now Citi) Account is 7 yrs old; this is the one & only late on my entire credit report.  It was a complete snafu and mistake between my typo/error when making a payment and their online functionality.  I take responsibility for passing the 30 day mark (by 1 day!), but just need them to take it off!  Any suggestion is welcome.

Judgments:

2 Satisified judgments from 2010, 2011

Collections:

1 Utility, $114; currently being investigated

1 Utility, $78; currently being investigated

1 Dr’s Bill, $107; currently being investigated

Credit History :  14 years

In March, there was an additional Dr’s Bill for $53.  Called and PIF and she offered to remove from report; was almost immediately removed.

I have the balance on my Citi card because based on everything I’ve read on these forums, the key is to show a utilization between 5-10%.  I PIF each month now, so no interest is accruing.  What an awesome feeling that is!

So far, I’ve attempted:

• CLI:  Citi (9yr old account), CapOnex2 (4 yrold accounts) – all denied (none of these accounts have evern been late, and have had more than min. paid for life of CL)
• New Credit (May '14):  Discover IT, Barclaycard Rewards MC and Chase Slate.  So far Discover IT (500) and Chase Slate(2000) have been approved.  Awaiting result from Barclaycard as I had a fraud alert on my file due to erroneous address listed.  I had to mail documents to Barclaycards, whereas Discover and Chase handled over phone and via fax/email. 

Just curious, would anyone know why existing accounts would decline CLI, while at the same time I’m able to get new credit?  Just strikes me odd.  I only submitted my CLI request online; should I have called? - should I still try?  And I was a little disappointed that Discover IT only gave 500, while Chase gave 2000.  Then again, I’m thrilled that Discover decided to let me be in their little club.  Haha  

My next hurdle is to address the student loans.  They come out of deferment this summer.  Since the balance due exceeds the original loan amount, I think that’s killing me.  So I’ve decided to pursue an educational consolidation loan and immediately begin making payments.  I assume this means that will improve the loan amount to loan balance ratio.  Anyone know any differently?  I’ve applied for the consolidation, but have up to 30 days (I think) to actually accept it once it goes through.  I should have paperwork from loan servicer this week.

Once I get this all squared away, it’s time to look for my first home!  I’ve been an apartment dweller for years and happy to do so; was always afraid of a mortgage (and moved a lot; different states)!  But I think I’m finally ready and I’m happy to see that it’s possible now.  

[myjourney]

Welcome to the forum 

Your doing a wonderful job keep up the good work 

[NYSuperdoodle]

Nice work!

You had a totally different situation from mine, but similar results in a similar timeframe. I think the lesson here is that, once someone becomes score-conscious and starts really focusing, it certainly isn't impossible to get big increases over a relatively short timeframe. 

The peace of mind of getting control over your credit is well worth the short term pain of dealing with your debts. 

[hopeful14]

Oh my goodness, this is great!  I am hoping for similiar results too.  I am just wondering if I should be applying for more credit cards though.  Everyone seems to have several.  I have a Discover it ($1900) a First Premier ($300) and a Credit one ($600).  All are under 30% utilization and paid on time every month.  Do I need a few more?  Theonly other credit I have at the moment is a auto loan in good standing, about 40% paid on it.   

Any suggestions?

[alvon123]

congrats!!!! Keep going

[ChasingFiCo]

Thanks everyone!  I definitely still have work to do, but after a month like that, I'm pretty optimistic.  It is definitely all about educating yourself; a very educational month for me, reading all of the posts on this forum & still reading!  I don't think I'm the person to offer advice just yet, I'm still a newbie finding my way!  I'll post updates on any additional progress I'm able to make.  

[Shogun]

I'll be looking forward to those updates.  Good luck.

[Involver]

Great work! Perserverence is the key. Before you know it all those derogs will be gone and you'll be free and clear.

[biglista88]

Congrats! I wish my scores were that high. Ok so here's my story. I began rebuilding in feb 2013. I had horrendous credit in the low 500's. Although I must say my overall debt was very low around $2000. I got an auto loan with astronomical 22% APR. BUT it was for a 6000$. Used vehicle that I new I could pay off rather quickly. Fast forward to a today. My scores are all mid to upper 600's. Paid on time and got a FP card(hate it but it helped) Now I have a discover IT card(secured 200$) Capitol one quicksilver 300$. Navy federal go rewards 1000$, Nave federal CLOC 500$. I now need to garden and await the day I reach the 700 credit score. I can't believe how fast it has happened. Layer this year I have the possibly of getting my dream car(Late model Mustang Gt). Thanks to all the wonderful information found online.

[gdale6]

Grats to your continued success