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Hi everyone! I've spent the last 48 hours in wonder and amazement as I've browsed through the wealth of knowledge on this forum. It has motivated me to start rebuilding in earnest versus hoping and waiting that it'll all just go away on its own, regarding the black marks on my credit reports and history.
I'm going to lay this post out in a fashion after Guitarguybs07's thread at http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Credit-Rebuilding-Adventure-8-14-Update-700-C...
I have mismanaged my credit as a result of lack of education about credit and finances, my own impulsive decisions (I want it now and to hell with the consequences!). However, the biggest hit came in 2012 when I lost my job.
I had always heard about how much better credit unions were compared to banks but when I went to them (with accounts still in good standing) and told them that I was now unemployed and would be having a hard time making payments but that I wanted to work with them to keep my accounts in good standing, they refused to work with me. I was baffled by this after hearing that when someone makes the effort to keep communication up and intending on keeping their end of the bargain that the banks will typically be receptive.
Here is the current state of my finances
Length of Credit History: 9 Years, 6 Months
Average Age of Accounts: 5 Years, 4 Months
Oldest Account US Dept. of Education (Opened 04/01/2004)
Installment Loans:
Credit Union Auto Loan: Balance: $18,050.23 Payment: $396.29/mo (paying even $400)
Credit Union Personal Installment Loan: $2,000 Payment: $150/mo
EdFinancial Student Loans (3 total, one per semester): Balance: $2,352.75 Payment: $65.78/mo I have a payment reduction option that would reduce this to $41.66/month.
Credit Lines:
Capital One Platinum Mastercard (Issued 10/07/13 and what started me looking into my credit): Balance: $0/300
When I got approved for the Capone card... I thought maybe my credit had recovered some on its own, so before researching I applied for a Chase card and an Amex Blue Cash. I was informed by both that a further investigation would be made and a letter informing me of their decisions would be mailed to me. Le sigh. Live and learn.
Current/starting (10/10/13)
Equifax: 625 – 9 negative accounts
Experian: 579
TransUnion: Unknown
Creditkarma: 551
Credit.com: 616
Credit Sesame: 614
Negative Entries & Status Updates:
Inquiries:
Equifax: 5
Experian: 5 (2 of which I don't think I ever gave authorization for)
TransUnion: 12 inquiries since 03/21/2012. Three of these I will be disputing as I never authorized them and they are not CAs and as far as I can tell have nothing to do with any loans I've had. The three in question are GECRB, WFFNATBANK, L. SRVC CORP
Late payments:
(EQ, EX) Edfinancial Financial (3 loans, one per semester. Not sure why they break it down like this)
All listed as Pays as agreed. I have entries in August and September of 2012 stating 90 days past due and another from March of 2013. These entries are a screw up on their part as I was in an unemployment hardship during this time and I was accruing interest but not required to make payments.
(EQ) First credit union auto loan: a 30 day late in July of 2011
(EQ) Credit union personal installment loan: 30 days late in September and October of 2012 and 60 days late shown in November of 2012. Though it is listed as pays 61-90 days late under status. EX report shows 60 days late in Dec but EQ does not??? Need to investigate further.
(EQ) Second credit union auto loan: 30 days late in September and October of 2012 and 60 days late shown in November of 2012. Though it is listed as pays 61-90 days late under status. EX report shows 60 days late in Dec but EQ does not??? Need to investigate further.
(EQ) Third credit union auto loan: a 30 day late in September of 2008. EX and TU report shows that the late payment was in September of 2009??? Need to investigate further.
(EQ) US Department of education loan: 60 days late in September and October of 2008, 60 days late August 2009, 60 days late January 2010
(EQ, EX) HSBC/Suzuki revolving account (shows as Capital One/Suzuki): 30 days July and 60 days late in August of 2008, 30 days late December of 2009, 30 days late in April and August of 2010.
Collections:
(EQ, EX) Tek-Collect, Inc.
Date reported: 04/2012
Date assigned: 08/2008
OC: First Mid Illinois Bank&Trust
Original amount owed: $160
Date of first delinquency: 08/2008
Balance Owed: 0 (was strongarmed into paying even though I didn't make the initial purchases on the account)
Status: PAID
(EQ) State Collection Service
Date reported: 02/2011
Date Assigned: 09/2010
OC: Ameren Illinois
Original Amount Owed: $195
Date of first delinquency: 08/2010
(EQ) H&R Accounts, INC
Date reported: 09/2010
Date assigned: 07/2010
OC: Carle Clinic
Original Amount owed: $30
Date of first delinquency: 12/2009
Balance owed: $30
Status Date: 09/2010
Status: UNPAID
(EX) NCO Financial
Date opened: 9/1/2012
OC: Progressive
Original Amount owed: $120
Balance owed: $120
Status Date: 09/2010
Status: UNPAID
Aargon Agency
Date opened 9/1/2012
Account Status: Paid, Closed
Inaccurate information:
(EQ) Former address that I never lived at
Things I plan on doing from here as well as questions:
Questions:
1. I've seen a LOT of information stating to reduce credit utilization, low minimum balances, etc. How do my installment loans affect things? I haven't seen where that really ever gets talked about. Does my car loan influence things greatly?
2. I plan on GWing several places. Including EdFinancial because the lates that they listed were when I was under a Financial Hardship deferment. Should I wait until after I see what they are willing to do about these before I do the payment reduction that they are offering?
3. I've seen many suggestions of becoming an Authorized User on someone else's credit lines in good standing. I know this improves your credit utilization but does it also backdate the age of the account on your record from when the other person originally opened it or from when it gets added to your account?
4. With just having the one credit card, should I keep zero balance or small balance of a few dollars?
5. What is the most cost effective way to keep track of your credit scores? MyFico is obviously going to be a popular choice around here, but I've also heard about getting approved for certain credit cards that keep you updated on what your score is. Is there a list of these, what CRAs they notify you off?
6. I am confused about disputing entries in my credit reports. Should I use the dispute buttons on the websites for the EX/EQ/TU or should I dispute directly with the entry creator?
7. Is 'rapid rescoring' a gimick or a useful tool in the rebuilding process?
8. Several of my oldest accounts are from 2004/2005. These are the original Department of Education loans that were transferred to EdFinancial. Since EdFinancial is offering me a reduced payment with extended pay off time, Would it benefit me to extend the loan time with the reduced payments. If I pay them off sooner, they would be off my credit reports by 2015-16 at the latest, leaving my file pretty thin in my eyes.
Planned:
1. GW letters/emails to everyone I can find contact information for.
2. Attempt to PFD with the two unpaid collections
3. Using Capone card to purchase gas/groceries and pay off same day.
4. Find out my report date on Capone card so I can pay by that instead of due date in case I must wait for a payday to pay off a charge
5. Attempt to become an Authorized User on someone's cards.
My current goals are 700 credit score, and at least one prime credit card with rewards useful for annual vacations and road trips.
** I humbly beg that if you have any comments, criticisms, critiques, suggestions, advice or just general ideas about my situation, PLEASE do not hesitate to give your input. This is a learning experience for me and while I can scour thousands of threads, if you have something that directly pertains to me then by all means drop a line in this thread!
Thanks everyone!
@Powertrip wrote:
Questions:1. I've seen a LOT of information stating to reduce credit utilization, low minimum balances, etc. How do my installment loans affect things? I haven't seen where that really ever gets talked about. Does my car loan influence things greatly?
2. I plan on GWing several places. Including EdFinancial because the lates that they listed were when I was under a Financial Hardship deferment. Should I wait until after I see what they are willing to do about these before I do the payment reduction that they are offering?
3. I've seen many suggestions of becoming an Authorized User on someone else's credit lines in good standing. I know this improves your credit utilization but does it also backdate the age of the account on your record from when the other person originally opened it or from when it gets added to your account?
4. With just having the one credit card, should I keep zero balance or small balance of a few dollars?
5. What is the most cost effective way to keep track of your credit scores? MyFico is obviously going to be a popular choice around here, but I've also heard about getting approved for certain credit cards that keep you updated on what your score is. Is there a list of these, what CRAs they notify you off?
6. I am confused about disputing entries in my credit reports. Should I use the dispute buttons on the websites for the EX/EQ/TU or should I dispute directly with the entry creator?
7. Is 'rapid rescoring' a gimick or a useful tool in the rebuilding process?
8. Several of my oldest accounts are from 2004/2005. These are the original Department of Education loans that were transferred to EdFinancial. Since EdFinancial is offering me a reduced payment with extended pay off time, Would it benefit me to extend the loan time with the reduced payments. If I pay them off sooner, they would be off my credit reports by 2015-16 at the latest, leaving my file pretty thin in my eyes.
1) Installment util is apart and separate from revolving util. Installment util is a very tiny pary of FICO scoring, so small in that it's virtually ignored...otherwise everyone would get dinged for years for adding a $200k mortgage, as an example.
2) I'm not up to date on SLs so look around. I know that in some loans, if you defer payments or reduce payments from a means other than a refi, then they are allowed to add a late in the month you paid a lesser amount. I deferred car payments back in the day and they added lates even though I had an agreement to pay. Just an FYI.
3) AU CCs are viewed as your CC per FICO. If the util is high, it hurts. If the util is low it helps. If the CC holder was late, then you are too. etc...
4) IMO, paying a sole CC to $0 or leaving a balance doesn't matter too much. FICO doesn't care what your util was 2 months ago, for example. It only cares about today (or rather how it reports today). In other words, unless you are apping for something now, I wouldn't worry about it. Just be in the practice of paying it off vs. letting balances report monthly.
5) If a lender uses a FICO, and that FICO was used in determination of a denial or adverse action (e.g. higher APR), then that lender will provide the FICO they used. The CRA will vary by lender of course.
You're limited on the places to get your FICO score.
You can only buy your EQ FICO from myFICO, your lender, or from Equifax.com (buyer beware: the scores they push are a FAKO, but your EQ FICO can be purchased through EQ).
You can only buy your TU FICO from myFICO or your lender.
Finally, you can only buy your EX FICO from your lender and myFICO.
Aside from the above, you can also get your FICO scores for free or at a reduced price. Banks and CUs will offer it as a benefit. M&T Bank, Unitus Community Credit Union, and Digital Credit Union each offer an EQ FICO. You can get your TU FICO from Wal-Mart or Merrick Bank if you have CCs with them. And you can get your EX FICO from PA State Employees Credit Union (PSECU) if you have a checking account with them. There are other CUs out there that will offer a FICO if you ask them as part of a benefit for being a member.
6) IMO, unless you have proof to back up a dispute, never dispute. Even if you have proof, there are steps you can take first directly with the one reporting the erroneous info. If the bad info comes back verified, it'll be a lot harder to remove via legit means (e.g. PFDs GWs, etc.) because it was disputed.
7) Rapid resocring is used by mortgage lenders during the mortgage process. It's legit, but there's a fee involved usually.
8) See #2. Make 100% for sure they won't add a late before accepting any reduced payment agreement.
Thanks for the responses! I am very grateful for the info about student loans. It would've never occured to me that they would bill me as late if I started a payment plan without being behind!
I will leave off on disputing anything!
The one thing I'm still not clear on: While I know that how the account I would be an AU on is cared for affects me, I'm still unsure of whether it shows as being active from the date that the account was originally created or if it goes by when I am added as the AU. More research must be done!
Thanks. In general I meant to pay it as soon as it was posted to my account but good to know I must wait.
OP,
I believe that I read you have US Department of EDucation loans? If so, get on the Income Based Repayment Plan. You may also be able to do a retroactive deferrment or forebearance. Not really sure on that part with US ED. I know when I have private loans backed by US Gov, I was able to do retroactive request. Also, if you work for a non profit or any government agency whether local, state or federal, look into the Public Service Loan Forgiveness program.
12njoy,
Yes I do have an EdFinancial loan that was taken over from my Direct Loans student loan. The income based payment plan was indeed the option I was referring to for lowering my payment. It would drop my payment about $21/month. Do you think I will be good to go with this and not have to worry about the late entries that a previous poster has mentioned?
Thanks for the info!
I've just drafted my first GW letter. It's at http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Please-critique-comment-on-my-first-ever-GW-l... if anyone wants to take a peak and give me some feedback before I do a final revise and send it!
Thanks everyone!
@Powertrip wrote:Hi everyone! I've spent the last 48 hours in wonder and amazement as I've browsed through the wealth of knowledge on this forum. It has motivated me to start rebuilding in earnest versus hoping and waiting that it'll all just go away on its own, regarding the black marks on my credit reports and history.
I'm going to lay this post out in a fashion after Guitarguybs07's thread at http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Credit-Rebuilding-Adventure-8-14-Update-700-C...
I have mismanaged my credit as a result of lack of education about credit and finances, my own impulsive decisions (I want it now and to hell with the consequences!). However, the biggest hit came in 2012 when I lost my job.
I had always heard about how much better credit unions were compared to banks but when I went to them (with accounts still in good standing) and told them that I was now unemployed and would be having a hard time making payments but that I wanted to work with them to keep my accounts in good standing, they refused to work with me. I was baffled by this after hearing that when someone makes the effort to keep communication up and intending on keeping their end of the bargain that the banks will typically be receptive.
Here is the current state of my finances
Length of Credit History: 9 Years, 6 Months
Average Age of Accounts: 5 Years, 4 Months
Oldest Account US Dept. of Education (Opened 04/01/2004)
Installment Loans:
Credit Union Auto Loan: Balance: $18,050.23 Payment: $396.29/mo (paying even $400)
Credit Union Personal Installment Loan: $2,000 Payment: $150/mo
EdFinancial Student Loans (3 total, one per semester): Balance: $2,352.75 Payment: $65.78/mo I have a payment reduction option that would reduce this to $41.66/month.
Credit Lines:
Capital One Platinum Mastercard (Issued 10/07/13 and what started me looking into my credit): Balance: $0/300
When I got approved for the Capone card... I thought maybe my credit had recovered some on its own, so before researching I applied for a Chase card and an Amex Blue Cash. I was informed by both that a further investigation would be made and a letter informing me of their decisions would be mailed to me. Le sigh. Live and learn.
Current/starting (10/10/13)
Equifax: 625 – 9 negative accounts
Experian: 579
TransUnion: Unknown
Creditkarma: 551
Credit.com: 616
Credit Sesame: 614
Negative Entries & Status Updates:
Inquiries:
Equifax: 5
Experian: 5 (2 of which I don't think I ever gave authorization for)
TransUnion: 12 inquiries since 03/21/2012. Three of these I will be disputing as I never authorized them and they are not CAs and as far as I can tell have nothing to do with any loans I've had. The three in question are GECRB, WFFNATBANK, L. SRVC CORP
Late payments:
(EQ, EX) Edfinancial Financial (3 loans, one per semester. Not sure why they break it down like this)
All listed as Pays as agreed. I have entries in August and September of 2012 stating 90 days past due and another from March of 2013. These entries are a screw up on their part as I was in an unemployment hardship during this time and I was accruing interest but not required to make payments.
(EQ) First credit union auto loan: a 30 day late in July of 2011
(EQ) Credit union personal installment loan: 30 days late in September and October of 2012 and 60 days late shown in November of 2012. Though it is listed as pays 61-90 days late under status. EX report shows 60 days late in Dec but EQ does not??? Need to investigate further.
(EQ) Second credit union auto loan: 30 days late in September and October of 2012 and 60 days late shown in November of 2012. Though it is listed as pays 61-90 days late under status. EX report shows 60 days late in Dec but EQ does not??? Need to investigate further.
(EQ) Third credit union auto loan: a 30 day late in September of 2008. EX and TU report shows that the late payment was in September of 2009??? Need to investigate further.
(EQ) US Department of education loan: 60 days late in September and October of 2008, 60 days late August 2009, 60 days late January 2010
(EQ, EX) HSBC/Suzuki revolving account (shows as Capital One/Suzuki): 30 days July and 60 days late in August of 2008, 30 days late December of 2009, 30 days late in April and August of 2010.
Collections:
(EQ, EX) Tek-Collect, Inc.
Date reported: 04/2012
Date assigned: 08/2008
OC: First Mid Illinois Bank&Trust
Original amount owed: $160
Date of first delinquency: 08/2008
Balance Owed: 0 (was strongarmed into paying even though I didn't make the initial purchases on the account)
Status: PAID
(EQ) State Collection Service
Date reported: 02/2011
Date Assigned: 09/2010
OC: Ameren Illinois
Original Amount Owed: $195
Date of first delinquency: 08/2010
(EQ) H&R Accounts, INC
Date reported: 09/2010
Date assigned: 07/2010
OC: Carle Clinic
Original Amount owed: $30
Date of first delinquency: 12/2009
Balance owed: $30
Status Date: 09/2010
Status: UNPAID
(EX) NCO Financial
Date opened: 9/1/2012
OC: Progressive
Original Amount owed: $120
Balance owed: $120
Status Date: 09/2010
Status: UNPAID
Aargon Agency
Date opened 9/1/2012
Account Status: Paid, Closed
Inaccurate information:
(EQ) Former address that I never lived at
Things I plan on doing from here as well as questions:
Questions:
1. I've seen a LOT of information stating to reduce credit utilization, low minimum balances, etc. How do my installment loans affect things? I haven't seen where that really ever gets talked about. Does my car loan influence things greatly?
2. I plan on GWing several places. Including EdFinancial because the lates that they listed were when I was under a Financial Hardship deferment. Should I wait until after I see what they are willing to do about these before I do the payment reduction that they are offering?
3. I've seen many suggestions of becoming an Authorized User on someone else's credit lines in good standing. I know this improves your credit utilization but does it also backdate the age of the account on your record from when the other person originally opened it or from when it gets added to your account?
4. With just having the one credit card, should I keep zero balance or small balance of a few dollars?
5. What is the most cost effective way to keep track of your credit scores? MyFico is obviously going to be a popular choice around here, but I've also heard about getting approved for certain credit cards that keep you updated on what your score is. Is there a list of these, what CRAs they notify you off?
6. I am confused about disputing entries in my credit reports. Should I use the dispute buttons on the websites for the EX/EQ/TU or should I dispute directly with the entry creator?
7. Is 'rapid rescoring' a gimick or a useful tool in the rebuilding process?
8. Several of my oldest accounts are from 2004/2005. These are the original Department of Education loans that were transferred to EdFinancial. Since EdFinancial is offering me a reduced payment with extended pay off time, Would it benefit me to extend the loan time with the reduced payments. If I pay them off sooner, they would be off my credit reports by 2015-16 at the latest, leaving my file pretty thin in my eyes.
Planned:
1. GW letters/emails to everyone I can find contact information for.
2. Attempt to PFD with the two unpaid collections
3. Using Capone card to purchase gas/groceries and pay off same day.
4. Find out my report date on Capone card so I can pay by that instead of due date in case I must wait for a payday to pay off a charge
5. Attempt to become an Authorized User on someone's cards.
My current goals are 700 credit score, and at least one prime credit card with rewards useful for annual vacations and road trips.
** I humbly beg that if you have any comments, criticisms, critiques, suggestions, advice or just general ideas about my situation, PLEASE do not hesitate to give your input. This is a learning experience for me and while I can scour thousands of threads, if you have something that directly pertains to me then by all means drop a line in this thread!
Thanks everyone!
For some odd reason people are under the impression that you cannot buy your TU; that is wrong. I get my TU directly from TU monitoring service. It is the EXACT SAME SCORE my lender pulled. And unlike score watch, i can get my report everyday for FREE and it actually sends alerts without a problem.