04-18-2009 11:08 AM
I just had a fall in my TU score which was devastating to me! I overlooked my gas bill and it plummeted down with a 120 day late reporting. I was on a payment plan, so I was "good" then 120 late! Well, I became so upset over it, instead of dealing with it by disputing it to a 30 day right then and there, I just became "all passive-aggressive" and let it go for another 2 months without a payment. I finally decided to do something about it, paid the whole frickin' thing off($1000-instead of going back on the payment plan) and disputed it with TU, ( I mean it really should be 30, 60, 90, not 3 x 120) The thing is in IL, most lenders look at TU. It was in low 600's, dropped to 500 with the first 120, now, of course it has 3 120's because I couldn't deal with it, and it dropped to 400's now it is back to 506. I was sooo upset because I am trying to get my score to about 620 or higher to replace my car and buy a house in the next 6 months or so. Darn Nicor! So anyway, I only have one CC (capital one) with a 300 limit, no balance to speak of, (and the limit is going up to 750 with the credit builder plan in April/May) a Student loan, which I just consolidated, a refi house, one larger medical that is unpaid, various paid collections/charge-offs, a few "finance" loans--show paid, oh, and a Crown Jewelers account. My real question is: What other trade lines can I open to bring up my TU score? My EQ is 612 (it was 646 before inquiries from refi) so I would love something that might pull EQ and report to TU and EQ (do we really care about Ex anymore, I mean...it's an invisibile score anymore, so I can't check it anymore) . I am soooo worried about pointless inquiries that might get me dinged and bring my score down...I went on an inquiry bing in NOV (all declined). Any more like Crown Jewlers--no inquiry yet report? Thanks!
04-18-2009 11:38 AM - edited 04-18-2009 11:39 AM
New tradelines won't offset recent lates, especially servere lates like 120.
I would first commit myself to 'no more' emtional responses in credit circumstances. You cut your credit nose of to spite your face.
Second, pay the gas bill on time and try to beg through GW for mercy. Those lates are going to set you back a long while if you can't either remove or reduce (a 30 is bad....but multiple 120's and even the builder cards will run).
Finally, you can and should get with a credit union. Use their credit builder loan and secured programs. If you do this, after a year you will have a relationship with them and be able to get unsecured credit, including the auto loan you are talking about.
Just make sure you have ALL cc's set up with auto draft, just in case you forget, and PIF all but a small balance on a single card.
Do the credit union credit builder program and get a savings secured card. If they don't want to go card yet, then do a savings secured personal loan for $500-1000 and pay off over $6 to 12 months. Also, put your savings toward car down payment with the credit union.
You would also get a lot of "credit mileage" by putting your paycheck on direct deposit to the credit union. If you follow this course in one year you will have.
1. A year's history of savings and adding to savings
2. A successful peronal loan (credit builder) which adds a successful tradeline
3. A successful secured card (convert to unsecured) which adds a successful tradeline
4. A year of direct deposit showing income and putting some of it to savings
5. A year of additional aging on exising tradelines plus a year of good tradelines from the credit union
You will be looking good......ESPECIALLY if you can beg and pleade (GW) your utility company into mercy on the 120's.
The CU will get you light years futher than builder crap cards.
04-18-2009 03:26 PM
Those are wise words...I just felt like crawling into a hole when I got the score alert showing that huge drop because I spaced out paying my gas bill. I had visions of 700 approaching in the coming year. I hate paying utilitities anyway, and when I had very, very poor (now just "poor" I guess!) credit and little money to deal with any, I used to juggle the utilities and deal with shut-offs and such on a regular basis (while curled in a ball under the covers avoiding the dreaded collector's calls!) I have been working sooo very hard on repairing my credit (with a timeline in mind) that it was becoming obsessive and looking forward to moving past some of those "rebuilder" programs...I was already thinking of getting a Bof A secured card. I did cut off my nose to spite my face and reverted to putting my head in the sand instead of being proactive. I did open a CU savings account in the fall and I will see them about secured savings line this week. I am glad I finally got my act together to dispute with the gas company for correct 30/60/90 reporting (through TU) and will be sending them a GW letter. However, they did not GW my lates in the past, so who knows. Can't hurt as much as I already hurt myself! Yikes! My refi loan officer had told me before that they don't really look at utilities (although no other utility reports-other than Nicor- in my area, unless you have a collection/charge-off--believe me, I know about those!)