From the credit "slums" to the "deluxe penthouse"??

[Anonymous]

Hey all!

I'm looking for some success stories.  Can anyone share any amazing transformations that have gone from ~500 to 800+?  I'm currently in the slums scratching and scraping towards 500 after losing about 150points in the last year due to a repo, several lates and c/o's due to underemployment and then unemployment.  I want some hope!  LOL!!

[Anonymous]

It's tough to find because a lot of people in the 500s end up disappearing once they're in the high 600s.

I was in the 500s not that long ago -- I think my lowest was 540 in March 2017 or so.  Now I am closing in on 700s across the board as seen in this graph:

My credit rebuilding includes 5 things I have to do at the same time, constantly:

1. Reducing derogatory information -- this includes settling with creditors in exchange for deleting negatives, disputing obviously incorrect tradelines that have negatives, sending goodwill letters to creditors repeatedly until they agree, and in some cases just patiently waiting for negatives to age off.
2. Increasing positive information -- you want 3 open credit cards preferably from good banks, and 1 open installment loan (SSL will work).
3. Making sure to pay all my bills on time, and multiple times a month if necessary.  Also learning when balances report will help boost your FICO as you can reduce your utilization by playing around with when you make payments.  Also setting up autopay is REQUIRED.
4. Building a strong emergency nest egg so I will never be late for any reason ever again.  I now don't charge anything on a card that I can't pay in full.  If I am waiting for  a paycheck to come in 2 weeks, I don't charge what I can't pay off today in case that check gets lost, misplaced or doesn't come through for whatever reason.

Over just 6 months I've added 100 points to my FICOs.  It's possible (not 100% of course) I could raise them another 50-100 points in the next 12 months.

I have no doubt I will be in the 800s soon enough, but that requires having my average age of accounts be way higher than I am now.

[Anonymous]

Awesome progress!!  Yes, you make a good point.  People disappear when they tend to not need as much help, lol.  

You've done great for yourself, I know you will be very happy once you're solidly over 700!  I think I will be over 500 in the next 30 days and my goal is to be solidly over 600 in the next 3 months.  It's definitely a marathon and not a sprint! 

[Anonymous]

Other than tax liens and judgments which can last decades in some jurisdictions, there's almost zero reason why a person can't be in the 700s in time.  Even if it takes 7 years (and it won't), it's doable.

I have no experience with student loans, so maybe those might be in the same group as tax liens and judgments but I would assume any derogatory lates would still drop off after 7 years?

I know a bunch of folks who filed BK and had 700 scores within 2, 3 years tops.  It's all about seasoning your report with GOOD accounts and then keeping them good.

The majority of folks I know with poor credit over a long period of time are the ones I hate helping: they screw up their credit badly, then waste years of my life helping them create a good score, then ruin it again, and then waste my time again.  I know 2 people, almost family to me, who have ruined their credit more than 3 times over the past 20 years.  I just avoid them when they ask for help again.

[Anonymous]

If you search the rebuilding forum thread titles you'll find lots of people that have posted stories of going from X to X + 200-300 points.  They are quite motivational.

True that a lot of people leave after getting their credit scores into the good range, but others stick around.  I post more and visit the forum more now with 800+ scores than I did back when I was at 619 when I joined the forum.

[Anonymous]

The other forum that shall not be named is impossible to visit because everyone there had 400-500 scores once and now are in the 800s and they're almost all d-bags who are unhelpful to those who need help.

I still read over there because they still post some really good info, but it's hard to read.

Hopefully more 800-clubbers stick around here -- it's good to see what someone can do with a few years of patient work and dedication.  I won't be leaving when I hit 800.

[Anonymous]

Our OP expressed a desire to have this thread moved to the Rebuilding forum.  Here's how the OP (or anyone else) can do that.

Go to the post where that idea is suggested.  Click on the OPTIONS button at the right top of the post.  (Not right top of the thread, but just that post.)  A drop down menu will appear.  Toward the bottom of the menu choose Report Inappropriate Content.  This is not you saying that anybody is doing something bad.  It's just the default way to talk to a moderator.  In the text description just say.  "Nothing wrong with this thread, but the OP would like it moved to the _____ forum."

[Anonymous]

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@Anonymous wrote:

Our OP expressed a desire to have this thread moved to the Rebuilding forum.  Here's how the OP (or anyone else) can do that.

Go to the post where that idea is suggested.  Click on the OPTIONS button at the right top of the post.  (Not right top of the thread, but just that post.)  A drop down menu will appear.  Toward the bottom of the menu choose Report Inappropriate Content.  This is not you saying that anybody is doing something bad.  It's just the default way to talk to a moderator.  In the text description just say.  "Nothing wrong with this thread, but the OP would like it moved to the _____ forum."

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Thank you!  I tried to do it under edit, but didn't see the option.  Thanks for chiming in! 

[Anonymous]

I have alerted the moderators.

[JR_TX]

Oh there is hope DoBetterSis! Trust me. Been there. And you know the best thing about being so down? It's that there's no where else to go but up!
I was in a similar situation like yours back in the Great Recession of '08. Unemployed for couple of years until I was forced to file a BK7. Fast forward to today... I'm a way better person now in all aspects of life especially on the financial side. Although I'm not quite there yet to the 800's (my signature) but I'm hoping to get there as soon as my bk falls off in 2021.

What I suggest to you right now though is NOT to worry or even think about all these credit hullabaloo yet. Focus in enhancing yourself by getting a good job first or any decent paying job for that matter if you haven't already. As without income, there is no point in acquiring credit.
On your first paycheck, treat yourself or your family to a nice, practical and affordable dinner. That will motivate you even further. Surround yourself with nothing but positive influences may it be people, events or faith. Whatever gives you motivation to strive harder and further, keep at it!
Spend only on necessary things and only buy things that your life needs to survive and not what you want. Put away some savings every paycheck (10% recommended). After a few months of good hard work with your paycheck as your reward, then you can begin to formulate a plan on how to get your credit back to the "deluxe penthouse" status!
Wish you all the best DoBetterSis!

** Update ** 

Just read your other post DoBetterSis and looks like your on your way to recovery now. All the advises there about rebuilding your credit are on point! You're in good and safe hands with those advises from the myFICO community!