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Registered: ‎05-19-2017
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Help! Repossession and CC Closed, TU 523

[ Edited ]

Long story short, I was laid off twice and underwent financial ruin.  Last month, my car was repossessed, but next week I will pay the necessary funds to get my car back and have the Capital One auto loan reinstated.  I just recently started a new job and will be able to pay down all of my debts immediately.  With my TU credit score being 523, and my EQ being 505, I need to raise my score up as quickly as possible.  Can anyone give me advice on what I need to do, and in what priority, to raise my score as quickly as possible?  Should I open secured cards, or pay off certain debts first??  Also, is it possible to ever have a 700 credit score with a redeemed repossession in your history?  Thanks.  My credit snapshot is below:

 

5/19 TU - 523, EQ - 505

CCU - 108%

Derog Marks - 1 (collections)

Credit History - 8 yrs, 1 month

Total Accounts - 33

Inquiries - 0

 

 

Credit Cards-

(open) - 1 - capital one.  Balance - $3,248.  Limit - $3,000

(closed) 3 -  citi.  Balance $912. Limit $700

                    credit one.  Balance $491. Limit $300

                   discover. Balance $8,461. Limit $ 8,500

 

Auto -       (will be redeemed repo/reinstated next week)

(closed) - 1 - capital one Balance $16,508. Remarks - Repossesion 

 

 

Collections - 1

Utillity Company - $550

 

 

Thank you for your help.

 

Community Leader
Valued Contributor
Posts: 2,423
Registered: ‎08-25-2016

Re: Help Recovering from Redeemed Repossession/Reinstatement and 523 TU Score

Pull your actual FICO scores from creditchecktotal.com. you may be in better shape than you think.
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Help Recovering From Redeemed Repossession/Reinstatement

[ Edited ]

(Mod Edit - Original post was removed in error; subsequent post has been merged into restored original thread.   --SE)

New Member
Posts: 6
Registered: ‎05-19-2017
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Re: Need Advice Recovering From Redeemed Repossession/Reinstatement

And what is the highest possible credit score with a auto reinstatement/repo in your history>

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Posts: 9,185
Registered: ‎08-12-2013
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Re: Help! Repossession and CC Closed, TU 523


spaneasy1 wrote:

Long story short, I was laid off twice and underwent financial ruin.  Last month, my car was repossessed, but next week I will pay the necessary funds to get my car back and have the Capital One auto loan reinstated.  I just recently started a new job and will be able to pay down all of my debts immediately.  With my TU credit score being 523, and my EQ being 505, I need to raise my score up as quickly as possible.  Can anyone give me advice on what I need to do, and in what priority, to raise my score as quickly as possible?  Should I open secured cards, or pay off certain debts first??  Also, is it possible to ever have a 700 credit score with a redeemed repossession in your history?  Thanks.  My credit snapshot is below:

 

5/19 TU - 523, EQ - 505

CCU - 108%

Derog Marks - 1 (collections)

Credit History - 8 yrs, 1 month

Total Accounts - 33

Inquiries - 0

 

 

Credit Cards-

(open) - 1 - capital one.  Balance - $3,248.  Limit - $3,000

(closed) 3 -  citi.  Balance $912. Limit $700

                    credit one.  Balance $491. Limit $300

                   discover. Balance $8,461. Limit $ 8,500

 

Auto -       (will be redeemed repo/reinstated next week)

(closed) - 1 - capital one Balance $16,508. Remarks - Repossesion 

 

 

Collections - 1

Utillity Company - $550

 

 

Thank you for your help.

 


UTIL makes up 30% of your FICO scores, and closed accounts with a balance still factor into your UTIL.   So what I recommend doing first and foremost is pay down your CCs, especially the ones with balances higher than the CLs.  Are the closed CCs charge-offs?  

 

Don't worry about trying to get new credit until you can resolve the UTIL issues.   Once you resolve and your scores update, then you can start adding some accounts once you evaluate where you're at.  



Start: 619 (TU08, 9/2013) | Current: 791 (TU08, 8/15/17)
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Re: Help! Repossession and CC Closed, TU 523

Thanks for the response.  The only charge off is the citi (Balance $912. Limit $700).  The other two are canceled.

 

 My plan, since I just started a new job, is to pay off all of the closed credit cards in the next six months.

Established Contributor
Posts: 1,727
Registered: ‎03-28-2017

Re: Help! Repossession and CC Closed, TU 523

"As fast as possible" after a recent repo don't work together well at all, unfortunately.

 

At this point, you're looking at probably 2 years of rebuilding.  You want 3-5 solid credit cards from REPUTABLE lenders.  Get secured cards like Capital One and Discover (secured) and keep their utilization to $0 except for ONE credit card where you show a small balance on statement cut (1-8% not more).  If you can't manage $0 balances, you really aren't ready for rehabbing because you'll get credit and run it up.  The next 2 years is for you to budget, building a real savings account, and learn to manage what credit you have.

 

After 2 years of good payments, you can start a goodwill campaign with the lenders you burned and see what you can get.

 

I was able to goodwill 100% of all my lates off by showing good payment history for 6-18 months.  One lender I had up to 90D lates a bunch of times and recently they deleted ALL bad history thanks to me showing good credit usage since the lates.  But it took a lot of time.

Community Leader
Epic Contributor
Posts: 29,585
Registered: ‎03-19-2007

Re: Help! Repossession and CC Closed, TU 523

Upon a manual review of yur credit report by Cap One, they will see that all CCs are maxed, and that may be a trigger for reduction of your credit limit on your remaining open card as you pay the debt down.  That will keep your % util very high even as you pay down the balance.

I would thus lower % util on all cards as soon as possible to avoid triggering a credit limt decrease on your open card.

 

I would also contact the lendor and request a good will removal of the reported repo after you have reinstated the loan.

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Epic Contributor
Posts: 29,585
Registered: ‎03-19-2007
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Re: Help! Repossession and CC Closed, TU 523

Upon a manual review of yur credit report by Cap One, they will see that all CCs are maxed, and that may be a trigger for reduction of your credit limit on your remaining open card as you pay the debt down.  That will keep your % util very high even as you pay down the balance.

I would thus lower % util on all cards as soon as possible to avoid triggering a credit limt decrease on your open card.

 

I would also contact the lendor and request a good will removal of the reported repo after you have reinstated the loan.

New Member
Posts: 6
Registered: ‎05-19-2017
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Re: Help! Repossession and CC Closed, TU 523

What should I pay off first? The credit card that is open (balance is around $3K) or the credit card that is closed (not charged off, balance is around $8K)??

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