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Help needed!

New Member

Help needed!

Hi all,

 

I'm working on rebuilding my credit and I would like some help from you guys. Thanks in advance.

 

Background: As of October of last year my fico was at a 530, I had 1 secured card ( balance as of today is 0) from capital one limit $500. In November  I got an unsecured card ( balance as of today $14) from capital one limit $500 and a card from myjewlersclub.com(balance as of today 0) with a limit of 5K. I hired a credit repair company to remove negative items from my report and a consolidated my student loan which was in default. The company has only been able to remove 1 negative account so far. I still have 2 accounts in collections, and 4 paid (but has a bad payment history). I also just applied for an account with selflender, I wish I saw this forum before and I would've done the ssl technique. My fico is currently a 633, which is a big improvement of 103 points in 4 months! 

 

I'm trying to get to a 680 in the next 2-3 months, so I can qualify for business funding. What steps can I or should I take now to increase my fico?  Would it make sense to try and get the 4 paid negative accounts deleted since they have a bad payment history? Should get a card from Discover?

6 REPLIES
Moderator

Re: Help needed!


wrote:

Hi all,

 

I'm working on rebuilding my credit and I would like some help from you guys. Thanks in advance.

 

Background: As of October of last year my fico was at a 530, I had 1 secured card ( balance as of today is 0) from capital one limit $500. In November  I got an unsecured card ( balance as of today $14) from capital one limit $500 and a card from myjewlersclub.com(balance as of today 0) with a limit of 5K. I hired a credit repair company to remove negative items from my report and a consolidated my student loan which was in default. The company has only been able to remove 1 negative account so far. I still have 2 accounts in collections, and 4 paid (but has a bad payment history). I also just applied for an account with selflender, I wish I saw this forum before and I would've done the ssl technique. My fico is currently a 633, which is a big improvement of 103 points in 4 months! 

 

I'm trying to get to a 680 in the next 2-3 months, so I can qualify for business funding. What steps can I or should I take now to increase my fico?  Would it make sense to try and get the 4 paid negative accounts deleted since they have a bad payment history? Should get a card from Discover?


I would first try the PFD with the 2 collections that are unpaid, if they are medical there are other ways to attack it as well.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

 

As far as the one paid you can ask them to remove the individual lates with a GW letter, if they went to CO you would want to ask the entire account be removed.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...

 

You have your 3 revolvers and the self lender so there really isnt anything there you need for the moment. As far as the Discover I would take care of the unpaids first.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Message 2 of 7
New Member

Re: Help needed!

Thanks for the info. I’m going to send out GW this week.
Message 3 of 7
New Contributor

Re: Help needed!


@wrote:

Hi all,

 

I'm working on rebuilding my credit and I would like some help from you guys. Thanks in advance.

 

Background: As of October of last year my fico was at a 530, I had 1 secured card ( balance as of today is 0) from capital one limit $500. In November  I got an unsecured card ( balance as of today $14) from capital one limit $500 and a card from myjewlersclub.com(balance as of today 0) with a limit of 5K. I hired a credit repair company to remove negative items from my report and a consolidated my student loan which was in default. The company has only been able to remove 1 negative account so far. I still have 2 accounts in collections, and 4 paid (but has a bad payment history). I also just applied for an account with selflender, I wish I saw this forum before and I would've done the ssl technique. My fico is currently a 633, which is a big improvement of 103 points in 4 months! 

 

I'm trying to get to a 680 in the next 2-3 months, so I can qualify for business funding. What steps can I or should I take now to increase my fico?  Would it make sense to try and get the 4 paid negative accounts deleted since they have a bad payment history? Should get a card from Discover?


There is nothing the credit repair companies can do that you can’t do for yourself. In my opinion it’s throwing money away. Everyone in here will help you do it all for yourself. EE, goodwill letters, disputing. It’s all in here. Good luck and keep at it. You have 3 credit cards and that’s enough of a start for now if you institute AZERO. Once you get tour scores up you will be able to get prime cards that fit your spending.



Starting Score: 600
Current Score: 703
Goal Score: 800


Take the myFICO Fitness Challenge
Message 4 of 7
New Member

Re: Help needed!

Thanks for the feedback. Can you shed some light on the Azero method please?

Message 5 of 7
New Member

Re: Help needed!

Ok, that makes sense. I was preapproved for a Discover IT card, should I apply for it and then use it to pay for one of the baddies? One baddie has a balance of 1,218(I can pay for that now no issues), the original balance was 900. I'm thinking I should do a PFD in the amount of $600 and see if the CA accepts the offer. Then if the Discover card credit line is high enough pay for the second baddie, which has a balance of $4,000. I'm going to send them a letter and see if they accept $2,000 PFD. Does that make sense or should I send a PFD to the one CA for the $600, use the AZERO method and wait until I have the money to pay off the other baddie??  

 

I just checked I was pre-qualified for the Amex Green and Gold Card. Should I apply for it and use that to pay for the baddie? Yes, it would be an inquiry that dings my report but I will get rid of that collections account.

 

Thanks for your help!

Message 6 of 7
Moderator

Re: Help needed!


@qasiymsgwrote:

Ok, that makes sense. I was preapproved for a Discover IT card, should I apply for it and then use it to pay for one of the baddies? One baddie has a balance of 1,218(I can pay for that now no issues), the original balance was 900. I'm thinking I should do a PFD in the amount of $600 and see if the CA accepts the offer. Then if the Discover card credit line is high enough pay for the second baddie, which has a balance of $4,000. I'm going to send them a letter and see if they accept $2,000 PFD. Does that make sense or should I send a PFD to the one CA for the $600, use the AZERO method and wait until I have the money to pay off the other baddie??  

 

I just checked I was pre-qualified for the Amex Green and Gold Card. Should I apply for it and use that to pay for the baddie? Yes, it would be an inquiry that dings my report but I will get rid of that collections account.

 

Thanks for your help!


You only have one report a small balance when you are apping for new credit in an active rebuild it doesnt have to be done otherwise. To do it just pay off all your cards prior to statement cut date and on the one you want to report the small balance pay it down to that amount.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Message 7 of 7