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Help with my rebuild Please!

Contributor

Help with my rebuild Please!

I am in the early stages of my rebuild after a horrible start which includes chargeoffs, late pays, a BK and a judgement.

 

The BK is 4 years old, the judgment is about 2 years old and I have 3 new cc accounts of which only one has been reporting for 6 months. (the other two are very new)

 

I have 4 more payments on my student loan repayment program before it will begin to report positively

 

My FICO has increased about 75 points with the new tl and a couple of disputes with the CRA's  and I am thinking about getting a secured loan from my credit union in the amount of $500 as this is the most I can spare at this time.

 

My utilization is always under 30% and I have no late pays on my new accounts. My AAoA is 6 years as I have one student loan completely paid off (with several 180 lates)

 

Taking into consideration that I only have 3 positive accounts, does this sound like a progressive idea?

 

Will this add to my score or bring it down or even matter at all??? Should i pay off quickly or slowly?

 

any help is appreciated.......my current FICO score is 600.

 

Thanks!

Starting FICO 485
Myfico 635 (3/01/14)
EX FAKO 667 EQ 697 Barclaycard TU 707 4/27/14 (yea!)
Mortgage Ready End of 2015
Message 1 of 11
10 REPLIES
Valued Contributor

Re: Help with my rebuild Please!

What does your CR look like now?
Scores: about 700 across the board
Total CL: $275k
Message 2 of 11
Contributor

Re: Help with my rebuild Please!

1 BK discharged 8/2008, 2 separate unpaid student loans closed with 180 day lates, 1 judgment, 1 paid as agreed student loan with 180 day lates, and about 3 items in collection with one being reported by the OC and the CA on all 3 reports (sent DV letter to CA last week). I am currently in a repayment program for the 2 student loans, those should be reporting positively in about 4 months. I have 1 cap 1 card $300 limit reporting for 6 months no lates %20 uti. Just received a cap 1 cash rewards $500 limit this month and a $250 Fingerhut account this month. These are not reporting yet. EQ shows 12 inq with several dropping off in Jan 13 and TU shows 4 inq.

 

anything else i should add?

Starting FICO 485
Myfico 635 (3/01/14)
EX FAKO 667 EQ 697 Barclaycard TU 707 4/27/14 (yea!)
Mortgage Ready End of 2015
Message 3 of 11
Regular Contributor

Re: Help with my rebuild Please!

Goodwill the student loan. They can be tough, but sometimes it works. I had better luck calling and talking to a manager. Since you are in repayment, see if you can negoitiate a pay on time for six months- delete the 180 days late type of deal. Keep the cards flawless and under 30%. A secured loan will help your mix, just make sure it does not report as secured! I would also see if you can dispute the judgment and if that doesn't work, ask for a goodwill. I also here in some states you can file to vacate it, but you will have to research that. 600 is pretty good really, I have about the same mix of baddies and 25 positive trades lines, AAoA 5+ years, and I have a much worse score. Sounds like you are doing things right!


Starting Score: EQ 416 TU 498 EX 468 Lender Fico's July 2012
Current Score: EQ 674 TU 679 Ex 686 EX
Goal Score: For now: 640s


Take the FICO Fitness Challenge
Message 4 of 11
Moderator Emeritus

Re: Help with my rebuild Please!

A revolving acct. would be better than an installment loan.  You should get a secured card.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 5 of 11
Contributor

Re: Help with my rebuild Please!

Thank you for the advice! I will try the goodwill letters.

Starting FICO 485
Myfico 635 (3/01/14)
EX FAKO 667 EQ 697 Barclaycard TU 707 4/27/14 (yea!)
Mortgage Ready End of 2015
Message 6 of 11
Contributor

Re: Help with my rebuild Please!

I've read that there should be a mix of installment and revolving, so your saying there is a greater benefit in having a secured cc than having cc's and a loan?

Thanks for the advice, its very helpful!

Starting FICO 485
Myfico 635 (3/01/14)
EX FAKO 667 EQ 697 Barclaycard TU 707 4/27/14 (yea!)
Mortgage Ready End of 2015
Message 7 of 11
Moderator Emeritus

Re: Help with my rebuild Please!

Yes, installment loans actually don't factor in very much to your scores.  Your revolving accounts can account for as much as 35%.  I've seen people without any installment loans with scores in the 800s.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 8 of 11
Contributor

Re: Help with my rebuild Please!

great! then thats what i'll do.....thanks again

 

does it matter which secured i get? are there some with better benefits than others?

Starting FICO 485
Myfico 635 (3/01/14)
EX FAKO 667 EQ 697 Barclaycard TU 707 4/27/14 (yea!)
Mortgage Ready End of 2015
Message 9 of 11
Moderator Emeritus

Re: Help with my rebuild Please!

You should go post on the Credit Card boards.  They will give you all kinds of tips on that.  There are several.  Some like BOA can graduate to an unsecured card.  Also if you belong to a CU it is a good practice to get one with them and show active accounts with them.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 10 of 11