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Actually I disagree. Rebuilding credit involves both using credit and trying to get removal of bad info. I think people often make the mistake of not obtaining new credit until they fix their old credit. The result is that their credit journey takes that much longer. For sure, the op needs to concentrate on doing what he can to get rid of baddies. But getting that secured card was smart move. If he can afford, getting another secured would be good too
@RobertEG wrote:Personally, I would not concentrate on apping for new credit until at least unpaid delinquent debt has been taken care of. Payment history is the most significant scoring category, most likely hurting much more than any addition of new revolving might help. With plural major derogs and unpaid delinquent debt, they would be my focus.
I would jump on an offer to delete a CO upon payment. A CO tells others that a creditor has written off the debt as "uncollectible." That is a serious evaluation of your credit risk.
Your delinquent bad debt also, from the dates provided, may still be within SOL, raising the possibility of legal action on their part. Do you know the SOL status on those debts?
Do you have the funds to make PFD offers, and thus attempt to get some major derogs deleted?
@RobertEG wrote:Personally, I would not concentrate on apping for new credit until at least unpaid delinquent debt has been taken care of. Payment history is the most significant scoring category, most likely hurting much more than any addition of new revolving might help. With plural major derogs and unpaid delinquent debt, they would be my focus.
I would jump on an offer to delete a CO upon payment. A CO tells others that a creditor has written off the debt as "uncollectible." That is a serious evaluation of your credit risk.
Your delinquent bad debt also, from the dates provided, may still be within SOL, raising the possibility of legal action on their part. Do you know the SOL status on those debts?
Do you have the funds to make PFD offers, and thus attempt to get some major derogs deleted?
I agree. Repair and then rebuild.
@Crashem wrote:Actually I disagree. Rebuilding credit involves both using credit and trying to get removal of bad info. I think people often make the mistake of not obtaining new credit until they fix their old credit. The result is that their credit journey takes that much longer. For sure, the op needs to concentrate on doing what he can to get rid of baddies. But getting that secured card was smart move. If he can afford, getting another secured would be good too
@RobertEG wrote:Personally, I would not concentrate on apping for new credit until at least unpaid delinquent debt has been taken care of. Payment history is the most significant scoring category, most likely hurting much more than any addition of new revolving might help. With plural major derogs and unpaid delinquent debt, they would be my focus.
I would jump on an offer to delete a CO upon payment. A CO tells others that a creditor has written off the debt as "uncollectible." That is a serious evaluation of your credit risk.
Your delinquent bad debt also, from the dates provided, may still be within SOL, raising the possibility of legal action on their part. Do you know the SOL status on those debts?
Do you have the funds to make PFD offers, and thus attempt to get some major derogs deleted?
i agree. starting with derogs and no cc's or history. i opened 3 secured cc's got the history going then worked on my derogs.
I thought that AAoA is a big part of the overall picture as well. The sooner you get things growing some whiskers, the sooner it also improves your score. Adding a couple of secured cars that one can use conservatively can't hurt, IMO. Just make certain to concentrate your efforts in paying off the delinquencies. Using all of your extra money to gain secured credit would be a waste if you're not paying off the past due's.
@jocleveland wrote:I thought that AAoA is a big part of the overall picture as well. The sooner you get things growing some whiskers, the sooner it also improves your score. Adding a couple of secured cars that one can use conservatively can't hurt, IMO. Just make certain to concentrate your efforts in paying off the delinquencies. Using all of your extra money to gain secured credit would be a waste if you're not paying off the past due's.
+1