For those of you just starting your re-build, I wanted to share with you my journey, thus far:
Back when I first got credit (when I was 18), it was relatively easy to get credit. I got several nice limit cards around my 18th birthday. I had a car loan by the time I was 19 (at a 6% interest rate). I spent myself into an oblivion. Eventually things caught up with me, and I knew I was not going to be able to keep my head above water. It started with one credit card, and within a few months I had pretty much defaulted on every credit obligation I had. You name it, I burnt them (auto loan, credit cards, landlords). From there, I just wanted to avoid the topic of credit all together and just buried my head in the sand, so to speak.
Fast forward to about 3 years ago. I knew I was going to need to become responsible (in many aspects of my life). I pulled my credit and saw the damage that still remained. By this point, a lot of stuff had aged off. Don't get me wrong - there were still plenty of baddies on there, but not nearly as many as there once were I am sure. At this time, I was not a member of MyFico. So, I did what I assumed needed to be done: I contacted creditors on there and asked for a validation of debt (because honestly I had no idea which creditor they aquired the debt from). One of the creditors just removed the entire account, so I guess they did not have a paper trail, I don't know and I didn't question it.
Now, as for the rest of the baddies (5 collections and one charge off) I tried to arrange a pay for delete (I'm sure I used a different term but same concept). I was successful with three of them - and I immediately paid them. Frankly the accounts were probably well beyond SOL in my state, so that could have something to do with their willingness to do this. Within 60 days 3 collections were gone. This left 2 collections (one medical, one utility bill) and a credit card charge off. During this time, I applied for a Cap1 Platinum card (previously burned), and started off with a $500 CL. I was ecstatic, but knew I had to be responsible - this could not end the way it did years ago. I paid off the credit card charge off in full - it was reporting every month at a 300% utilization and they would not budge as far as deleting it. Paid in full, reported as a $0 balance, score jumps significantly, =/- 30-40 points across the board. I was pre-approved for a Cap1 QS1 about 2 years ago - and they gave me $1,000 CL. After this, it would take another 12 months before I addressed the last two collections. The medical collection company finally agreed to a PFD if received in full via certified funds within 14 days. Done, and within a week the account was deleted. Score jumps another 20 points immediately, to around 650 ATB. At this point, I was so close, I could taste it: I almost had taken care of every obligation reporting on my credit reports. The last one was a utility bill and again, they insisted that they didn't do PFD. I know many people on here will say with old accounts they will just wait to age off - but it was such a small amount, I paid it. Scores were now reporting 660-690.
After being content for a while, I applied for several more cards: Cap1 BuyPower, Discover, and American Express (previously burned). Approved for all of them. It was a sigh of relief. My scores are not perfect, nor where I want them to be. But, for those of you starting out your rebuild, I will tell you this: It can be done! I live well below my means, I used credit cards for their perks - not because I need them to buy something. It's been over 10 years since I have had my scores hover around 700, and the feeling is simply amazing.
So, for what it's worth, here is what I have learned: Read the MyFico forums. Learn from what others before you have done. Make a promise to yourself to not put yourself into the same situation again. Some things may magically fall off, BUT if your credit reports look like mine did, you're probably going to need to pay up - and you shouldn't harbor any bad feelings about that - if it's debt that you legitimately created. Time heals most wounds and you need to have patience. You did not get yourself into this situation over night, and most likely, you're not getting out of it over night. And, what I most recently learned - American Express will forgive you, in time.
Anyway, I know this is long - I just felt like sharing I guess. A huge thank you to all the members who contribute on a regular basis - y'all are certainly partially responsible for my 250+ point gain in a 3-year span. In my wallet 3+ years ago: cobwebs (ok, my debit card). In my wallet now: 3 Cap1 cards, 2 American Express cards, and 1 Discover - and I am content with that.
Current Score 7-1-21: TU: 812 EX: 805 EQ: 839
Goal Score:ACHIEVED - 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Platinum - DISCO - NFCU Cash Rewards - Chase Sapphire Preferred
