01-21-2013 10:17 AM
Hey Guys, I've been working to repair my credit by tackling my collection accounts via PFDs and things have been steaming along. I've gotten 2 of my 6 accounts taken care of, one of the two actually followed through with the deletion. My credit is currently dead, I'm not sure what the term for it is actually but essentially I have zero lines of credit open with the exception of my school loan which I've worked with them on a payment plan that started last month.
According to the myfico score summary, the two things hurting my account are the total amount of debt/collections, and my payment history. Both are classed as "not good". On the flipside, my length of credit history and amount of new credit are both classed as "very good". I want to keep the very good factors in play but how do I go about establishing a good payment history without hurting the amount of new credit's very good status? My initial thoughts were to apply for a card and keep the balance below 9% and not miss a payment. Another option I was thinking about was possibly getting me added to my Wife's auto loan.
My current FICO score is 611.
What would you guys recommend?
Thanks a ton!
01-21-2013 10:33 AM
I'm in the same boat you are so I'm curious to see what others suggest! I got a PM from a member suggesting that I become an AU on a family member's card with a high balance, old age, low util % and excellent payment history. As soon as I become an AU, it was suggested that I open a secured card and use appropriately keeping my spending below 9%. The reason behind this is the age and history of the AU card will help raise my score and allow me to open an independent card without killing my score too much. That's just what was suggested to me the other day...I'm sure someone will chime in and give some better info!
01-21-2013 10:44 AM
Ask for recommendations in the CC forum as to which banks to apply to with your score. Target carefully. Don't apply if you're not pretty sure you'll get approved. If you or anyone in your family is military I highly recommend opening an account with Navy Federal. They gave me a $5k unsecured CC with a score lower than yours.
01-21-2013 11:51 AM
Are you saying that applying for a CC would be my next logical step?