This is intended to serve as motivation and hopefully inspiration for anyone who thinks they will never get the bad credit monkey off their back...
I train wrecked my credit years back and i do mean train wreck. It was bad. Scores in the low 5's and even a stint in the higher 4's.
I studied up on GW, PFD and DVs and started picking each derog, CO and CA apart piece by piece. I paid what I could and let the one's I couldn't pay expire based on time.
It took a long time and living on cash for most of the time sucked. I could not even get cable tv without needing a 400 dollar deposit.
Toward the end of the journey, I found these forums and lurked for awhile before speaking up. I listened to the advice that I got from those here who were in the same shoes or had walked my current path before. It worked.
Today, I took my new credit scores for a trip around the track and returned with a Chase Freedom, Discover IT and Amex BCP. I also got into NFCU and have an app pending for their Flagship Signature Visa. (I hope I get the NFCU card of course but if I don't, its okay)
I received a total of 7500.oo in additional unsecured cedit today and when I started this morning, my scores were as they are in my Signature.
So its really simple, if I can do it, so can everyone else.
I want to say Thank you to everyone here for their advice and patience over the past few months with me.
Hang in there folks, there is an end and its often a lot closer than we believe during the journey of rebuilding our credit.
Congrats, and thank you for the inspiration.
Such a role model!
@750orbust wrote:
So what was the time line from your old scores to your current ones?
I started serious repairs in 2011 and paid off what I could. I GW'd a couple a got PFD on a 3500 bad. I got Verizon to remove a bad due to a change of address and billing mix up and I just waited out the rest.
Between 2006 and 2011 I had to live on cash for the most part. I had a couple secured cards but they were very small limits.
I started posting here in February I think, but I lurked for a couple months before that.
The last bad went by by in late February or early March after my second dispute to the CRAs about it. Once Exp took it off I was able to use that as evidence of sorts with TU and EQ.
Then it was removed and I paid down all my balances so my total util is less than 5%.
I did not app for much of anything for a long time because inq will kill a rebuild in a hurry. So when the final bad was gone I was left with low inquires on both TU and Eq and 7 on Exp (Four from the same place and six of the seven almost at 24 months.)
Two years ago, my wife got an amex green and immediately we added me to it as an AU, same with Discover and a Cap One credit steps platinum card.
In September last year I apped for the Cap one Cash Rewards card and after two weeks, they finally caved in and let me in with a 500 dollar limit unsecured on my own.
Then I discovered the threads about the Cap one EO and shot off an email for both my wife and myself. Ironically, I got an increase a month back to 1500 from 500 and she got an increase from 750 to 1000.
Night before last I called our rep at the EO and went for another CLI since my balances were all reported outside of 2 cards both of which I paid to zero. They called this morning and informed me that they had granted me another 100 dollar increase from 1500 to 1600. I laughed a bit at that one because I knew my TU was 725, My Exp was 721 and when I pulled my EQ this morning it was 750.
with inquiries of TU 3 (one for NFCU membership yesterday), EQ 2 and Exp 7 (six almost ready to fall off).
Since FICO does not use Inq older then 1 year in its scoring, I felt confident I could pull decent cards finally.
I bank at Chase and have for almost a decade so I started there because of that relationship and because they are inq sensitive. It worked with an instant approval for the Freedom card at 2500. I called the recon line and asked for a bump to 3500 which they gave me almost before I got the request out of my lips.
Next was my dream card, the Amex BCP. Again it was an instant approval and I did not call to recon. Instead I will be happy that I am in with Amex on my own and try for the 3xCLI in 61 days.
Next came Discover IT because of our two year relationship as an AU. It was another instant approval for a 2K limit. I will ask for a CLI in 6 months.
Finally I went ahead and apped to NFCU for their Flagship Visa Signature card which I believe has a min CL of 5k. That app is still being reviewed but some folks with a lot of NFCU are telling me that I have nothing to worry about. NFCU pulls EQ 99% of the time for Credit cards and my score there is 750. I have been advised the way NFCU works usually is to take longer when they are going to give a higher limit.
Thats my spree and I am now in the Garden for at least 61 days until I try for the Amex 3XCLI to raise my BCP from 2K to 6K. The key now is to not carry a balance or if I do to carry less than 5% util and not to app for anything else.
When I GW'd and sent PFD letters, I used the examples here and tailored them to my specific situations. I forced Midland off by time and the same for LVNV. I had no choice as they would not settle for terms I could financially swing.
I have no lates now, no derogs and no negatives whatsoever. I will know tomorrow how many inquiries and where they were pulled from. But I think it was Exp for Chase and Amex, TU for Discover and NFCU almost always pulls EQ for Credit cards.
That should take me to Exp 9, TU 4 and EQ 3. In the next 6 months though, 6 of the 9 on Exp will fall off. along with one each on TU and EQ.
The key for me was paying what I could and being persistant with my GW and PFD letters.
I know its not easy, but if you stick with it and don't over extend on any cards you can get during the rebuild, in the end it can work out really well.
I know that its extremely tempting to app for anyting one can get to "help a rebuild" but I challenge everyone to consider not apping during a rebuild. Instead try backdoor numbers to get a secured card with the likes of Cap One or any other "reputable" building card company. Then sit back, charge a pair of shoes or something and PIF.
Sooner or later Credit One or Merrick will see you on there radar and send you an invitation. Take it if you still have 12 months before all your bads fall off and do the same shoe purchase trick. Don't run it up.
Every single month, call up and ask for a CLI even if its small. Merrick is actually the easier of the two to do this with.
Then when the last bad falls, you will be sitting with hopefully two cards, one secured and one unsecured and 12 months plus of AAoA and no inquiries effecting your FICO score.
Cap One is a perfect place to go from there for the credit steps program, but after 90 days, go throught the EO and try for a CLI and AF waiver. They do it all the time. Just make sure your balance is nice and low or at zero.
Before you realize it, you will wake up one day to a score nearing or higher than 700. Then grab any no Siggy card you want. and keep right on doing the shoe purchase trick.
It can be done. I did it and I did not use any special tricks or gimmicks. Its not easy and rejection blows, but trust me, in no time at all you will be opening your own wallets to find them full of low balance having primes and there will be other card companies banging your door in to give you their products. Plus, for you fellas, the chicks love to see good shiney high end credit cards. For the ladies, dudes with shiney high end credit cards are responsible usually and most have enough room to buy flowers and stuff.
My number one piece of advice? Do not rob Peter to pay Paul. It never works.