@Anonymous wrote:
I have actively been on my journey to repair my credit for the past month. It's been a great way to put my OCD tendencies to productive use lol. I began using Credit Karma initially just to get an idea of where I stood with my accounts. I took the scores with a grain of salt, but the free reports was great. Then I found this forum and I've become obsessed with all the great knowledge everyone has, and it's an absolute godsend with all the answers to the many questions that have popped up for me. I was also able to sign up at CCT to get my FICO8 scores which currently stand at- Equifax 524, Experian 553 Transunion 536. Just months ago I would have been completely ashamed to put those numbers out there for everyone to see, but this forum has given me the courage to face it and put my efforts to remedying them. When they start to rise the satisfaction will be the biggest benefit. The content of my reports:
Experian: 5 lates (plan is to GW these), 2 collections ( 1 paid-before I was aware of PFD, 1 $832, sent DV on this one to start) 7 inquiries (5 fall off next year)
Equifax: 10 lates (yikes) 4 collections (2 same as above, plus 2 more both paid/1 of which the OC said they would recall from CA) 9 inquiries (6 fall off next year)
Transunion: 5 lates, 2 collections (same 2 as Experian), 6 inquiries (4 fall off next year)
My plan off attack is to first pay off any collection items remaining with a balance. Including 2 charged off cards (CapOne & FirstPremier before they are assigned to a CA), then work on GW letters to clear the lates. After the collections are done i'll work on getting a few secured cards to improve my revolving credit lines. I already have current student loans for the installment aspect. Any suggestions on approach is greatly appreciated.
Good that you are starting to work on your scores.
Many of us, myself included, started in the 400 range, and the reason we're in the rebuilding section in the first place is because we had problems, so you are in great company. Nothing to be ashamed about here, and you wont be lonely!
I high lighted the sentence above - I had the same thoughts when I started rebuilding and I kind of regret them now. Your credit history and your credit utilization are two separate sections of the Fico scoring and they can and should be worked on at the same time. I tried to clear up past problems before looking for any new CCs and I think that set me back quite a bit.
The only reason I would think of for not doing both at the same time is if funds are very limited and you can only do one small step at a time.
If at all possible, I recommend trying for secured CCs now. You can get a secured CC from Opensky for 200 with no credit check. You can also get a great deal at State Department Federal CU with a 500 secured deposit. You can get a 500 secured installment loan for 36 months and repay it at less than 15 a month. Then, with the proceeds of the loan, you can make a secured deposit to get a 500 CC. That would satisfy the credit mix portion of the Fico scoring and also get another secured CC with a great CU. If you have a clear Chexsystems report, they will allow your membership. Check the 'who can join' link for membership options.
You really need at least 3 CCs for the scoring system, so maybe take a break for a month or two to let new cards report, then try for the third one. Cap1 has a prequal site, and app for the Platinum CC when available.
So if funds can be available, work on both sections at the same time.
GL, and HTH
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