02-05-2011 11:13 AM
Back in 2003 I got into a financial jam and destroyed my credit. All my credit cards got charged off and I turned my car in. After turning my car in the company filed a lawsuit and won a default judgement because I didn't appear in court. Long Story short I paid all my accounts off so I'm debt free. The judgement I have on my credit says sastified and I have about 3-4 chargeoffs that are negative but paid in full. Thankfully I managed to keep my Macys card which is my oldest account and reports positively but they no longer reports the credit limit so I'm stuck without available credit. I recently applied for a Orchard Bank Credit Card and was approved for a unsecured card with a $500 credit limit. This new account has helped me pull my score with myfico to a 615 now.( equifax). I sent a letter into the judge requesting a motion to vacate and have my fingers crossed to see if they will award that to me. In the meantime I'm trying to see what else I can do to get my credit score up. I applied for a secured bank of america last september and a business credit card with them as well and was declined. The past few months I was relying on a FAKO score of equifax which told me my credit score was a 674. I didn't even realize how bad my credit score was. I'm trying to apply for a house sometime close to summer May/June. The credit score min has grown to 650 with most banks and 620 with a VA/HUD loan program but that get's you the worst rates. I also have a business which I need funds for but can't get approved with a score this low. Any advice would be helpful. I know credit repair is normally a lengthly process but I'm hoping to gain some tips to get my score up fast.
Need Business Loan around $10,000 and Home Loan around $250,000
Goal MyFico Score 680 and up
02-05-2011 06:07 PM
Unless you have a long, established business with profitability and excellent credit references dating back 2-3 years...obtaining business credit in this climate is a near impossibility. You may stand a better chance in obtaining credit directly with the creditors with whom you need to purchase business supplies/materials/inventory/etc.
Borrow from friends and Family. Even if it's $1,000 from 10 different people. Provide them an actual contract for the loan, with interest...and include a repayment schedule. That is your BEST bet.
Home Loan: keep working on your credit. Try to get some of the baddies deleted.
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