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Established Member
Posts: 42
Registered: ‎01-27-2013
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Need feedback on credit rebuilding strategy - new credit

I have several CO and collections stemming from finance problems in 2008. That said, my FICO is currently 657. I got a Cap One secured card 8 months ago and I think that has helped boost my scores. I also have a CU loan for my auto but it doesn't show up on all of my CRs.

 

So really, the only credit I have is the Cap One secured.

 

I'm looking to increase my scores more over the next 6-12 months. The FICO score report said I should apply for new and varied credit. However I've also read that store cards and gas cards don't really help and I should just stick with CCs.

 

Should I apply for another secured CC? Or will my currently FICO allow me to get a standard CC? If I go the secured route which card should I get? Should I just get one more or two?

 

Thanks in advance for any feedback.

 

 


Starting Score: 657
Current Score: 657
Goal Score: 725


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Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Need feedback on credit rebuilding strategy - new credit

It isn't so much your score as the COs and collections.  Are they paid?  If not many CCC will deny you credit.

 

Do you know what the DoFD of these accounts are?  Are they beyond your states SOL for suing?  Getting them off your CR would give you a big jump in score.

 

 

Epic Contributor
Posts: 21,575
Registered: ‎03-19-2007
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Re: Need feedback on credit rebuilding strategy - new credit

+1

It's a chicken or egg first kinda thing.

You need additional credit to build you score, but you need a decent score to secure new credit.

 

You might first do all you can to address existing derogs and unpaid, delinquent debt.  Then you will be able to obtain more favorable revolving terms.

Established Member
Posts: 42
Registered: ‎01-27-2013
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Re: Need feedback on credit rebuilding strategy - new credit

That makes sense. I paid two off last year but have 10 to go Smiley Sad The DOFD is on or around 06/08 so the SOL is coming up. I'm planning to pay off $6k of the $25k I owe this month. That will take care of two more accounts, both of which are are pursuing legal action.  Will paying these off bump my score? Will it make a difference if I settle or PIF? From what I've read, if I settle it won't help my score - only if I do a PFD, which I've been told is a long shot since they're already suing me? 


Starting Score: 657
Current Score: 657
Goal Score: 725


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Established Member
Posts: 42
Registered: ‎01-27-2013
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Re: Need feedback on credit rebuilding strategy - new credit

So, assuming I'm going to start paying down some of my COs and CAs, should I simultaneously get 1 or 2 more secured CCs. The thinking here is that, after 6 mos the new credit paid on time will show a better history and lower my utilization if I keep the balances near zero.

 

If you agree with that, what cards do you recommend?


Starting Score: 657
Current Score: 657
Goal Score: 725


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Moderator
Posts: 13,897
Registered: ‎04-15-2011
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Re: Need feedback on credit rebuilding strategy - new credit

Absolutely.  You have to build as you clean, otherwise you have a thin file.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
Posts: 42
Registered: ‎01-27-2013
0

Re: Need feedback on credit rebuilding strategy - new credit

Glad my thinking makes sense. Any suggestions on specific cards? I already have a cap one master card. Secured. 


Starting Score: 657
Current Score: 657
Goal Score: 725


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Moderator
Posts: 13,897
Registered: ‎04-15-2011
0

Re: Need feedback on credit rebuilding strategy - new credit

It really depends on what your CRs look like now.  Plus if you have one that's cleaner than the others, certain lenders will only pull from certain CRAs.  I would make a post of your situation over on the Credit Card boards and let those gurus have a shot at it.  They live for this sort of thing.  Smiley Happy

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
Posts: 42
Registered: ‎01-27-2013
0

Re: Need feedback on credit rebuilding strategy - new credit

Thanks, I'll do that for sure. Keep up the good work. This board is an invaluable resource.

Starting Score: 657
Current Score: 657
Goal Score: 725


Take the myFICO Fitness Challenge

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