After quite a few years of trying on my own and getting almost everything wrong, I’m here to ask for help. This might get long, so to summarize I’ve had credit trouble and I would like to have my credit looking as good as possible by spring of 2017. Details about my current credit status are at the bottom of this post. I would like help creating short and medium term goals, and a plan to achieve them. Thanks in advance for any advice, comments, questions or encouragement.
I’ll give you a little more background. Around the middle of 2006, everything in my life was falling apart. My relationship with my wife was in the dumps, she and I were both depressed. Bills were piling up to the point that we couldn’t handle them. We were expecting our second son, and the medical bills added onto everything else were just too much. We picked a few of our credit obligations and just kind of gave up on them.
I wound up leaving my stable job for a questionable and risky business opportunity across the country, hoping for a quick fix and a way out. We were barely able to squeak by on what we were earning. I used all the money I had access to to pay off some of my credit accounts, and just let the rest go. I gave up and thought I would just live the rest of my life without credit. I vowed to pay back the rest of my obligations ‘some day’ when I was able.
Over the past couple years, I have gotten my life into much better order. Just this spring, my wife and I finally paid off the last of our delinquent obligations. I’m back in college to finish up my degree in a lucrative field. When I am done I should be able to get some kind of decent job. However, to get a really good job I’m going to need to pass an employment credit check. I will graduate in May of 2017, and would like to get my credit into the best shape possible by then.
I applied for a Discover It card in March and they gave me a secured card. (I lucked out here that my uninformed actions worked out this once. Unfortunately, I only put up $300. I could have done quite a bit more and I wish I had.) The credit score they gave me at the time I applied was 618. The score on my April statement was 630.
Here are the items on a recent Experian credit report.
--A civil judgement by capital one that is schedule to fall off in Feb 2017. (I just ignored all of the letters from the lawyers and the court. <sigh> This has been satisfied, but that is not reflected on my report yet.)
--A charge off from Capital One (the same item from the judgement above) scheduled to fall off in Sep 2015.
--A mortgage listing me as a signer, status Open/Never late, Date Opened Sep 2001, original amount $75,000, current balance $58,000.
--A citibank card with $25,000 balance as authorized user, opened 12/1995, closed by grantor 6/2010, Closed/Never late, current balance $10,000. On record until 2024
--Discover card opened 03/14, credit limit $300, primary account holder, Open/Never Late
--Fry’s Electronics card opened 11/2003, primary account holder, closed 06/2009. Paid,Closed/Never late. On record until June 2019
--GMAC auto loan joint with wife, Opened 01/2003. Closed 05/2008. Paid, Closed/Never late. On report until May 2018.
--JC Penney, primary holder. Opened 08/1996. Closed 02/2012. Paid,Closed/Never late. On report until 2/2022.
--PNC Credit card authorized user. Reported lost or stolen. Opened 05/2003. closed/Never late, scheduled to fall off this month.
--PNC Bank authorized user, Opened 05/2003. Limit $3600, Balance $1800. Open/Never late.
--Student Loan primary holder, Opened 01/2014. Original Amount $7000, Balance $7000. Open/Never late. Deferred. (I’m making interest payments which show up on my report, but I assume that doesn’t affect my credit score.)
--Dept. of Ed Direct Loan primary holder, Opened 08/1998. Original Amount $3000. Paid, Closed. On report until 05/18.
--I am showing 4 hard pulls from Capital One’s collection agency:
04/09/12
10/09/12
07/24/13
01/21/14
I will be taking out more student loans over the next few years. I will keep them as low as possible. I realize they will probably hinder my ability to improve my credit, but they are necessary. Aside from student loans, I shouldn’t need any credit for the next few years. Anything I open or borrow will be only for the purpose of building credit.
What is a reasonable goal credit score to achieve by 2017 given my situation? What are some intermediate goals I should set? What’s my best course of action to start on the path to great credit? What's my first step?
Sorry for the length of my post, and thank you for making it through all of that. Thanks very much for any input you may have.
