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Established Member
ReachingMyGoals
Posts: 42
Registered: ‎10-11-2012

Newbie here...Needing a great deal of help

Hello...

 

I am so glad to have found this forum that I have had little sleep.  I want to begin the road to credit recovery...TODAY!

 

I am thoroughly embarrassed about my circumstance, but no more it is high time to get things in gear.  Let me state that I had started the process and was well on my way at least 6 years ago, but I was in school and had to move and well life happened. 

 

Most of my report reads from my Student Loans.

 

I have 2 accounts that I'm currently concerned with that were closed and CO but, I'm still receiving correspondence to settle.  Is that right?  I'm scared that if I do, that will reopen and then they will stay on my CR much longer.

 

Okay I have a couple CA accounts for these same to CC accounts...what should I do?

 

Next question..Should I work on getting the CA accounts removed before applying for a secured card or do I leave them until after?

 

Thank you for your help.  *Remember I'm a NewBEE so I am not yet acclimated to the Proper Forum Etiquette*  :smileyhappy:

Regular Contributor
somotao
Posts: 228
Registered: ‎08-13-2011

Re: Newbie here...Needing a great deal of help

Welcome to the forum and do not be embarrassed. A lot of us have been in simialr situations and slowly climbing the ladder of credit recovery.

First things it to get familiar with a lot of the teminology thrown around here. Next you need to work with the Collection Agencies (CA) and try and offer them Pay for Delete letters (PFD), a lot of them just want to make some money on the debt and would most likely accept. Some of them may prove stubborn but do not let that deter you...to road to recovery is a long one but not an impossible one. You should look to find a local credit union to establish yourself with, one that would be willing to open a secured credit card and possibly a secured loan. You want to start having positive credit lines reporting. If you have not burned capital one in the past you could see if you are pre-qualified for one of their cards before applying. Good luck on your road to recovery and keep us posted on your progress.


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Moderator
Shogun
Posts: 12,902
Registered: ‎04-15-2011

Re: Newbie here...Needing a great deal of help

Hello and welcome to the forums!

 

Obviously you've done a little research because you are using the proper abbreviations, so I'll assume you've been lurking around a bit.  That's great, but now it's time to get serious.  I usually advice to build and clean at the same time.  They often go together.  Let's look at those COs.

 

How old are they?  Do you know the DOFD of them?  Were they sold or assigned to the CAs.  If they were sold, then the OC no longer has any dealings with them so it will be all CAs.  How much are they?  Can you do a PFD?   Look into this and post back, we will formulate a plan of attack.  Good Luck!


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Established Member
ReachingMyGoals
Posts: 42
Registered: ‎10-11-2012

Re: Newbie here...Needing a great deal of help

Thank you Somato for the welcome!

 

I did the pre-qual for Capital One and this was what came back,

 

we couldn't match your records to a card offer

But based on your answers, we think you might like this card.

 

They showed the Capital One Classic Platinum, Capital One Platinum and Capital One Cash    P.S. * I have a a Cap 1 card in the past.

 

I am a member of a credit union.  I have contacted them regarding the secured card about 5 months ago, I just never sent for it.   I do not believe I even knew about a secured loan.  Will call them on tomorrow.

 

Moderator
Shogun
Posts: 12,902
Registered: ‎04-15-2011

Re: Newbie here...Needing a great deal of help

Absolutely get that card.  Revolving TLs account for up to 35% of your CR score.  What I recommend is when you get the secured card, treat it like a bill.  Put $25 or $50 into it every payday.  It is like a savings account and adds to your CL.  This will help you get a better unsecured card when the time comes.


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
ReachingMyGoals
Posts: 42
Registered: ‎10-11-2012

Re: Newbie here...Needing a great deal of help

Thanks Shogun,

 

I have to respond to your 1st post as well.  So, the recommendation is to only get the secured card.  Don't worry about one of the other 3 that were mentioned from Capital One?

Moderator
Shogun
Posts: 12,902
Registered: ‎04-15-2011

Re: Newbie here...Needing a great deal of help

Capital1 has it's place in credit rebuilding, but your CU will offer you opportunities that you will most likely never see with Cap1.  They are not a card that will grow with you, it really won't lead to bigger and better things like your CU will likely offer you.


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
ReachingMyGoals
Posts: 42
Registered: ‎10-11-2012

Re: Newbie here...Needing a great deal of help

Shogun,

 

I contact the company that has the card through my CU.  I was told that I could only add more to the CL once every 6 months.   So I will save a little more in order to start out with a good amount.

Moderator
Shogun
Posts: 12,902
Registered: ‎04-15-2011

Re: Newbie here...Needing a great deal of help

Sounds good!


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!

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