Plan to rebuild credit - thoughts, opinions

[BuffaloBoy]

Hey everyone. 

The Good

1) Kay Jewelers account. $4,000 limit.. $1,300 currently on it (charged). $2,700 left. 

The Bad

1) Bank credit card - $500 limit. It was 30 days late. Its completely paid off now.

2) BOA credit card - $1,000 limit. It reached $3,000 due to fees and interest. Charged off in 2008. 

FICO score is 598. Experian is 630. Thats the only 2 I know. 

My plan

1) Open $2,000 Certificate of Deposit. Borrow against it to create a $1,700 loan. Pay off in 12 months.

2) Open $2,500 secured credit card. 

3) Become an authorized user on WIfe's Lowes account ($4,500 limit. Only $75 balance).

Thoughts? Anything else I can do? Thanks. 

[chevyman]

The worst is the CO try to get that paid first maybe a PFD

[guiness56]

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@BuffaloBoy wrote:

Hey everyone. 

The Good

1) Kay Jewelers account. $4,000 limit.. $1,300 currently on it (charged). $2,700 left. Don't let it report a 0 balance but at 9% or below.

The Bad

1) Bank credit card - $500 limit. It was 30 days late. Its completely paid off now. Send a GW asking for removal of the late.

2) BOA credit card - $1,000 limit. It reached $3,000 due to fees and interest. Charged off in 2008. If it reports a balance and CL is it factored in your utilization.  Plus a ding for the CO itself.  Paying it off will completely remove it from factoring in utilization.

FICO score is 598. Experian is 630. Thats the only 2 I know. EX doesn't sell their scores to the consumer any more.  Not since Feb 2009.

My plan

1) Open $2,000 Certificate of Deposit. Borrow against it to create a $1,700 loan. Pay off in 12 months.

2) Open $2,500 secured credit card. 

3) Become an authorized user on WIfe's Lowes account ($4,500 limit. Only $75 balance). Yes it can help.  How old is it?  Any lates?

Thoughts? Anything else I can do? Thanks. 

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[Henchman21]

What Guiness said.

[BuffaloBoy]

Don't let it report a 0 balance but at 9% or below.

Ok, ill keep it between 1% and 8%. 

Send a GW asking for removal of the late.

Done. Wasn't sure where to send it so just sent to main office. Hope it reaches the right people. 

If it reports a balance and CL is it factored in your utilization.  Plus a ding for the CO itself.  Paying it off will completely remove it from factoring in utilization.

Bank of America shows it as charged off. They sold it to Midland Credit. Ugh. And they dont do pay for deletes or I would. 

EX doesn't sell their scores to the consumer any more.  Not since Feb 2009.

Not sure what to say about that. All I know is I pay them $19.95 per month to see my score and report on their website.

Yes it can help.  How old is it?  Any lates?

It's almost 4 years old. No lates. My wife has never had a late in her entire history of credit. How her credit isn't 850, i'm not sure.

[DaBears]

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@BuffaloBoy wrote:

Don't let it report a 0 balance but at 9% or below.

Ok, ill keep it between 1% and 8%. 

Send a GW asking for removal of the late.

Done. Wasn't sure where to send it so just sent to main office. Hope it reaches the right people. 

If it reports a balance and CL is it factored in your utilization.  Plus a ding for the CO itself.  Paying it off will completely remove it from factoring in utilization.

Bank of America shows it as charged off. They sold it to Midland Credit. Ugh. And they dont do pay for deletes or I would. Midland can do a PFD just be persistant!!

EX doesn't sell their scores to the consumer any more.  Not since Feb 2009.

Not sure what to say about that. All I know is I pay them $19.95 per month to see my score and report on their website. For $19.95 you get your report and a FAKO score. 

Yes it can help.  How old is it?  Any lates?

It's almost 4 years old. No lates. My wife has never had a late in her entire history of credit. How her credit isn't 850, i'm not sure. Bless her soul...Responsible person!!!!

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[BuffaloBoy]

Was just approved for a $1,000 limit Capital One secured credit card.

QUESTION: Does the limit matter? I can deposit more money to get  a higher limit (up to $3,000). Or should I apply for a couple more cards? 

[guiness56]

How many cards is a personal decison.  It is how you use them that matters.    I would add more to the secured for the time being. 

FICO likes to see you use credit but wisely.

[Henchman21]

I think it's probably better to have 1 higher limit card than 2 or 3 low limits.