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Rebuild help

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Anonymous
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Rebuild help

Hello. Just wanted to thank everyone in this forum for being so helpful. I've learned a lot about credits through here. With that being said, I screwed up my credit a few years back. Now, I am wanting to buy my first home and decided to start my journey to rebuilding. I started 8 months ago with Fico scores of low to mid 500s. Since the, I've gotten a few collections (3 left) removed, opened a few credit cards and store cards, and recently got approved for a $1500 credit limit from BECU. My scores are sitting at just above 600 all across. My question is, I have 2 major baddies that I need to deal with. One is a repo that is closed/charged off and another is IQ international that is still reporting monthly. Which one should I take care of first to see the best result in my scores? Thanks in advance. 

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RobertEG
Legendary Contributor

Re: Rebuild help

From a scoring perspective, FICO places consumers into categories for comparison, and uses differing scorecards based on the assigned category.

Those scoring categories are frequently called scoring buckets.

 

Under payment history scoring, you will remain in a less favorable category until all major derogs are removed.

If you have two major derogs, then significant score improvement will normally not be seen until both are removed.

 

The first question is what is the credit report exclusion period for each of the major derogs?

If they are at or near exclusion, then exclusion will provide removal without need for the creditor to volunarily delete, such as by seeking a good-will deletion.

 

The second issue is the possibility of a collection being reported on either debt.

It is common, or example, after a repo or charge-off, for the creditor to assign for collection or sell the debt, which can make things worse by the addition of a collection.

The repo/charge-off would be my first guess as to probability of an additional collection.

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