Rebuilding Advice - 500's

[Anonymous]

Hello all,

Thank you all so much for the wealth of knowledge that everyone provides here! I've been a lurker and finally wanted to share my story and would love to get anyones input.

In a short summary, I've also had my head under the sand for a while and have been using cash and debit to manage my everyday. After my infant son's death, forclosing on our home and a huge battle with depression in 2012, I think I'm finally able to get my head in the right place. I'm currently expecting to give birth at the end of the month and would love to move out of our rental and purchase a home.

Lender pulled up my credit score and all my numbers are hovering in the low 500's. I'm hoping the only way from rock bottom is UP! With a long employment history and decent income, the only thing from us qualifying for a VA loan are my numbers. My husband was the only one on the forclosure, but his employment history and income wouldn't qualify for mortgage alone (in addition to his fair credit)

I've hired lexington (which I'm now starting to regret because I can't even qualify for a secured cc) to try to dispute some of my collections.

Current Credit Scores (Edited)

As of 5/1/17, my FAKOs are

EQ 548 EX ?  TU 517

As of 5/1/17, my FICO 8 scores are

EQ 585 EX572 TU568

Collections & DOFD (Updated)

• AFNI (AT&T) - $500.00 – 8/1/14 This is under my husband's ss# but under my name. He couldn't even speak to AFNI if he wanted to.
• PG&E (Electricity) $599.00 10/1/12
• STELLAR RECOVERY (Comcast) $520.00 9/1/14
• CAVALRY PORTFOLIO (HSBC) I have no idea what this is $466.00 7/7/11
• CAPITAL ONE $360.00 8/1/16
• RASH CURTIS & ASSOCIATES (Water Bill) $210.00 9/1/13
• ECMC (Student Loan) $3,246.00 1/1/08   $2,130.00     $1,794.00  (Not sure if these are even valid numbers at this point but this student loan has been dormant for quite a while now.

Active Accounts

• Auto Loan - 2012 with some 30 day delinquencies
• No Revolving Accounts of my own, but I've been added as an AU to my husband's Target Visa.
• I just signed up for the CD Personal Loan to get another installment on my credit in case I decide to pay off my car.

Next Steps and suggestions

• Work on PFD's & Research more on the AFNI
• Should I pay off my car? I have about 4 more payments to go but I am not sure how much this will boost my credit.
• Apply for 2 more revolving accounts - I hit a roadblocker here, I am not sure if it is because Lexington started sending out Fraud Verification letters to creditors but all the secured CC's I've attempted to apply for have thus far given me the 7-10 day review notice.

Goals

Get score up to 620 asap.

[rmduhon]

Pull your actual credit reports from annualcreditreport.com and find out the DoFD. Get the 7 day trial from creditchecktotal.com for $1 to see your actual FICO 08 scores. What is the SOL for your state?

[Anonymous]

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@rmduhon wrote:
Pull your actual credit reports from annualcreditreport.com and find out the DoFD. Get the 7 day trial from creditchecktotal.com for $1 to see your actual FICO 08 scores. What is the SOL for your state?

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This really should be your first move ... I'm not really sure I have an opinion on Lexington ... I've heard good, I've heard bad. 

Don't pay off your car loan ... make a plan for paying off some of those debts ... try to get PFDs. 

Lastly, you need to be sure you understand that moving your scores into the 620 range is not going to happen overnight, nor is 620 really the number you should be shooting for. You'll need to shoot for above that, because as you start the mortgage process, companies will pull your credit, and the hard pull will have a minor negative impact on your scores, but it's entirely possible that you could drop below the threshold during the mortgage process. 

In that case, you're looking at needing a 100 point increase. It can be done ... but it'll take at LEAST a year, provided you make all payments on time, etc. 

Be realistic. You can do this, but it'll take time

[Anonymous]

Thank you, Rmduhon & jjking54!

I've followed the first step and requested all my credit reports & FICO 8 scores. I wasn't able to get my TU since there has been a dispute and I can't access that until the dispute has been resolved. (this might have been Lexington's doing - I'm going to give them a call as soon as I can) 

I'm in california and my  SOL is 4 years.

jjking54 - Yes, I know this will be a process and I will be patient with it. I didn't get myself into this mess overnight and doubt that it can be fixed just as quick - but I am hopeful that if I start now, I can get somewhere!

Current Credit Scores:

As of 5/1/17, my FICO 8 scores are

EQ585 EX572 TU568

Collections & Estimated DOFD

• AFNI (AT&T) - $500.00 – 8/1/14 This is under my husband's ss# but under my name. He couldn't even speak to AFNI if he wanted to.
• PG&E (Electricity) $599.00 10/1/12
• STELLAR RECOVERY (Comcast) $520.00 9/1/14
• CAVALRY PORTFOLIO (HSBC) I have no idea what this is $466.00 7/7/11
• CAPITAL ONE $360.00 8/1/16
• RASH CURTIS & ASSOCIATES (Water Bill) $210.00 9/1/13
• ECMC (Student Loan) $3,246.00 1/1/08   $2,130.00     $1,794.00  (Not sure if these are even valid numbers at this point but this student loan has been dormant for quite a while now.

[Anonymous]

For the water bill, pay the original creditor. Once paid, dispute it. Rash and Curtis will delete it. I did that a couple of months ago.
For PGE, they will remove once paid through goodwill. I had a bill but moved and didn't receive it at the new address. Paid the bill then sent a goodwill letter. They removed it pretty quick.
Afni will delete but won't put it in writing.
Good luck

[MrTom]

The Calvary account, HSBC (Household Bank) is there a Hosehold Bank TL on your credit report?

The only way to get Calvary to delete is through a CFPB or BBB complaint.  But remember the complaint needs to have good merit to it besides you want it deleted just because..  Your biggest score jumpwill come with the last collection account removed.   If you talk to calvary, all they know how to say is NO.

[Anonymous]

wow! your story if so very similar to mine. I just joined here last week

I'm sorry to hear about your son's passing. Our angel died in 2013 and I can relate on the depression. We did a short sale in 2012. I have two 30 day late payments showing from a 2012 paid and closed auto loan accnt. I just paid off my student loans a few months ago.

I joined here 4/24/17 last week monday, paid lots of bills, caught up on any lates, wrote multiple GWs, and settled all CAs which will be removed by next week. Today my TU score went up 11 points! Yay to little victories.

From what I've read and responses to my situation...

1. Keep your auto loan, make payments on time. It'll help with your mix of credit.

2. Write GW letterss.

3. Make PFD offers or PIF on CA.

4. The student loans are a different breed if they are federal. You can try writing a GW and try to catch up.

Good luck to you!!

[Anonymous]

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@Anonymous wrote:

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@rmduhon wrote:
Pull your actual credit reports from annualcreditreport.com and find out the DoFD. Get the 7 day trial from creditchecktotal.com for $1 to see your actual FICO 08 scores. What is the SOL for your state?

---

This really should be your first move ... I'm not really sure I have an opinion on Lexington ... I've heard good, I've heard bad. 

Don't pay off your car loan ... make a plan for paying off some of those debts ... try to get PFDs. 

Lastly, you need to be sure you understand that moving your scores into the 620 range is not going to happen overnight, nor is 620 really the number you should be shooting for. You'll need to shoot for above that, because as you start the mortgage process, companies will pull your credit, and the hard pull will have a minor negative impact on your scores, but it's entirely possible that you could drop below the threshold during the mortgage process. 

In that case, you're looking at needing a 100 point increase. It can be done ... but it'll take at LEAST a year, provided you make all payments on time, etc. 

Be realistic. You can do this, but it'll take time

---

It's possible that he could get higher in less then a year. It doesn't have to be a year to get to a 620. Getting a secured card reporting, some collections removed, and a few other items off and you could see a huge jump.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

---

@rmduhon wrote:
Pull your actual credit reports from annualcreditreport.com and find out the DoFD. Get the 7 day trial from creditchecktotal.com for $1 to see your actual FICO 08 scores. What is the SOL for your state?

---

This really should be your first move ... I'm not really sure I have an opinion on Lexington ... I've heard good, I've heard bad. 

Don't pay off your car loan ... make a plan for paying off some of those debts ... try to get PFDs. 

Lastly, you need to be sure you understand that moving your scores into the 620 range is not going to happen overnight, nor is 620 really the number you should be shooting for. You'll need to shoot for above that, because as you start the mortgage process, companies will pull your credit, and the hard pull will have a minor negative impact on your scores, but it's entirely possible that you could drop below the threshold during the mortgage process. 

In that case, you're looking at needing a 100 point increase. It can be done ... but it'll take at LEAST a year, provided you make all payments on time, etc. 

Be realistic. You can do this, but it'll take time

---

It's possible that he could get higher in less then a year. It doesn't have to be a year to get to a 620. Getting a secured card reporting, some collections removed, and a few other items off and you could see a huge jump.

---

It's possible, no doubt ... I went up 120 points in a year ... my original statement was based on his FAKO scores and the assumption that those may have been higher than his true FICO