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Rebuilding - Feel like I'm at a stand-still...

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Anonymous
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Rebuilding - Feel like I'm at a stand-still...

Hello everyone!

 

I have been working on improing my credit since February this year. A little back-info: right out of high school I was sent many credit card offers and accepted every one; never paid them off. Had cell phone services, loans, etc. which also went to collections. This was about 8 years ago so alot has dropped off, but there are still several negatives on my credit.

 

On the positive side, I do have one paid off loan, one paid/closed credit account, and four current lines of credit (all opened this year between February and September) which I pay in full every month and try to stay under 30% utilization. Doing this the past 7 months I have brough my score up about 60 points, but it's still considerably low. I feel like the next step is to tackle each negative, one at a time, and see if it can be removed or negotiated down to a settlement pay-off amount.

 

(There are also some accounts on my credit which I was unaware of, including TWO T-Mobiles opened last year, though I've been with Verizon for years now; T-Mobile doesn't even get reception where I live so it wouldn't even make sense for me to apply with them, let alone open two accounts.)

 

Is this a good next step to take? How did/are you guys going about rebuilding? Please no abbreviations in your reply, I'm new to all this and don't know what they mean.

 

Thanks!

Message 1 of 4
3 REPLIES 3
Anonymous
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Re: Rebuilding - Feel like I'm at a stand-still...


@Anonymous wrote:

Hello everyone!

 

I have been working on improing my credit since February this year. A little back-info: right out of high school I was sent many credit card offers and accepted every one; never paid them off. Had cell phone services, loans, etc. which also went to collections. This was about 8 years ago so alot has dropped off, but there are still several negatives on my credit.

 

On the positive side, I do have one paid off loan, one paid/closed credit account, and four current lines of credit (all opened this year between February and September) which I pay in full every month and try to stay under 30% utilization. Doing this the past 7 months I have brough my score up about 60 points, but it's still considerably low. I feel like the next step is to tackle each negative, one at a time, and see if it can be removed or negotiated down to a settlement pay-off amount.

 

(There are also some accounts on my credit which I was unaware of, including TWO T-Mobiles opened last year, though I've been with Verizon for years now; T-Mobile doesn't even get reception where I live so it wouldn't even make sense for me to apply with them, let alone open two accounts.)

 

Is this a good next step to take? How did/are you guys going about rebuilding? Please no abbreviations in your reply, I'm new to all this and don't know what they mean.

 

Thanks!


Are those T-Mobile accounts positive? If not, get rid of them! And tackling the negatives is always a good place to start. There is plenty of good information here on how to go about that. 

 

I started re-building last October. All my scores were around 560 and I had a lot of negative accounts (baddies). I worked with a couple people and sent some dispute letters for companies that were reporting incorrectly. I've also been sending goodwill (GW) letters asking companies to remove 1 or 2 late payments. I (generally) have kept my utilization around 5%, except when I needed out of my car lease because my mileage was getting crazy. Most recently, I decided to go balls to the wall and pay down all my balances to 0. My savings account is not happy, but I'm seeing increases already! Good luck on your journey and welcome! 

Message 2 of 4
Anonymous
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Re: Rebuilding - Feel like I'm at a stand-still...

If those T-Mobile accounts aren't yours you may want to do an ID theft deal to remove them - I don't understand the process, but I've seen it mentioned here - you'll have to swear in an Affidavit or Police Report that they aren't your accounts and that your identity was used.....then you file something with the bureaus......search the forums or watch your responses in here - I'm sure someone will tell you a better way - or link you to a way to do it.   Obviously if someone is opening accounts in your name that is an issue.

 

Try to keep your current cards paid down.  I've read - and am trying to use each of my new cards some each month - but pay most before statement date - and keep under 10% utilization.  I've been told you need at least 3 Bank cards and an installment loan (car/personal) to best maximize your score.  

 

Work on dealing with the collections one at a time - call and get a PFD (pay for delete) or send GW (goodwill letters) to get late payments removed.  

 

(Also there is a good link in the main forum with a list of abbreviations - you might want to take a look at it because some of the abbreviations get used ALOT - I had to look a lot up when I started in here)

Message 3 of 4
Anonymous
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Re: Rebuilding - Feel like I'm at a stand-still...

Thank you both for the replies! I'm going to order copies of each credit report and I think DV the false ones and PFD the others that aren't due to drop off anytime soon. Never knew there was SO MUCH involved in learning to rebuild your credit!

Message 4 of 4
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