Rebuilding Suggestions Please!

[Anonymous]

Need rebuilding help. A little background..

In October 2011, I had to file BK7. I had emergency surgery and after spending almost a year fighting with the hospital, I had no choice but to file BK7. The hospital was totally unwilling to work out a payment plan for the almost 50k in bills I had with them (Their brilliant offer was to pay it off in two payments, **bleep**!?)

My BK7 was discharged in January 2012.

My scores on Myfico.com are as follows:
EQ 676 TU 668 EX 669

I have no open collections on my accounts, and my utilization is currently sitting at about 7-8%. My DTI is 24%.

Now, I would like to continue to rebuild, but I have done some idiotic things on my rebuilding process so far. Before I started reading my fico forums, I started apping for a bunch of subprime, and store cards. I realize now that that was a big no-no. I’ve been able to graduate my BofA secured card to unsecured, and I currently have 2 CapOne cards. Those are the only semi-prime cards I have currently. I’m looking to get something that is more prime, but I have so many of these other crappy cards, I know that may be an issue.

Question is: How much will it hurt my scores, if I close some of the store, or subprime cards? I’m concerned about taking the hit not only on AAoA, but also that will drop my available credit.

Any advice would be great, as I am relatively new to all of this, and I want to make sure I continue my rebuilding in the smartest way!

Thanks!

[firetech593]

BKC,

To me, your situation may not be your ideal, but far from hopeless.

If your cards have no annual fee, keep them, you are correct that it helps your aaoa and utilization.

Positive history is positive no matter if its proime or a store card.

Your medical bills generally will not go to collections if you make consistent payments. My favorite is sending  $50 a month no matter how much I owe.

[Anonymous]

I'm gong to ask that your thread be moved to the Rebuilding Forum where there are more people who can give you guidance.

[Anonymous]

Great , thank you!

[Anonymous]

My advice:
Tell the subprime lenders to go pound sand. At your current scores you have options. Close all the crap. You don't wanna be doing business with the likes of Credit One if you can help it.

Store cards - how many are we talking? Two? Ten? Generally speaking it's ok to keep these despite the high interest. Use them once a year. If they are from lenders that will give a sp cli then take advantage of that.

How long have you had BoA and Cap1? If it has been more than 6 months since your last CLI with these ask for a cli. BoA will be a HP but for you it is worth it. Get the CLIs first then garden.

In 6 months, you can apply for other cards if you want them or get more CLIs. Note that some lenders like Chase will likely not approve before the Bk falls off.

Remember, cards affect your AAoA for 10 years after you close them. If you pay before the statement date you should be able to keep util under control even with relatively small limits.

Good job on getting to mid/high 600s in 3 years. You are on the right track.

[Anonymous]

Let's see if I can list everything.
Cap one QS 1 - CL 2000 bal. 115
Cap one platinum in credit steps 300 CL bal. 0
BofA was secured, recently unsecured 1000 CL bal. 60 (given 600 CLI when unsecured)
Merrick Bank CL 1600 bal. 0

Target CL 800 bal. 130 just purchased yesterday, will pay to 0 when hits
Walmart CL 400 bal. 4 dollars, auto renewal prescription
Old navy CL 200 bal. 0
Lowes CL 1500 bal. 0
Vic Secret CL 250 bal. 0
First Progress secured CL 300 bal. 0
USBank secured CL 300 bal. 0
J Crew CL 250 bal. 0
Milestone MC CL 300 bal. 0
Legacy Visa CL 350 bal. 0

I think that's everything!
Hope that helps!

[Anonymous]

I would open them for one yr then close the ones you don't use..that way you have 12 months history locked I

[Anonymous]

Oh, these have all been open for more than 13 months except for Lowe's.

[Anonymous]

Honestly i dont think you are in terrible shape at all. I would consider closing the merrick if it is costing you money every month to keep it open. Beyond that, i would consider a share secured loan at a CU unless you have a mortgage car loan or some type of installment. 500 dollar share secured from alliant or sdfcu or a local credit union. Cost over the life of the loan is less than 30 bucks and having an installment loan reporting certainly helps. 

[Jerry45]

Close  First Progress now.  It took me 3 months to get my Security Deposit from them.  you hhave some nice unsecured credit, just let them age and PIF, and you will be great